Does ethical consumerism stimulate shopping boycott? Qualitative Evaluation on the Bangladeshi Ready Made Garment (RMG) Industry

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1 Abstract Bangladesh is a small country with nascent trade and commerce activities. Exports of various products manufactured in Bangladesh make up about 78% of the national income. Much of this comes from the production and export of ready-made garments (RMG) across the world. This sector holds promising potential to reduce unemployment problems and poverty in Bangladesh. It is also contributing a huge lump-sum foreign exchange earnings amount to the national economy and increase employment. However, working conditions in this sector have a poor track record. It has been proven multiple times that Bangladeshi RMG manufacturing units have failed to work in accord with social compliances. In particular, management has not complied with fair labour practices numerous times, which would ensure employees social wellbeing and welfare. This research reviews working conditions for Bangladeshi workers while examining how ethical consumerism has stimulated boycotts in the Western world of products made by these workers under atrocious work conditions. Literature Review Ethical consumption is a wide term to refer to the ethical considerations of companies as well as consumers. This term can include the concept of green consumerism as well. Strong (1996) defines ethical consumerism as the behaviour of a buyer that considers all the rules and principles of environmental consumerism and human rights. Working conditions in sweatshops in the RMG have regularly violated International Labour Standards (ILS) and Codes of Conduct (CoC) (Uddin, 2008 and Dasgupta, 2002). Recruitment guidelines and policies are exceedingly informal and evaluated according to standards of Western countries. It has also noted that there are no documented appointment letters or formal contracts. Employees in the RMG sector are consequently susceptible to losing their jobs at any point. However, the fear of not keeping their jobs and a deficiency of alternative job opportunities lead workers to maintain unacceptable and substandard employment (Hossan et al, 2012).

2 Chowdhury (2007) found that RMG workers are worried about extensive working hours and two-fold consecutive shifts, unsafe work surroundings, poor and deprived working conditions and gender and wage discrimination (Khan, 2011). Furthermore, employers treat RMG employees like slaves by taking advantage of them to augment their profit margins to present their industry as spirited and ready for competition in the current environment of greater than ever global competition (Kumar, 2006). However, many customers globally, such as in the European Union, Canada and the United States and so on, think that garments manufactured in Bangladesh are being done so in exploitative and abusive conditions which do not support labour standards, worker rights or satisfactory working conditions. Recently, Bangladesh's garment manufacturers and higher authorities at governmental levels have begun to scrutinize the nation s own legislation, which has prompted global buyers to solidify their own Codes of Conduct regarding confined space. Particularly since the end of the United States Multi-Fiber Agreement Quota system in 2005, it has insisted on compliancy with Codes of Conduct before ordering or importing merchandise (Rashid and Ibrahim, 2008). Methodology As demonstrated in the literature and research review, current working conditions in the RMG sector in Bangladesh are below standards as per the International Labour Organization (ILO). Law enforcement is feeble and human resources and industrial activities tend to be absent (Ahamed, 2012 and Ahamed 2013). Originally this research intended to use secondary data collection instruments alone. However, analyzing research literatures and background histories of the RMG growth and development, such as the various research studies on the RMG sector in Bangladesh conducted by Ferdous Ahamed in 2012 and 2013, revealed the fact that the garment workers were generally uneducated. Therefore, they lacked proper information and understandings of human rights, labour standards and working circumstances/environmental conditions. In contrast, most of the owners of garment factories uphold good connections with political parties and maintain strictly-controlled environments in the garment factories through associations with security personnel and the police force. Due to this, researchers have been 2

3 averted from visiting garment factories for research purposes. With this knowledge, the researcher for this study has disregarded the method of direct data collection and surveys (primary data). Research Design This study has adopted a qualitative research methodology. Normally, in this style, researchers would use methods such as interviews and surveys to collect data. Since there is no primary data involved in this study, however, the author has utilized various methods for collecting secondary data for analysis and evaluation. Secondary data was collected through case studies, literature reviews from other nations, research articles, journals, newspapers, online news articles, thesis papers and survey reports from Garments Manufacturing Industries annual reports and yearly reports and files from the Bangladesh Ministry of External Affairs. This study makes use of descriptive research design. According to Kothari (2004), descriptive research design describes the data of the population being studied without setting up causal relationships between events that occur. Since the study has no primary data the descriptive design is the most suitable approach due to researchers access restrictions to the workplace. The sampling field or target population would be the RMG factories of Bangladesh; therefore we are unable to use any specific sample size or sampling technique in this study. This study simply evaluates the secondary data at hand to acquire results. This study further adapts hermeneutics or interpretivism (a qualitative method) where there is no clarity or objectivity in the process of research. The interpretivist approach aims to gain insight along with the development of understanding (Gummesson, 1991). This selected process will assist us to grab research data from the worker s view point rather what employers and regulators ill motivation. This research will focus on the following queries: Does ethical consumerism stimulate shopping boycotts? If so, how? What is the role of the Bangladeshi Ready Made Garment (RMG) Industry in ethical consumerism? 3

4 Limitations of the Study The present study depends solely on secondary data which could be biased or manipulated. Furthermore, in the case studies analysed, the range cases would differ depending on reviewing standards. Each researcher has their own style and understandings when interpreting facts and documenting them for research purposes. Therefore, the interpretations could be unpredictable and outcomes non-reproducible as they are provided by means of secondary sources of information. Sample and Key Variables The samples for the qualitative study will come from the ready-made Garment factories in Bangladesh. We will select the factories which are only caters toward foreign buyers, mostly outside Economic Processing Zone (EPZ). Relevant articles will be used to find out diverse characteristics of the working environments, working conditions and attitudes of consumers in various parts of the world, mostly USA and Europe where majority of the buyers markets are. Qualitative Data Collection Methods The data collection method in this study is by analysing secondary data such as journals, books, newspaper articles, other documents and research already done that are related to the present research topic. Scholarly articles, library and peers would be the best sources to obtain the information. Qualitative Data Analysis Today s Consumers have a strong sense of moral responsibility which can be reflected in their purchasing power. In the United States and many European companies, many young, educated consumers have made it clear that they would prefer buy garments manufactured in Bangladesh specifically under fair practices, where items have been manufactured with a view towards an ethical pedigree and social obligation. Such consumers have made use of concepts such as boycots to demonstrate boycotts against bad working conditions and sweatshops in Bangladesh. The sense of ethical purchasing for the young and ethically-motivated consumers 4

5 has been extended as means of supporting the working communities of Bangladesh (Swaiden, 2012). Many consumers of retail units in North America and Europe are growing more cognizant about the workplace-protection situation in Bangladesh. Now that Bangladeshi RMG working conditions have come to public awareness, these consumers have decided to refuse Bangladeshi RMGs, which can have countless outcomes on the Bangladesh garment sector. Apprehensions of these consumers have pushed reputable international customers such as H&M, Wal-Mart, Inditex, etc. to believe that implementing stricter industrial security control on Bangladeshi garments and their manufacturers is mandatory. Especially after the Rana plaza incident, in recent times many global buyers have come together to sign up a legal assurance in order to provide workers security and safety (Swaiden, 2012). Many American consumers in particular seriously believe in a postponement, lessening or extraction of the countries GSP services and facilities from Bangladesh, citing the nation s infringement on workers rights as reason for this demand. If that occurs, it could propel a violent flow of negative images throughout the world not just regarding RMGs, but all kinds of Bangladeshi products (Swaiden, 2012). If the European Union emulates the U.S., this could become a lethal blow to the Bangladeshi RMG sector, as this association is integral to the livelihood of the Bangladeshi RMG industry. The U.S., the European Union and the rest of the global community are essentially in need of making an ethical decision to influence on reducing institutional intension to uphold quality RMG sources, business ethics and culture and business environments, to slam down to a satisfactory level. Boycotts against the Bangladeshi RMG manufacturing industry have also been backed up through several online campaigns to shut down Bangladehi sweatshops such as LA times and Guardain UK. This has resulted in a global increase in the numbers of sociallycognizant consumers who are particular about the products they purchase, even though they are manufactured several thousands of kilometres away. An indirect danger of consumer boycotts and the possible tarring of a business brands was threatening enough to compel apparel businesses to demand a greater level of safety in factories in Bangladesh (Swaiden, 2012). 5

6 Conclusion The conclusions from various research (for instance, Ahamed, 2013) shows that the ethical issues in the Bangladeshi RMG sector have affected people from multiple parts of the world who purchase Bangladeshi clothing and merchandise both psychologically and emotionally. It is notable that not every consumer boycotts unfair work and products. Some boycotts can have destructive outcomes, such as in African nations where a boycott of conflicting products has resulted in more criminalization of the products trade. ( Consumers want to be acquainted with the products they purchase, and want to know how their individual actions might impact the system on a larger scale. So far, the invisible hand of ethical buying has demonstrated its strength in encouraging a rapid change to working conditions in Bangladesh, particularly after the Rana Building disaster on 24 April, There are illustrations in various studies (Ahamed, 2012 and 2013) of clothing manufacturing businesses who are doing well despite unfair business practices with regards to employees and workers, so it is possible to do business with ethical consumerism. We are unable to declare there are no bad operational practices, but the rising awareness about the sweatshops may one day leads to the sense of ethical consumerism supporting business. Ultimately, many RMG manufacturing owners and managers either do not maintain ethical business practices or unable to fund this ethical consumerism programme. Bangladesh, being a poor nation, is faced with a major problem with its population struggling just to make a petty livelihood, a win-win funding arrangement from the biggest buyers i.e. H&M, Primark and Walmart from the Western world may support the existing owners business to demand for workplace code improvement in exchange of good trade practice. Future Research Future research must examine the broad impacts of boycotts focused on the working conditions and labour social compliances for workers in Bangladesh, especially in RMG sector. Influences of boycotts by consumers from various part of the world, including the United States, the United Kingdom and European countries, must be also be accounted[you mean considered, not accounted for?] for in future research. 6

7 References Ahamed, F. (2013) Cloud monitoring and surveillance be useful to establish social compliance in the ready-made garment (RMG) industry of Bangladesh? International Journal of Management and Business Studies, 3(3), Ahamed, F. (2013). Improving Social compliance in Bangladesh's Ready-made Garment Industry. Labour and Management in Development, 13, retrieved from on 24 April, 2014 Chowdhury, M. S. (2007). Overcoming entrepreneurship development constraints: the case of Bangladesh. Journal of Enterprising Communities: People and Places in the Global Economy, 1(3), Dasgupta, A. K. (2002). Gandhi's economic thought. Delhi: Routledge. Hossan, C. G., Sarker, M. A. R. & Afroze, R. (2012). Recent Unrest in the RMG Sector of Bangladesh: Is this an Outcome of Poor Labour Practices? International Journal of Business and Management, 7(3), Kothari, C. R. (2004). Research Methodology: Methods and Techniques. New Delhi: New Age International Publishers. Khan, M. A. I. (2011). Labor Unrest in the RMG Sector of Bangladesh: A Public-Private Cooperation Perspective. Retrieved from on 24 April, 2014 Gummesson, E. (1991). Qualitative Methods in Management Research. London: SAGE Publications. Strong, C. (1996). Features contributing to the growth of ethical consumerism a preliminary investigation. Marketing Intelligence & Planning, 14(5), Swaidan, Z. (2012). Culture and consumer ethics. Journal of business ethics, 108 (2), The Christian Monitor. (2013). Retrieved on 25 April,

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