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Cheap Labor Exploited In Bangledesh Essay

1320 words - 6 pages

Case Study 1- BMGT 203- Ramzey Alalfey
Key Facts
Bangladesh is being exploited for cheap labor by many big brand companies. Due to the unsafety of these factories many deaths have occurred. A factory collapsed in Bangladesh killing over 1000 people and the big brand companies are being forced to be held accountable for these incidents. This is known as the deadliest disaster that ever occurred in the clothing industry. Accidents like these happen often in Bangladesh. The safety standards in this country are usually never imposed.
The minimum wage in Bangladesh is $38 a month. This is the lowest minimum wage in the world. Those same people being exploited for cheap labor are responsible for ...view middle of the document...

Someone should have known about the construction issue involved with the building. They were giving off a false impression of the safety of the building. There should be a maximum number off occupants a building can handle and it should be known what and what not a building can take. No one should ever have to worry about having their lives at risk due to a building collapsing. I believe that this information was being hidden and in return to push their limits in order to increase profits.
Autonomy could also come in to question as well. The employee’s autonomy was being violated. They were taking unfair advantage of others in order to benefit themselves.
Stakeholders
There are shareholders of many of those big companies that do their manufacturing in other countries such as those in Bangladesh. Like any shareholder they would want their stock in what they invested in to improve. But incidents like these can take a toll on the company’s stock value. What if they knew about the conditions that are involved in the manufacturing of their products? This censure hurt their image as well as the value of their stock. This could result in people not wanting to invest in their company. Your everyday shopper might not care much but when people invest they tend to look at every aspect and incidents like these can surely affect their decisions.
Consumers are involved as well. They might support the idea of companies manufacturing their products elsewhere because in return the products they buy will be cheaper from these companies. There could also be those consumers who actually care about what’s going on behind the scene. This could result in consumers not shopping at these companies knowing they are exploiting people in other countries and they may feel that buying these products would be supporting that.
Retailers are the ones who seek cheap labor in foreign countries. Although this may be cheaper for them the may decide to look elsewhere due to the harm that is being implemented on those factory workers. Not every company is money hungry. Some actually care about the well beings of others may shy away from foreign labor for good or at least until conditions improve.
Alternatives
1. One alternative would be to bring production back to the home country. By doing so the companies would help their country by increasing jobs and stimulating the economy.
2. Another alternative would be to improve the conditions in these factories as well as the pay for the employees. Although this may not be ideal to the CEO’s, something must be done to help improve the safety of those working in the factories.
Implications
Alternative 1:
A. Utilitarian. By bringing production to the domestic market this could improve the employment rate in the home country. This will benefit all those people who are jobless. Thus will also...

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