Case Study 1 Ethical Issues in Global Supply Chains - A Case of the Garment Industry Ensuring sustainability and ethical

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Case Study 1 Ethical Issues In Global Supply Chains A Case Of The Garment Industry Ensuring Sustainability And Ethical 1 (381.91 KiB) Viewed 46 times

Case Study 1 Ethical Issues in Global Supply Chains - A Case of the Garment Industry Ensuring sustainability and ethical practices in global supply chains remains a topic of great debate. A key industry that has been severely impacted by the unethical practices in their supply chains is the garment industry. The Bangladesh garment industry grew rapidly in the last three decades employing about 3.5 million people and accounting for 80 percent of Bangladesh's total export earnings. Total exports in 2013 exceeded $20 billion. The Bangladesh garment industry services well-known brand names like Adidas, Calvin Klein, Diesel, DKNY, G-Star, Hugo Boss, Mango, Nike, Puma, and Ralph Lauren. Most of the workers were low-skilled, nonunionized, and often worked overtime. On 24 November 2012, a fire incident occurred in a garment factory near the Bangladesh capital of Dhaka killing 112 people and leaving several hundreds injured. The factory was owned by Tazreen Fashions Ltd., a subsidiary of The Tuba Group, a large Bangladeshi garment exporter whose clients included Wal-Mart, Carrefour, C&A, Kmart, and Li & Fung. The factory opened in May 2020, had about 1500 workers and annual sales revenue of $35million from the production of clothing. The fire started on the ground floor which was used as a yarn storage. The yarn storage was not fireproofed as required by the law. Most of the people died because of insufficient fire exits or fireproof, smoke-proof staircases. Where fire exits and stairwells existed, they were blocked, and workers were unaware of evacuation routes. The fire department also had logistic issues in getting their equipment close enough to fight the fire. After the fire incident, several concerns and issues were raised. There were arguments that the owners of the factory and the Bangladesh regulators were responsible for the incidence. Other perspectives faulted the Western clothing companies and retailers who rely on low- cost manufacturing in Bangladesh and should ensure that their suppliers have safe working

conditions or take their business elsewhere. Some also attributed the cause of the fire incidence to the desire of Western customers for cheap clothing which forced retailers to constantly search for low-cost manufacturing locations. Applying your knowledge of concepts, models, and theories in ethical issues in supply chain management, supply chain transparency, and supplier relationship management identify three key issues emanating from the case, provide a critical analysis of the identified issues and suggested recommendations on how the issues may be addresses in future. 1 Key issues to address Demonstrate an understanding of global supply chain and the reasons clothing companies use manufacturing contractors in Bangladesh. Are the international clients of Tazreen Fashions Ltd responsible for safety issues in their supply chains? If yes, in what ways? How can international clients ensure compliance to safety standards in their supply chains?

MGT303 - SUPPLY CHAIN AND OPERATIONS MANAGEMENT Suggested Structure of the Case Analysis 1. Introduction and Background of the case (100 words) Here, you should provide an introduction of the case highlighting the underlying supply chain issues that would be examined in your analysis. You should also provide a brief structure of the case analysis to guide the reader on what to expect from the rest of the case analysis. 2. Analysis (300 words) In this section, you are expected to apply your understanding of concepts, models and theories in related supply chain and operations management topics to examine the issues identified in section 1. You should adopt an analytical approach rather than a descriptive approach. You are expected to demonstrate evidence of research through the application of relevant academic sources such as scholarly journal articles, textbooks, and databases 3. Conclusion (100 words) In this section, you are expected to draw on the analysis conducted in section 2 to briefly summarise the key points from the evaluation of the supply chain issues introduced in section 1. Your conclusion should also include a recommendation on how the supply chain issues can be solved.

References The reference list should begin on a new page. You are expected to use the APA 7 referencing style. Ensure that you cite all sources used appropriately.