Who is responsible for preventing apparel factory fires in Bangladesh?

An article in the New York Times (December 29, 2012) describes the struggle between apparel retailers who outsource manufacturing to factories in Bangladesh, labor advocates and the government. While the $37 a month wage rate makes Bangladesh an attractive sourcing location, enforcement of building codes, fire exit laws and reaction to fires is a sovereign right for the country, claim importer groups for retailers. Labor advocates claim that WalMart, Sears etc have to contribute to improve worker safety, but their auditors claim lack of jurisdiction over enforcement. Should the poor enforcement and associated costs to get safety standards implemented be included as part of sourcing costs and be paid by the importer? Should enforcement of safety be a Bangladeshi government responsibility? Or should a global cooperative audit group across retailers be permitted to certify working conditions before a supplier is used, even at the risk of antitrust violations?

About aviyer2010

This entry was posted in Global Contexts, Operations Management, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s