LET GO business ethics for cheap fashion…
Sep 16th, 2010 by imransiddiqui
A large portion of Bangladesh garment industry is dedicated to the production of export clothing for MNCs all over the world. Asda, a UK retail company and a part of Walmart, is buying George clothing produced in the factories of Bangladesh. There have been no such complaints regarding the quality of the product, however, the wage rate paid to the labors is significantly low. The amount of money Bangladeshi labors earn is insufficient to buy a proper living standard for them, which includes food, clean water, clothing and all other daily necessities.
Although the minimum wage rate set by the government is very low, is it ethical for the company itself to give such a minimal wage? The answer is NO. The clothing produced by these labors yield very high revenue for Asda but the company is reluctant to pay a wage rate that even meets the necessities of such labors. As an outcome the labors are vulnerable to lower standard of living and the company is gaining more and more market share by offering cheap fashion to the consumers all over the world.
Is this business ethics or pure business? Only pure business.
Source: http://www.bbc.co.uk/news/business-10535743