The child labor scandal that is engulfing The Gap Inc. (NYSE: GPS) is tragic. An investigative reporter in India documented evidence of young children working in abominable conditions to make Gap Kids clothing.But if there's any silver lining here, it's the sensitive, professional way that Gap has dealt with the controversy. The company admitted it may have unknowingly used child labor, and according to Gap North America President Martha Hansen, "This is completely unacceptable and we do not ever, ever condone any child laborer making our garments. We act swiftly, and quite honestly, I'm very grateful that this was brought to our attention." (emphasis added)
So the company is dealing with a media firestorm resulting from a report put out by an investigative reporter and the company is thanking the reporter. This story had the potential to be a huge problem for Gap but they appear dedicated to fixing it, and the class with which they're handling it should help the company.
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