Old Navy - 1792 Exchange

Rating Overview

Old Navy is Medium Risk.

Old Navy often yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. The company implements race and identity-based policies that replace merit, excellence, and integrity with preferential treatment and outcomes. Old Navy occasionally embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues at times. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	Medium Risk
Discriminatory Philanthropy	Lower Risk
Employment Protection	Medium Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	High Risk
Political Actions	Lower Risk

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

Medium

Rationale:

Gap Inc.’s HRC 2023-2024 CEI rating indicates the company recruits employees based on sexual identity issues. The company discriminates against vendors that do not promote divisive sex and gender policies, indicating it prioritizes sexual issues over merit (1). Old Navy has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (2).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

Lower

Rationale:

Despite saying that the company will not match gifts to religious organizations, Gap and Old Navy will donate to religious charities (including programs run by a house of worship) that “perform a social service” (1)(2).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

Medium

Rationale:

Old Navy does not provide viewpoint protections for its employees (1).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Gap Inc, Old Navy’s parent company, scored a 100 out of 100 on the 2023-2024 Corporate Equality Index (CEI) from the Human Rights Campaign (HRC), a political stakeholder group (1)(2). The company has signed open letters in support of the Equality Act and supporting transgender participation in youth sports (3)(4). Old Navy has embraced the Black Lives Matter movement, including launching a billboard in Times Square in June 2020 in the wake of the events surrounding George Floyd (5). Gap opposed the Florida Parental Rights in Education Act, which prohibits teaching gender identity and sexual orientation in schools to kids in K-3rd grade (6). Old Navy stated that it plans to double representation of “Black and Latinx” employees by 2025 (7).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

Gap indirectly supports Planned Parenthood through third parties (1). Old Navy donated 10% of all proceeds made through its PRIDE campaign to “It Gets Better” an LGBTQ organization (2). Old Navy signed the Fifteen Percent Pledge and “committed to dedicate 15% of their shelf space to Black-owned brands” (3)(4). Old Navy has partnered with EmbraceRace and the NAACP to facilitate “conversations about race at home” (5)(6).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

Lower

Rationale:

Gap Inc, Old Navy’s parent company, has not used its PAC donations or lobbying for ideological purposes (1)(2)(3).