Reference no: EM133046007

The collapse of the Rana Plaza garment factory building in Bangladesh in 2013 was the worst clothing industry tragedy in history. Photos of branded clothing goods, such as American Eagle and Joe Fresh, were found among the 1,134 dead workers. Unsafe working conditions were widely seen at that time as the unfortunate consequence of firms seeking low-cost suppliers in an era characterized by the globalization of capital and investment flows ....the race-to-the-bottom was directly seen as being responsible for the mistreatment of workers in developing countries....any brands or labels perceived as connected to child labour and unsafe working conditions were at risk of damaging the brand's image and sales.

Boycotts and consumer outrage inspired large firms, such as Loblaws - the owner of the Joe Fresh brand, to work together with labour unions in Bangladesh to create a private Accord that sought to improve the plight of garment workers while bypassing the corrupt government of Bangladesh. Hundreds of brands signed the Accord thereby making a committment to use only suppliers with safe factories that treated workers with basic standards of decency.

The ongoing pandemic has adversely affected the profitability of clothing producers and manufacturers around the world. Cost competition is to be expected, especially from suppliers based in developing countries. Brands are much more powerful than they have ever been.... so is there any need or customer demand for corporations to behave responsibly in choosing suppliers? Although there are an increasingly large number of brands that voice a commitment to ethical sourcing, the most popular sellers of clothing apparel these days sell their wares at discounted prices without regard to the ethical treatment of workers. To my knowledge none of the Amazon Apparel, Wal-Mart or Costco labels have signed the Bangladesh Accord nor any other global agreement that forces clothing suppliers to adhere to basic workplace standards.

Q1. Do you believe brands or consumers should care about the working conditions for garment industry workers?

Q2. Do you believe that fashion houses and multinational corporations are feeling pressure to engage in ethical sourcing and to actively police the workplace conditions of suppliers?
Q3. What do you think the future holds for luxury and non-luxury brands that do not engage in ethical sourcing?

Please feel free to provide any suggestions as to how to improve the post-pandemic prospects for clothing industry workers around the world.