The Case of Rana Plaza: A precedent or the severe reality?

Abstract

This paper discusses supply chain responsibilities in the case of the Rana Plaza disaster. In 2013 the Rana Plaza factory in Bangladesh collapsed, killing more than 1000 workers. They were garment workers for outsourced operations from well known Western fashion brands. A huge debate emerged around duties in outsourcing and offshoring operations. This paper first analyses some of the arguments accusing the fashion brands of conducting business in an irresponsible way. It then analyses the responses from these brands with regard to the allegations, and their subsequent policy changes. The analyses are informed by ethical theories and Ruggie’s work on due diligence in supply chain responsibilities. Key words: business ethics, due diligence, Ruggie, supply chain responsibilities, Rana Plaza, globalisation

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