MASHINIi

The Gap Inc..

GPS.US | Retail sale of clothing, footwear and leather articles in specialized stores

The Gap Inc. is a global retailer offering clothing, accessories, and personal care products for men, women, and children under various brands including Gap, Old Navy, Banana Republic, and Athleta. The company operates stores and e-commerce sites, focusing on providing accessible and stylish apparel...Show More

Ethical Profile

Mixed.

The Gap Inc. faces scrutiny over its ethical practices, with critics pointing to a 2023 CEO-to-worker pay ratio of 2,160-to-1. The company has incurred over $5.9 million in penalties since 2000 for wage and hour violations and employment discrimination. Reports also link Gap Inc. to a 2017 safety violation resulting in a fatality. Animal welfare concerns arose from a PETA investigation into allegedly inhumane practices at duck farms supplying down. On the positive side, Gap Inc. offers market-leading mental health benefits for employees and families, and has independently validated gender pay equity. The company also uses 80% recycled content in consumer plastic packaging, though progress on eliminating problematic plastics is slower.

Value Scores

Better Health for All0
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect-20
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business20
-100100
Kind to Animals-50
-100100
No War, No Weapons-60
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities-30
-100100
Safe & Smart Tech-20
-100100
Zero Waste & Sustainable Products-40
-100100

Better Health for All

0

Gap Inc. demonstrates positive health externalities through its partnership in the Women + Water Alliance (W+W Alliance), a $32 million, five-year program with USAID

1
. This initiative aims to improve access to water, sanitation, and hygiene (WASH) for women in India's cotton-growing and textile-manufacturing communities, including capacity building, water purification plants, and hand-washing stations
2
. The company also supports mental health, providing twelve free mental health sessions per person, per year, for all full-time, part-time, and seasonal employees and their families in the U.S. and Puerto Rico
3
. This benefit, announced in October 2023, more than doubled the previous offering and includes medication management and work-life expert support
4
. The company's core products and services have no significant positive or negative health impact, and it does not generate revenue from products with direct health impacts. Its products also do not have direct safety implications, health risks requiring disclosure, addiction potential, or involve clinical trials or pharmaceutical patents.

Fair Money & Economic Opportunity

0

The Gap Inc. is a global retailer of clothing and accessories.

1
The provided articles do not contain any evidence that the company offers lending, insurance, deposit services, or any other financial products to consumers. Therefore, all KPIs related to 'Fair Money & Economic Opportunity' are not applicable to Gap Inc.'s core business operations, as indicated by the '0' tier for each KPI.

Fair Pay & Worker Respect

-20

In 2023, Gap Inc.'s CEO-to-worker pay ratio was 2,160-to-1.

1
The voluntary employee turnover rate for 2023 was 84%.
2
In 2021, the company had one substantiated employment discrimination violation, resulting in a $73,263 penalty.
3
Conversely, Gap Inc. states it pays women and men equal pay for equal work globally, a claim validated by independent external audits, including one by Exponential Talent which found no statistically significant gender pay gap in the US, UK, Canada, Japan, and China regions.
4
For full-time employees, health insurance coverage was 94% in 2023.
5

Fair Trade & Ethical Sourcing

0

No evidence available to assess The Gap Inc. on Fair Trade & Ethical Sourcing.

Honest & Fair Business

20

The company demonstrates strong board independence, with 10 out of 11 (90.9%) board members identified as independent.

1
It maintains a comprehensive whistleblower policy, offering a 24/7 confidential hotline, email, and web portal, managed by a third-party vendor, and available in multiple languages.
2
This policy includes a zero-tolerance for retaliation and requires suppliers to provide confidential channels with timely response, documentation, and action plans.
3
Additionally, the company has a company-wide anti-corruption and anti-bribery program, incorporating FCPA compliance.
4
This program is supported by a Code of Business Conduct (COBC) available in 10 languages, enforced through employee training and annual certifications for employees and directors, with oversight from a Global Integrity Department and Committee.
5

Kind to Animals

-50

PETA's investigation documented crowded conditions, sick birds, bloody wounds, and workers restraining and violently killing ducks

1
at Vietnamese duck farms and slaughterhouses supplying down to Gap Inc.
2
This evidence indicates extreme confinement and inhumane practices in animal agriculture operations within the company's supply chain.

No War, No Weapons

-60

The company conducts annual human-rights due diligence for conflict minerals.

1
Its due diligence process is based on the OECD Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and it supports the principles of the U.N. Global Compact.
2
An annual Reasonable Country of Origin Inquiry (RCOI) process is conducted with vendors.
3
The company has a Conflict Minerals Policy and conducts due diligence to identify the source of 3TG minerals, expecting vendors to seek materials from suppliers not involved in funding conflict in the DRC region.
4
However, the company was not able to determine with reasonable certainty the countries of origin of the necessary 3TG used in its products.
5
While 21 out of 24 identified smelters or refiners are conformant, the overall percentage of the supply chain certified free from conflict minerals cannot be determined due to the lack of origin certainty.
6

Planet-Friendly Business

0

The provided articles, including Gap Inc.'s own impact and sustainability reports, do not contain specific quantitative data for any of the Planet-Friendly Business KPIs.

1
The articles explicitly state 'No quantitative data' or 'No data' for all relevant metrics, such as Scope 1, 2, and 3 emissions, SBTi-aligned targets, renewable energy percentage, water use, waste diversion, and various climate-related initiatives and disclosures.
2
Therefore, no KPIs can be scored based on the evidence provided.

Respect for Cultures & Communities

-30

Gap Inc. has established 7 formal partnerships with local community groups, including the Lower Eastside Girls Club, Brotherhood Sister Sol, ENVSN Festival, Native Son, Boys & Girls Clubs of America, Nest, and GLIDE.

1
The company also has a zero-tolerance policy for retaliation against stakeholders raising concerns
2
and commits to engaging in the process and attempting to resolve underlying issues for valid complaints.
3

Safe & Smart Tech

-20

The company's 10-K filing from March 2024 reported no material impact from cybersecurity threats to date, indicating no significant data breaches in the past three years.

1
This filing also describes a cybersecurity and data privacy program designed to identify, assess, manage, mitigate, and respond to threats, leveraging enterprise risk management processes and embedded in operating procedures, internal controls, and information systems.
2
This suggests strong preventative measures and comprehensive response planning. Similarly, the absence of reported material impact from cybersecurity threats implies no unauthorized data use incidents in recent years, supported by the described exemplary data governance program. The company's global applicant privacy policy states compliance with applicable laws and regulations, and no specific regulatory actions, violations, or fines were mentioned in the 10-K filing, indicating basic compliance with regulations.
3

Zero Waste & Sustainable Products

-40

Gap Inc. has made 80% of all plastic packaging to consumers with 100% recycled content, achieving its 2025 target.

1
The company has also eliminated 47% of unnecessary or problematic plastics in packaging to consumers, replacing them with paper or reusable alternatives.
2
In 2023, 19% of polyester used in products was from recycled sources.
3
Gap Inc. has set targets to eliminate unnecessary or problematic plastics in consumer packaging by 2025 and in business packaging by 2030, and to source at least 45% of polyester from recycled sources by 2025.
4
The company implements multiple waste reduction initiatives, including optimizing packaging size, testing soft plastics recycling solutions, and working with vendors to reduce polybag sizes.
5
Gap Inc. eliminated intentional use of PFAS-based finishes in 2023
6
and manages hazardous chemicals through a Restricted Substances List, Manufacturing Restricted Substances List, and third-party testing.
7
Waste audits were conducted in late 2022.
8
Circular design principles are applied to several product categories, such as BetterMade Denim, and the company provides comprehensive customer education on product disposal and circularity through various channels.
9
Suppliers are expected to complete and verify the Cascale Higg Facility Environmental Module (FEM) for chemicals management.
10

Own The Gap Inc.?

Upload your portfolio and see how all your holdings score across 11 ethical dimensions.

Audit My Portfolio

AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.