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Article

22 Jul 2011

Author:
N. Craig Smith, Sean Ansett & Lior Erez, MIT Sloan Management Review

How Gap Inc. Engaged With its Stakeholders

[A]lthough [by 1996, Gap] had one of the most comprehensive supply-chain auditing programs in the industry...its compliance-oriented public statements and lack of connection with its stakeholders meant that Gap’s reputation was...tarnished...[After 2000,] Gap embarked on a five-step path to deeper engagement with its stakeholders:...Gap developed a stakeholder map...[it] identified the most important social issues the company and its stakeholders faced...defined its objectives based on stakeholder input through the engagement process...told stakeholders to contact it directly if they saw problems emerging...[and embedded] engagement...[After responding to a child labour case in India in 2007 and concerns about working conditions in Lesotho in 2009] Gap’s stakeholder engagement strategy has changed stakeholder perceptions of the company, and Gap has received awards and public recognition as a leader in corporate ethics and responsibility. [Refers to Nike, Nordstrom, Levi Strauss].