MGT489

Assignment

Exploring Ethics in Contemporary Bangladesh

Submitted to: Quazi Tasfirul Islam

Lecturer, Management Department North South University

Submitted by:

SL No. Name NSU ID

1. Md. Junayed Alam 1912471630

2. Javed Omar Rimu 2021812630

 3. Most. Sadia Arafin Maisha 1921221030

Introduction

When it comes to the backbone of our economy, RMG comes to the first place due to its export potential.

Bangladesh's total RMG exports had a record of a year-over-year (YoY) growth of 9.09% for the July-April

period of the FY22-23 (Shukla, 2023).

Though it is one of lucrative industry in our country, when it comes to safety, labor rights are we maintaining

the standard? The answer is no. A study by the Centre for Policy Dialogue (CPD) says 23% of the RMG

factories are out of inspection (Golam Moazzem , 2023). One of the biggest incidents in our country is the Rana

Plaza Collapse which occurred on 24th April, 2013. More than 1100 people killed and over 2500 were injured

(Holland, 2023). To have a visualization of its severity, casualties from the Rana Plaza collapse were roughly

equal to the number of casualties from the collision of about 24 Boeing 737s at average full capacity. It would

take more than 2 years to kill same number of people on average. But all of it happened in one day. But it

wasn’t even an accident which came out of nowhere. It was nothing but an tragic event.

In this case study, we will delve deep into the ethical questions and dilemmas presented by the Rana Plaza

collapse which is the biggest incident in the manufacturing industry ever. We have chosen the case from

University of Texas available at https://ethicsunwrapped.utexas.edu/video/collapse-at-rana-plaza.

Ethical issues or dilemmas present in the case:

Profit vs. Worker Safety: One of the major ethical dilemma presented in the is the conflict between enjoying

more profit and not ensuring the labor’s safety. Although the Rana Plaza building was known that it was not

safe, the top management continued to operate to maintain production and operations. They wanted to avoid the

disruptions at any cost which costed thousand of human lives.

Disregard for human life: Though there were visible cracks and predicted warnings from engineers about the

probability of accident in the building, workers were ordered to continue their work. And in the end it was a

result of a tragic incident.

Responsibility of international brands: The ethical responsibility of international brands such as Walmart and

Adidas producing in such factories was a major issue. The Efforts to reduce manufacturing costs indirectly to

buy underpaying stakeholders showed lack of responsibility to the international brands.

Responsibilities of local authorities: Poor approvals by mayors and negligence for building regulations by

building owners showed the ethical and regulatory gaps in the country.

Labour Rights in the RMG Industry: The RMG industry of Bangladesh faced significant human rights issues

with major factors such as poor workplace, lack of labor safety, and lack of workers' rights from salary to

environment.
Stakeholders and Their Roles:

Workers: Workers of the factories were the most vulnerable Stakeholders. They were exposed to unsafe

working conditions forcefully because they had almost no power over the authorities or the owners.

They were the most damaged stakeholders of the bunch.

Factory Owners and Sohel Rana: Even though they were responsible for their workers and tenants safety they

failed to keep up with their responsibilities. "On 23 April 2013 large structural cracks were discovered in the

Rana Plaza building. The shops and the bank on the lower floors immediately closed. But warnings to avoid

using the building after the cracks appeared were ignored by the garment factory owners on the upper floors

(CCC, 2018). The owners and the landlord failed to take necessary safety precautions, even though they knew

that the building was unsafe.

Garment workers were ordered to return to work the following day. Due to management pressure, on

Wednesday 24 April thousands of workers went to work again at their garment factories located in the cracked

Rana Plaza building. They prioritized profit over the lives of thousands of workers.

International Brands (e.g Walmart, Gap, Adidas): The brands which used to source their products from the

factories situated in Rana Plaza are also a very important stakeholders as they held enough power over the

factories which could lead to a safer working environment. Ultimately which would've saved thousands of lives.

But they chose not to get bothered about that (Holland, 2023).
Local Authorities: The mayor, City Corporations and other local authorities knew something was wrong with

Rana Plaza but didn't take any course of action to resolve the issues which later caused the building to collapse.

If they had done their part of duty maybe it was possible to avoid the incident or at least people wouldn't have

lost their lives.

Consumers: They are Indirect stakeholders but their wants and needs drive the companies towards cost cutting

where quality and attention to workplace conditions becomes neglected. If people were careful enough about

where and how their demands are being met then the situation would have been different.

Activist Groups: The activist Groups such as Workers Union and other such organizations are also a part of

this and play an important role as stakeholders. Their involvement also could've changed the situation for the

better.

1. The Law Application for a Specialized Organization:

Changes in ecological guidelines:

It is essential independently, on the grounds that for this reason, to control and make natural regulations in the
business area of tanneries. This body should be safeguarded from modern impact since it gives objective
perception,

- Shock examinations and routine investigations are required:

Laying out a thorough review and shock investigation framework is fundamental for considering tanneries
responsible for their ecological effect. This proactive technique can diminish the probability of rebelliousness
and give explicit proposals to compliance.

2. Specialized inclusion:
Innovative Methods –
It is crucial for give an all out structure of setting focused assessments in nations that these important
assessments ought to underline both the financial and natural parts and effectively progressed to typical
advances. At the same time it shows the ordinary and cash related advantages of how feasible practices can
actuate significant length present day practices.
- Portions for the presentation of conceivable turn of events and cost improvements: To make maintainable
advances, state run administrations ought to think about charge motivators or sponsorships for committed
leather theaters. This monetary help is an immense motivator for leather experts to put resources into additional
harmless to the ecosystem strategies, assisting with diminishing their biological impression.

3. Rights and Conditions of Labour :

- To increase Productivity, Linking Improved Labor Conditions:

Creating a positive correlation between increased productivity and better worker conditions. Tanneries can
ultimately improve the quality of their products and bolster their reputation by investing in the well-being of
workers within the industry.

- Creating an Industry-Wide Code of Conduct:

Promoting the development and implementation of an entire manufacturing industry-wide code of conduct.
This code should encompass fair compensation and strict occupational safety standards. Independent third-party
audits are needed regularly to assure compliance.

4. Involvement of Community:

- Through Initiatives, Empowering Communities :

Describe effective neighborhood-based projects and also they can share examples of effective community-
driven initiatives that have fostered interactions and understanding between tanneries and neighboring areas.
For harmonious cohabitation and mutual benefit, these programs can serve a role.

- Creation of Development Fund Community:

To help local infrastructure projects, healthcare, and education suggest the creation of a Community
Development Fund, which is funded by tanneries. This type of support or the fund will help the prosperity of
the communities in which it operates and demonstrate the organization's commitment to well-being.

5. Responsibility of Supply Chain and Transparency :

- Capitalizing of Trends on Ethical Sourcing :

 For ethically sourced products give strong compelling statistics that firstly highlight the increasing demand. To
high rising in the market share and promote brand loyalty in addition to being in keeping with clients' values
and as well as emphasis that putting sustainability of the supply chain first has the opportunity.
- Partnership with Reputable NGOs for Transparency evaluations :
For supply chain transparency evolutions encourage multinational brands to add establishments with reputable
non-governmental organizations (NGOs). This type of collaborative effort will build the client’s confidence, and
trust and ensure adherence to fair sourcing practices.

6. Substitutes of Sustainability :

- Positioning Bangladesh as a Leader in Eco-Conscious Fashion :

To develop and market sustainable leather alternatives propose the allocation of research funds and innovation
incentives for local different educational institutions and organizations. In addition to protecting and helping
the environment, this calculated investment will help establish Bangladesh as a leader in eco-friendly fashion,
and as well as this strategic fund will not only contribute to positioning Bangladesh as a pioneering force in eco-
conscious fashion but also to environmental preservation.
References:

Golam Moazzem , D. (2023, August 30). Monitoring Workplace Safety in the RMG Sector Is Bangladesh a

Pioneer or Still a Learner? ,from https://cpd.org.bd/resources/2023/08/Presentation-on-Monitoring-

Workplace-Safety-in-the-RMG-Sector.pdf

Shukla. (2023, February 11). Garments industry slowdown is key 2023 risk for Bangladesh. The Business

Standard. Retrieved October 22, 2023, from https://www.tbsnews.net/economy/rmg/garments-industry-

slowdown-key-2023-risk-bangladesh-583206

Holland, O. (2023, April 23). 10 years after Rana Plaza, is Bangladesh’s garment industry any safer? Oscar

Holland, CNN. CNN. , from https://edition.cnn.com/style/article/rana-plaza-garment-worker-rights-accord/

index.html#:~:text=It%20collapsed%20because%20authorities%20had,warnings%20were%20ignored%20or

%20dismissed.

Rana Plaza. (2021, June 16). Clean Clothes Campaign. https://cleanclothes.org/campaigns/past/rana-plaza

Thapa, T. (2020, October 28). Remember Rana Plaza. Human Rights Watch.

https://www.hrw.org/news/2018/04/24/remember-rana-plaza