Recommendations for Gap, Inc.:
Improving Stakeholder Management
Gap, Inc. has moved the location of its factories many times in order to take advantage of low wages, availability of raw materials, tax incentives, and trade and tariff policies. As the political climate changes, Gap, Inc. has responded. As noted in the previous group paper, The Gap, which manufactures all over the world, currently receives a large portion of its apparel production from Chinese manufacturers. The uncertainty resulting from the 2008 elimination of China's textile safeguards has many implications for the Gap and its subsequent performance. The most recent data reports that The Gap subcontracts over 400 factories in China. This is expected to increase as more lenient trade policies and increased globalization trends continue over the next decade. In conjunction with increased production in China will be a likely decrease in production in Cambodia and Central/South America. These changes have caused Gap to respond, and warrant an even more innovative and interactive reaponse.
Until recently, Gap, Inc. has certainly been proactive in trying to manage its stakeholders, but it would benefit as a firm if it took a more interactive approach, engaging with its stakeholders and creating dialogue, respect and trust. Because of changing societal expectations where people expect more from business, a growing emphasis on ethical business practices, globalization, and evolving governmental regulations, Gap, Inc. must also change its public affairs practices and come up with unique and well-developed strategies for dealing with these ever-changing forces.
Because Gap, Inc. is a multinati ...