Saturday, August 23, 2014

Corporate leaders: Your supply chain is your responsibility



On 24 April 2013 the Rana Plaza, a commercial building and garment factory in Dhaka, Bangladesh, collapsed, claiming some 1,130 lives and injuring thousands more. The shock was felt globally. How could this happen? Who was to blame? If the building was not fit for purpose, why was it being used? How could such a disaster be prevented from happening again?

The Rana Plaza produced garments for sale, mostly in OECD countries, including by well-known brands. The disaster was a jarring reminder of the need to strengthen the corporate responsibility of such firms over their entire global supply chains. Alas, Rana Plaza was not an isolated incident: from industrial fires to toxic gas leaks, not to mention mining disasters, the world has piled up an embarrassingly long list of industrial and other business disasters involving unnecessary loss of life over the past century. The textile industry and manufacturing in poor countries such as Bangladesh feature strongly on the list. A lack of corporate responsibility is to blame for many of the incidents. It should not be that way.

If there was a silver lining to Rana Plaza, it is the impressive mobilisation of stakeholders in the wake of the disaster to prevent such a tragedy from happening again. Representatives from industry set up the Bangladesh Accord on Fire and Building Safety, an association of 150 apparel corporations, as well as the Alliance for Bangladesh Worker Safety, which represents 26 retailers. Both initiatives are committed to inspecting and repairing garment factories to assure safe working conditions in Bangladesh.

See full Article: http://www.oecdobserver.org/news/fullstory.php/aid/4366/Corporate_leaders:_Your_supply_chain_is_your_responsibility.html