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Article

5 Feb 2013

Author:
Sean Ansett & Jeffrey Hantover, Ethical Corporation

Bangladesh factory fires: the hidden dangers of subcontracting [Bangladesh]

…Most recently the 112 fatalities at Tazreen Fashions have put the spotlight on the problem of unauthorised and unmonitored subcontracting in the global supply chain. Wal-Mart, Sears, Disney and Li & Fung claim they had no knowledge that their goods were being manufactured at Tazreen Fashions. In the wake of this most recent fire there have been calls for a more intense focus on subcontractors: stricter government regulation and enforcement and their monitoring by retailers and preferably independent monitoring bodies. But these calls, while well intentioned, demonstrate a lack of proper understanding of the forces that create unauthorised subcontracting and pose challenges to their effective monitoring.