Loblaw to offer compensation to garment workers in Bangladesh

Image by Andrew Biraj via The Star

After a series of protests and media scrutiny, Loblaw Cos. Ltd. has finally provided a framework for how it will compensate the victims of the deadly collapse of a clothing factory in Bangladesh, which was the supplier of Superstore’s ‘Joe Fresh’ clothing line.¹

Loblaw’s proposed plans of compensation have come 6 long months following the collapse of the Rana Plaza factory building, which in turn resulted in the world’s worst industrial accident in nearly 3 decades. Leaving 1,128 people dead and countless others injured, the event provoked furious outcry around the world, prompting the clothing industry to begin looking into initiatives that will improve many suppliers’ safety standards.²

This story brings forth the issue of social entrepreneurship and shared value policies, and how most companies around the world continue to ignore many social and equality standards, adhering to profit maximizing strategies instead. As outlined in Alex’s blog post, the issue of ethic in business seems to be rarely addressed.

On Thursday, Loblaw’s spokesman Bob Chant encouraged other “brands that have been involved in production at Rana Plaza to participate in the provision of compensation to the victims of this tragedy.”²

Though eternally tragic, this catastrophic has the chance to change the views of thousands of companies around the world, in encouraging the growth of social enterprise, awareness and equality around the world.

 Sources:

¹http://www.cbc.ca/news/business/bangladesh-garment-workers-to-get-compensation-from-loblaw-1.2223499

²http://www.theglobeandmail.com/report-on-business/international-business/loblaw-to-compensate-victims-of-bangladesh-factory-collapse/article15041964/