Subject:Fire Kills Over 100 Factory Workers in Bangladesh

Run Time:2:17

Link:http://www.youtube.com/watch?v=RTy2ykKBxIY

Summary

Retail giant Wal-Mart was on the defensive after more than 100 workers were killed in a fire at a factory that produced its private label clothing.The fire was especially deadly because the factory lacked basic escape routes leaving workers with only the option of heading directly into the flames or jumping from the roof.The factory where the fire broke out was located in Bangladesh, a country that has become a key supplier of garments to numerous well-known companies in the United States and Europe.

With wage rates as low as $0.21 per hour, Bangladesh is one of the cheapest places in the world to produce clothing.Companies like Tommy Hilfiger, the GAP, and Wal-Mart are among those who are sourcing their products in the country.However, conditions at many of the factories where the garments are produced, including the one that where the fire broke out, are deplorable, and would be considered illegal in much of the world.

Documents show that Wal-Mart was aware of the dangerous conditions at the factory for at least year before the fire.Yet, despite this knowledge, the company apparently continued to buy products made in the factory.Wal-Mart claims that it did not know that its supplier was still using the factory in question.

Questions:

1. Wal-Mart is known for its focus on being a low cost player in the market.How might this culture have contributed to the tragedy in Bangladesh?If Wal-Mart was willing to pay higher prices for the products it sells, would there be more incentive to improve factory conditions?

2. As a consumer, do you play any part in the catastrophe in Bangladesh?Is your behavior as a consumer ethical when you shop at Wal-Mart?