...The Gap Inc.: The CSR Evaluation of Gap Inc. Outline of the notable ethical decisions made by Gap Inc. and their impacts on the company In 2003, Gap Inc. was sued for its usage of child labor and sweatshop factories in its subsidiary in Saipan. The decision to use child labor and sweatshop in Saipan was made by the management of Gap Inc. that could either be seen as egoism or utilitarianism (Smith, 2004). On one hand, on the egoism perspective, Gap Inc. could have decided to use child and sweatshop labor to cut its costs and maximize its profits. On the other hand, on the utilitarianism perspective, Gap’s decision to use child and sweatshop labor, cruel and ethical as it might seem, provided the people in Saipan a source of employment and income. As a poor, third world country, Saipan could not create enough jobs to sustain the livelihood of all its citizens, so it the citizens could choose between starving to death and making a difficult living in Gap’s sweatshops, the sweatshop is apparently a better option. Hence from the utilitarianism approach, Gap’s unethical behavior was actually better than its doing nothing at all. However, this decision gave Gap an international lawsuit over ethical treatment of labor, which does not cost Gap considerable fortune and energy, but also severely harmed its international reputation as an ethical player in the apparel industry (Smith, 2004). It turned out that the public citizens and the media prefer to use the Kantianism when...
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...Gap Inc. and Nike, Inc. Overview Gap Inc. and Nike, Inc. Overview Financial Performance: Nike, Inc and Gap Inc. Nike, Inc. and Gap Inc. achieved top ranks for specialty retailers of 2007 according to CRO (Corporate Responsibility Officer, 2007) Magazine for “100 Best Corporate Citizens 2007.” Shareholders review various financial reports which help determine which organization yields the greatest profits and minimum loss in cash flow. This review contains two-year comparisons for Nike, Inc. and Gap Inc. by analyzing ratios for Liquidity and Asset Utilization, Debt and Interest Coverage, and Market based ratios. Analysts evaluate market and industry trends periodically that help determine where a company is most profitable. Usually, stockholders are interested in profitability ratios. However, lenders and suppliers favor liquidity ratios detailing how assets compare with current liabilities. Respectively, according to results for Liquidity and Asset Utilization, the current ratios, (current assets / current liabilities) shows for every $1.00 of current liabilities for Nike, Inc. has 3.1:1 (2007) and 2.8:1 (2006). On the other hand, Gap Inc. has 2.2:1 (2007) and 2.7:1 (2006). Specialty retailers’ average return is greater than 3 and the general retail average is 1.0 - 1.2. Nike, Inc. at 3.1:1 (2007) has the greatest financial responsibility to pay bills over the next year timely. However, Gap Inc. also has money to meet obligations with a 2.7:1 (2006) which is generally...
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...function. The internal and external factors such as globalization, technology, innovation, diversity, and ethics impact the functions of management. I chose to do my paper on Gap Inc.; I have worked for Old Navy for almost a year now, and Gap Inc. owns Old Navy. I see some things in the company that are benefitting to the company and will help make the business successful. There are also some things I see that will not make the company any money but in turn down the line have the company lose profit. Sometimes an organization does not see what they are doing unless they sit back and realize they need to get involved in the business more than just inspections and an occasional email. Internal and External Factors Internal factors of the organization Gap Inc. include planning for an event or sale. Making sure that the store has the correct advertisement for an individual sale so that people will see that a deal is happening. Making sure that every store has enough products for the sale to ensure people are happy with the deal and want to come back to the store. Planning for a sale or even the holiday and making sure there are enough employees to cover each store. All of these are internal factors of management for an organization. When an organization tries to come up with ways for the company to make more money they will look at the consumer for suggestions and that is what Gap Inc. does, they will give shoppers surveys to fill out and the incentive for completing the survey is a discount...
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...Gap Incorporations Tiffaney Peters Strayer University Business Ethics Dr. Davis March 4.2014 Gap Incorporation. Most companies, in these days are catering to their consumers and the environment. Ethical companies have a better advantage over companies who choose not to abide by ethical practices and are completely operating on a capitalist mind frame. Gap Inc. is listed by Ethisphere institute as a recognized Ethical business. Gap is a large clothing company with over 3,300 stores worldwide, it has been sought out for the World’ Most Ethical Company for six years straight (GAP Inc., 2013a). Gap has always given great attention to detail when it comes to social responsibility. With that being said it is very mindful of their current business philosophy concentrating on elements like more multi-stakeholders initiatives, campaigns against child labor and monitoring its factories. Gap is committed to excellent customer service, it is rated Excellent by Stella service.com in phone, email and twitter customer service. Stella uses a rigorous methodology to test the customer service performance of online businesses. Being rated an Excellent by this company is stating that Gap has a general high quality of service to its customers. Gap has mission, purpose and values that help guide the company, along with employers who have good morals and ethic practices when it comes to their consumers. Their mission statement is “Gap, Inc. is a brand builder. We create emotional...
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...Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Table of Contents Chapter 1 Integrity: The Basis for Ethics in Accounting 1 What Is Ethics? 1 Definition 1 Application of Ethical Reasoning in Accounting DigitPrint Case 33 32 Conclusion 34 Discussion Questions 34 Endnotes 36 Chapter 2 Cases 37 2 Case 2-1: A Faulty Budget 38 Case 2-2: Better Boston Beans 39 Case 2-3: Eating Time 40 Case 2-4: Is Internal Whistle-Blowing "Right"? Case 2-5: Play Ball 43 Case 2-6: Supreme Designs, Inc. 44 Case 2- 7: The City of West Buckle 46 Case 2-8: The CPA Review Course 47 Case 2-9: The Ethics ofiPod-ing 48 Case 2-10: The Tax Return 49 Distinguishing between Ethics and Morality Religious and Philosophical Foundations of Ethics 3 Teleology 4 Deontology 6 41 Acting with Integrity Personal Integrity 8 7 The Moral Point of View 7 The Six Pillars of Character.... 8 Trustworthiness 8 Respect 10 Responsibility 10 Fairness 11 Caring 11 Citizenship 12 Chapter 3 Ethical Decision Making in Business 50 What Is Business Ethics? 51 Ethical Issues in Business 51 Virtue, Character, and CPA Obligations 12 Scope and Organization of the Text 12 Conclusion 14 Discussion Questions 14 Endnotes 15 Chapter 1 Cases 17 Case 1-1: A Student s Dilemma 18 Case 1-2: Giles and Regas 19 Case 1-3: Jason Tybell 21 Case 1-4: Lone Star...
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...Business ethics can be described as the ethical dilemmas that arise within a business setting. GAP Inc., similar to most other multinational corporations (MNCs), has faced numerous ethical issues in the past. Since 1995, GAP’s image has been continuously tarnished through allegations of exploitive working conditions, cheap labour, and hostile environments overseas. One ethical issue surrounding GAP Inc. emerged from the “Made in U.S.A.” labels, resulting in the deception of American customers. This is an ethical issue because all of the clothing was made in Saipan. While Saipan is technically part of the U.S., it does not have to follow the same labour laws and standards as North America. As a result, GAP customers falsely believed the clothes they were purchasing were American made and subject to the strict policies and regulations America must follow. GAP followed through with the deception of consumers, which only began to tarnish their image. The second ethical issue surrounding GAP was the implementation of its “Code of Conduct” but the failure to enforce it. In 1993, GAP created a Code of Conduct aimed at preventing discrimination, fair wages relative to national standards, no employment of children, and no penalization for union formation. The Code of Conduct was to be signed by the individual suppliers in order to uphold the agreement. However, the Code of Conduct was not effectively enforced. In El Salvador, a GAP supplier, minimum wage standards were not met, and children...
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...Sky Air Inc.: Business Ethics Case Brock A. Reeves University of St. Thomas Summary of the Case Study Sky Air Inc. was an airline with its head office in Idaho Falls. It came into being in 1986. Its founder, Samuel Kaplan, was once an air force mechanical engineer. Apart from his engineering background, Mr. Kaplan was also a talented golf player. Having been born and brought up in Idaho Falls, Kaplan found out that there was a gap in the airline industry there. He believed that the region needed an extra carrier bearing in mind that the only airline, Vixenne Air, was performing poorly. Other problems related to the services offered by Vixenne Air included ineffective services to the customers and violations of the air safety precaution. Kaplan realized that he was capable of running an efficient airline due to his wealth of experience in the air force coupled with his mechanical skills. Since the inception of the company back in 1986, Sky Air Inc. had grown gradually. In this case study, Mr. Kaplan wished to sell some shares of Sky Air Inc. to generate money to take care of his forthcoming triplets as his wife was expecting. The potential partner would only have a 30% stake in equity without any representation in the management board. The buyer, Thyestean Ventures, offered $6 million which Mr. Kaplan concluded was too low for a company such as Sky Air Inc. Main Problem The main problem presented in the case study was the low buying price suggested by the potential buyer...
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...status (SES) permeates our social behavior and thought (Kottak & Kozaitis, 2003. p.2). Unfortunately, Americans determine a person's worth by his/her educational status and employment. However, organizations must incorporate social responsibility in order to facilitate the formation of cultural diversity. Currently, the Gap Inc. is one of the world's leading retail chain stores, with over 3,100 retail stores and fiscal returns in 2008 totaling $14.5 billion. The Gap Inc. is the pioneer of a chain of specialty retail store which include Banana Republic, Old Navy, Piperline and Athleta. The Gap proclaims that their stores seeks new ways to connect with customers globally, uphold value and integrity to all shareholders, in addition to making a positive contribution in the communities where they do business (Gap, Inc. N.D.). Gap Inc. was organized based a set of values and a belief system that dictates operating their business in a responsible and ethical manner. The Gap's code of ethics titled "Code of Business Conduct” was formatted to encourage and reassure accountability pertaining to ethical working conditions for all people employed by Gap Inc. The Code...
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...Multinational Corporations that maintain high levels of financial transparency and ethical standards realize higher profits in the long run than those that do not. Gap Incorporated adheres to high ethical standards and has enjoyed both financial success and growth globally throughout the last ten years. The company publicly reports numerous financial statements including its annual report, investor advice and guidance, and reports on individual department success. Gap funds over forty non-for profit organizations and sends employees to volunteer at numerous charities. Gap has created a foundation called beyond the seams to make sure the company adheres to environmental, social, and ethical guidelines. Gap Inc. is committed to funding programs that aid women and children in achieving success and helping entrepreneurs to begin stable businesses. Through Gap’s ethical standards, it has developed legitimacy and positive stakeholder relations which attribute to the company’s global success. Gap has realized growth as a company and in many individual areas, with its current stock listed at over twenty six dollars per share (Gap Inc, 1). Levi Strauss has a published code of ethical values available for its share holders as follows “We believe that business can drive profits through principles, and that our values as a company and as individuals give us a competitive advantage. Empathy — walking in other people’s shoes Empathy begins with paying close attention to the world...
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...Pleasing Stakeholders While Remaining Ethical Introduction Ethical Responsibility Being ethically responsible is important because people want to know that the business they are working for or with is trustworthy. The ethical responsibilities that businesses have are to their employees, customers and society as a whole (Mack, 2013). Managers have to keep in mind who their audience is depending on where they come from, some behaviors can be considered ethical in the United States, but unethical in another country. Discussion Content Stakeholders’ Impact on Decision-Making A Stakeholder is a person or a group of people who has an interest or involvement in a business. Stakeholders can be customers, investors, or employees. Stakeholders impact decision making by expanding profits and building up the value of the company (Robbins & Coulter, 2007). When you take into account the several different types of stakeholders, you realize that they have a great impact on decision making. Some of the stakeholders are: 1. Customers – Is a stakeholder group that has the most impact in business’ decision-making process. Let’s face it, without customers or clients, there will be no business. So managers should ensure they maintain an open, honest, and transparent communication with this group (Kokemuller, 2013). 2. Communities – The decisions managers make in their organizations can directly affect the community that surrounds it. Organizations should also partake in the local...
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...Introduction In year 1990 Korean company, Korean Conglomerate Inc, and a North American company, Western Systems Inc formed joint venture, known as Joint Venture Inc. Both companies played significant role in business are they were - Western Systems Inc had around 50,000 employees worldwide. Korean Conglomerate Inc was an industrial group consisted of more than 40 companies. During joint venture, several projects were launched, several project teams were established for working on different areas of the project. There were established Systems Implementation team consisted of five Korean consultants, one translator, and three North American consultants. Two co-supervisors were assigned to this team - Ellen Moore from American consultants’ side and Jack Kim from Koreans’ side. Consulting project was estimated to be one of the largest undertaken in South Korea to date. Problem There are several factors that affect project results: Cultural gaps between two nations – western and eastern Korean culture has different values than in the North American culture. Korea has long historical influence from religion and philosophy, like Confucian. It has a big impact on persons in business and the business etiquette in Korea. There are several actions what are may be considered as insignificant in western business area, here are very important, like the exchange of business cards, to know how to address a Korean by name, or replenishing a colleague’s drink at dinner, etc. Koreans...
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...|[pic] |COURSE SYLLABUS | | |School of Business | | |LAW/421 Version 1 | | |Contemporary Business Law | Copyright © 2011 by University of Phoenix. All rights reserved. Course Description This course reviews the U.S. legal system, common law and its development, organizational structures, and the regulatory environment pertinent to business. Students will learn to critically examine torts, crimes, and business ethics. They will also examine contracts; business associations including agencies, partnerships, and corporations; wills, estates, trusts, and other legal entities; securities regulations; and investor protections. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies...
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...company's reputation? a. Credibility. b. Reliability. c. Profitability. d. Responsibility. 2) The 5 E's of the accounting profession in Texas are Ethics, Enthusiasm, Education, Examination and Experience. a. True b. False 3) The P in CPA stands for Public? a. True b. False 4) The difference between what the public thinks it is getting in audited financial statements and what the public is actually getting is known as: a. Credibility gap b. Expectations gap c. Audit gap d. Stewardship gap e. None of the above 5) Which of the following is not a trend described in Chapter 1 as having an impact on the ethics of business? a. Directors’ legal liability b. Management’s stated intention to protect reputation c. Auditors’ legal liability d. Management’s assertions to shareholders on the adequacy of internal controls e. Management’s stated intention to manage risk 6) Which corporate report discusses subjects that include environmental, health and safety, philanthropic and other social impacts? a. Corporate annual report b. Corporate social responsibility report c. Corporate quarterly report d. Corporate stakeholder report e. Corporate ethics committee report 7) The goal of the State Board of Public Accounting is to protect the public? a. True b. False 8) Professional Accountants, in their fiduciary role...
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...the best method for an organization to create a successful and effective board. Urban Outfitters Inc. has not always been a top contender in the diverse corporate world. In this report, we will investigate how Urban Outfitters Inc. reluctantly took a step in the direction of updating the faces of their executive boardroom. We will discuss the challenges and changes gender diversity in the corporate work world meets. We will look at meaningful observations of board effectiveness in the boardroom and the workforce. Introduction Boardroom diversity is highly advocated by companies and investors. Boardrooms hold the main responsibility to ensure human talent planning coincides with developing policies and procedure concerning diversity and diversity issues within an organization. Boardrooms need talent management and ultramodern thinking to build company revenue. Organizations use warm and fuzzy words about diversity, yet only give lukewarm responses in practices. Diversity was sighted as a legal issue in the past; now organizations are opening up to accepting that diversity is not a legality to deal with, but instead an innovation that builds stronger and more productive organizations. Stockholders are beginning to shout that boardrooms begin the battle. Urban Outfitters, Inc is a spark example of a company that could utilize new faces. Time after time Urban Outfitters, Inc Executive Board faces shareholder proposals calling for the board to address diversity. What...
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...Accounting Fraud by: If you were to visit Qwest Communications website today you would find under the Code of Conduct pertaining to Ethics this quote, “…A company’s achievements are the sum of countless interactions every day, every week and every year – with colleagues, customers, and communities. If we are to carry on Qwest’s excellent reputation for ethics and integrity, all of our transactions must be based on doing the right thing. This is the only way to do business and it will remain the Qwest way.” - Ed Mueller Chairman and Chief Executive Officer. But in October 2004 this was proved that this company in fact did not operate at all like this or came even close. As we look over Qwest Communications we find that it is a large telecommunications carrier that provides voice, data, and in some areas television services. Qwest Communications also provides long-distance services and broadband data, as well as voice and video communications globally. The company sells its products and services to small businesses, governmental entities, and public and private educational institutions through various channels, including direct-sales marketing, telemarketing, arrangements with third-party agents, company’s Web site, and partnership relations. As a company grows so does its problems as with any real life situation; complaints regarding Qwest involved allegations that the then-long-distance-only company switched local telephone service customers over to Qwest's long-distance...
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