H&M sympathizes the victims, the affected and the Bangladesh Community following the deadly collapse that occurred. H&M realizes that it has a mandate to work harder in ensuring that such calamities never happen again. As an organization, we realized that our internal and external customers work and operate under strict observations of the occupational health and safety act. The H&M supply chain seeks to use its influence to ensure promotion of good practices as well as raising awareness for every person at every stage of the supply chain. Positive difference is possible through collaborating and participation of all parties. For this reason, the buyers, merchandisers, auditors, suppliers, second-tier suppliers and factory employees are all engaged in the supply-chain management approach.
H&M is sensitive towards social responsibility. In addition to ensuring that the supply chain operates in a conducive environment, H&M goes a step further to develop the Conscious Foundation. The foundation reaches out to drive long-lasting change for communities, with Bangladesh being one of the principal benefactors. Currently, the focus of H&M Conscious Foundation is to work on education, strengthening women as well as providing clean water. Just as H&M has collaborated with WaterAid, CARE and UNICEF to achieve the above objectives, the same will apply in securing partnership with Bangladesh government, especially in ensuring that the quality of construction especially in relation to safety is improved and adhered. In essence, therefore, H&M reaches out to the internal and external customers in an attempt to ensure that safety, the public image and each member of the supply chain work in a safe and conducive environment.
Response 1: What do companies like H&M do if they encounter safety and labor problems such as those in Bangladesh?
When safety and labor problems sprout out like in Bangladesh, companies such as H&M move to reassure their internal and external customers about measures to correct the problem. That involves conducting an analysis to determine the cause of the damage that occurs. The management would then proceed to offer services such as medication and other compensations. It is wise for an organization like H&M to own up when others can connect the cause of the problem to them. Correctional approaches, such as rebuilding and transparency in the construction and consideration of the regulations available come in handy at ensuring that customer loyalty is re-attained.
Response 2: How can H&M better display its efforts of sustainability and oversight of its supply chain?
Partnership working across the supply chain could be the best way to oversee and sustain a positive supply chain. In addition, institute selection of each level of the supply chain to participate in decision making, especially in relation to the corporate social responsibility. It is on the basis that every level of the chain has a critical role in meeting and sustaining the positive image of an organization. In the participation and collaborating approach, the supply chain management would provide for the recognition of key players in the chain thus motivation and positivity.
Response 3: How do you feel that this event affects H&M’s reputation? In what way?
The Bangladesh event negatively affects the reputation of H&M. The image portrayed out there, especially in the media coverage, seems to communicate laxity in the health and safety status of the employees. Consequently, it would result in poor decreased sales.
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