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Social Responsibility

Questions 1. Do you think Gap has demonstrated global corporate citizenship, as defined in this chapter? Why or why not?

Global corporate citizenship is a strategy for cooperation with the business community in order to ensure effective and sustainable development and creating of the company’s reputation as a responsible "corporate citizen". According to this approach Gap Inc. has demonstrated the effort to use global corporate citizenship strategy performance. In this approach, the business is seen as a key player not only in the market but also in the sphere of social relations. Gap Inc. has demonstrated the effective behavior in the increase of the efficiency in its activities. Global corporation citizenship strategy implemented by the company can be seen as a part of the system of relations in the society in which Gap Inc. took over some functions of the state to promote and protect the civil and social rights of the population, where the state does not adequately perform its social policy.

Question 2. Will Gap Inc. maintain its strong social program focus even as the company experiences financial challenges and declining sales? Why or why not?

According to the material of the case study, it can be said that the Gap Inc. has decided to implement such strong social program despite of the profit decrease. Such conclusion was made according to the fact that despite of the significant decrease of company’s profits in 2008 according to the 2004 earnings, Gap Inc. has not changed its social orientation and also has not decreased its standards in the social program that are written in the code of social responsibility of the company. Such conclusion can be also confirmed by the words of the chairman and CEO Glenn Murphy: “We know there is still more work ahead of us”. Basing on the facts that were written above confirm the desire of Gap Inc. to maintain its strong social program focus even in times when the company may face financial difficulties and/or sales decline.

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