UMASS BOSTON Rana Plaza Ethics and CSR Case Study


Ethics and CSR in the Global Clothes sector – Rana Plaza – You don’t need to address all the questions, but these point you to the main issues to discuss. Analyze the role of corporate social responsibility (CSR) and ethics in the context of global value chains for clothing. Explain how these concepts relates to the issues facing companies involved in making clothes, including the branded labels and the subcontractors in poor countries. Why might companies to take the interests of their stakeholders into account? Do a company’s responsibilities extend to subcontractors that it does not own directly? What are potential threats and costs that companies face from stakeholders if they do not display ethics or CSR? What are some of the potential economic and other benefits they might enjoy if they do act ethically and with CSR? Are all CSR efforts likely to be “win-win”, i.e. generate positive “shared value”, with costs exceeding the benefits? If not, how far should companies go in satisfying demands of stakeholders? (especially consumers and labor). Evaluate the changes adopted by clothing companies after Rana Plaza – the Accord and the Alliance. How do the two programs differ, and have they been successful? Have they helped the companies financially? Reputationally? Improved the lives of workers? Is voluntary action by companies an effective mechanism for addressing poor environmental and labor conditions, or is it just “greenwashing”, a type of public relations? Do we still need regulation and pressure from unions and consumers? Three ethical frameworks Paine 2000 Does Ethics Pay? 5 Years After Rana Plaza NYU pp 1-18 Levy Global Production Networks pp. 1-5

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