Case Teaching Package
A case teaching package is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.

Length
This case is 32 pages in length and its case teaching package is 4 pages.

Abstract

Recent media attention to sweatshop conditions in both the United States and international garment industry has heightened awareness of substandard working conditions. Given these conditions, consumers are concerned about what practices are condoned by the companies they support with their purchasing dollars. This case focuses on the particular experiences of American retailer The Gap in El Salvador, while also providing background on the American situation and conditions in other countries.

Linkages to Textbooks or Journal Articles/Fit Within a Course

This case is appropriate to be used in business ethics, marketing, operations management, and global economics courses at either an undergraduate or graduate level. In particular, the case would be appropriate during discussion on global business, the responsibility of foreign firms in host countries, the impact of labor decisions on the global economy, global social responsibility, socially responsible marketing, and others.

Study Assignment

Students may be divided into a debate/role-play format and assigned one of four roles: the American consumer lobby, The Gap, the El Salvodoran worker, and the Mandarin owner. Each group takes time to prepare its argument advocating its particular position. The purpose of this exercise is to highlight the fact that there are no easy answers. Consider the following study questions during the ensuing argument/debate.

Study Questions

1. The Gap has demanded certain quality working conditions of the Mandarin for the Mandarin workers. Since the Mandarin's costs will increase due to this change in working conditions, who should shoulder the burden? The Gap? The ultimate consumer?
2. Assume The Gap is now required to pay higher prices for the completed merchandise. What is the ethical responsibility of The Gap to remain a Mandarin customer when American firms might now be price competitive?
3. What is the net gain for Mandarin workers if The Gap now chooses to use a different firm because the Mandarin's prices went up?
4. The Gap was persuaded to resort to an independent monitoring system in order to ensure compliance with its Code of Vendor Conduct. What alternatives exist for a firm that does not have the resources to install independent monitors in each of the countries in which it conducts business?
5. How would you go about establishing an independent monitoring team? Who should be on it and how would you ensure accurate reporting?
6. As a consultant to a firm such as The Gap, would you recommend a Code of Vendor Conduct? What would be the downside of creating or maintaining such a code?

The downloadable file for this case is in Microsoft® Word 97 for Windows®.

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