We began our efforts to improve factory working conditions in the early ‘90s, and since then much has changed – including the expectations of our customers, the ability of disparate parties to come together and collaborate, and our understanding of the complex issues underlying this work. Today we have a clearer perspective on what works in the present and what is needed for the long term.
The cornerstone of our Monitoring and Vendor and Development program continues to be monitoring factory compliance with our Code of Vendor Conduct (COVC). Our internal team of Social Responsibility Specialists monitors working conditions in factories producing Gap Inc. branded apparel (clothes) and branded non-apparel (shoes, purses and other accessories).
Instead of a “one size fits all” approach to monitoring, we have evolved to tailor our efforts to better address specific risks and adopt new, more effective monitoring approaches that will best protect the rights of workers and meet the needs of our business.
For example, we developed and implemented our company’s non-apparel monitoring policy in 2006. Complementing our efforts to monitor all factories producing Gap Inc. branded apparel, the non-apparel policy requires all suppliers of Gap Inc. branded product to sign a compliance agreement stating their commitment to abide by our COVC. To focus our resources where we can have the greatest impact, we begin monitoring non-apparel suppliers once their volume reaches an agreed-upon threshold. You can read more about this policy in our 2005 – 2006 report.
Below is a summary of how our monitoring program has evolved in two key ways since our last report:
Partnering with Better Work. We are a founding member of the International Labor Organization and International Finance Corporation’s Better Work program, which will be operational in seven countries by the end of 2011. Gap Inc. suppliers participating in Better Work are not monitored by our internal team, and are instead monitored via the Better Work program. In turn, we rate those factories based on Better Work’s assessment reports, which allows our internal team to focus our efforts on capacity building and remediation issues. For more information on Better Work, click here.
Adapting to new business models. Piperlime, Gap Inc.’s online specialty store, launched three private label apparel lines in 2010. The factories producing Piperlime’s smaller volume, private label apparel face different challenges than factories producing larger volumes for other Gap Inc. brands. Our Monitoring and Vendor Development team is working closely with Piperlime to incorporate the factories producing their private label apparel into our monitoring program in a way that is in full accordance with our company policies, while also supporting Piperlime’s unique business strategy.
To build on our monitoring efforts, we have added a focus on determining how to prevent problems from taking root in the first place. To this end, a key part of our strategy moving forward will be to build vendor capacity to develop human resource management systems. Read more about our capacity building efforts.
As we evolve how we work with factories, we are also improving our partnerships. We recognize that our work can have greater reach and impact by continuing to engage a broad range of partners, including labor rights groups, trade unions, factory owners and management, governments, non-governmental organizations and other companies. Read more about our work with partners.
Note: Throughout this report you will see us reference “branded apparel”, “branded non-apparel”, and “branded product.” Branded apparel refers to Gap Inc. branded clothes - for example, a Banana Republic blouse, a pair of Gap jeans, or an Old Navy plaid shirt. Branded non-apparel refers to Gap Inc. branded items such as shoes, purses and other accessories. When we refer to branded product, we are referencing both branded apparel and non-apparel.