Question

Search for information about the Rana Plaza collapse in Bangladesh (2013)!•What happened and who is responsible for Rana Plaza collapse in Bangladesh?•How did it impact the companies whose garments the factory manufactured and how did it affect Bangladesh´s economy? Can companies in your opinion outsource responsibility for workers in its supply chain?

Answer 1

Rana Plaza collapse took place on 24th April 2013. The reason of collpase was the structure of the building. The building was built on the filled in pond so it could not hold the structure with strength.

The other reason is that there were 3 floors added illegally. So the foundation could not hold the structure.

The area was only meant for commercial purpose. There were banks and shops in the buidling but it was converted to factory purpose which was not supposed to be that way.

The construction material used was too not so high in quality.

The cracks in the building were noticed and shops and banks were closed but the owner did not took the warning seriously and he called the workers at work that day. They said they will deduct the salary for one month if they don't come.

Sohel Rana was later on filed a case for the carelessness and unresponsible behaviour.

Bangladesh is second largest exporter in the world in apperals. this incident led to a great fall in the GDP of the country. This actually affected the overall stakeholders. This was not only affecting the country but the whole world where bangladesh exports.

Walt disney already pulled out its business from bangladesh one month before the incident. There were many steps taken to protect the economy. International laboure Organization took care of the labour interests. There were corrective measures which took place to recover the losses from the collapse.

The organisations that helped are "Accord and Alliance","Better work Bangladesh", "Donor countries key ministries and NGOs",

In BWB the major funding is done by the countries like France, UK, Switzerland, Netherland, Canada.

bangladesh was supported by 5 major countries EU, UK, Canada, Netherland and US.

This impacted the economy to some extent. But Bangladesh took action plans very fast inorder to continue the trade.

RMG sector of Bangladesh took many initiatives. there were even legal reforms to a large extent.

The companies got affected through this but all of them supported Bangladesh in the crisis and Bangladesh recovered from the losses within 2 years. None of the country ended buying from bangladesh.

The companies can outsource the responsibility for worker in its supply chain. The MNCs can do so if they want the product as per their guidelines and the country is not able to do so. They can even do this when the condition of the country is not so good economically.