The gap inc s social responsibility report discussion case

This is not intended to convey a degree of unwarranted accuracy. Components may not sum to total due to rounding and the statistical discrepancy. Thereafter there is a shallower slowdown and a more gradual recovery, with growth revised down to 1. The upward revision to GDP growth is due in large part to an increase in the expected path of household consumption, which was stronger than anticipated in recent months.

The gap inc s social responsibility report discussion case

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This essay discusses the perplexities and challenges of corporate social responsibility CSR. His question helps set the tone for the topic of corporate social responsibility as a vital part of the Essential Knowledge Project.

High performance and high integrity are good for the bottom line. By whatever name, interests of organizations cannot long be at odds with mutual interest and common good. Consideration of corporate social responsibility is as old as organizations themselves.

The central question always has been this: Does each organization, as it strives to achieve its mission and vision, add value to the society which franchises its existence?

The gap inc s social responsibility report discussion case

Long before consideration focused on business, especially large corporations, questions about CSR addressed the rationale and acceptability of government and church.

Efficient and rational business practices could in fact harm the society that franchised the organizations to operate. In the s, interest in CSR became feverish as activists at all points of the ideological and geographical compass called for higher standards of business and government performance.

Non-profits asked to share business profits. Academics argued over the differences between the modern and post-modern organization.

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As Basu and Palazzo observed: This scrutiny revealed how CSR standards are defined by the ideology of each society. Public relations practitioners contribute to this ideology as they discuss business performance internally and externally.

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Critics have reasoned that CSR can become insulated, self-serving, and self-affirming—often to the detriment of the society where it was supposed to be a social, political, technical, and financial benefit. Public relations can help organizations craft their standards and implement them through actions and statements.

He sparked decades of controversy by arguing that the only responsibility of publicly held companies is to increase profits—the efficiency paradigm of organizational excellence. Some today laud his sentiments, and indeed many empirical tests have not found a positive relationship between CSR activities and major corporate financial performance indicators such as profit e.

Stovali, Neill, and Perkins fought the traditional interpretation of the Invisible Hand of Adam Smith, which serves to legitimize the maximization of shareholder wealth, and as a result, shareholder-dominant corporate governance.

This view may be more aligned with the dominant concept of CSR and promote a broader, multiple stakeholder approach to corporate governance. If sympathy suggests only philanthropy, we add that CSR demands empathy, an outside-in way of thinking and planning to help management reflect on its role in and impact on the society where it operates.

Critics believe that Friedman failed to understand the positive advantages to be gained from CSR: Senior public relations practitioner, John L. Paluszek reasoned that advocates of CSR can be committed to profits and the community where they are generated, Business is increasingly in society not only in its traditional role of improving the standard of living—by generating jobs, offering products and services and paying taxes—but also via an overlay of sensitivity that supports employees, empowers customers and investors, and relates to the needs of local, national and international communities.

Does the price of enjoying the franchise to operate in a society where profits are generated include increasing operating standards so that the organization adds value to that society beyond merely making a profit? Clark quoted public relations giant Arthur Page: The legendary John W.

It is not the work of public relations—let it always be emphasized—to outsmart the American public in helping management build profits. It is the job of public relations to help management find ways of identifying its own interests with the public interest—ways so clear that the profit earned by the company may be viewed as contributing to the progress of everybody in the American economy.

This history of CSR discussions leads to many conclusions, including the following ones: Thus, higher standards of employee or consumer safety help manage risks and reduce the likelihood of crisis related to employment and consumption.Nov 02,  · In addition to a focus on Gap Inc.'s ethical sourcing practices, the report describes activities in other areas of Social Responsibility: Increasing donations and volunteer hours by encouraging the Gap Giving program, Community Corps and Founders' Award.

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