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Ethics and Strategy There is little doubt that globaliza- tion has improved lives of both working conditions. This will take some prxducers in developing economies and time, of course. And, in the meantime, at sumers in more developed econo- Individuals working in compa- least some workers' lives may be at risk. For example, shortly after these firms is that make, for example, clothing announced their commitment to im- countries like Bangladesh, China, proved worker safety, a fire in another the Philippines, and Vietnam have jobs Bangladeshi factory that makes clothing sat pay good wages compared to al- for Wal-Mart, Benetton, and other com- matives in those countries and are panies killed eight employees. le to move their families out of ab- Some have argued that the in- ect poverty. Consumers in developed tense cost pressures put on Bangladeshi ewnomies are able to buy good quality factory owners by their developed dothes at relatively low prices. economy customers force these factory But this seemingly virtuous owners to locate their factories in in- rade is not without its personal and Manufacturing Tragedies and expensive but dangerous locations. It International Business social costs. A series of disasters in would be convenient for these factory owners if all the blame for these ter- factories in Bangladesh reminds us the building collapsed, and almost 900 rible tragedies could be placed on their that low-cost clothes for consumers people died. customers from developed countries in developed countries can sometimes These factories all produced and by implication on all who purchase be manufactured in grossly unsafe clothing for well-known U.S. and clothes from these retailers. Of course, factories in less-developed countries. Western European stores, including things are rarely that simple. While One fire in a Bangladeshi factory H&M, Wal-Mart, Target, Benetton, these retail firms do put cost pressures killed 112 workers. At least some of Primark (in the United Kingdom), on their suppliers, it is the factory own- the fire escape doors built in this fac- and Mango (in Spain)to name just a ers and factory managers who lock fire fory had been locked to prevent work- few. Indeed, because Bangladesh is the doors and insist on production in a es from taking unauthorized breaks. second-largest producer of garments building that appears likely to collapse Then a complex of clothing facto- in the world, behind China, it is very at any time. nes in Bangladesh collapsed, killing likely that at least some of the clothing Nevertheless, the growing num- 892 workers. It turns out that the top that each of us wear each day is made ber of tragedies in Bangladesh, China, hur floors of this complex had been by Bangladeshi workers operating in and elsewhere in garment manufactur- built illegally without the proper per- marginally safe factories. ing may require firms in developed economies to rethink at least some as- Of course, these Western firms do mits. And even though cracks in the building led the manager of a bank not have managers on site at these fac- pects of their international business located on the first floor to close and strategies. tories insisting that fire doors are locked send all his employees home for their and unsafe buildings are built. Indeed, Safety, the owners of the factories in Sources: J. Yardley (2013). "Fire at Bangladeshi after the building collapse, many firms factory kills eight." NYTimes, May 9; J. Juliflar, A. the top floors insisted that their em- in developed economies pledged to Monik, and J. Yardley (2013). "Building collapses in ployees go to work. Shortly thereafter, Bangladesh, leaves scores dead." NYTimes, April 24. work with suppliers to ensure safer