Case 38: Tragedy in Bangladesh: The Rana Plaza Factory Collapse
1. Who are the stakeholders in this case and what are their stakes? What are the ethical issues?
The stakeholders in this case are the owners, the government, and ultimately the people/workers
of Bangladesh. The corporate owners’ stakes would be monetary investment, as well as their
2. Based on your study of the building collapse in Bangladesh, which party or parties do you
think are responsible and why?
The Bangladesh government, the Bangladeshi manufacturers, and the U.S. and other clothing
firms who utilized those factories are all liable. The Bangladesh government is liable because it
did not enforce its own building codes. One can understand that its concern was that, as a poor
country, if it did enforce its building codes, manufacturers might leave, and make them even
3. What role does the government of Bangladesh assume in this building collapse and other
safety violations?
The Bangladeshi government did not enforce its building codes, including obvious violations,
probably for fear of chasing away business. But they now realize that unless these problems are
4. Do Western companies have an obligation to safeguard the safety of workers in foreign lands
where the products they sell are made?
There is no question that if these garments were being produced in the U.S., the firms contracting
for the work would have an obligation to safeguard the safety of workers who make their
5. What are the pros and cons of companies working together in an accord to address safety
violations versus taking independent action to address the issues in the plants they use? Do both
approaches represent sound global corporate citizenship?
The benefits of companies working together in an accord is the systemization of policies and
procedures as well as the development of best practices regarding inspections and remediation.
Companies who join will need to agree and comply in order to continue participation. I can see
there being both positive and negatives regarding the participation of a company in an accord.
6. Do research on this case to bring all the facts up to date. Has anything significant changed? If
so, integrate these findings into your analysis.
Yes, there has been significant change. A March 2017 progress report shows that 77% of the
safety hazards identified in initial inspections were reported or verified as having been fixed.
7. What is your appraisal of companies that decide Bangladesh is too risky a country for them to
do business in?
Whether to do business in a country like Bangladesh is entirely at the discretion of the company
8. What is the responsibility of consumers to the employees in other countries where our
products are made? Is the writer correct that “we quickly forget?” What can consumers do to
address this mindset?
Jayne O’Donnell is right that consumers are troubled by such tragedies, but soon forget them.
Ideally, consumers would not buy from companies who ignored safety, but it’s often difficult to