Clothing retailer Gap Inc. has found out that one of its vendors in New Delhi India was using child labor in the process of making its clothing. The children employed were sold by their families. They had to work long hours without wages and their working place condition were worst that the hallways were filled with dirty sewage from flooded toilets. This might lead to disease and cause health concerns for the children, but the sweatshop did not care about this concern. The children  would got beaten with rubber pipes if they were working inefficiently. Also, these young children worked with their hands for long hours because of making hand stitched blouses that were going to sell in the western countries like the United States for a price of $40 dollars each.

The issue here is that Gap will lose its loyal customers after the news is out. No one would want to buy a sweater that was made in inhumanity ways. Thus, this would lead to both a decrease in sales and profit. Even Gap try to put a large budget to restore its image later, it would not help. Its reputation is damaged inside the mind of the customers.

Picture reference: Google image