Gap Inc. Sets New Goal for Apparel Suppliers to Pay Garment Workers Digitally by 2020
March 14 2018 - 12:00PM
Business Wire
Joins UN-based Better Than Cash Alliance to
Promote Financial Inclusion and Greater Supply Chain Transparency
and Efficiency
In a move to improve the livelihoods of garment workers and help
improve supply chain transparency and efficiency, Gap Inc. (NYSE:
GPS) today announced a bold new goal for all of its tier 1
suppliers – approximately 800 factories in about 30 countries – to
make the transition from a cash-based system to digital payments by
2020.
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More than 60 percent of Gap Inc.’s supplier factories already
provide digital payments methods, such as online transfers to bank
accounts or mobile wallets. The new goal will help scale this
progress across the company’s global supply chain and positively
impact the lives of more than one million garment workers.
“At Gap Inc., we believe that good business practices can help
change the world and fuel growth. By having our suppliers pay
garment workers digitally, we aim to accelerate the transition
towards a more transparent workplace for the women and men who make
our clothes. It’s a win-win for garment workers and factories
alike,” said David Hayer, Senior Vice President of Global
Sustainability at Gap Inc. and President of Gap Foundation.
Women make up about 80 percent of the world’s garment industry
workforce but often live in a cash-only environment and lack access
to formal financial services. Electronic wage payment methods have
the benefit of drawing previously unbanked workers into the formal
financial system, allowing women greater control over their
finances and a safer way to save, send money, and invest. At the
factory level, suppliers benefit from cost savings, due to
increased efficiency and speed. All parties also benefit from
increased accountability, transparency, and security.
To help achieve this bold new commitment, Gap Inc. also
announced today that it has joined the United Nations-based Better
Than Cash Alliance, a partnership of governments, companies, and
international organizations that accelerates the transition from
cash to digital payments in order to reduce poverty and drive
inclusive growth.
“We’re pleased to join the Better Than Cash Alliance to help
drive this important progress forward. We encourage others across
the apparel industry to join us in this effort,” Hayer added.
“The scale, innovation and leadership of the private sector is
critical to creating economies where all people benefit from
digital financial services,” said Dr. Ruth Goodwin-Groen, Managing
Director of the Better Than Cash Alliance. “Gap Inc. is one of the
global brands leading the way when it comes to digitizing workers’
payments in the garment sector. Its commitment today will continue
the movement across the retail sector to improve lives, increase
transparency and drive business benefits through digital payments,
and contributing to the Sustainable Development Goals.”
For over 10 years, Gap Inc. has promoted financial literacy and
inclusion through its life-skills education and training program
for female garment workers, P.A.C.E. (Personal Advancement &
Career Enhancement). The program’s holistic curriculum also
includes topics such as communication skills; time and stress
management; problem solving and decision-making.
P.A.C.E.’s evaluation results have demonstrated that the
program directly improves the lives of women and their families by
developing women’s knowledge, skills and confidence. The program
also has a strong track record for reducing garment worker turnover
and absenteeism, a key return on investment measure for suppliers
that participate in P.A.C.E. across 16 countries.
The company’s focus on promoting an inclusive digital payment
ecosystem is the latest move by Gap Inc. to partner with suppliers
to improve the livelihoods of the garment workers who make its
clothing. The company’s Supplier Sustainability team continues to
move beyond an “assess and remediate” model to a more innovative
approach – with more cooperative, productive, and positive working
environments as the end goal. This includes: developing and
delivering trainings around topics like communication in the
workplace, problem solving, grievance handling and effective
negotiations for workers and managers; measuring and improving
workers’ sense of value and sense of engagement at work by helping
factories make well-being investments in their workforce;
consolidating and publishing its tier 1 supplier base to
focus on partners that share the company’s values and
sustainability goals; and updating its Code of Vendor
Conduct to better align with environmental and human rights
policies.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing,
accessories, and personal care products for men, women, and
children under the Old Navy, Gap, Banana Republic and Athleta
brands. Fiscal year 2017 net sales were $15.9 billion. Gap Inc.
products are available for purchase in more than 90 countries
worldwide through company-operated stores, franchise stores, and
e-commerce sites. For more information, please
visit www.gapinc.com.
About the Better Than Cash Alliance
The Better Than Cash Alliance is a partnership of governments,
companies, and international organizations that accelerates the
transition from cash to digital payments in order to reduce poverty
and drive inclusive growth. Based at the UN, the Alliance has 60
members, collaborates closely with other global organizations, and
is an implementing partner for the G20 Global Partnership for
Financial Inclusion. For more information, please
visit www.betterthancash.org.
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version on businesswire.com: http://www.businesswire.com/news/home/20180314005329/en/
Gap Inc.Laura WilkinsonGap Inc.
Communicationspress@gap.comorBetter Than Cash AllianceAngela
Corbalan, (+1) 917-224-9109Head of
Communicationsangela.corbalan@uncdf.org
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