Corporate social responsibility trend booms quite significantly in recent years; it started in around the 1970s and increased dramatically in the 2000s. It aligns with the growing trend of business ethics to the point that customers are willing to stop supporting a business if that business is identified as being not ethical. However, a company would still be viewed as irresponsible when one or more of its supply chain segment is identified as being unethical, be it the supplier or the vendor. In Gap’s case, it is the supplier part of the whole manufacturing process was known oppressing the less fortunate.
Since negative brand image is often associated with dishonesty and irresponsible behavior, careful step-by-step measures have to be taken …show more content…
This is specifically important because it shows that the company acknowledges the importance of fair trade and is willing to change or even paying extra for the production of the products, as long as it practices honesty. Indeed, the product section of the marketing mix would be seen as worth buying because no unethical behavior is contributed while making the product.
It is best to address this matter publicly too, as a part of positive publicity in the section promotion of the marketing mix. It would make the customers to think that this company cares and at the same time would give positive word of mouth, to compensate the negative remarks that was talked and shared about the company. If before, customers that practice ethical consumerism would not even consider putting Gap in their consideration set, now that they see Gap is putting an effort to recover from their mistakes makes them to possibly add Gap into their consideration …show more content…
Because schemes like “sumangali” that pays the workers below a dollar per day, the cost of making the clothing is way cheaper than it should be and companies are able to secure a large amount of profit from it while still offering a lower price to the customers. If the suppliers are changing and the cost would certainly increase, the price for each clothes too has to be increased. If this information is made available to the customers, the customer perceived value becomes increased too, and they would be willing to pay more. That does not mean that Gap would not lose customers at all – they could still lose some, especially the price conscious ones – but by doing business ethically would make them be viewed
Since negative brand image is often associated with dishonesty and irresponsible behavior, careful step-by-step measures have to be taken …show more content…
This is specifically important because it shows that the company acknowledges the importance of fair trade and is willing to change or even paying extra for the production of the products, as long as it practices honesty. Indeed, the product section of the marketing mix would be seen as worth buying because no unethical behavior is contributed while making the product.
It is best to address this matter publicly too, as a part of positive publicity in the section promotion of the marketing mix. It would make the customers to think that this company cares and at the same time would give positive word of mouth, to compensate the negative remarks that was talked and shared about the company. If before, customers that practice ethical consumerism would not even consider putting Gap in their consideration set, now that they see Gap is putting an effort to recover from their mistakes makes them to possibly add Gap into their consideration …show more content…
Because schemes like “sumangali” that pays the workers below a dollar per day, the cost of making the clothing is way cheaper than it should be and companies are able to secure a large amount of profit from it while still offering a lower price to the customers. If the suppliers are changing and the cost would certainly increase, the price for each clothes too has to be increased. If this information is made available to the customers, the customer perceived value becomes increased too, and they would be willing to pay more. That does not mean that Gap would not lose customers at all – they could still lose some, especially the price conscious ones – but by doing business ethically would make them be viewed