Apparel companies had to face a complicated situation due to a fire that killed 400 workers in a factory in Bangladesh on April 2013. The question they faced was whether they should stay in Bangladesh and improve working conditions or simply leave and look for another low-cost manufacturer.

Having one of the lowest wages in the world, Bangladesh exports apparel to several different companies and retailers. Although after the incident, Disney pulled away. They opted-out for at least a one-year term until everything was re-established and fully running again. It is true that finding a new and cheap labor supplier is not necessarily a huge loss in terms of quality for Disney. Unless otherwise looking to change their supplier every now and then, companies not only need low-cost production, but also suppliers who are willing to produce quality apparels in quality and safe conditions.

Should companies practice ethical business? Business ethics is a way to handle problems that arise within the business environment. Companies and managers should respect both customers and employees. According to research and witnesses, the workers in Rana Plaza factory were tempted not to work on April 24th, 2013. However, the staff in charge apparently threatened to fire the workers, leaving them no choice. It seems like they were suspecting the worst. Less than an hour into work, the electricity of the building went out, and tragedy inevitably occurred. Are companies solely responsible for this? What actions should they take in order to deal with the situation? Are they expected to take blame and improve working conditions? Are they ultimately tied in to their manufacturers? Confront or retreat?

References:

http://www.scu.edu/r/ethics-center/ethicsblog/business-ethics-news/16120/DISNEY:-Should-Retailers-Cut-and-Run-from-Bangladesh?

http://www.newsweek.com/year-after-bangladeshs-deadly-factory-collapse-western-companies-slow-compensate-248506

http://www.serdef.org/archives/2900