The practice of corporate ethics and social responsibility has become increasingly important among companies worldwide. Ethics in business has always been around, however public scrutiny of a company’s ethical practices has become more prominent and seen constantly in daily news. While companies may gain recognition for certain shows of ethical behaviour, the extent that companies practice corporate ethics is not always consistent.
Gap took initiative when racist graffiti was put on one of their signs in New York by responding with an ad campaign featuring a Sikh model wearing a turban. This ad, different from the usual “all-American” ads, captured the attention of socially conscious consumers worldwide. However, after the collapse of a factory in Rana Plaza, Gap refused to sign an accord protecting Bangladesh workers which 100 other international retailers such as H&M had already signed. This disconnect between their ad campaign and their refusal to sign an accord protecting basic human rights brings into question the true ideals and objectives of Gap. It would seem that their ad campaign was solely a marketing ploy rather than a true showing of corporate social responsibility. It brings into question the possibility that acts such as Gap’s ad campaign are merely ways of increasing profits as stated by Friedman’s “stockholder theory.”
Sources:
http://www.usnews.com/opinion/articles/2013/12/11/gap-can-build-on-its-sikh-ad-by-protecting-bangladeshi-garment-workers
http://www.scu.edu/ethics/practicing/focusareas/business/conference/presentations/business-ethics-history.html