Gap Report Finds Many Problems With Manufacturing Sites in its Social Responsibility Repor

Gap Report Finds Many Problems With Manufacturing Sites
Clothing Giant Issues Social Responsibility Report

POSTED: 7:59 pm PDT May 12, 2004
UPDATED: 8:08 pm PDT May 12, 2004

SAN FRANCISCO -- San Francisco-based clothing giant Gap Inc. issued an evaluation of its 3,000 worldwide manufacturing sites Wednesday, finding many problems in workers' pay and conditions but also describing progress.

"We believe that garment and other manufacturing workers around the world deserve better than the reality that many unfortunately face," said Gap Inc. CEO Paul Pressler. The company's 2003 Social Responsibility Report found that factories in China and Cambodia experience the most consistent problems, such as concealed overtime records or poor documentation to prevent the use of child labor.

With 464 factories, China has both the greatest number of Gap-related operations among the 50 nations in which it does business, as well as the highest percentage of contracts revoked because inspections yielded serious problems. In Cambodia, the report notes, garment production accounts for one-third of the nation's gross national product.

The corporation, which also includes Old Navy and Banana Republic retail lines, found it "extremely rare" that forced labor is being used at facilities with which it contracts, but did find that "freedom of association" issues related to union activities need improvement and that many factories either require workers to work around 60 hours a week or fail to give their employees one day off each week.

Pressler said his company should take a leadership role in improving factory conditions, has already begun a team effort with several socially responsible advocacy groups, and promises to work "diligently toward that goal."