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The Garment Industry in Bangladesh, Corporate Social Responsibility of Multinational Corporations, and The Impact of Covid-19

Bibliographic Data

ID3793210
AuthorsNinia Reza, Jean Jacques Du Plessis
Year2022
Volume9
Issue2
Pages255-285
Publication date2022-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueAsian Journal of Law and Society (JOURNAL)
Journal identifiersISSN: 2052-9015 • E-ISSN: 2052-9023
PublisherCambridge University Press (CUP) (PUBLISHER)
DOI10.1017/als.2022.9
OpenAlexW4221111913
LanguageEN
Citations received1
References cited27

This article investigates the Bangladeshi garment industry that supplies ready-made garments for global brands and the corporate social responsibilities (CSRs) of the brands/multinational corporations (MNCs) towards their supply chains. Although outsourcing and global trade have boosted the living standards of many people in the Bangladeshi garment industry, there are some significant concerns regarding the working conditions and treatment of workers in these supply chains. This, in turn, cannot, and should not, be detached from the legal relationship between the Bangladeshi supply chains and the MNCs contracting with them. This article examines the impact of COVID-19, which has exposed the fragility and the pre-existing flaws in the relationship between the MNCs and their suppliers more clearly than at any other time in history. There is a huge governance gap between MNCs and supply chains that needs to be addressed urgently. This article assesses the legality of the cancellation of orders by the brands that invoked the force majeure clause. In doing so, this paper briefly deals with the responses of three American retail companies, namely Sears, Kohl's, and the Arcadia Group, in the wake of the COVID-19 pandemic. It illustrates that the power asymmetry between the MNCs and their suppliers has put the supply chains in an unreasonably disadvantageous position, creating unfair and even unconscionable conduct by several MNCs. This article also looks at solutions for the existing problems, focusing, inter alia, on non-financial reporting requirements in the US and the EU to implement CSR in supply chains. However, disappointingly, the authors had to conclude that MNCs typically have the propensity to disregard CSR, whenever it is convenient for them and use CSR for mere "greenwashing" purposes for their strategic benefit only. It is a problem that requires constant attention and continuing research to find long-term solutions. The article employs doctrinal methodology and, by conducting a meta-analysis of literature and case-studies, it provides a comprehensive understanding of how the industry works

Business · Commerce · Corporate governance · Corporate social responsibility · Economics · Industrial organization · Market economy · Multinational corporation · Outsourcing · Political science · Supply chain · Corporate Law and Human Rights · Global trade, sustainability, and social impact · International Labor and Employment Law · Finance · Law · Marketing

  • Collective Voice without Collective Bargaining

    Open Access•Achalie Kumarage•Asian Journal of Law and Society•2024

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Unique citing works1
Citations per year0.5
Citation span2024 - 2024 (1)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 1

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