THE GAP, Inc.

1
THE GAP, Inc.

• Victoria Macaw
• Diana Pena
• Matt Gallegos
• Michelle Gonzales
• Erin Parks

2
The Gap A Brief History

• Incorporated in California in July 1969 as Fisher
  Enterprises.
• In July 1969, Co. formed a wholly-owned
  subsidiary, The Gap Stores.
• Name changed to The Gap Stores, Inc. in June
  1973.
• In June 1973, GF Stores, Inc. and The Gap Stores
  were merged into Co.
• In 1983, Co. acquired Banana Republic, Inc.
• Present name adopted on May 31, 1985.
• In Early 1990s established code of vendor
  conduct
• In 1994, Co. formed Old Navy Inc.

3
The Gap What they do.

• Specialize in selling casual apparel, accessories
  and personal care products for men, women,
  children and babies.
• They also segment different parts of the market
  by
• Providing different stores that cater to
  different segments of consumers.
• Within those segments they break down to adult,
  children and baby for specialized wants.

4
The Gap Where they are positioned in the market.

• Sector Consumer Discretionary
• Industry Group Name Retailing
• Industry Name Specialty Retail

5
The Gap Products and Services

• Gap Inc. is a brand-builder. We create emotional
  connections with customers around the world
  through inspiring product design, unique store
  experiences and compelling marketingOur purpose?
  Simply, to make it easy for you to express your
  personal style throughout your life. The Gap
  Purpose and Values Statement
• Products
• The Gap
• Banana Republic
• Old Navy
• Services Provide quality service and personal
  expression.

6
DIFFERENTIATION

• Code of Business Conduct
• Promotes a responsible and ethical work
  environment for ALL Gap Inc. employees
• The Gap has a hotline to report suspected
  violations of the code of business conduct.
• Cannot accept anything of value from anyone at
  anytime
• No Retaliation
• Decisions must be made in the best interests of
  the company and not for personal benefit.
• Fraternization
• No Discrimination, No Harassment (Zero means Zero)

7
DIFFERENTIATION

• Code of Vendor Conduct
• Committed to the principle that wages and
  benefits for a standard working week should be
  sufficient to meet basic needs and provide
  discretionary income.
• Set of principles and operating standards
• Based on internationally accepted labor standards
• Diversity
• Experience, opinion, style, and viewpoint
• Impacts the way we relate to and work with each
  other and how we can best serve our customers
• Diversity is who we are

8
DIFFERENTIATION Ethical Sourcing

• Factory Monitoring
• 90 full time employees improving labor conditions
• Projects and Partnerships
• We work with other companies to create a change
  industry wide

9
HR PRACTICES

• 1. What policies differentiate your company from
  the status quo /or are unique?
• Gap has practices and behaviors around balance
  (work and life), creativity of thought and
  embracing ideas of people at all levels.
• 3. Of the unique policies you listed what are
  some positive negative ramifications that these
  unique policies have? The positive point is that
  the practices reach across the company and foster
  inclusively.
• 4. What is HR's role in the firm's overall
  strategy day to day operations? HR is a strong
  partner to the business. We advise our business
  partners with respect to human capital issues
• 5. What is the company's HR Strategy? Our
  strategy is cascaded or aligned to the business
  unit with which we are affiliated. This way we
  can fully support the direction of the company.
• Charolette Krenzer, SPHR
• HR Manager

10
BENEFITS

• Medical, Dental, Vision, Health Care Flex
  Spending Account, Nurse Line
• Life Insurance, Disability Insurance, Accidental
  Death and Dismemberment Insurance, Business
  Travel Accident Insurance
• EPA, Home Loans, Moving Relocation Assist.,
  Travel Assist.
• 401(k), Employee stock purchase plan
• Tuition Reimbursement, Internal Placement,
  Performance Management, Learning Development.
• Paid Time Off Paid Holidays

11
BENEFITS (CONTINUED)

• Dependant Care Flex Spending, BabyLine, Baby Gap
  Gifts, Adoption Assistance Reimbursement Program,
  Phase Out/Phase Back Program
• Take Five, Money for Time, Gift Match
• Restaurants in Corporate Buildings Interoffice
  Shuttles
• Merchandise Discounts for employees

12
The Gap In The News

• Gap Joins Product RED, a Global Effort
  Supporting Africa
• Gap Inc. Joins Gold Medal Speedskater Joey
  Cheek's Pledge to Help Children in Disadvantaged
  Regions
• The Gap is stuck in a rut
• Gap agrees to join labor union in El Salvador

13
What Employees Say

• The number one reason I like working here is the
  people. That's what keeps me inspired and coming
  to work.
• Brooke, Planning Manager, Banana Republic Canada

Gap Inc. offers so many different facets of
experience within one company. Lisa, Manager,
Erlanger, Ky., Distribution Center
Each day is different which is one of the
things I really like about my job. Kibwe, Sr.
Designer, Forth Towne
14
Improvements Recommendations

• Make policies more uniform and keep enforcement
  consistent
• Find a different means of reporting anonymous
  non-compliances (The only stated form of
  reporting non-compliances is a hotline)
• Code of Vendor Conduct must make a stronger
  statement about the payment of wages use of
  labor
• Increase the monitoring team to include more than
  90 employees.

15
What Everyone Can Learn

• Companies must provide a clear set of HR policies
  for their employees as laid out in the Gaps Code
  of Business Conduct
• Suppliers must be made aware that their treatment
  of employees has a direct correlation to the
  image of their customers (Gap attempts to do
  this in the Code of Vendor Conduct)
• A Company must provide a mix of Compensation
  Benefits for employees
• There is always room for improvement.

16
RESOURCES

• Mergent The Gap, Inc. Annual Report
• The Gap, Inc.
• Charolette Krenzer, HR Manager at THE GAP
• US Sentencing Guidelines
• NEWS Articles
• Gap Joins Product RED, a Global Effort
  Supporting Africa
• Gap Inc. Joins Gold Medal Speedskater Joey
  Cheek's Pledge to Help Children in Disadvantaged
  Regions
• The Gap is stuck in a rut
• Gap agrees to join labor union in El Salvador