Case Study Of Garment Factories In Bangladesh

799 Words2 Pages

Nowadays there are a lot of laws around the world that protect employees from employers, however in some countries those laws are less regulated than other countries. While I was reading the Bangladesh case, the garment factories in Bangladesh have issues when it comes to enforce their laws. The ethical and social responsibility issue in this case is mostly relate with the cheap labor. Since Bangladesh garment industries depends on the export of textile products to generate income as a result necessity makes them sell their products at a lower cost which later these products are sold through different retailers like Gap, H&M, Nordstrom at a higher price. The firm that imports products from Bangladesh, paid them a little for producing their …show more content…

Primary stakeholders are employees are the most affected because of the low wages they receive from employers. Furthermore textile employees work 7 days a week and a 12 hour shift, and the minimum wage in Bangladesh is $38 a month which is less than the rate of China. It could be devastating if the employee gets sick, he or she would not have enough money to pay for his or her treatment. For a suppliers to gain some profit they would make the product at a cheaper cost in order to get customers to buy their product. One way they operate is by exploiting textile workers and paying them a little for their …show more content…

On the case it mentions that before the collapse the firm “the Gap” announced a $22 million fire and building safety plan with its suppliers without identifying which factory it was used there and how many factories would be improved under the plan. Also “wal-mart” pledged $1.8 million to train 2,000 bangladesh factory managers about fire safety. Other brands agreed to sign a lawful binding agreement designed to improve safety conditions, an agreement which requires not to hire manufacturers whose factories fail to meet the required safety standards. On the other hand, some corporations tried to avoid signing the contract because of the safety inspection that will cost each company $2.5 million over a 5 year period. After all the firms would have to give up something in order to continuing buying their goods from Bangladesh

More about Case Study Of Garment Factories In Bangladesh

Open Document