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State versus corporate obligations
A woman was riding her scooter to work at a company providing data entry services to mostly overseas clients. while passing an intersection, A car from a side road suddenly swerved into the top road, trashing her down and she lost her life. This is on the list of such road deaths due to accidents as people get to work. Pressure is now building from NGOs on the foreign producers, Asking them to make sure that employees working with their suppliers are safe while getting to work, And also to supervise traffic and be certain road rules are being followed,/p>
creates this change story seem farfetched? good, Think about how different it is from the case in Bangladesh following the garment factory building crash on April 24 in Dhaka, That killed above the 1,000. The papers are full of reports regarding how foreign buyers are reacting. Some are thinking about extending their audits to also see if the buildings were constructed as per code, While other individuals are said to be looking to exit Bangladesh,/p>
the actual, the local mayor, Who had allowed several factories to be created in violation of rules, Has justified his action on grounds that it takes too long to get the required permissions,/p>
He has since been busted. Mohammed Fazlul Azim, A garment factory owner and also a member of parliament, Is reported imploring brands not to leave the. that? Because industry is significant to us. Fourteen million families depend upon it. But as a manufacturing plant owner and a politician, He has no explanation for why the garment factory owners behave so badly in a country where that is a accounts for 80 per cent of its exports,/p>
The problem is that Azim and his ilk are a part of the problem. The UK article, Economist, Says over 25 MPs have financial savings in the garment business. The owners guarantee the industry gets preferential taxation and other benefits, Even while they have managed to deny for long the garment factory workers right to form unions. They possibly also overpower local factory, speed, And other inspectors doing their job,/p>
Even as wellmeaning activists try to invoke the image of ruthless multinationals trying to profit out of slavish labour in the third world, we have to reflect on the roles of the locals. The Bangladesh situation highlights a very frequent condition in developing countries, Where failure of political governance combines well with unethical behaviour by local establishments. Should foreign businesses step in to fill the breach,/p>
The manager of a European firm that gets its garments made in Bangladesh has been reported as saying that its contracts with Bangladeshi suppliers ensures that proper safety procedures are followed in the work area. so, It nike free may have to assure the contracts also include clauses about whether the buildings are constructed properly, And having their audits check on the same thing,/p>
This is where my hypothetical story at the beginning of this article comes in. Will the overseas buyers also ensure that the traffic police take care that the workers commuting to work do not die because of chaotic traffic,/p>
Bangladesh financial Minister, Abul Maal Abdul Muhith, Has supposedly said that the impact from the recent building collapse wasn serious enough to harm the garment nike air max industry. easily, He must fully accept the concept of costs,/p>
These are costs incurred by the foreign buyers sourcing from Bangladesh, Which would come with those on lawyer fees, Audits of factory specializes in, proceed, etcetera,/p>
These will shoot up now because of also the particular cost of the bad image a company gets when it is reported as buying stuff from a factory violating safety rules,/p>
Research in the West shows customers are likely to pay a higher price for a product they know is made ethically. Bangladesh factory owners are going for the foot of the trough,/p>
Walt walt disney world, Finding its proposal costs too high, has decided to source from elsewhere. Target and nike have also reported that they've reduced the number of supplying factories in Bangladesh. Europe is reviewing the duty free benefits accorded to Bangladesh under its Generalized Scheme of needs,/p>
Bangladesh is a success story that is heading towards failure if its elite does not wake up. Here is a generating country that, Even without any good things about be in the garment business, Managed to take advantage of Multi Fibre Agreement quotas to become the second biggest exporter after China. The country exploited its labour cost advantages to build working relationships with buyers to thrive even after the MFA was scrapped,/p>
It is easy to blame the costa rica government, political figures, And bureaucrats of Bangladesh for letting a down,[link widoczny dla zalogowanych], not enforcing rules on the books. But the blame need to be shared by the garment factory owners in Bangladesh, Who want to shift their corporate burden to western retailers,[link widoczny dla zalogowanych],/p>
These men,[link widoczny dla zalogowanych], Aware of the reasonable nature of their business, Are cutting costs by exhaustion their workers and skipping safety procedures. They don realise that it is not how you compete today. They do not understand their ultimate consumer in the western world is now sensitised to being aware of working conditions and factoring that into his/her buying decisions,/p>
The politicianbusinessman nexus helped the garment information mill get on its feet. That same nexus should now grow up and assume responsibilty, And it cannot expect the foreign buyers to do the job,/p>
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