In 2012, the Tazreen Fashions factory outside of Dhaka, Bangladesh caught on fire, killing 112 employees. The Bangladesh factory produced garments for several well-known retailers, such as Wal-Mart Stores, Inc. and Sears Holding Corporation. According to the article, For Wal-Mart, Sears, Tough Questions in Bangladesh Fire, “Bangladesh has become the world’s second-largest clothing exporter, thanks in part to some of the lowest labor costs anywhere: The government sets the minimum wage for entry-level garment workers there at less than $37 a month” (Bustillo, Wright, & Banjo 2013, pg. 2). Wal-Mart Stores, Inc, faces the dilemma of seeking the lowest prices from suppliers globally to deliver low price products while projecting a corporate image of high ethical standards and corporate social responsibility. Traditionally, the purpose of a firm is profit creation, and sale of goods and services in a legal and moral manner. However, what has not always been a part of that tradition was the welfare of society and/or philanthropic endeavors. Due to numerous tragic events, like the one in Bangladesh, the issues of the role of business in social responsibility more frequently appears to be a topic of discussion. This has forced the corporate world to concern itself with the social impact of its decision-making.
Firms are turning to ethical business models such as the Wall Street Journal Model to help them understand business ethics and to make ethical business decisions. The Wall Street Journal Model consists of three components: “(1) Am I in compliance with the law?, (2) What contribution will my conduct make to the company, the shareholders, the employees, the community?, and (3) What are the consequences of my actions and decisions?” (Jennings 2012, pg. 33). In applying the Wall Street Journal Model to Wal-Mart Stores, Inc. and the fire in Bangladesh, the