GROUP MEMBER

Muhammad Saad (f-78041)

Zain-Ul-Abideen (f-78020)
Ghulam Ali (f-78017)

Submitted To: MAM Ayesha Shakoor 

 INTRODUCTION:
GUCCI WAS FOUNDED BY GUCCIO GUCCI IN
FLORENCE, ITALY IN 1921.
AT FIRST, GUCCI MOSTLY SOLD LEATHER GOODS AND
TRAVEL ITEMS AND GRADUALLY MOVED INTO
EQUESTRIAN EQUIPMENT.
FRANÇOIS PINAULT, OF 
PINAULT PRINTEMPS REDOUTE (OR PPR) EVENTUALLY
ACQUIRED THE BRAND IN THE LATE 90’S.
PPR LATER CHANGED ITS NAME TO KERING IN 2013
AND GUCCI REMAINS A PART OF THE SAME GROUP.
IT CURRENTLY OPERATES OVER 480 STORES AND IS
ONE OF THE MOST ICONIC BRANDS IN THE LUXURY
FASHION INDUSTRY WITH OFFERINGS IN LEATHER
GOODS, SHOES, APPAREL, JEWELLERY, PERFUMES,
HOME DÉCOR, AND WATCHES.
                        GUCCI CORE VALUES
1-QUALITY- WHAT DIFFERENTIATES GUCCI FROM THE
OTHER BRANDS IS THE QUALITY OF ITS PRODUCTS.
2-ECO-CONSCIOUSNESS
3-PEOPLE
• CODE OF ETHICS 
INTEGRITY, LOYALTY, AND RESPONSIBILITY TOWARDS
EMPLOYEES;
• RESPECT FOR HUMAN RIGHTS;
• DIVERSITY, NON-DISCRIMINATION, AND EQUAL
OPPORTUNITIES FOR ALL;
• A WORKING ENVIRONMENT IS FREE OF ALL FORMS OF
HARASSMENT ETC
 • CULTURE OF GUCCI
CULTURE OF GUCCI IS VERY GOOD. THE
EMPLOYEES OF --GUCCI ENJOY MANY
FACILITIES 
FLEXIBLE AND OPEN COMMUNICATION WITH
HIGHER MANAGEMENT 
AN ETHICAL
ISSUE AT
GUCCI STORE
IN SHENZHEN,
CHINA
Factors that lead to abuse

■ There are various conditions that eventually led to such exploitation, some of these can
be said to be internal which Gucci resorted to and the others can be attributed to the
conditions prevalent in China. These factors are explained below:
■ Abuse by Gucci
■ Abuse on account of social conditions and governmental policies
 INTRODUCTION OF ISSUE:
ON OCT. 8, 2011, 5 EMPLOYEES OF THE GUCCI STORE
WROTE AN OPEN LETTER ON THE INTERNET ABOUT
THE EXPLOITATION AND ILL-TREATMENT OF
EMPLOYEES WORKING AT THE STORE.  IT WAS SAID
THAT MORE THAN 100 RULES WERE IMPOSED BY
THE COMPANY ON ITS EMPLOYEES
Cont 

■ seeking permission for tea and snack breaks

■  limitation of restroom breaks to 5 minutes
■ standing for over 14 hours a day continuously
■ unpaid overtime extending up to midnight
■ employees were also fined in case of stolen or
missing goods
■ discriminatory policies for the front-line workers
and managers
DEVELOPMNENT OF ISSUES:
DISPATCH IS A LABOR MANAGEMENT MODEL
WHICH SEPARATES RECRUITMENT FROM
EMPLOYMENT.
GUCCI STORES IN SHENZHEN ACTUALLY
ADOPTED A COMPLEX DISPATCH SYSTEM,
ABUSE ON ACCOUNT OF
SOCIAL CONDITIONS AND
GOVERNMENTAL POLICIES
Stakeholder:

■ Employes
       Managers
        Front Line workers
■ Media
■ Government Authorities
     Ministry of Human Resource and Social Security
     Local regulations of province
■ Customers
STAKEHOLD
ER
MANAGEME
NT
Issue Resolution 

■ Gucci headquarters in China issued a statement, saying that “Gucci does not and will
not endorse or tolerate the alleged malpractices.” 
■ Gucci also stated that that the company had conducted thorough investigations and had
implemented a series of measures, including the replacement of the store manager and
assistant store manager.
Leadership
Approach
■ Transformational
leadership 
■ Transformational leadership
is defined as a leadership
approach that causes change
in individuals and social
systems. In its ideal form, it
creates valuable and positive
change in the followers with
the end goal of developing
followers into leaders
video

■ https://youtu.be/uJZQKQsL4Xc
References 
■ References
■ [1] https://www.globaltimes.cn/content/678417.shtml 
■ [2] https://www.instyle.com/fashion/history-of-gucci 
■ [3]
https://www.statista.com/statistics/442796/number-of-gucci-stores
-worldwide-by-region/
■ [4] 
https://link.springer.com/content/pdf/10.1007%2Fs13520-012-00
24-6.pdf
■ [5] 
https://www.du.edu/korbel/hrhw/researchdigest/slavery/china.pdf 
■ [6] 
https://www.personneltoday.com/hr/seven-facts-employment-law-
china/
■ [7] 
https://www.gucci.com/documents/Kering_CodeEthique2019_En
glish.pdf
Write Up

■ Select The theoratical approach studied in the book to categorized the working of the
group?
■ How did the group work together?
■ How were the parts allocated?
■ Who did which questions? 
■ Which leadership approach was applied during the project by the Leader?
■ Was the Leader/followers easy to relate to?
■  Did the followers development level changed under the Leadership?
■  Did the Leader benefited as well?