Is it ethical and socially responsible for Gap to revoke contracts, causing poor workers to lose their jobs? Is it ethical and socially responsible to Gap’s stockholders to pay higher labor costs than necessary, thus possibly reducing profits and their dividends?
Expert Answer
It is never ethical and socially irresponsible for Gap to revoke contracts. It should give prior notice of 3-6 months, provide additional compensation for people who are unable to find job. As the hiring was done without stating that the abrupt revokation would take place, hence it is not at all ethical to fire the poor
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