Rana Plaza collapse aftermath are CSR compliance and auditing pressures effective Emerald Insight

Rana Plaza collapse aftermath: are CSR compliance and auditing pressures effective?

The purpose of this article is to investigate the consequences of compliance and audit pressure in the Bangladesh clothing industry and unintended results. To explore this issue, the authors have taken up three mediu m-sized suppliers. The institutional change after the Rana Plaza accident in April 2013 has made the Bangladesh in general, especially the clothing industry, an interesting and appropriate research stage on standard compliance.

Design/methodology/approach

This study uses a multiple case research approach. A fac e-t o-face interview was conducted on the managers and several workers of the three bangladesh manufacturing companies. In addition, we collected organizational documents and local newspaper articles as much as possible.

Findings

As a result, the pressure on compliance has given priority to the implementation of measurable standards over the social needs and priority of workers. As a result, instead of adding new social value, it has destroyed existing social value. Furthermore, the pressure on compliance has created a need to find a way to cover the large cost of compliance. As a result, companies have pursued upgrading processes due to technological advancement, increasing labor pressure on labor. Such initiatives have expanded power imbalances and have led to eliminating no n-skilled workers from the employment market.

Research limitations/implications

This paper contributes to the understanding of the impact of compliance, audit pressure and efforts on human rights. In order to further enhance the existing knowledge of critical accounting documents, this research uses the insights from the global value chain (GVC) and the international business (IB).

Originality/value

This article contributes to the understanding of the impact of compliance and audit pressure and initiatives on human rights. In addition, this study uses insights from GVC and IB to further enhance the existing knowledge of critical accounting literature.

Keywords

Global value chain
human rights
Social value
Social upgrade
CSR compliance

Citation

Publisher

The purpose of this paper is to investigate the consequences of compliance and audit pressure in the Bangladesh clothing industry and unintended consequences. To explore this issue, the authors have taken up three mediu m-sized suppliers. The institutional change after the Rana Plaza accident in April 2013 has made the Bangladesh in general, especially the clothing industry, an interesting and appropriate research stage on standard compliance.

1. Introduction

Global value chain

human rights

2. From compliance to social value

Social value

Social upgrade

CSR compliance

The purpose of the Emerald Group Publishing Limited Limited is to investigate the results intended by compliance and audit pressure in the Bangladesh clothing industry. To explore this issue, the authors have taken up three mediu m-sized suppliers. The institutional change after the Rana Plaza accident in April 2013 has made the Bangladesh in general, especially the clothing industry, an interesting and appropriate research stage on standard compliance.

2.1. Social and economic upgrading

This article contributes to the understanding of the impact of compliance and audit pressure and initiatives on human rights. In addition, this study uses insights from GVC and IB to further enhance existing knowledge in critical accounting literature.

Global value chain

human rights

2.2. Social value creation and social, economic, and cultural rights

Social value

Social upgrade

CSR compliance

Emerald Group Publishing Limited

Copyright © 2016, Author. Published by emerald group publicity. This work is open to the Creative Commons display (CC by 3. 0) license. Anyone can replace, distribute, translate, and create secondary copyrighted works (regardless of whether they are profitable or no n-profit), on condition that they are fully i n-th e-priced belonging to the original author and author. All conditions for this license are http://creativeCommons. org/licenses/by/3. 0/legalcode.

3. Research methods

In the past 30 to 40 years, the movement of interdisciplinary accounting research has developed, aiming to provide a conventional functional and demonstration, and mostly to provide a substitute for desk statistics. Parker and Guthrie, 2014). This alternative research agenda aims to pay attention to the fact that accounting is a technical practice and a social practice. The technical method includes a routine and procedure for recording, measurement, and interpretation of specific data. As a social practice, it affects personal actions. Technical practice is beyond the framework of the organization that adopts the practice, and produces not only intended results but also many unintended results (CARNEGIE, 2014). In recent years, there have been more than one of the interdisciplinary accounting communities that they should pay more attention to the wider social context and accounting practical (Guthrie and Parker, 2014). However, not only the intentional and imitative consequences of accounting and audit practical work, but also researchers "more widespread methodology, theoretical perspective, and data sources to understand these context problems. It is necessary to develop and open academic traditions (Guthrie and Parker, 2014, P. 7). This paper contributes to this overall agenda by introducing the global value chain (GVC) and the insights from international accounting audit practices. Copyright © 2016, author. Is published by emerald group public. This work is open to the Creative Commons display (CC by 3. 0) license. Anyone can replace, distribute, translate, and create secondary copyrighted works (regardless of whether they are profitable or no n-profit), on condition that they are fully i n-th e-priced belonging to the original author and author. All conditions for this license are http://creativeCommons. org/licenses/by/3. 0/legalcode.

3.1. The context

In the past 30 to 40 years, the movement of interdisciplinary accounting research has developed, aiming to provide a conventional functional and demonstration, and mostly to provide a substitute for desk statistics. Parker and Guthrie, 2014). This alternative research agenda aims to pay attention to the fact that accounting is a technical practice and a social practice. The technical method includes a routine and procedure for recording, measurement, and interpretation of specific data. As a social practice, it affects personal actions. Technical practice is beyond the framework of the organization that adopts the practice, and produces not only intended results but also many unintended results (CARNEGIE, 2014). In recent years, there have been more than one of the interdisciplinary accounting research communities that they should pay more attention to the wider social context and accounting practical (Guthrie and Parker, 2014). However, not only the intentional and imitative consequences of accounting and audit practical work, but also researchers "more widespread methodology, theoretical perspective, and data sources to understand these context problems. It is necessary to develop and open academic traditions (Guthrie and Parker, 2014, P. 7). This paper contributes to this overall agenda by introducing the global value chain (GVC) and the insights from international accounting audit practices. Copyright © 2016, Author. Published by emerald group publicity. This work is open to the Creative Commons display (CC by 3. 0) license. Anyone can replace, distribute, translate, and create secondary copyrighted works (regardless of whether they are profitable or no n-profit), on condition that they are fully i n-th e-priced belonging to the original author and author. All conditions for this license are http://creativeCommons. org/licenses/by/3. 0/legalcode.

In the past 30 to 40 years, the movement of interdisciplinary accounting research has developed, aiming to provide a conventional functional and demonstration, and mostly to provide a substitute for desk statistics. Parker and Guthrie, 2014). This alternative research agenda aims to pay attention to the fact that accounting is a technical practice and a social practice. The technical method includes a routine and procedure for recording, measurement, and interpretation of specific data. As a social practice, it affects personal actions. Technical practice is beyond the framework of the organization that adopts the practice, and produces not only intended results but also many unintended results (CARNEGIE, 2014). In recent years, there have been more than one of the interdisciplinary accounting research communities that they should pay more attention to the wider social context and accounting practical (Guthrie and Parker, 2014). However, not only the intentional and imitative consequences of accounting and audit practical work, but also researchers "more widespread methodology, theoretical perspective, and data sources to understand these context problems. It is necessary to develop and open academic traditions (Guthrie and Parker, 2014, P. 7). This paper contributes to this overall agenda by introducing the global value chain (GVC) and the insights from international accounting audit practices.

Owen (2008) considers the current status and future of social and environmental accounting research, point out the need for an approach to a wider stakeholder, and pay more attention to the asymmetry of power and workers and employe e-related issues. He says he should pay. In addition, he uses techniques such as action research, interviews, and case studies, and appeals for the need for research that is more rooted in the field. HUMPHREY and SCAPENS (1996) is not a specific theory, but by putting the case at the center of the research process, accounting research simply applies the theory of borrowed items, and shifts to a more problematic survey. It suggests that you can. This does not mean that researchers should not use the theory to provide information to case study research. Rather, if the imported insight is appropriate, it functions as the first framework for further theoreticalization (Eisenhardt, 1989; Sinkovics et al.) And Brennan and Solomon (2008) is a wider range of sector analysis. He is advocating a widespread accountability mechanism and further focusing on the developing country economy.

Based on this background, we are based on examples of the results intended by the smal l-scale manufacturers of Bangladesh, especially the workers' compliance and the pressure of audit, and the unintended results. Start the investigation. For this reason, the first analysis framework is built by utilizing literature in other fields. However, in contrast to traditional human rights approaches, it uses a more grassroots approach (see Goldewijk and de Gaay Fortman, 1999; SEN, 2004). The latter tends to focus on the relationship between the nation and the citizens, which almost eliminates the fact that the no n-nation is responsible (see Gallhofer et al., 2011). The approaches adopted in this study will be described in detail in the following section. The case company has been audited regularly, but has not created a report. Therefore, an interview with the owner / manager and workers was conducted to conduct a survey. In addition, organizational documents were collected and information was drawn out of the available secondary materials. Owen (2008) considers the current status and future of social and environmental accounting research, point out the need for an approach to a wider stakeholder, and to issues related to power and workers and employe e-related issues. He states that he should pay more attention. In addition, he uses techniques such as action research, interviews, and case studies, and appeals for the need for research that is more rooted in the field. HUMPHREY and SCAPENS (1996) is not a specific theory, but by putting the case at the center of the research process, accounting research simply applies the theory of borrowed items, and shifts to a more problematic survey. It suggests that you can. This does not mean that researchers should not use the theory to provide information to case study research. Rather, if the imported insight is appropriate, it functions as the first framework for further theoreticalization (Eisenhardt, 1989; Sinkovics et al.) And Brennan and Solomon (2008) is a wider range of sector analysis. He is advocating a widespread accountability mechanism and further focusing on the developing country economy.

3.2. Research design

Based on this background, we are based on examples of the results intended by the smal l-scale manufacturers of Bangladesh, especially the workers' compliance and the pressure of audit, and the unintended results. Start the investigation. For this reason, the first analysis framework is built by utilizing literature in other fields. However, in contrast to traditional human rights approaches, it uses a more grassroots approach (see Goldewijk and de Gaay Fortman, 1999; SEN, 2004). The latter tends to focus on the relationship between the nation and the citizens, which almost eliminates the fact that the no n-nation is responsible (see Gallhofer et al., 2011). The approaches adopted in this study will be described in detail in the following section. The case company has been audited regularly, but has not created a report. Therefore, an interview with the owner / manager and workers was conducted to conduct a survey. In addition, organizational documents were collected and information was drawn out of the available secondary materials. Owen (2008) considers the current status and future of social and environmental accounting research, point out the need for an approach to a wider stakeholder, and pay more attention to the asymmetry of power and workers and employe e-related issues. He says he should pay. In addition, he uses techniques such as action research, interviews, and case studies, and appeals for the need for research that is more rooted in the field. HUMPHREY and SCAPENS (1996) is not a specific theory, but by putting the case at the center of the research process, accounting research simply applies the theory of borrowed items, and shifts to a more problematic survey. It suggests that you can. This does not mean that researchers should not use the theory to provide information to case study research. Rather, if the imported insight is appropriate, it functions as the first framework for further theoreticalization (Eisenhardt, 1989; Sinkovics et al.) And Brennan and Solomon (2008) is a wider range of sector analysis. He is advocating a widespread accountability mechanism and further focusing on the developing country economy.

We chose Bangladesh as the study site because it is a suitable setting to examine the intended and unintended consequences of compliance and audit pressures, given the increasing pressure for compliance since the Rana Plaza disaster in April 2013. The garment industry plays a paradoxical role in the country, as it is seen as both a major contributor to the country's economic development and a potential obstacle to future development (Belal et al.). It is therefore an interesting study subject from a GVC perspective. The case companies we chose are among the least studied supplier companies in Bangladesh. They are not subcontractors, and at the same time, their relationships with multinational buyers cannot be described as direct strategic sourcing (see Labowitz and Baumann-Pauly, 2014), since there is no formal written contract. Rather, the supplier-buyer relationship is based on the buyer's implicit promise to place future orders if the supplier meets the buyer's expectations in terms of quality, price, and corporate social responsibility (CSR) compliance. Hoque et al. (2016) use the term “implicit promise contract” to describe this particular type of relationship.

The findings of this study are consistent with previous studies in both CSR and GVC fields that question the effectiveness of the compliance model (e. g., Locke, 2013). Furthermore, the cases suggest that while CSR compliance may serve the intended purpose of social upgrading in terms of measurable criteria such as workplace safety, it may at the same time lead to the destruction of previously existing social values and leave workers in a worse situation than before. From an accountability perspective, the findings further highlight the problematic nature of accountability in GVCs, where companies take on the role of (proxy) accountability holders (Rubenstein, 2007). At the same time, companies may not have sufficient knowledge of the local situation, nor the ability or will to protect workers and communities from the unintended consequences of “forced” accountability practices. As this study is exploratory, further research is needed and will help shed more light on this unusual phenomenon. This paper contributes to knowledge in several academic fields, including the literature on critical accounting, CSR, GVC, IB and human rights.

To date, most of the research related to social and environmental reports in Bangladesh is expected from companies and its subsidiaries (Belal and Roberts, 2010; Reinecke and Donaghey, 2015, etc.) or stakeholders. It uses a stakeholder perspective on the ownership of the owner (such as ISLAM and DEEGAN, 2008). The explicit or implicit common to these studies is a debate that in developing countries where the system is vulnerable, the level of corruption is high, and the government cannot implement regulations, (responsibility for proxy explanation. " See Belal et al., 2015; Rubenstein, 2007). From this point of view, companies and factories owners are characterized as a "exercise of power" that frequently violate laws, regulations, and agreements. Workers and explanations such as regional communities cannot prevent violations of laws and social norms due to the asymmetrical factors of power, extreme factors such as extreme poverty, vulnerabilities, and lack of education. In such a situation, a proxy account is suitable for applying pressure to perform the power to do "correct" (Rubenstein, 2007). A substitute can take the form of a partnership between governments, supe r-national organizations, civil society organizations, and companies. This is an example of a program such as Bangladesh's "Fire and Building Safety Agreement (Accord)" and "Business Social Compliance Initibib (BSCI)" (see ReineCke and Donaghey, 2015). Most of the research related to social and environmental reports in Bangladesh is the social and environmental responsibilities and reports of companies and its subsidiaries (Belal and Roberts, 2010; Reinecke and Donaghey, 2015), or stakeholders. It adopts a stakeholder perspective on managers' perceptions (such as ISLAM and DEEGAN, 2008) regarding what is expected. The explicit or implicit common to these studies is a debate that in developing countries where the system is vulnerable, the level of corruption is high, and the government cannot implement regulations, (responsibility for proxy explanation. " See Belal et al., 2015; Rubenstein, 2007). From this point of view, companies and factories owners are characterized as a "exercise of power" that frequently violate laws, regulations, and agreements. Workers and explanations such as regional communities cannot prevent violations of laws and social norms due to the asymmetrical factors of power, extreme factors such as extreme poverty, vulnerabilities, and lack of education. In such a situation, a proxy account is suitable for applying pressure to perform the power to "correct" (Rubenstein, 2007). A substitute can take the form of a partnership between governments, supe r-national organizations, civil society organizations, and companies. This is an example of a program such as Bangladesh's "Fire and Building Safety Agreement (Accord)" and "Business Social Compliance Initibib (BSCI)" (see ReineCke and Donaghey, 2015). To date, most research related to social and environmental reports in Bangladesh is expected from companies and its subsidiaries (Belal and Roberts, 2010; ReineCke and Donaghey, 2015, etc.) or stakeholders. It uses a stakeholder's perspective on the ownership of the owners (such as ISLAM and DEEGAN, 2008). The explicit or implicit common to these studies is a debate that in developing countries where the system is vulnerable, the level of corruption is high, and the government cannot implement regulations, (responsibility for proxy explanation. " See Belal et al., 2015; Rubenstein, 2007). From this point of view, companies and factories owners are characterized as a "exercise of power" that frequently violate laws, regulations, and agreements. Workers and explanations such as regional communities cannot prevent violations of laws and social norms due to the asymmetrical factors of power, extreme factors such as extreme poverty, vulnerabilities, and lack of education. In such a situation, a proxy account is suitable for applying pressure to perform the power to do "correct" (Rubenstein, 2007). A substitute can take the form of a partnership between governments, supe r-national organizations, civil society organizations, and companies. This is an example of a program such as Bangladesh's "Fire and Building Safety Agreement (Accord)" and "Business Social Compliance Initibib (BSCI)" (see ReineCke and Donaghey, 2015).

4. Results

At the same time, while vicariously accountability is often an important and necessary step in the development of economies characterized by high inequality, accountability practices, whether standard or vicariously, arguably undermine the responsibility of those being held accountable (McKernan, 2012; McKernan and McPhail, 2012). This is because they prioritize monitoring and recording what people do or are asked to do over uncovering the reasons behind their actions. In other words, accountability shifts the focus from questions of what is morally right to technocratic practices (Joannides, 2012). Moreover, accountability regimes need to be defined by six dimensions: “who does what, to whom, in what processes, with what standards, and to what effect” (Mashaw, 2005, p. 17). The tension between transparency and responsibility may be further intensified when accountability and audit practices are imposed from outside on suppliers in developing countries. By pressuring suppliers to comply with norms and standards, companies are tasked with the role of proxy accountability agents. However, given the (geographical and psychological) distance between MNEs and their suppliers, MNEs are likely to lack sufficient insight into the context-dependent social needs of workers (see Belal and Roberts, 2010; Lund-Thomsen, 2008; Sinkovics et a, 2008). At the same time, while proxy accountability is often an important and necessary step in the development of economies characterized by high inequality, accountability practices, whether standard or proxy, arguably undermine the responsibility of those being held accountable (McKernan, 2012; McKernan and McPhail, 2012). This is because they prioritize monitoring and recording what people do or are asked to do over uncovering the reasons behind their actions. In other words, accountability shifts the focus from questions of what is morally right to technocratic practice (Joannides, 2012). Moreover, accountability regimes need to be defined by six dimensions: “who does what, to whom, in what processes, with what criteria, and with what effects” (Mashaw, 2005, p. 17). The tension between transparency and responsibility may be further intensified when accountability and audit practices are imposed externally on developing country suppliers, since by pressuring suppliers to comply with norms and standards, companies are imposed as agents of accountability. However, given the (geographical and psychological) distance between multinational enterprises (MNEs) and their suppliers, MNEs are likely to lack sufficient insight into the context-dependent social needs of workers (see Belal and Roberts, 2010; Lund-Thomsen, 2008; Sinkovics et a, 2008). At the same time, while vicariously accountability is often an important and necessary step in the development of economies characterized by high inequality, accountability practices, whether standard or vicariously, arguably undermine the responsibility of those being held accountable (McKernan, 2012; McKernan and McPhail, 2012). This is because they prioritize monitoring and recording what people do or are asked to do over uncovering the reasons behind their actions. In other words, accountability shifts the focus from questions of what is morally right to technocratic practices (Joannides, 2012). Moreover, accountability regimes need to be defined by six dimensions: “who does what, to whom, in what processes, with what standards, and to what effect” (Mashaw, 2005, p. 17). The tension between transparency and responsibility may be further intensified when accountability and audit practices are imposed from outside on suppliers in developing countries. By pressuring suppliers to comply with norms and standards, companies are cast in the role of accountability agents. However, given the distance (geographical and psychological) between multinational enterprises (MNEs) and their suppliers, MNEs are likely to lack sufficient insight into the context-specific social needs of workers (see Belal and Roberts, 2010; Lund-Thomsen, 2008; Sinkovics et a, 2008).

Furthermore, for the first time, many developing countries have the officialized CSR activities, through actual or desirable interactions with multinational buyers (GUGLER and SHI, 2009), that just because these companies are it. It does not mean that you had not created any social value before (Sinkovics et al.) It may not have been called CSR (see Sundar, 2013), just legitimate your own activities. See Belal and Roberts, 2010 (see Belal and Roberts, 2010). Sinkovics et al. (2014) pointed out that companies in developing countries, close to the bottom of the pyramid, often create social value as organic results of business models. To do so, there is no need for external missions. Rather, social value is created as a result of identifying and identifying the social and economic constraints of the community to which they belong (this is the internalization of social and economic constraints in business models. Called "absorption"). Furthermore, in the default, indigenous companies tend to be in a position to identify these restrictions because they have the knowledge that is rooted in the local area and have the knowledge according to the context (see London and Hart, 2011).

4.1. Firm A

Background

Furthermore, small factories tend to suffer from powerful asymmetry to the buyers of multinational companies (Hoque et al.) As a result, factory managers are more powerful than workers and local communities. While it is considered, it is often relatively powerless to corporate buyers. This raises the problem of how the external and formalized compliance and audit practice affects the practice of corporate existing social value creation. Furthermore, for the first time, many developed countries have the officially officially conceived CSR activity through the actual or desirable exchange of multinational buyers (Gugler and Shi, 2009). It does not mean that the company had not created any social value before that (Sinkovics et al.) It may not have been called CSR (see Sundar, 2013). See the Belal and Roberts, 2010 (see Belal and Roberts, 2010) to justify the activity. Sinkovics et al. (2014) pointed out that companies in developing countries, close to the bottom of the pyramid, often create social value as organic results of business models. To do so, there is no need for external missions. Rather, social value is created as a result of identifying and identifying the social and economic constraints of the community to which they belong (this is the internalization of social and economic constraints in business models. Called "absorption"). Furthermore, in the default, indigenous companies tend to be in a position to identify these restrictions because they have the knowledge that is rooted in the local area and have the knowledge according to the context (see London and Hart, 2011).

Changes undertaken to achieve BSCI and Accord compliance: implications for social upgrading

Furthermore, small factories tend to suffer from powerful asymmetry to the buyers of multinational companies (Hoque et al.) As a result, factory managers are more powerful than workers and local communities. While it is considered, it is often relatively powerless to corporate buyers. This raises the problem of how the external and formalized compliance and audit practice affects the practice of corporate existing social value creation. Furthermore, for the first time, many developing countries have the officialized CSR activities, through actual or desirable interactions with multinational buyers (GUGLER and SHI, 2009), that just because these companies are it. It does not mean that you had not created any social value before (Sinkovics et al.) It may not have been called CSR (see Sundar, 2013), just legitimate your own activities. See Belal and Roberts, 2010 (see Belal and Roberts, 2010). Sinkovics et al. (2014) pointed out that companies in developing countries, close to the bottom of the pyramid, often create social value as organic results of business models. To do so, there is no need for external missions. Rather, social value is created as a result of identifying and identifying the social and economic constraints of the community to which they belong (this is the internalization of social and economic constraints in business models. Called "absorption"). Furthermore, in the default, indigenous companies tend to be in a position to identify these restrictions because they have the knowledge that is rooted in the local area and have the knowledge according to the context (see London and Hart, 2011).

Furthermore, small factories tend to suffer from powerful asymmetry to the buyers of multinational companies (Hoque et al.) As a result, factory managers are more powerful than workers and local communities. While it is considered, it is often relatively powerless to corporate buyers. This raises the problem of how the external and formalized compliance and audit practice affects the practice of corporate existing social value creation.

To explore the dimensions of power asymmetry between the companies, their Bangladeshi suppliers and factory workers in greater depth, we need to draw on the GVC and IB literatures. An integrated lens combining concepts from the accountability, economic and social upgrading and social value creation literatures can provide greater insight into whether such initiatives have broader human rights implications for workers (see Giuliani and Macchi, 2014). However, before empirical investigations into the intended and unintended consequences of compliance and audit pressures, it is important to have a brief but more detailed discussion of the concepts of social and economic upgrading and social value creation.

According to a study by Belal et al. (2015), most of the current growth in Bangladesh’s garment industry is due to the highly polluting manufacturing process. This leads to the conclusion that in the pursuit of profit maximization, multinational companies not only outsource production but also outsource the “necessary” pollution and labor exploitation to keep costs low. At the same time, the GVC literature suggests that once connected to GVCs, individual supplier firms and even entire domestic industries can be economically upgraded (Lee and Gereffi, 2015)—that is, they can increase their ability to “move into more profitable and/or technologically sophisticated capital- and skill-intensive economic niches” (Gereffi, 1999, p. 51).

Economic upgrading generally occurs through improvements in products, processes, and functions (Gereffi et al.). Product upgrading involves the introduction of more advanced products, often requiring greater skills than the products previously produced. Process upgrading involves increased efficiency within the production process, often resulting in capital and labor substitution. Functional upgrading refers to changing the mix of activities performed to increase added value (Humphrey and Schmitz, 2002). Gereffi and Frederick (2010) propose four functional upgrading trajectories: Cut, make, and trim (CMT) manufacturers focus exclusively on the production and assembly of imported inputs based on buyer specifications; Original Equipment Manufacturers (OEMs) undertake a broader range of manufacturing-related functions in addition to production, such as sourcing raw materials; and Original Brand Manufacturers have post-production capabilities and can develop products under their own brand names. As a result of the possibility of upgrading economically and moving to more profitable positions, an important question arises: “Does economic upgrading have positive outcomes for workers?”, or, in other words, “does it lead to social upgrading?” (e. g., Pipkin, 2011; Zhu and Pickles, 2014). Social upgrading is defined as the process of improving the rights and entitlements of workers as social actors and improving the quality of their employment (Barrientos et al.). Barrientos et al. (2011) further specify that social upgrading has two components: “measurable criteria” and “realizable rights.” Measurable criteria are the more quantitative aspects of employment, such as wages, working conditions, and working hours. Realizable rights deal with more advanced issues, such as discrimination, freedom of association, freedom of speech, and career development. Economic upgrading is generally achieved through improvements in products, processes, and functions (Gereffi et al.). Product upgrading involves the introduction of more advanced products, often requiring greater skills than the products previously produced. Process upgrading involves efficiency gains within the production process, often resulting in capital and labor substitution. Functional upgrading refers to changing the mix of activities performed to increase added value (Humphrey and Schmitz, 2002). Gereffi and Frederick (2010) propose four functional upgrading trajectories: Cut, make, and trim (CMT) manufacturers focus exclusively on the production and assembly of imported inputs based on buyer specifications; Original Equipment Manufacturers (OEMs) undertake a broader range of manufacturing-related functions in addition to production, such as sourcing raw materials; and Original Brand Manufacturers (OEMs) have post-production capabilities and can develop products under their own brand names.

As a result of the possibility of upgrading economically and moving to more profitable positions, an important question arises: “Does economic upgrading lead to positive outcomes for workers?” or, in other words, “to social upgrading?” (e. g., Pipkin, 2011; Zhu and Pickles, 2014). Social upgrading is defined as the process of improving the rights and entitlements of workers as social actors and increasing the quality of their employment (Barrientos et al.). Barrientos et al. (2011) further specify that social upgrading has two components: measurable standards and realizable rights. Measurable standards are the more quantitative aspects of employment, such as wages, working conditions, and working hours. Realizable rights deal with more advanced issues, such as discrimination, freedom of association, freedom of speech, and career development. Economic upgrading is generally done through improvements in products, processes, and functions (Gereffi et al.). Product upgrading involves the introduction of more advanced products, often requiring greater skills than those previously produced. Process upgrading involves increased efficiency within the production process, often resulting in the substitution of capital and labor. Functional upgrading refers to changing the mix of activities performed to increase added value (Humphrey and Schmitz, 2002). Gereffi and Frederick (2010) propose four functional upgrading trajectories: CMT (cut, make, and trim) manufacturers focus exclusively on producing and assembling imported inputs based on buyer specifications; OEMs (original equipment manufacturers) undertake a broader range of manufacturing-related functions in addition to production, such as sourcing raw materials; and original brand manufacturers (OEMs) have post-production capabilities and can develop products under their own brand names.

Implications of BSCI and accord compliance for economic upgrading

The impact of initiatives on workers: implications for social value creation

However, studies have found that the impacts of social upgrading are distributed quite unequally between different worker groups, such as skilled and unskilled workers (e. g., Barrientos et al., 2011), regular and non-regular workers (e. g., Barrientos and Kritzinger, 2004, Rossi, 2011), and men and women (e. g., Barrientos et al., 2005). Most suppliers tend to be reluctant to acknowledge the right to challenge deeply embedded labor relations and social norms in order to avoid disrupting the production process. As a result, issues such as gender discrimination, freedom of speech, and worker capacity development remain largely neglected. As a result, the focus tends to be on the implementation of measurable and visible standards (Barrientos and Smith, 2007). Moreover, Barrientos and Kritzinger (2004) and Rossi (2011) find that increasing pressures on product quality and production efficiency, combined with pressures to reduce costs, may lead to an increased reliance on non-regular workers in addition to regular workers. Economic upgradation seems more likely to negatively impact the former group than the latter (Barrientos et al.). In the Bangladeshi context, compliance often means a “ticket” to GVC participation (see Labowitz and Baumann-Pauly, 2014). Previous upgradation studies seem to indicate that norms on labor practices are unlikely to challenge embedded labor relations, social discrimination, and other dominant social norms that underpin the production process (e. g., Barrientos and Smith, 2007). These studies provide some insight into the impact of economic upgradation and compliance with norms on workers, but further research is needed to understand the broader human rights implications (see Giuliani and Macchi, 2014). However, studies have found that the impact of social upgrading is distributed quite unequally between different worker groups, such as skilled and unskilled workers (e. g., Barrientos et al., 2011), regular and non-regular workers (e. g., Barrientos and Kritzinger, 2004, Rossi, 2011), and men and women (e. g., Barrientos et al., 2005). Most suppliers tend to be reluctant to acknowledge the right to challenge deeply embedded labor relations and social norms in order to avoid disrupting the production process. As a result, issues such as gender discrimination, freedom of speech, and worker capacity development remain largely neglected. As a result, the focus tends to be on the implementation of measurable and visible standards (Barrientos and Smith, 2007). Moreover, Barrientos and Kritzinger (2004) and Rossi (2011) find that increasing pressures on product quality and production efficiency, combined with pressures to reduce costs, may lead to an increased reliance on non-regular workers in addition to regular workers. Economic upgradation seems more likely to negatively impact the former group than the latter (Barrientos et al.). In the Bangladeshi context, compliance often means a “ticket” to GVC participation (see Labowitz and Baumann-Pauly, 2014). Previous upgradation studies seem to indicate that norms on labor practices are unlikely to challenge embedded labor relations, social discrimination, and other dominant social norms that underpin the production process (e. g., Barrientos and Smith, 2007). These studies provide some insight into the impact of economic upgradation and compliance with norms on workers, but further research is needed to understand the broader human rights implications (see Giuliani and Macchi, 2014). However, studies have found that the impacts of social upgrading are distributed quite unequally between different worker groups, such as skilled and unskilled workers (e. g., Barrientos et al., 2011), regular and non-regular workers (e. g., Barrientos and Kritzinger, 2004, Rossi, 2011), and men and women (e. g., Barrientos et al., 2005). Most suppliers tend to be reluctant to acknowledge the right to challenge deeply embedded labor relations and social norms in order to avoid disrupting the production process. As a result, issues such as gender discrimination, freedom of speech, and worker capacity development remain largely neglected. As a result, the focus tends to be on the implementation of measurable and visible standards (Barrientos and Smith, 2007). Moreover, Barrientos and Kritzinger (2004) and Rossi (2011) find that increasing pressures on product quality and production efficiency, combined with pressures to reduce costs, may lead to an increased reliance on non-regular workers in addition to regular workers. Economic upgradation seems more likely to negatively impact the former group than the latter (Barrientos et al.). In the Bangladeshi context, compliance often means a “ticket” to GVC participation (see Labowitz and Baumann-Pauly, 2014). Previous upgradation studies seem to indicate that norms on labor practices are unlikely to challenge embedded labor relations, social discrimination, and other dominant social norms that underpin the production process (e. g., Barrientos and Smith, 2007). These studies provide some insight into the impact of economic upgradation and compliance with norms on workers, but further research is needed to understand the broader human rights implications (see Giuliani and Macchi, 2014).

Belal et al. (2015) and TSCHAKERT (2007) suggest that they need to be at the center of the survey to create a more meaningful solution for socially vulnerable. This is consistent with Sinkovics et al. They have adopted several systems that enable social issues and how business initiatives are best to analyze more integrated and subtle analysis. A system can generally be defined as a "gathering of parts that work together for a common purpose" (FORRESTER, 1968). In this paper, we focus on two systems. One is a supplier company. The business model of this company is designed to increase profits in the future and in the future (Goldratt, 1990). However, Sinkovics et al. (2015) and SINKOVICS (2014) are not too focused on profit motors. It is regarded as a necessary condition. The second system is composed of a wider community with workers and has a common goal of utilizing their social, economic and cultural rights (see Sinkovics et al., 2015).

By putting these "secon d-generation" rights at the center of the survey, you can approach development based on grassroots and needs (see Goldewijk and de Gaay Fortman, 1999; todaro and Smith, 2015). This approach is not limited to measurement of economic development based on GDP, ownership (minimum wages, daily necessities, etc.), but also sustains the whole society and social systems for "better" or "huma n-like" life. We will examine how to achieve "to" increase to "(see todaro and Smith, 2015, p. 22). The author described above concepts this alternative development as a thre e-core value, that is, "food", "sel f-esteem," and "freedom." Sustainance includes basic needs such as food, health, shelter, and protection. Sel f-esteem represents a universal desire such as sel f-value, sel f-esteem, and dignity. Finally, the value of freedom means liberation from slaves and the ability to choose. This last dimension is in line with Sen (1999, 2004 )'s Caucani Patility Approach for Human Rights. Goldewijk and de Gaay Fortman (1999) proposes to express these universal needs in the word human rights.

For this reason, in this paper, the abov e-mentioned universal human needs are linked to social, economic and cultural rights. This is based on the debate that some kind of human needs are very important, and the existence itself constitutes the infringement of human dignity (Goldewijk and de Gaay Fortman, 1999). Purely a righ t-based approach, in general, assumes that the state has the ability to enact and execute a law to protect their rights. However, in many developing countries, the nation is not in such a position (see Rubenstein, 2007). As a result, simply existing such universal needs should have a collective obligations to protect the rights that occur (Wettstein, 2012). However, Wettstein (2012) proposes a capacit y-based approach to improving, as not all social actors have equal means or abilities to address these issues.

4.2. Firm B

Background

In addition, Goldewijk and de Gaay Fortman (1999) distinguishes the needs of the represented needs. The desire for survival belongs to the desire for expression. Felt needs, on the other hand, are not more specific, and are equivalent to freedom to live a life that is recognized as sel f-esteem, dignity, and value (see SEN, 2004; toDaro and Smith, 2011). However, felt needs are not always represented by the power relationship that occasionally appears as abuse and repression. Furthermore, such a felt needs are distorted and even hidden by development agencies and other organizations that are trying to provide support (Goldewijk and de Gaay Fortman, 1999). Such a distortion and concealment of such needs can be caused by a lack of resources, a bureaucratic ignorance, or a legitimac y-led date (GAAY FORTMAN, 1999; Scherer et al.) If the needs are distorted through the process, you can say "specified needs" (Goldewijk and de Gaay Fortman, 1999). This debate also applies to compliance code and other prescribed accountability. As a result, both compliance and social upgrade and approach are more likely to respond to measurable and specified needs than they feel, and have some negative impact on social, economic and cultural human rights. Can be claimed.

Changes undertaken to achieve BSCI and Accord compliance: implications for social upgrading

Against this background, one can argue that a more flexible, bottom-up perspective that places the core values of development, expressed in terms of social, economic and cultural rights, at the centre of inquiry is a necessary complement to top-down alternatives such as declarations, norms and guiding principles (such as the UN Guiding Principles on Business and Human Rights). This also coincides with calls to bring more dynamism, creativity and the “unknown” to the practice of “accountability”, i. e. accounting, accountability and auditing (see Kamuf, 2007; McKernan and McPhail, 2012). In addition to adopting a multi-system view to identify constraints that are relevant not only to business organisations but also to workers and the broader community, Sinkovics et al. (2015) draw attention to the difference between mitigating the root causes of these constraints and merely treating the symptoms of those root causes. They further argue that to make the most of the capabilities-based remedies advocated by Wettstein (2012), actors need to develop their own capacities to distinguish between symptoms and root causes of human rights violations. This is all the more important as many of the compliance mechanisms are argued to treat the symptoms rather than the root causes of the problem (see Locke, 2013).

As mentioned in the introduction, this paper aims to explore the intended and unintended consequences of compliance and audit pressures on garment manufacturers and their workers in Bangladesh. Before outlining the research design, we would like to provide a more detailed background. We chose the garment industry in Bangladesh as the setting for our study because of the increasing pressures for compliance following the Rana Plaza tragedy in April 2013. These increasing pressures from multiple actors (e. g., government, multinational corporations, international organizations, and domestic organizations) also pose new management challenges for garment manufacturers in Bangladesh. These dynamics together form an ideal environment to explore answers to our research questions.

Bangladesh’s garment industry is an outgrowth of the World Trade Organization’s (WTO) Multi-Fiber Agreement (MFA), which was in force from 1974 to 2004. As Bangladesh did not have quotas until 1986, it attracted many entrepreneurs from quota-restricted countries (mainly South Korea) who entered into joint ventures and subcontracting relationships with Bangladeshi garment manufacturers (Labowitz and Baumann-Pauly, 2014). During this time, the Bangladesh government initiated a number of initiatives to attract foreign investors and buyers to the garment manufacturing sector, such as the establishment of Export Processing Zones, a 10-year tax holiday for foreign investors, duty-free import of machinery and raw materials, bonded warehouses and back-to-back letter of credit facilities offered to 100% export-oriented garment companies (McKinsey, 2011). The MFA agreement, coupled with government initiatives, led to a boom in the garment industry, with the number of garment factories increasing from 50 in the early 1980s to 4, 200 by 2004 (Kabeer and Mahmud, 2004). Contrary to the predictions of many researchers, Bangladesh's garment sector has seen a 5% growth rate even after the MFA quota was phased out in 2005 (BGMEA, 2014). This boom is the result of Bangladeshi garment manufacturers' continued and increased focus on lean production, focusing on low-cost, low-value-added, large-scale production.

On April 24, 2013, Lana Plaza collapsed due to no n-compliance with architectural safety regulations, killing nearly 1, 100 workers (Labour Behind Label, 2013). The fatal accident was received after the Tazuline factory fire, where 120 workers died just five months ago. These great criticisms have influenced European and American buyers and have applied cooperative pressure to Bangladesh suppliers (Financial Times, 2013). In May 2013, international labor organizations, no n-governmental organizations, and retailers jointly formed "Accord". This agreement is a fiv e-year legal binding agreement to maintain the minimum fire and building safety standards in the Bangladesh textile industry. To date, more than 150 companies from 20 countries in Europe, North America and Australia, two global unions, and many Bangladesh unions have signed this legal agreement. As of November 2015, Accord has conducted its own safety tests at 1, 677 factories, and has announced plans for corrections mainly in the field of fire, electricity and structural safety. In factories where safety issues have been detected, Accord guarantees the execution of recommendations by sewing companies, and may be instructed to suspend operations if the violation is severe (accord, 2015). Of the 6, 000 Bangladesh factories, the accords company's suppliers are 1, 800. Therefore, most of the factory is probably the most dangerous.

Implications of BSCI and Accord compliance for economic upgrading

BSCI, an initiative of the Foreign Trade Association, is another independent organization that works in parallel with Accord, covering 40 % of suppliers published in Accord (BSCI, 2014). While Accord audit focuses on structural aspects based on its own norms on building and fire safety (accord, 2015), BSCI audits refer to the National Labor Law 2006. It covers wider areas such as working conditions, wages, and human rights (BSCI, 2014). The effectiveness of BSCI audits has been questioned because the audit of NEW WAVES STYLE and Phantom Apparels, two factories in Lanapraza, could not identify the illegal architecture of Lanapraza (Clean Clothes Campaign, 2013).

Since the Rana Plaza incident, the Bangladesh government has also taken a number of initiatives under pressure from Western buyers and international development agencies (bdnews24. com, 2013). These include raising the national minimum wage by 80% and amending the national labour law to require factories to allow workers to join trade unions privately, form participatory committees, set up a central fund to improve living standards, and provide health and childcare facilities to workers (Research Initiative for Social Equity Society, 2014). Nevertheless, implementation of these laws remains weak, and the government lacks the resources, administrative capacity, and often the political will to protect workers' rights. Due to the country's weak regulatory system, multinational buyers often require their suppliers to be audited by private auditing organizations recommended by them, such as BSCI and Accord. As a result, buyers play a key role in regulating the garment sector on behalf of the Bangladesh government (Labowitz and Baumann-Pauly, 2014). We conducted a multiple case study analysis of three small Bangladeshi garment manufacturing companies. The selection of these three companies is based on several specific characteristics present within the companies. First, they are not active in social reporting, but they are audited by BSCI and Accord. Second, their relationship with multinational buyers is somewhere in between the two major relationships discussed by Labowitz and Baumann-Pauly (2014). This special relationship, which Hoque et al. (2016) call an “implicit promise contract,” offers a unique perspective to investigate the consequences of compliance and audit pressure. Third, as small suppliers, these companies are resource-constrained, and we can examine what strategies they use to comply with audit requirements while at the same time surviving in this changing environment.

For each case, nine in-depth semi-structured face-to-face interviews were conducted with the company owner and two workers. The interviews with the owner lasted 60-90 minutes, and those with the workers lasted 30 minutes. We also collected organizational materials such as company profile and history, production and performance data, Accord audit reports, and sample design brochures. The company owners were contacted through the personal connections of one of the authors, a Bangladeshi.

All three companies are new generation factories established between 2008 and 2010 after the MFA era (Table I). These factories have 500-600 employees and five to six production lines. They mainly produce tops such as T-shirts and polo shirts, and are classified as small and medium-sized enterprises with European buyers as customers. All three factories have been audited by Accord and BSCI due to pressure from buyers, and have received corrective action plans from both auditing organizations.

In local production networks, these companies accounted for the lead contractor position, which is ordered directly from buyers and procures raw materials from their own supplier networks in Bangladesh. All three companies have produced and supplied apparel for the same buyers since their foundation, but there were no legal binding contracts for repeat purchases. As a result, each transaction has been conducted as an individual repeat transaction that is rarely confirmed. Instead, the prices and quality specifications, strict delivery date, social compliance, protection of intellectual property, etc., which requires maintaining the expected performance level within the current exchange, and in the future. There is an implicit (or at best verbal) promise of order. In contrast to NYU's Stern Report (LABOWITZ AND BAUMANN-PAULY, 2014) as a direct sourcing, these companies have not been predictive for long-term orders and are an economic upgrade. There is no security to invest, high performance or business incentives for compliance. Nevertheless, in order to meet the expectations of individual buyers, we will make moderate investment in accordance with the relationship, such as purchasing customized raw materials, specializing in labor, and results of correction measures by accordance and BSCI audits. I had to do it. Such investment was essential. In the local production network, these companies account for the lead contractor position, which receives direct orders from buyers and procures raw materials from their own supplier networks in Bangladesh. All three companies have produced and supplied apparel for the same buyers since their foundation, but there were no legal binding contracts for repeat purchases. As a result, each transaction has been conducted as an individual repeat transaction that is rarely confirmed. Instead, the prices and quality specifications, strict delivery date, social compliance, protection of intellectual property, etc., which requires maintaining the expected performance level within the current exchange, and in the future. There is an implicit (or at best verbal) promise of order. In contrast to NYU's Stern Report (LABOWITZ AND BAUMANN-PAULY, 2014) as a direct sourcing, these companies have not been predictive for long-term orders and are an economic upgrade. There is no security to invest, high performance or business incentives for compliance. Nevertheless, in order to meet the expectations of individual buyers, we will make moderate investment in accordance with the relationship, such as purchasing customized raw materials, specializing in labor, and results of correction measures by accordance and BSCI audits. I had to do it. Such investment was essential. In local production networks, these companies accounted for the lead contractor position, which is ordered directly from buyers and procures raw materials from their own supplier networks in Bangladesh. All three companies have produced and supplied apparel for the same buyers since their foundation, but there were no legal binding contracts for repeat purchases. As a result, each transaction has been conducted as an individual repeat transaction that is rarely confirmed. Instead, the prices and quality specifications, strict delivery date, social compliance, protection of intellectual property, etc., which requires maintaining the expected performance level within the current exchange, and in the future. There is an implicit (or at best verbal) promise of order. In contrast to NYU's Stern Report (LABOWITZ AND BAUMANN-PAULY, 2014) as a direct sourcing, these companies have not been predictive for long-term orders and are an economic upgrade. There is no security to invest, high performance or business incentives for compliance. Nevertheless, in order to meet the expectations of individual buyers, we will make moderate investment in accordance with the relationship, such as purchasing customized raw materials, specializing in labor, and results of correction measures by accordance and BSCI audits. I had to do it. Such investment was essential.

The impact of initiatives on workers: implications for social value creation

There are also some differences in the surrounding area, ownership type, nationality of employees, rental type, etc. Other minor but important differences include inspection level, defect rate, and productivity for Accord and BSCI. The data was analyzed using template analysis (King, 2014). Table II shows the efforts undertaken by all three companies to comply with the corrective action plans of the BSCI and Accord audits, as well as the intended and unintended consequences of these efforts. Table III summarizes the impact of these efforts on the companies and their workers in terms of economic upgrading, social upgrading, and social value creation. The dimensions used to analyze the impact of economic upgrading (capital and labor) and social upgrading (measurable standards and realizable rights) were adapted from Barrientos et al. (2011). The definition of social value creation proposed by Sinkovics et al. (2015) was used to assess the extent to which initiatives implemented with the aim of social upgrading also create social value for workers, i. e., to what extent they enable or violate the social, economic, and cultural rights of workers. The analysis yielded two key findings. First, the external pressure on companies to implement measurable/tangible aspects of the BSCI and the Accord achieved its intended purpose: creating safer, better equipped, and more comfortable working environments. However, there were also a number of unintended consequences. The high costs of compliance forced the case companies to terminate initiatives that addressed some of the social needs and priorities of the workers. A detailed investigation of these initiatives through the lens of social value creation (Sinkovics et al., 2015) led to the following observations: Certain compliance initiatives, classified as social upgrading, can achieve their intended purpose, but at the same time destroy existing social values and lead to the impairment of certain social, economic, and cultural rights.

Second, to cover the large compliance costs and ensure the survival of the companies, the owners have invested in technological upgrades. At the same time, they have increased pressure on workers to further increase production efficiency. Despite these economic improvements, workers’ skills have not improved. Instead, the power imbalance has widened, resulting in the exclusion of unskilled workers from the job market. The changes made by the case companies to achieve compliance and their implications are summarized in Tables II and III. The remainder of this section describes the cases in detail.

Company A has an international ownership structure. In 2010, two friends, one from Bangladesh and one from the Netherlands, decided to set up a garment export business and set up a buying house in Bangladesh. They set up a liaison office in the Netherlands that was responsible for finding buyers and taking orders. Once an order was received, the buying house in Bangladesh outsourced it to small local contractors. The buying house was only able to source low value-added garments that Bangladeshi factories could normally produce. A year later, the partners convinced a Turkish entrepreneur to join them. The idea was to set up a joint venture factory in Bangladesh to produce more sophisticated products. The Turkish partner already had a factory in Uzbekistan and wanted to take advantage of Bangladesh's cheap labor. Thus, the Bangladesh factory was established in 2011. It targets European buyers, mainly based in the Netherlands. The company has a few occasional short-term buyers, but most buyers are regular and long-term. It communicates directly with buyers through its office in the Netherlands. It produces graphic t-shirts, hooded jackets, and more.

The factory passed in 2011 with the first test of the Ministry of Labor (National Organization) and passed. With the pressure of the buyer, the factory joined the BSCI in 2012. The latest BSCI audits held in early 2014 achieved 91 % compliance. Most of the lon g-term buyers were enrolled in accords, and in the latter half of 2013, they were tested for Accord and achieved the "Yellow Level". Since joining the BSCI in 2012, the factory has begun to improve emergency exit, fire prevention display, and exhaust pipe installation. As a result, the first BSCI audit achieved 89 % compliance. Nevertheless, after the first inspection, BSCI recommended that nursery, medical facilities, appropriate dietary facilities, enhancing ventilation, expanding the work area, and changing storage locations. Company's owner said that he had borrowed an additional floor to accommodate the Day Care Center, Cafeteria, and Medical Office to make these recommendations. In addition, the upper limit of overtime work was reduced to two hours a day, which was approved by law. All of these changes performed from 2013 to 2014 have improved BSCI compliance from 89 % to 91 %, and dropped in turnover from 8 % to 7 %. The owner further told workers that they had provided nutritious lunch free of charge until January 2014. However, this service had to be canceled.

I introduced a free lunch in 2010 because I knew that workers often couldn't eat appropriate nutritious meals at home. I want to maintain their health. If they are healthy, they can work more efficiently. If you can take a rest for an hour at home instead of having lunch, you can go to work with a fresh feeling on time. factory passed in 2011 after the first test of the Ministry of Labor (National Organization). With the pressure of the buyer, the factory joined the BSCI in 2012. The latest BSCI audits held in early 2014 achieved 91 % compliance. Most of the lon g-term buyers were enrolled in accords, and in the latter half of 2013, they were tested for Accord and achieved the "Yellow Level". Since joining the BSCI in 2012, the factory has begun to improve emergency exit, fire prevention display, and exhaust pipe installation. As a result, the first BSCI audit achieved 89 % compliance. Nevertheless, after the first inspection, BSCI recommended that nursery, medical facilities, appropriate dietary facilities, enhancing ventilation, expanding the work area, and changing storage locations. Company's owner said that he had borrowed an additional floor to accommodate the Day Care Center, Cafeteria, and Medical Office to make these recommendations. In addition, the upper limit of overtime work was reduced to two hours a day, which was approved by law. All of these changes performed from 2013 to 2014 have improved BSCI compliance from 89 % to 91 %, and dropped in turnover from 8 % to 7 %. The owner further told workers that they had provided nutritious lunch free of charge until January 2014. However, this service had to be canceled.

4.3. Firm C

Background

I introduced a free lunch in 2010 because I knew that workers often couldn't eat appropriate nutritious meals at home. I want to maintain their health. If they are healthy, they can work more efficiently. If you can take a rest for an hour at home instead of having lunch, you can go to work with a fresh feeling on time. The factory passed in 2011 with the first test of the Ministry of Labor (National Organization) and passed. With the pressure of the buyer, the factory joined the BSCI in 2012. The latest BSCI audits held in early 2014 achieved 91 % compliance. Most of the lon g-term buyers were enrolled in accords, and in the latter half of 2013, they were tested for Accord and achieved the "Yellow Level". Since joining the BSCI in 2012, the factory has begun to improve emergency exit, fire prevention display, and exhaust pipe installation. As a result, the first BSCI audit achieved 89 % compliance. Nevertheless, after the first inspection, BSCI recommended that nursery, medical facilities, appropriate dietary facilities, enhancing ventilation, expanding the work area, and changing storage locations. Company's owner said that he had borrowed an additional floor to accommodate the Day Care Center, Cafeteria, and Medical Office to make these recommendations. In addition, the upper limit of overtime work was reduced to two hours a day, which was approved by law. All of these changes performed from 2013 to 2014 have improved BSCI compliance from 89 % to 91 %, and dropped in turnover from 8 % to 7 %. The owner further told workers that they had provided nutritious lunch free of charge until January 2014. However, this service had to be canceled.

Changes undertaken to achieve BSCI and Accord compliance: implications for social upgrading

In this comment, the lunch offer service was canceled not because the manager did not value the workers, but to give priority to accordance norms over the needs of workers. Shows. The owner also pointed out that some of the accord's recommendation would need to change the structure of the building, which would have been difficult. For example, increasing the number of windows or installing a sprinkler. Even more complicated is that the building is rented and shared with other factories and several stores. This point is also pointed out by Accord auditors. But building a new building requires enormous investment and time. In addition, when relocating to an independent rental building, commercial buildings are often more than six stories and requires a very expensive rental deposit, which costs high switching. In addition, there are more unused space. For this reason, Company A was unable to follow all of the accord recommendations. The owner pointed out that if an audit corporation claimed these changes, the company might be completely closed.

The analysis of this case has further revealed that many workers' rights, such as freedom of association, gender equality, career / skill development, are still infringing, although factories have achieved advanced compliance. 。 The owner commented on this point:

Now, buyers are under pressure to enroll workers to unions. But we don't want that. We are preventing workers from joining a union. I want to make it easier for labor union leaders to access factories through workers, abusing political connections to prevent intervening in factories. To be honest, our workers are aware that unions are not good. Unions rarely speak for workers and often speak for their political benefits.

According to interview data, female workers are mainly given opportunities as operators and helpers (women account for 90 %), and have not been promoted to the supervisor level (men account for 100 %). Workers answered that the promotion has been acquiring new skills, but has not received formal duties or training. As a result, they mainly acquired their skills from seniors. Therefore, problems such as imbalance between gender and ability development seem to be neglected.

Implications of BSCI and accord compliance for economic upgrading

The management has taken two strategies to make up for the cost of complying with the BSCI and Accord's corrective action plan. First, finding a method to increase the profit margin, second, increasing production efficiency and reducing costs. From 2013 to 2014, investment in compute r-supported machinery and advanced graphics and applique machines made the company produced highe r-valu e-added clothing and gained higher profits. During this period, two more production lines were introduced to optimize the borrowed spare space, mainly BSCI and Accord's recommendation. Furthermore, in order to compensate for the increase in labor costs, 80 % of the manual sewing machine was replaced with automatic sewing machines and yar n-cutting, and the dependence on the helper was reduced. By improving production capacity and replacing manual sewing machines, productivity has been improved by 5 % and defective rates have decreased by 2 %.

Interviews with Company A workers have revealed that the basic salary has increased due to raising the minimum wage since 2014. In addition, the working hours of the day have been reduced because the upper limit of overtime hours has been set. As a result, the overtime pensions of overtime have risen significantly, resulting in reluctance to allocate overtime work. As a result, workers spend time with their families, but their monthly income has decreased due to a decrease in overtime hours. Let's borrow the words of the machine operator we interviewed:

Until recently, the monthly income of 10 to 14 hours / weekly overtime was 10, 450 TK, but the monthly income was reduced to 8, 500 tk due to the new wage rate and overtime limit. This change in income has affected our living standards, making it difficult to pay the rent of the house and the tuition for children.

The impact of initiatives on workers: implications for social value creation

In addition, the pressure during regular working hours has grown. As a result of new overtime work, workers are given a on e-day goal, which is often excessive and cannot be achieved within normal working hours. In order to achieve the goal, workers will work long without paying overtime pay. management has taken two strategies to compensate for the cost of complying with the BSCI and Accord's corrective action plan. First, finding a method to increase the profit margin, second, increasing production efficiency and reducing costs. From 2013 to 2014, investment in compute r-supported machinery and advanced graphics and applique machines made the company produced highe r-valu e-added clothing and gained higher profits. During this period, two more production lines were introduced to optimize the borrowed spare space, mainly BSCI and Accord's recommendation. Furthermore, in order to compensate for the increase in labor costs, 80 % of the manual sewing machine was replaced with automatic sewing machines and yar n-cutting, and the dependence on the helper was reduced. By improving production capacity and replacing manual sewing machines, productivity has been improved by 5 % and defective rates have decreased by 2 %.

Interviews with Company A workers have revealed that the basic salary has increased due to raising the minimum wage since 2014. In addition, the working hours of the day have been reduced because the upper limit of overtime hours has been set. As a result, the overtime pensions of overtime have risen significantly, resulting in reluctance to allocate overtime work. As a result, workers spend time with their families, but their monthly income has decreased due to a decrease in overtime hours. Let's borrow the words of the machine operator we interviewed:

Until recently, the monthly income of 10 to 14 hours / weekly overtime was 10, 450 TK, but the monthly income was reduced to 8, 500 tk due to the new wage rate and overtime limit. This change in income has affected our living standards, making it difficult to pay the rent of the house and the tuition for children.

In addition, the pressure during regular working hours has grown. As a result of new overtime work, workers are given a on e-day goal, but they are often excessive and cannot be achieved within normal working hours. In order to achieve the goal, workers will work long without paying overtime pay. The management has taken two strategies to make up for the cost of complying with the BSCI and Accord's corrective action plan. First, finding a method to increase the profit margin, second, increasing production efficiency and reducing costs. From 2013 to 2014, investment in compute r-supported machinery and advanced graphics and applique machines made the company produced highe r-valu e-added clothing and gained higher profits. During this period, two more production lines were introduced to optimize the borrowed spare space, mainly BSCI and Accord's recommendation. Furthermore, in order to compensate for the increase in labor costs, 80 % of the manual sewing machine was replaced with automatic sewing machines and yar n-cutting, and the dependence on the helper was reduced. By improving production capacity and replacing manual sewing machines, productivity has been improved by 5 % and defective rates have decreased by 2 %.

5. Discussion, conclusion, and limitations

Workers also reported that their job security had decreased. New machines were purchased to improve the quality of garments and streamline the production process, which resulted in less qualified workers losing their jobs. At the time of the interview, 15 helpers had lost their jobs due to the purchase of machines. The increasing compliance pressure also meant that most factories had stopped hiring unskilled workers (such as helpers and operators), excluding them from the job market. As a result of the decreased job security, their bargaining power against the employers also decreased. Workers further complained about the loss of nutritious free lunch. The loss of the canteen led to less rest time and increased food costs. In fact, the free lunch was one of the key factors that attracted many workers to the factory.

Company B, founded in 2009 and run by two brothers, rented a shared building in Dhaka city to set up a two-line factory. In early 2013, they built a new factory unit in Gazipur Industrial Area and started production in late 2013. The new factory has 600 employees and six production lines. The new building was built in accordance with BSCI and Accord building safety guidelines. The new factory mainly produces tops such as T-shirts, polo shirts, and jackets. The main buyers are from the Netherlands, Belgium, and Spain. The most important long-term buyers are Bristol, Intersport, and Lonsdale. They are also arbitrarily looking for new buyers to use up the remaining production capacity.

Company B initially started out by renting a shared building. In late 2012, they decided to move to their own building. The main reason for this was the increased pressure to achieve BSCI compliance after the Tazreen factory fire in 2012. In addition, the management realized that due to the rental agreement and strict space restrictions, they could not comply with most of the BSCI audit recommendations, such as providing a childcare center, a canteen, medical facilities, more space, etc. The new factory achieved 91% compliance in its first BSCI audit at the end of 2013. The building received a "yellow level" rating from the Accord in early 2014. The association's recommendations included adding more emergency exits to the basement, changing locks on emergency exit gates, upgrading the fire alarm system and covering exposed wires and pipes.

Earlier in 2014, workers began to be reduced to increase the salary of workers and to comply with national regulations. Company A and Company B are also working on the goals that workers are expected to achieve within regular working hours. The motivation to avoid overtime work is due to an increase in overtime allowance imposed by the government. The new factory was constructed with a daycare center, medical facilities, and appropriate dining facilities in accordance with accord tests.

In contrast, workers' union formulas have not been actively encouraged, and they are not working on gender discrimination. One owner gave the following opinions regarding union formulation:

We strongly recommend that workers join the union. Rather, we encourage us to bring it directly to us, whether it is a personal or related to work. Most problems are related to company policies and activities, so we believe that we have the ability to understand and deal with the problem than those who are outside the problem (union authorities). 。

The construction of a new manufacturing unit was promoted mainly due to the need to comply with the BSCI audit recommendation, but it would not have been possible in a small rental environment of Company B. The old factory has survived as a CMT service provider, but the new factory has obtained raw materials from its own local supplier network (95 %) and has gained OEM status by providing full package services to buyers. 。 The high profit margin obtained by providing OEM services was very important in compensating for the cost of compliance. If you borrow the owner's words

It was impossible to continue the CMT supplier in a new environment. This is because the profit margin was too low and could not cover the cost of maintaining a completely compliant factory. Therefore, it was necessary to provide more value to customers by providing full package services as well as cuts, manufacturing, and trimming. Nevertheless, because of the lack of financial power, a bac k-t o-part cooperation department cannot be set up in the company, and as an alternative, the supply of raw materials relies on the network of external suppliers. In the early 2014, workers began to increase their working hours to raise their salaries and comply with national regulations. Company A and Company B are also working on the goals that workers are expected to achieve within regular working hours. The motivation to avoid overtime work is due to an increase in overtime allowance imposed by the government. The new factory was constructed with a daycare center, medical facilities, and appropriate dining facilities in accordance with accord tests.

Ethical Audit (EA)

In contrast, workers' union formulas have not been actively encouraged, and they are not working on gender discrimination. One owner gave the following opinions regarding union formulation:

The construction of a new manufacturing unit was promoted mainly due to the need to comply with the BSCI audit recommendation, but it would not have been possible in a small rental environment of Company B. The old factory has survived as a CMT service provider, but the new factory has obtained raw materials from its own local supplier network (95 %) and has gained OEM status by providing full package services to buyers. 。 The high profit margin obtained by providing OEM services was very important in compensating for the cost of compliance. If you borrow the owner's words
It was impossible to continue the CMT supplier in a new environment. This is because the profit margin was too low and could not cover the cost of maintaining a completely compliant factory. Therefore, it was necessary to provide more value to customers by providing full package services as well as cuts, manufacturing, and trimming. Nevertheless, because of the lack of financial power, a bac k-t o-part cooperation department cannot be set up in the company, and as an alternative, the supply of raw materials relies on the network of external suppliers. Earlier in 2014, workers began to be reduced to increase the salary of workers and to comply with national regulations. Company A and Company B are also working on the goals that workers are expected to achieve within regular working hours. The motivation to avoid overtime work is due to an increase in overtime allowance imposed by the government. The new factory was constructed with a daycare center, medical facilities, and appropriate dining facilities in accordance with accord tests.

What Is An Ethical Audit?

In contrast, workers' union formulas have not been actively encouraged, and they are not working on gender discrimination. One owner gave the following opinions regarding union formulation:

The construction of a new manufacturing unit was promoted mainly due to the need to comply with the BSCI audit recommendation, but it would not have been possible in a small rental environment of Company B. The old factory has survived as a CMT service provider, but the new factory has obtained raw materials from its own local supplier network (95 %) and has gained OEM status by providing full package services to buyers. 。 The high profit margin obtained by the provision of OEM services has been proved to be very important in compensating for the cost of compliance. If you borrow the owner's words

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The above comments show that the compliance with the BSCI was the main driving force of the establishment of the new factory, but also took into account the lon g-term survival and profitability of the company at the time of establishment. As a result, this factory is fully equipped with automatic machinery to improve productivity and reduce dependence on helpers, automate design machinery on a computer to increase design accuracy, not only abuse and negligence of workers. A CCTV camera was installed at the factory site to detect theft. According to the owner, from 2013 to 2014, the failure rate decreased from the previous 12 % to 8 %, and the productivity of workers increased from 28 % to 35 %. One of the owners said:

Our Solutions

We had to comply with compliance and survive the business at the same time, and we had to find a way to make up for the increased operating costs and the labor costs per unit. Therefore, when launching a new factory, we examined not only the implementation of the BSCI code, but also the means to increase sales and profitability. Therefore, we introduced technically sophisticated machines in factories that can reduce the dependence on labor and improve productivity over the long term.

The above comments indicate that their economic upgrade pursuit is efficient. In order to achieve this goal, the factory has not yet taken the initiative to provide official training to workers, as the worker's skills are not significantly improved. New employees receive OJT from the supervisor, and further improvement of their skills depends on the motivation and abilities of new employees themselves or learn from colleagues.

Workers who were interviewed said that working in a compatible factory improved their social status. One of the interviewers who was interviewed has recently changed from the old factory, but has highly valued the better environment of the new factory. On the other hand, this improvement affected their negotiations:

International Standards

The owners began to have a factory to comply with compliance, and their negotiations have increased. Now you can easily get skilled workers. As a result, our employment security has declined. They can always make us a surplus personnel to hire more skilled human resources. The above comments show that the compliance with the BSCI was the main driving force of the establishment of the new factory, but also took into account the lon g-term survival and profitability of the company at the time of establishment. 。 As a result, this factory is fully equipped with automatic machinery to improve productivity and reduce dependence on helpers, automate design machinery on a computer to increase design accuracy, not only abuse and negligence of workers. A CCTV camera was installed at the factory site to detect theft. According to the owner, from 2013 to 2014, the failure rate decreased from the previous 12 % to 8 %, and the productivity of workers increased from 28 % to 35 %. One of the owners said:

We had to comply with compliance and survive the business at the same time, and we had to find a way to make up for the increased operating costs and the labor costs per unit. Therefore, when launching a new factory, we examined not only the implementation of the BSCI code, but also the means to increase sales and profitability. Therefore, we introduced technically sophisticated machines in factories that can reduce the dependence on labor and improve productivity over the long term.
The above comments indicate that their economic upgrade pursuit is efficient. In order to achieve this goal, the factory has not yet taken the initiative to provide official training to workers, as the worker's skills are not significantly improved. New employees receive OJT from the supervisor, and further improvement of their skills depends on the motivation and abilities of new employees themselves or learn from colleagues.

Workers who were interviewed said that working in a compatible factory improved their social status. One of the interviewers who was interviewed has recently changed from the old factory, but has highly valued the better environment of the new factory. On the other hand, this improvement affected their negotiations:
The owners began to have a factory to comply with compliance, and their negotiations have increased. Now you can easily get skilled workers. As a result, our employment security has declined. They can always make us a surplus personnel to hire more skilled human resources. The above comments show that the compliance with the BSCI was the main driving force of the establishment of the new factory, but also took into account the lon g-term survival and profitability of the company at the time of establishment. As a result, this factory is fully equipped with automatic machinery to improve productivity and reduce dependence on helpers, automate design machinery on a computer to increase design accuracy, not only abuse and negligence of workers. A CCTV camera was installed at the factory site to detect theft. According to the owner, from 2013 to 2014, the failure rate decreased from the previous 12 % to 8 %, and the productivity of workers increased from 28 % to 35 %. One of the owners said:
We had to comply with compliance and survive the business at the same time, and we had to find a way to make up for the increased operating costs and the labor costs per unit. Therefore, when launching a new factory, we examined not only the implementation of the BSCI code, but also the means to increase sales and profitability. Therefore, we introduced technically sophisticated machines in factories that can reduce the dependence on labor and improve productivity over the long term.
The above comments indicate that their economic upgrade pursuit is efficient. In order to achieve this goal, the factory has not yet taken the initiative to provide official training to workers, as the worker's skills are not significantly improved. New employees receive OJT from the supervisor, and further improvement of their skills depends on the motivation and abilities of new employees themselves or learn from colleagues.
Workers who were interviewed said that working in a compatible factory improved their social status. One of the interviewers who was interviewed has recently changed from the old factory, but has highly valued the better environment of the new factory. On the other hand, this improvement affected their negotiations:

Client-Specific Audit Procedures

As a result, the employment security of premature workers, especially, decreased. A large amount of investment in machines has also influenced the employment security of workers. Like Company A, the opportunity to develop personal ability for workers is limited:

QIMA's Best-in-Class Ethical Audit Program

On the other hand, management warns that if he does not work efficiently, he will get fired immediately. On the other hand, management warns us that if we do not work efficiently, we will get fired immediately. On the other hand, most of us do not know how to improve their skills and how to acquire new skills [......] When I joined the company, my seniors sewn work. He showed me. Until now, I did the same work every day.

Workers also report that the number of overtime pay has increased work pressure and the monthly income has decreased. In addition, there are complaints that if you could not achieve your day's goal, your boss had ranted. There were many times that we had to sacrifice lunch breaks in order to catch up with the pending work. Workers have also reported that the number of hired young men has increased in the past year.

Company C was established in 2010 with three lines on the top floor of a joint building in the Gazipur industrial area. In early 2013, I rented another floor of the same building. Currently, with five production lines, nearly 550 employees are working. It specializes in tops such as basic T-shirts and polo shirts, and may produce casual shorts and beach shorts in summer. Farm C buyers are British Bench, Piazza, Italy and Cotton SRL in Italy. He has also worked with Pierre Cardin in the two summer season. Most buyers have contacted directly, but have also worked with buyers who have contacted through the baying house, such as Watson, Italian Bristol, E5 and V & V in Spain. As a result, the employment security of the premature workers has declined. A large amount of investment in machines has also influenced the employment security of workers. Like Company A, the opportunity to develop personal ability for workers is limited:

On the other hand, management warns that if he does not work efficiently, he will get fired immediately. On the other hand, management warns us that if we do not work efficiently, we will get fired immediately. On the other hand, most of us do not know how to improve their skills and how to acquire new skills [......] When I joined the company, my seniors sewn work. He showed me. Until now, I did the same work every day.
Workers also report that the number of overtime pay has increased work pressure and the monthly income has decreased. In addition, there are complaints that if you could not achieve your day's goal, your boss had ranted. There were many times that we had to sacrifice lunch breaks in order to catch up with the pending work. Workers have also reported that the number of hired young men has increased in the past year.
Company C was established in 2010 with three lines on the top floor of a joint building in the Gazipur industrial area. In early 2013, I rented another floor of the same building. Currently, with five production lines, nearly 550 employees are working. It specializes in tops such as basic T-shirts and polo shirts, and may produce casual shorts and beach shorts in summer. Farm C buyers are British Bench, Piazza, Italy and Cotton SRL in Italy. He has also worked with Pierre Cardin in the two summer season. Most buyers have contacted directly, but have also worked with buyers who have contacted through the baying house, such as Watson, Italian Bristol, E5 and V & V in Spain. As a result, the employment security of premature workers, especially, decreased. A large amount of investment in machines has also influenced the employment security of workers. Like Company A, the opportunity to develop personal ability for workers is limited:
On the other hand, management warns that if he does not work efficiently, he will get fired immediately. On the other hand, management warns us that if we do not work efficiently, we will get fired immediately. On the other hand, most of us do not know how to improve their skills and how to acquire new skills [......] When I joined the company, my seniors sewn work. He showed me. Until now, I did the same work every day.
Workers also report that the number of overtime pay has increased work pressure and the monthly income has decreased. In addition, there are complaints that if you could not achieve your day's goal, your boss had ranted. There were many times that we had to sacrifice lunch breaks in order to catch up with the pending work. Workers have also reported that the number of hired young men has increased in the past year.

After the Rana Plaza incident, Company C received pressure from two buyers, mainly Bench and Bristol, to improve working conditions. It became a member of BSCI in June 2013. In the first BSCI inspection in December 2013, it achieved 67% compliance. In January 2014, it received "yellow level" certification from the Accord. BSCI auditors recommended providing childcare facilities, expanding canteen space, providing a provident fund, maternity benefits, and introducing on-site medical facilities. The Accord's corrective recommendations included improving fire safety signs, widening the main gate, improving electrical wiring, and relocating to a separate building. Following these recommendations, Company C installed medical facilities, expanded canteen space, widened the main gate, and improved fire safety signs and electrical safety. As a result, its BSCI compliance rate rose to 75% in 2014. However, like Company A, the company does not own the building and therefore has not been able to implement many of the Accord's recommendations, which require structural changes such as the construction of an exterior staircase.

Why Perform An Ethical Audit?

The owner pointed out that there were three obstacles to further investment in compliance. The company does not have the financial capacity and there is no guarantee that buyers will increase orders or pay more to strengthen compliance. Most importantly, if pressure to move to a separate building increases, the company may be forced to close the business altogether because it does not have enough funds to rent or build a separate building.

The analysis also revealed that in order to increase compliance rates, the company had to sacrifice services it had previously provided for its workers. For example, the canteen was expanded at the expense of the adjacent prayer room. As almost 99% of the workers are Muslim, most workers would have preferred the prayer room over a Western-style canteen. In addition, to cover the cost of the childcare facility, the management was forced to stop providing free lunches to the workers. At the same time, Company C was trying to attract new buyers to increase its revenue. However, while the number of orders was increasing, the company stopped hiring helper and operator-level workers:

The QIMA Benefits

We know that there are complaints among workers. In addition, the prayer room was featured. Now, they are praying around the factory floor. As a Muslim, I feel guilty about this. We are sorry about such changes, but our hands are also tied. At least you should be pleased that our factory is running. Two of my friends have not been able to keep up with this pressure and have already closed their factories.

Freedom of union formation, gender equality, and career development are a problem that has not been dealt with. Managers prioritize men and young female workers (16-20 years old) over women (20 to 35 years old) who can give birth to avoid the obligation to pay for childbirth.

Company C has added two production lines to optimize the additional space borrowed to meet the BSCI audit requirements. With this increase in production capacity, it has been able to respond to the increase in ordering from existing and new buyers. The owner told me that 50 % of manual machinery had been replaced with automatic machinery to reduce labor costs. As a result, production capacity increased by 7 %. However, the products produced are still low in value, are 30 % productivity, far below the industry average of 40 %. The company is conducting OJT for workers for each specialized business. There is no systematic training to increase the productivity of workers.

Company's owner showed difficulty in investing in economic improvement and mentioned shared buildings as major restrictions:

We recognize that we need to invest in services and machinery upgrades to improve profit margins. Accord inspectors suggested relocating to an independent building, pointing out that if not, they could fail in the next audit. Our current resources cannot borrow the entire commercial building or build our own buildings. In addition to these pressure, our future is opaque. We know that there are complaints among workers. In addition, the prayer room was featured. Now, they are praying around the factory floor. As a Muslim, I feel guilty about this. We are sorry about such changes, but our hands are also tied. At least you should be pleased that our factory is running. Two of my friends have not been able to keep up with this pressure and have already closed their factories.

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Company C has added two production lines to optimize the additional space borrowed to meet the BSCI audit requirements. With this increase in production capacity, it has been able to respond to the increase in ordering from existing and new buyers. The owner told me that 50 % of manual machinery had been replaced with automatic machinery to reduce labor costs. As a result, production capacity increased by 7 %. However, the products produced are still low in value, are 30 % productivity, far below the industry average of 40 %. The company is conducting OJT for workers for each specialized business. There is no systematic training to increase the productivity of workers.
Company's owner showed difficulty in investing in economic improvement and mentioned shared buildings as major restrictions:
We recognize that we need to invest in services and machinery upgrades to improve profit margins. Accord inspectors suggested relocating to an independent building, pointing out that if not, they could fail in the next audit. Our current resources cannot borrow the entire commercial building or build our own buildings. In addition to these pressure, our future is opaque. We know that there are complaints among workers. In addition, the prayer room was featured. Now, they are praying around the factory floor. As a Muslim, I feel guilty about this. We are sorry about such changes, but our hands are also tied. At least you should be pleased that our factory is running. Two of my friends have not been able to keep up with this pressure and have already closed their factories.
Freedom of union formation, gender equality, and career development are a problem that has not been dealt with. Managers prioritize men and young female workers (16-20 years old) over women (20 to 35 years old) who can give birth to avoid the obligation to pay for childbirth.
Company C has added two production lines to optimize the additional space borrowed to meet the BSCI audit requirements. With this increase in production capacity, it has been able to respond to the increase in ordering from existing and new buyers. The owner told me that 50 % of manual machinery had been replaced with automatic machinery to reduce labor costs. As a result, production capacity increased by 7 %. However, the products produced are still low in value, are 30 % productivity, far below the industry average of 40 %. The company is conducting OJT for workers for each specialized business. There is no systematic training to increase the productivity of workers.

Elim Poon - Journalist, Creative Writer

Last modified: 27.08.2024

Findings The existing phenomena in Bangladesh surrounding Rana Plaza (RP) disaster stand in sharp contrast with CSR which inevitably offend the. “Rana Plaza Collapse Aftermath: Are. CSR Compliance and Auditing Pressures Effective?” Accounting Auditing & Accountability Journal 29 (4): –. The purpose of this paper is to investigate the intended and unintended consequences of compliance and auditing pressures in the Bangladeshi garment industry.

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