Bangladesh and the battle of the brands

It seems the tragedy that beset Bangladesh when a garment factory building collapsed last week, killing more than 400 workers, isn’t over.  The country now faces the potential of a significant economic setback as a result of the horrific incident.

Western companies — many of them behind big commercial brand names — that outsource materials and products to Bangladesh are threatening to pull out their business if the country doesn’t shape up and improve working conditions in its factories.

As early as March, Walt Disney Company has started to pull the plug on Bangladesh when it sent a letter to thousands of its licensees and vendors effectively banning merchandise production in Bangladesh, according to a New York Times report.

Now, giant retailers like Gap, Walmart and The Children’s Place, are scrambling to enforce measures to improve working conditions at factories in Bangladesh. At this point, the options for these retailers are clear — find ways to improve labour conditions or cut their losses and leave.

What’s driving these decisions, and indecisions, unfortunately, does not have anything to do with a strong desire to rid the world of unscrupulous employers and free labourers from the bondage of slavery fueled by cheap labour and poor and unsafe working conditions.

In reality, the objective is less noble and more self-serving. For what’s driving these big companies to jump ship is their desire to keep a positive image for their brand. In theory, the consequence would be beneficial to workers in that side of the world as suppliers are forced to bring labour conditions to a higher standard, if they want to keep the business.

As we have recently witnessed in the deadly Rana Plaza building collapse in Bangladesh, reality does not always agree with theory. The Rana Plaza factory, that collapsed and killed hundreds of workers, is a contractor for Canada’s Loblaw Companies Ltd., manufacturing some of its Joe Fresh brand of clothing.

In a Reuters news report, Loblaw told reporters it regularly conducts audits of its suppliers to ensure its garments are manufactured responsibly, but focuses on labour practices and not building construction.

Now, any experienced health and safety professional will tell you part of determining sound labour practices is ensuring that workers are working in a healthy and safe environment. Obviously, that line was missing from the Loblaw audit checklist.

At the recent Partners in Prevention conference in Mississauga, Ont., chief executives from various Canadian organizations participated in the View from the Top panel that discussed the important role the organization’s leadership play in driving health and safety performance.

The incident in Bangladesh dominated part of the discussion. I asked the panel how, as a company that values and promotes a culture of safety across the organization, they are ensuring their organization’s standard for health and safety are extended throughout their supply chain.

It became evident by their answers that, despite their confidence and pride in their organization’s health and safety standards — the same standard they impose on their business partners — the tragedy in Bangladesh had been a reality check for them, particularly on their responsibility around the supply chain.

For many responsible organizations — whose purpose for doing the right thing is not only driven by the desire to keep their brand intact but a genuine intent to look after the well-being of their most important asset, their people — the Bangladesh tragedy is a wake-up call.

In a globalized economy, the economic, social and moral responsibilities of chief executives extend far beyond the four walls of their companies, to the supply chain, the contractors and the contractors’ contractors. This is the only way to ensure healthy and safe workplaces are not a privilege enjoyed only by some workers in some countries.

This is the only way we can achieve a world where workers no longer have to go to work to die.