Recent articles in The Economist and Wall Street Journal reported on the 17 North American retail chains, including Walmart, J.C Penny, Macy’s, Nordstrom, Sears, Target, and Gap, launched the Alliance for Bangladesh Worker Safety on July 10th. This 5 year safety plan has a goal of improving worker safety in Bangladesh following the horrific garment factory collapse this past April. These retail chains have committed to providing $100 million in low-cost loans. According to the Wall Street Journal, these retailers “are also putting up $42 million to pay for worker training, factory inspections and administrative fees.  Bangladesh has become the world’s second largest apparel maker after China. Due to the competitive nature of this business and growing Western demand, many dilapidated buildings were turned into factories. Factory owners and workers were hardly trained in basic safety procedures.

To date, scores of Bangladesh factory workers have been killed. The most recent incident killed 1,100 workers. Senior Vice President for Global Responsibility at the Gap was quoted in the WSJ stating that safety challenges that are faced in Bangladesh are complex, and these issues won’t be solved overnight.

Despite criticism from labor groups, in my opinion the efforts of these 17 retail chains is definitely a start. It is about time these companies took action to ensure the safety of all the workers in these garment factories. Outsourcing production of goods is definitely a smart business choice to make. However, to all of you who will become entrepreneurs or top executives, remember that corporate social responsibility is imperative.

What do you all think about this alliance? Share your thoughts below.

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