Rana Plaza Collapse in 2013 in Bangladesh Case Study

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Case Study: Rana Plaza Collapse in 2013 in Bangladesh
Introduction
Bangladesh’s businesses people have channeled their energy in ready-made garments (RMG) industry for export purposes. The ready-made garments industry facilitates 80% of the county’s exports and further provides over 4 million employment opportunities, with three-quarters being women (Anisul Huq, Stevenson, & Zorzini, 2014). The growth in this sector has consequently promoted numerous multiplier connections such as the cloth, insurance, professional services, yarn, banking, real estate and machinery economic sectors. The industry has also faced devastating challenges, and some of them are man-made industrial accidents. The past progress will be in vain if Bangladesh cannot make progress to ensure workers’ protection by fostering compliance to labor rights and workplace safety.
Background Information
On April 2013, the industry faced the most devastating challenge where Rana Plaza, an eight-storey business building collapsed outside the city of Dhaka. Five clothing plants were affected severely as it housed them. The highest number of occupants of the building at the time it collapsed worked in the garment factories. The search and rescue took more than 17 days, evacuating more than 2,438 people, while over 1,100 people were reported to have dead (Khan & Rodrigues, 2015). Over 1,200 were treated for injuries with some of them being life-debilitating. This paper explores the social, legal, ethical and environmental issues in the case by focusing on the principle-based ethics approach and stakeholders management.
Stakeholders Strategies: Utilitarianism Approach
Every stakeholder’s happiness and pleasure to be business’ concern and should be provided impartially. Before the tragedy, the workers in the Bangladesh garment industry were unhappy with several issues such as the working hours, conditions and wages. Based on Utilitarianism Theory, the actions performed should be considered ethical if they promote maximum stakeholders happiness within a business setting. They did not feel any value in choosing to put their lives in danger by working in dangerous buildings which could collapse anytime for monthly earnings. Victims did not have any pleasure while working within such conditions (Anisul Huq, Stevenson, & Zorzini, 2014). The five factories that occupied Rana Plaza were unhappy that they would not produce the clothing and other garments anymore. They were not happy when their companies were associated with such tragedy. Customers were willing to boycott them immediately after the disaster. Their customers are also unhappy that they can only enjoy limited products as they sympathized with the owners for the loss. This action left everyone unhappy and thus is unethical.
Corporate Citizenship: Avoiding Controversy
The Rana Plaza operated illegally, and thus I was unethical. Men, women, and children lost lives, arms, legs, parents, husband, wives, and relatives and are. The Plaza was built without the right permits and did not consider correct directions, therefore, they built it on spongy. The commercial building’s construction process was illegal as it violated building codes and consequently paid no attention safety warning. According to Roehrich, Grosvold, & Hoejmose (2014), this is poor citizenship by both the owner and the regulatory authorities. The garment factories that operated in the building are also involved in this disaster. The garment consumers, the employees who worked in the plaza and the victims who lost their relatives, are also stakeholders who were severely affected. This was a failure by Sohel Rana and the Bangladesh government who failed to practice good citizenship
Corporate Social Responsibility: Multinationals and Western Government Failure
This case of Rana Plaza was not an accident. In the case, all parties failed in Corporate Social Responsibilities and Responsiveness. Sohel Rana failed to his customers, the Bangladesh government failed to protect the tax payers, and the western society who were the factories’ buyers and consumer failed to protect their producers. This tragedy could happen anywhere thu...