Narrative 3-3
Gap Inc. runs Gap,Banana Republic,and Old Navy clothing stores. Gap Inc. has received intense negative news coverage regarding the treatment of workers in the overseas factories from which it buys its clothes. They have multiple regulatory requirements to adhere to because the goods are sold in Canada,including needing to comply with CCOHS (Canadian Centre for Occupational Health and Safety)or Environment Canada regulations.
For example,in a dusty factory in Lesotho,Africa,workers can't escape breathing in the fibres. When they cough,their mucus is full of coloured fibres. In another Gap supplier's factory in Bangladesh,workers are beaten for simple mistakes and often not paid for the work. In El Salvador,workers complained about abuse and terrible working conditions. One worker said,"I'm very proud to sew pants for Gap,but the board of directors should not be proud of what is happening to us. Gap has abandoned us."
Some wages were so low that workers couldn't buy enough food for themselves and their families. A union organizer said,"We want them to pay a wage that allows a decent standard of living and allow workers to organize unions to improve their conditions in factories."
Gap is not the only company that relies on such suppliers. Almost any plant in the non-developed countries of the Far East would also have to answer to CCOHS or Environment Canada. Because of strong competition and price-conscious consumers,retailers like Gap quickly switch orders from one factory or country to another whenever they can find a lower price. According to protest groups,that intense pressure to keep prices low encourages factory owners and managers to do everything they can to cut their costs,including mistreating workers. And with 4,000 factories in 50 countries supplying clothes for Gap Inc.'s three stores,protest groups see Gap as a big part of the problem.
Intense negative publicity,protest groups calling for worldwide Gap boycotts,and the company losing money is a tough situation for the CEO. Since Gap is a publicly traded company,keeping shareholders happy is a fundamental responsibility. On the one hand,the company needs to be profitable,which seems to mean overseas suppliers keeping their prices low. On the other hand,negative publicity and boycotts may lower sales and reduce profits.
-Refer to Narrative 3-3. Who are the primary stakeholders for Gap?

Question

Quizplus · Accepted Answer

The primary stakeholders for Gap are its customers who purchase the clothing, as well as the workers in the overseas factories from which it buys its clothes who are directly impacted by the company's actions. Special interest groups may also be stakeholders, as they are advocating for better treatment of workers and potentially influencing customer behavior through boycotts, but they are not the primary stakeholders. The television networks and local radio stations that show or run ads for Gap are not primary stakeholders, as they are simply channels for advertising.

Narrative 3-3 Gap Inc. Runs Gap,Banana Republic,and Old Navy Clothing Stores. Gap