Industrialized countries have come a long way in terms of worker safety and compensation. The number of worker-related injuries has decreased substantially over generations, and many employees earn better wages than they did in the past. Unfortunately, the same cannot be said for all parts of the world.

To keep costs down, many Western companies and their managers turn to suppliers in developing nations, where people have little choice but to work for low pay and no benefits, in top-down management structures without participative management opportunities or unions to represent them. Unregulated and even unsafe working conditions are common, especially in the garment industry. However, three recent accidents in Bangladesh are raising questions about the ethics of tolerating and supporting such conditions. In November 2012, a fire at the Tazreen Fashion factory that made low-cost garments for several U.S. stores, including Walmart, killed 112 workers. In April 2013, the collapse of Rana Plaza, home to a number of garment factories, killed more than 1,100. And in May 2013, a fire at the Tung Hai Sweater Company killed 8 workers. An investigation of the Rana Plaza incident revealed that the building had been constructed without permits and from substandard materials. Although workers reported seeing and hearing cracks in the structure of the building, they were ordered back to work.

The government has started to take action in Bangladesh. In April 2017, over 100 leather tanneries were shut down for numerous health and safety concerns.

In response, some companies such as PVH, owner of Tommy Hilfiger and Calvin Klein, as well as Tchibo, a German retailer, have signed the legally binding Industrial proposal, which requires overseas manufacturers to conduct building and fire-safety inspections regularly and to make their findings public. However, many other companies have not signed, and none of the 15 companies whose clothing was manufactured at the Rana Plaza plant donated to the International Labour Organization fund for survivors.

With the rise of CSR initiatives, what is the responsibility of organizations toward the working conditions of their subcontractors, at home or abroad?

Discuss if you think companies should outsource the production of these items made under conditions that wouldnt be approved of in the United States, but are perfectly legal in the situation where they are produced?