RMG Sector Risk Management and Social Compliances in Bangladesh

Abstract

<p><em>The readymade garment (RMG) industry in Bangladesh has been witnessing an overwhelming growth over the last three decades and become a top growing industry in Bangladesh and second-largest apparel exporting country in the world followed by China. This industry plays a magnificent role in export earnings; employment generation, especially for rural women and poverty alleviation However, the industry face challenges to ensure workplace safety in compliance with national and international standard. Fire accident in the Tazreen Fashion factory at Ashulia in 2012 and collapse of Rana Plaza at Savar in 2013 are the two glaring instances of non-compliance in RMG industry. This paper is designed to seek various risks in RMG sector of Bangladesh, and mechanism to manage those risks along with social compliance issues as an important accelerator of RMG sector efficiencies.</em><em>&nbsp;<em>The study is based on rigorous content analysis available on the website. The paper reveals that the risks of fire accident, fragile buildings, reputation, and supply chain have an impact on production. Furthermore, it explores that low wage of workers, child labour, health hazard, sexual harassment, inadequate leave, lack of standard working hour, absence of residential and transport facilities, absence of daycare centre are the common scenario of RMG industries in Bangladesh. The government and international organizations like the UN and the ILO should create pressure on the owners of the industry to ensure compliances.</em></em></p>

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