... Prof: Dr. Andrea Werner Module: Management Perspective (MGT4814) Report: The Case Study Primark (Rana Plaza, Bangladesh) Assignment: Group Course Work Subject: Ethics, CSR and Governance Prof: Dr. Andrea Werner Module: Management Perspective (MGT4814) Report: The Case Study Primark (Rana Plaza, Bangladesh) Thesis Statement An Ethics and CSR responsibilities for the organization using a case study of Primark Contents Thesis Statement 1 Contents 2 Abstract 3 Introduction 3 Analysis 4 Business Ethics 4 CSR 5 Conclusion 7 References 8 Disclaimer: 10 Abstract This report discusses corporate social responsibilities and business ethics in the case of the Rana Plaza collapse. In April 24, 2013 the Rana Plaza factory in Savar district of suburb Dhaka, Bangladesh collapsed, where death tolls reached 1129. Those were garment workers for outsourced operations from well-known Western high street fashion brands. One of the factories buried in the collapse was a supplier of Primark. The incident unveiled debate on duties in supply chain responsibilities, outsourcing and offshoring operations. The article first analyses Primark policies and practices, on ethical and CSR frameworks, leading to event and then it analyses the responses undertaken by Primark to mitigate the accusations and subsequently changing the policies. Introduction Bangladesh has long been known as one of the...
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...IMPROVING TRANSPARENCY: H&M’S CODE OF CONDUCT IN BANGLADESH FACTORIES Prepared for Jennifer Ward, US Public Relations / Communications Director H&M Prepared by Public Relations Specialists H&M October 7, 2015 MEMORANDUM TO: Jennifer Ward, U.S. Public Relations/Communications Director FROM: Murphy Kane, Public Relations Specialist; Kathleen Ashcraft, Public Relations Specialist DATE: October 7, 2015 SUBJECT: H&M’s Code of Conduct in Bangladesh Factories We have prepared the report that you requested on H&M’s code of conduct used in our garment factories in Bangladesh. After some initial research, we have found that H&M has a well-established code of conduct that would meet the standards of the average U.S. consumer, which is the market into which H&M is looking to branch. The issue that H&M faces is the average consumer’s perception that every company outsourcing to Bangladesh has the same inferior standards as the Bangladesh government. The solution rests upon H&M’s ability to focus more clearly on brand management. Consumers need to be reassured that H&M’s standards for working conditions are not the same as those of the Bangladesh government. H&M’s public relations team in the U.S. should focus upcoming press releases and social media blasts on explanations of H&M’s code of conduct. Additionally, H&M’s new ad campaign...
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...Corporate social responsibility Disaster at Rana Plaza A gruesome accident should make all bosses think harder about what behaving responsibly means THE collapse of an eight-storey garment factory in Rana Plaza on the outskirts of Dhaka on April 24th killed at least 400 people and injured many more. It was probably the worst industrial accident in South Asia since the Bhopal disaster in 1984, and the worst ever in the garment industry. Local police and an industry association had warned that the building was unsafe (see article). The owners reportedly responded by threatening to fire people who did not carry on working as usual. Much of the blame lies with Bangladeshi governments of all stripes, which have made only rudimentary attempts to enforce the national building code, especially against politically well-connected landlords. With luck, the laws will now be applied, but nobody expects much. The spotlight is therefore on the multinational companies whose orders from local factory owners have led to the rapid recent growth of the garment industry in Bangladesh, the world’s second-largest exporter of clothing after China. Familiar brands now stand accused of exploiting poorly paid workers with a callous indifference to their safety. Two companies whose products were found in the rubble at Rana Plaza—Primark, a cheap British label, and Canada’s Loblaw, whose brands include Joe Fresh—have rapidly promised compensation to victims and their families. But it goes...
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...of Bangladesh every year this country needs to face number of natural disaster. Facing so many disasters like flood, cyclone, drought, earthquake now people of this country know at least a little, how to manage the natural disaster, what to do and what not to do during those crisis. But, still we lack of managing the manmade disaster. Like the “Building Collapse”. Recent Rana Plaza tragedy had made us aware about our present vulnerable position in the sector of building collapse disaster. It has shown our vulnerable position in this kind of disaster. For, the reason of a single building the whole country was stacked for few days. Total 1136 person has died due to this incident. Around 4000 people have been injured and around 5000 family have been affected directly or indirectly. This was the only one remarkable building collapse incident in last century in our country. If this kind of incident be repeated further. Where we shall stand? Whatever, this disaster could be managed more efficiently. Requirement was a bit awareness and some knowledge about the result of the incident. 1.1 Aim The aim of this paper is to highlight the manmade disaster “Building Collapse”, it’s details, mitigation, how to minimize the loss due to building collapse? 1.2 Scope In this paper I shall discuss the following things sequentially: * What is building collapse * Types of building collapse * Reasons of building collapse * Effects of building collapse ...
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...SECTOR IN BANGLADESH Wednesday April 24th, 2013 is an undoubtly a date that will live in infamy. In the worst ever building collapsed in Bangladesh. the nation as well as the rest of the world watched in horror as so many innocent lives were brutally ended when the eight story Rana Plaza housing four garment factories a branch of a private branch of a private bank and a number of shops came crashing down causing death and devastation all around. The death & injured list garments accidents is below. Some garment factory incident between (2005 to 2013) ACCIDENT DATE Spectrum sweater Industries April 11,2005 Limited(Ashulia) Phoenix Garments in tejgaon Garib & Garib sweator factory,Gazipur Ha-meem Groups of sportswear factory (Ashulia) Tazneen Fashion Fire in ashulia Rana Plaza collapse in savar GARMENTS NAME DEATH NUMBERS 75 workers At least25 workers At least 25 workers February 25,2006 February 25,2010 December14,2010 November24,2012 April24,2013 Sources: Newspaper, Reports At least 31 workers At least 112 workers At least 1129 workers Page 1 of 8 One can just simply and directly ask the questions after 42 years of being an independent nation, after years of development marching with the wings of time and technology, after so much advancement in various fields and after containing to move forward, raising hopes for the people who chose to believe is such a monumental tragedy acceptable? The reasons of collapse building due to unauthorized building structure...
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...Bangladesh Garment It seems to be a simple answer on its face; do US companies have a responsibility for the welfare of the workers who manufacture their clothing? The immediate humanitarian response is “Of course!” But, deeper questions then have to be raised and considered; does a private company have purview over a manufacturing plant overseas to begin with? Would enhancing work conditions damage the profit margin of clothing produced there? How responsible is the company to stockholders? Consumers who buy their low-priced goods? If a plant is shut down on the name of worker welfare, what paying jobs are there to replace the ones lost? How do you balance profits against treating workers fairly and with safety? The capitalist says; profits are the bottom line, selling product at a competitive price, and no one is forcing the workers to work in plants. The opposing view is; why should foreign workers labor in sweatshop conditions so Americans can have cheap clothes and CEOs can cash big, fat paychecks? First, we must recognize that the purpose of business is to provide a good or service, and to make money while doing so. That is the nature of the beast; it always has been and I suspect always will be. The main variable in question what responsibility does the company have to the workers? While the workers are foreign, they are, in a de facto manner, working for (often) American companies, stock shares for American investors, and affordable clothing for American consumers....
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...On March 25, 1911 on a spring Saturday afternoon five hundred workers consisting of mostly young women, prepared to get their pay for the day and return home. It was a beautiful afternoon and the workers were about to hear the end of the day bell to be dismissed and head home. Around 4:40 pm to be exact, there was a dropped cigarette or match that ignited New York’s deadliest workplace accident to date. If it weren't for the carelessness and ignorance of those in charge of the factory and the conditions, this accident could have been prevented and just under 150 innocent lives could have been saved. The Triangle Shirtwaist Factory took up the eighth, ninth and tenth stories of the Asch building in 23-29 Washington place, at Washington square East in the heart of Manhattan. (trianglefire.ilr.cornell.edu, “SWEATSHOPS & STRIKES BEFORE 191.”) The owners of this factory, Max Blanck and Isaac Harris profited greatly off of the sweatshop quality work of the young women. These women, a large portion of whom didn’t speak English because they were immigrants, worked about 14 hours for a workday. These hours were worked toiling in cramped, unhealthy conditions that have clearly been proven hazardous. They earned at most two dollars a day, greatly under what their male counterparts earned,...
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...DHAKA, Bangladesh — As Bangladesh reels from the deaths of hundreds of garment workers in a building collapse, the refusal of global retailers to pay for strict nationwide factory inspections is bringing renewed scrutiny to an industry that has profited from a country notorious for its hazardous workplaces and subsistence-level wages. After a factory fire killed 112 garment workers in November, clothing brands and retailers continued to reject a union-sponsored proposal to improve safety throughout Bangladesh's $20 billion garment industry. Instead, companies expanded a patchwork system of private audits and training that labor groups say improves very little in a country where official inspections are lax and factory owners have close relations with the government. In the meantime, threats to workers persist. In the five months since last year's deadly blaze at Tazreen Fashions Ltd., there were 41 other "fire incidents" in Bangladesh factories – ranging from a deadly blaze to smaller fires or sparks that caused employees to panic, according to a labor organization tied to the AFL-CIO umbrella group of American unions. Combined, the recent incidents killed nine workers and injured more than 660, some with burns and smoke inhalation and others with injuries from stampedes while fleeing. Wednesday's collapse of the Rana Plaza building that killed more than 300 people is the worst disaster to hit Bangladesh's fast-growing and politically powerful garment industry. For those attempting...
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...these essential elements are not available then growth of industrial sector is unfeasible. Besides all these things labour issues are also very important. Proper management of labour is an essential matter for growth of industrial sector. Timely disposal of labour disputes are also important. We see that in most of the cases the labour law disputes do not solve with in short time. So the remedy which is essential from the case becomes delayed. The labour law is very much important in Bangladesh perspective. It is highly important for the industrial development of Bangladesh. We know that labour is a most important part of an industry. So, we can not think an industry with out labour. Labour right is most essential in Bangladesh. But the labours are in ignorance about their right. They don’t know properly about labour laws and education. It is a great problem. For this reason, they retrenched by the employee. Very often, they retrenched with out any legal process. Labour Laws in Bangladesh: In Bangladesh 47 labour laws are now in operation. These relate to (a) wages and employment, (b) trade union & industrial disputes, (c) working environment and (d) labour administration and related matters. The main labor laws are: Workmen's Compensation Act, 1923,Payment of Wages Act, 1936,Maternity Benefit Act, 1936,Employment of Labour (Standing Orders) Act, 1965,Shops & Establishments Act,...
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...History of Ready-made Garment (RMG) Sector in Bangladesh Now a days textile sector of Bangladesh retains it's top position in global market. This can't be gained overnights. Bangladesh can get it's present position by dint of merit and industry of people of Bangladesh. The base of textile sector was first established in 60th decade of the last century."mercury shirts"which is originated from Karachi started the rmg business first.the industry exported shirts to the European market in 1965-66 first. | | In 1977-78 only 9 exporting industries were available in this country which deal with 10 million used every year.there were 3 big industries available in that time.they were: 1. Riaz garments 2. Jewel garments 3. Paris garments. Of them, Riaz garments was the most well known and oldest industry in that time.In urdu road of Dhaka it started it's business with some tailoring shop first.In that time it was known as Riaz store.In 1973,it was named Riaz garments.In 1978,it started exporting products abroad.it exported 1 million pieces of shirts to the Olanda,a South Korean company. Another garments known as Desh Garments ,also treated as the pathfinder of textile sector in Bangladesh. In 1979 Desh Garments opened a joint venture project with south korean company "Daiyuu". At present RMG sector of Bangladesh deals with 22 billion USD every year.4 million people directly depend on the ups and downs of the sector.the 81% of the total export earnings are come from...
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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...Like most people in the western world, renowned for his humanitarian work nowadays, Andrew Morgan, regularly shopped at fashion stores such as the Gap, Walmart, Target and H&M before making this documentary. But after the 2013 Bangladesh Rana Plaza collapse, he too began to pursue the truth. It is human nature to be inquisitive about the unknown; we naturally explore the unthinkable and chase the unfathomable. And it is this paradox of life which drove Andrew Morgan to produce this documentary. While later stressing in a conference that the making of The True Cost was simply a “story about clothing”, it transformed into something much, much more. While I’d admit that we shouldn’t blindly follow a documentaries series of events, surely we should be entitled to some leeway when it comes to perceiving the truth. Are bias documentaries always wrong? Morgan’s main argument is that the impact of pushing prices down in the clothing industry is forcing workers from poor countries to produce at a faster rate. Garment workers, not just from Bangladesh, are being subjected to long hours but seemingly reap little of the rewards. According to Morgan, under $3 a day. It wouldn’t be stretch to say that suffering and deprivation of common human rights would follow. The evidence Morgan presents reveals that these fundamental human entitlements, to a fair and safe workplace environment...
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...UGB247- Responsible Business Report on Corporate Responsibility ‘Fashion Retailing in Europe’ Laura Wallace: 1083579942 Module Leader/ Tutor: Mark Winter 15th May 2015 Word Count: 3,296 1 Contents 1.0 What is Corporate Responsibility? Page 3 2.0 Key Issues of Corporate Responsibility Page 3 2.1 Issues Relating to Outsourcing Page 4 and 5 2.2 Child Labour Page 5 and 6 2.3 The Use of Animal Fur and Environmental Issues Page 6 and 7 3.0 Best Practice Within the Sector Page 7 3.1 Primark, Compensation and Utilitarianism Page 7 and 8 3.2 H&M, Child Labour and Deontology Page 8 3.3 M&S and Virtue Theory Page 8 and 9 4.0 Recommendations Page 9 4.1 Responsibility Auditing Page 9 4.2 Education Page 9 and 10 4.3 Making a Stand Against Animal Fur Page 10 5.0 Conclusion Page 10 6.0 References Page 11 and 12 7.0 Appendices Page 13, 14, 15 and 16 2 1.0 What is Corporate Responsibility? Corporate social responsibility (CSR) is “about businesses and other organizations going beyond the legal obligations to manage the impact they have on the environment and society.” (Lea, 2002) In recent years, the fashion retailing sector in Europe has gained a lot of media interest over its irresponsibility to society and its employees. Some companies which have been under scrutiny around this issue include: Primark, Zara and H&M as well as many other brands which are increasingly popular...
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...http://www.bangladeshaccord.org/bangladesh/ The southern Asian country of Bangladesh, bordered by India and Burma, has a population of approximately 164 million people[1]. The Bangladesh economy has grown an average of six percent a year over the last two decades and has a population increasing by an average of 1.59% a year[2]. This manufacturing industry accounted for almost 12% of Bangladeshi GDP in 2009 and 2010[3] and employs approximately four million people[4]. The export-oriented Bangladeshi garment manufacturing industry has boomed into a $19 billion dollar a year industry[5] following the expiry in 2005 of an international agreement on textiles and clothing import quotas in place since the early 1960’s[6], duty-free access offered by western countries, and low labour costs. The Bangladeshi textile and garment manufacturing sector is fuelled by young, urbanizing, workers many of whom are women. With the majority of production destined for U.S. and European markets, Bangladesh’s ready-made garment industry now accounts for approximately 78% of total exports[7], second only to China as the world’s largest apparel exporter. However, Bangladesh has a long history of health and safety tragedies in garment and textile manufacturing. Garment factory fires and collapses have killed at least 1800 workers since 2005[8]. The Tazreen Fashions fire on 24th November 2012 and the unprecedented disaster of the collapse of the Rana Plaza factory complex on 24 April 2013, together...
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...Amazon’s: The Ethical Collection Executive Summary: Amazon.com the online retailer has many different verticals for its ecommerce site. The retailer has set many bars and has many different aspects that make it a heavy hitter in sales on it the ecommerce industry. The vison for Amazon.com 2.0 will consist of incorportaing an ethical brand line extension, The Ethical Collection. Our goal is to inform our shoppers on a environmentally friendly form of shopping for garments and bring awareness so shoppers becoming conscious consumers. Product Description: The Ethical Collection will consist of fairtrade and ethical designers across the country being able to sell their designs on Amazon.com. The collection will allow consumers to shop with an alternative and assortments that are not only favorable for the shopper, but valuable to the world. The Ethical Collection will provide Amazon with a new vertical. This advanced vertical will allow Amazon to reach an entirely new target. Amazon.com belives in a better fashion future. This new collection will provide just that, it will allow the consumers to acknowledge awareness in the fashion industry and the positive impact purchasing consciously can do. The Ethical Collection will be built on six pledges. Be Ethical Provide Ethical fashion to conscious consumers Social commitment Be environmentally friendly Reduce, reuse, recycle Strengthen the fashion cycle Target Segmentation: The target segmentation for the Amazon’s The...
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