Seamingly Risky
Bangladeshi, a country located in fertile South Asia, is a fast-growing industry for clothing and textiles. Its possession of great potential and capital allows the clothing industry to boom and it also attracts many big western retailers by having the lowest production cost in Asia and duty-free access to European countries.
However, the catch with Bangladeshi is that hiring labour is cheap, and the factories are not exactly the safest place to work. In The Economist‘s article on Bangladeshi, it is mentioned that thousands died this April when “a factory near Dhaka collapsed.”
Western companies that have production sites in Dhaka and other areas in the country have implemented plans to make work conditions safer, but this isn’t merely an ethical issue. The Bangladeshians who actually own the clothing factories are realizing that what they’re doing might not actually increase their profits and overall welfare although the industry continues to become bigger. They are contemplating exit barriers and other ways to become more profitable.
Integrating both ethical and financial issues are important, but certainly, it is also very costly and risky to balance the two in order to achieve the most value-driven outcome.
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Works Cited
“Bursting at the Seams.” The Economist. The Economist Newspaper Ltd., 26. Oct. 2013. Web. 26 Oct. 2013.