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Social Responsibility Scandals and Trade
World Development 124 (2019) 104640 Contents lists available at ScienceDirect World Development journal homepage: www.elsevier.com/locate/worlddev Social responsibility scandals and trade ⇑ Pamina Koenig a, , Sandra Poncet b a University of Rouen & Paris School of Economics, 48 boulevard Jourdan, 75014 Paris, France b Paris School of Economics (University of Paris 1) and CEPII, France article info abstract Article history: This paper studies the effect of social responsibility scandals on the imports of consumer products, by Accepted 26 July 2019 focusing on an event which generated massive consumer mobilization against neglecting firms, namely Available online 22 August 2019 the collapse of the Rana Plaza building affecting the textile industry in Bangladesh. We investigate the import repercussions of this major shock in the perceived quality of clothing producers sourcing in Keywords: Bangladesh. In line with the well-documented home bias in trade and home-country media slant, we Social responsibility scandal assume that consumers’ reaction will be stronger when domestic firms are named and shamed. Our Activism empirical strategy uses a difference-in-difference approach that compares imports from Bangladesh of Multinational firms countries according to whether some of their companies were directly associated with the collapse of Trade Imports the Rana Plaza. Our results are consistent with demand being sensitive to social responsibility scandals. Clothing industry While aggregate imports from Bangladesh continue to increase during the whole period (2010–2016), there is a marked disruption that affects countries whose brands were named and shamed by activists and the media after the disaster. In addition, the decline in imports is all the greater as the number of NGO campaigns on the misbehavior of national textile retailers is high. -
In the Spirit
GLOBAL GOING LUXE REACH THE BELLEVUE COLLECTION AS PROFITS AT PLOTS A $1.2 BILLION ERMENEGILDO ZEGNA RISE EXPANSION TO RAISE THE 13 PERCENT, THE BRAND LUXURY QUOTIENT IN SEATTLE. PLANS MORE RETAIL EXPANSION. PAGE 2 PAGE 12 BANGLADESH TRAGEDY Retailers, Groups Vow Compensation By MAYU SAINI WHO IS GOING TO PAY and how much? That is among the questions being asked as the death toll from the collapse of the apparel factory building in Savar, near Dhaka, Bangladesh, rose to 430 on Thursday, with more than 520 injured, out of which 100 amputations have been estimated. FRIDAY, MAY 3, 2013 ■ WOMEN’S WEAR DAILY ■ $3.00 The rest of the rescued workers will also need WWD new jobs, as well as immediate payments. Hundreds of workers are still missing, and eight days after the eight-story building collapsed, bodies are still being recovered from the debris. The building, Rana Plaza, housed fi ve garment fac- tories, with more than 3,000 workers in the building at the time of the collapse. The incident is being de- scribed by authorities as the worst industrial accident in the garment industry in Bangladesh and the world. “The total compensation fi gure is likely to be over $30 million in addition to the cost of emergency treat- ment,” the Clean Clothes Campaign said last week, when the death toll was known to be 300. In the But a presentation by the Bangladesh Garment Manufacturers & Exports Association earlier this week noted a vastly different number, stating that the amount needed for “compensation, rehabilitation and long-term treatment was estimated at $12 million.” The organization also noted that an amount of 125 Spirit million Bangladesh taka, or $1.6 million at current ex- change rates, had already been spent on rescue activi- The Estée Lauder brand will ties and treatment. -
Original Document (PDF)
Written and drawn by Franco Sacchetti in collaboration with Clean Clothes Campaign translated by Christine Tracey (Eu) ropa is an artistic project of Insomnia Company supported by Iberescena and Electa Creative Arts www.franco sacchetti.it www.insomniaitalia.blogspot.com Dhaka, Bangladesh. Don’t be fooled, it isn’t snowing. It never snows in these parts. They look like snowflakes but they’re actually flecks of cotton... The cotton is carded and combed, and then transformed into thread. It’s a thread many lives depend on, in Bangladesh, just as elsewhere in the world... A thread so flexible it can take on any form, and so fine it can pass through the eye of a needle. It tells us an age-old story that we continue to ignore... The weft and the warp. The thread, woven through other threads, is transformed into cloth..... A cloth whose production can involve humiliation, imprisonment, slave-labour. In the worst cases, even death....... Like in the Rana Plaza building in Dhaka, which we can ‘affectionately’ call Uncle Benetton’s Cabin. On 24 April 2013, 1138 people lost their lives here. It was the greatest industrial tragedy after Bhopal... 1138 people died so that you could look cool, wearing clothes for which you don’t pay the true price. 1138 people died. Most of them were women. Benetton isn’t the only brand name involved. In that building they also produced clothes for Walmart, El Corte Ingles, Inditex, Children’s Place, Primark, Joe Fresh (Loblaws), KiK, Bon Marché, Mascot, Adler, Auchan, Matalan, Lee Cooper, Carrefour and Mango, Manifattura Corona and Yes Zee. -
Tracking Corporate Accountability in the Apparel Industry
Tracking Corporate Accountability in the Apparel Industry Updated August 3, 2015 COMPANY COUNTRY BANGLADESH ACCORD SIGNATORY FACTORY TRANSPARENCY COMPENSATION FOR TAZREEN FIRE VICTIMS COMPENSATION FOR RANA PLAZA VICTIMS BRANDS PARENT COMPANY NEWS/ACTION Cotton on Group Australia Y Designworks Clothing Company Australia Y Republic, Chino Kids Forever New Australia Y Kathmandu Australia K-Mart Australia Australia Y Licensing Essentials Pty Ltd Australia Y Pacific Brands Australia Y Pretty Girl Fashion Group Pty Australia Y Speciality Fashions Australia Australia Y Target Australia Australia Y The Just Group Australia Woolworths Australia Australia Y Workwear Group Australia Y Fashion Team HandelsgmbH Austria Y Paid some initial relief and C&A Foundation has committed to pay a Linked to Rana Plaza. C&A significant amount of Foundation contributed C&A Belgium Y compensation. $1,000,000 to the Trust Fund. JBC NV Belgium Y Jogilo N.V Belgium Y Malu N.V. Belgium Y Tex Alliance Belgium Y Van Der Erve Belgium Y Brüzer Sportsgear LTD Canada Y Canadian Tire Corporation Ltd Canada Giant Tiger Canada Discloses cities of supplier factories, but not full Anvil, Comfort Colors, Gildan, Gold Toe, Gildan Canada addresses. TM, Secret, Silks, Therapy Plus Contributed an undisclosed amount to the Rana Plaza Trust Hudson’s Bay Company Canada Fund via BRAC USA. IFG Corp. Canada Linked to Rana Plaza. Contributed $3,370,620 to the Loblaw Canada Y Trust Fund. Joe Fresh Lululemon Athletica inc. Canada Bestseller Denmark Y Coop Danmark Denmark Y Dansk Supermarked Denmark Y DK Company Denmark Y FIPO China, FIPOTEX Fashion, FIPOTEX Global, Retailers Europe, FIPO Group Denmark Y Besthouse Europe A/S IC Companys A/S Denmark Y Linked to Rana Plaza. -
UPDATED and RESTATED ANNUAL INFORMATION FORM June 2, 2014
UPDATED AND RESTATED ANNUAL INFORMATION FORM (for the year ended December 28, 2013; updated to June 2, 2014) June 2, 2014 LOBLAW COMPANIES LIMITED UPDATED AND RESTATED ANNUAL INFORMATION FORM (for the year ended December 28, 2013; updated to June 2, 2014) TABLE OF CONTENTS DATE OF INFORMATION .............................................................................................................................................................. 3 FORWARD-LOOKING STATEMENTS .......................................................................................................................................... 3 CORPORATE STRUCTURE .......................................................................................................................................................... 4 Incorporation ................................................................................................................................................................................... 4 Intercorporate Relationships ........................................................................................................................................................... 4 GENERAL DEVELOPMENT OF THE BUSINESS ........................................................................................................................ 5 Retail…. .......................................................................................................................................................................................... 6 Financial Services ........................................................................................................................................................................ -
More Than 54 Million Euros Compensation Demand for Victims Rana Plaza — Clean Clothes Campaign
More than 54 million euros compensation demand for victims Rana Pla... http://www.cleanclothes.org/news/2013/05/13/more-than-54-million-eur... Home News Get involved Safety Living Wage Behind The Scenes Issues Resources About us Share in WhatsApp With the death toll rising to 1126 on the evening of the 12th of May, and an estimated 1650 workers admitted to hospital following the Rana Plaza collapse on 24th of April, the estimated long term compensation will be more than 54 million Euros (71 million USD). This calculation is based on ILO standards and an established formula developed following previous fire and safety accidents in Bangladesh, developed by Bangladeshi and international trade unions. The figure includes compensation for pain and suffering, as well as long-term loss of earnings for families of deceased workers, and injured workers not able to return to work. It does not include medical costs for the physically injured workers, psychological support for all workers or their families involved in the collapse or payment of wages and legal severance payments to the Rana Plaza workers who are all now left unemployed. Reports from the ground indicate that many workers and families are facing desperate situations as they are unable to pay medical bills, rent and daily expenses. Image courtesy of IRLF Tessel Pauli of the CCC says, “The families and injured workers need to know that their immediate and longer term rights to compensation will be assured, and therefore brands that have had production at Rana Plaza need to step forward immediately and put plans for paying compensation into place”. -
Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse Larry Catá Backer Penn State Law
UC Irvine Journal of International, Transnational, and Comparative Law Volume 1 Symposium: Transnational Legal Ordering Article 3 and Private Law 9-1-2016 Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse Larry Catá Backer Penn State Law Follow this and additional works at: https://scholarship.law.uci.edu/ucijil Part of the International Law Commons Recommended Citation Backer, Larry Catá (2016) "Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse," UC Irvine Journal of International, Transnational, and Comparative Law: Vol. 1, 11. Available at: https://scholarship.law.uci.edu/ucijil/vol1/iss1/3 This Article is brought to you for free and open access by UCI Law Scholarly Commons. It has been accepted for inclusion in UC Irvine Journal of International, Transnational, and Comparative Law by an authorized editor of UCI Law Scholarly Commons. Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse Larry Catá Backer* Abstract: In 2013, over a thousand workers were killed when the Rana Plaza factory building collapsed in Bangladesh, one housing several garment factories producing goods for global consumer markets. The collapse, and its consequences, exposed both the complex interweaving of national law, international standards, and private governance standards that together might be understood as a transnational legal order that has some effects on business behavior. This essay engages in a close examination of the Rana Plaza factory building collapse and its aftermath as the starting point for theorizing systemicity in the emerging interlocking systems of national, private and international governance orders. -
Corporate Responsibility in the Fast Fashion Industry: How Media Pressure Affected Corporate Disclosure After the Collapse of Rana Plaza
CORPORATE RESPONSIBILITY IN THE FAST FASHION INDUSTRY: HOW MEDIA PRESSURE AFFECTED CORPORATE DISCLOSURE AFTER THE COLLAPSE OF RANA PLAZA Elise Marita Faret Auke Dissertation submitted as partial requirement for the conferral of Master in International Management Supervisor: Prof. Ana Margarida Madureira Simaens, Assistant Professor, ISCTE Business School, Department of Marketing Operations and General Management November 2016 PLAZA Elise Marita Faret Auke Faret Marita Elise CORPORATE RESPONSIBILITY IN THE FAST FASHION INDUSTRY: HOW MEDIA MEDIA HOW INDUSTRY: FASHION FAST THE IN RESPONSIBILITY CORPORATE RANA OF COLLAPSE THE AFTER DISCLOSURE CORPORATE AFFECTED PRESSURE Abstract This thesis aims to explore the reasons why companies themselves get involved in CSR initiatives and whether global news media attention has an effect on a company’s CSR disclosure and initiatives. The study draws upon legitimacy theory and media agenda-setting theory to explore the link between CSR disclosure and news coverage in the aftermath of the Rana Plaza collapse in 2013. Four global retails H&M, Walmart, Loblaw and Primark were deliberately chosen at the center of the analysis, for their different CSR profiles and their involvement in the Rana Plaza collapse. The thesis is divided into three parts; each part explores in an inductive approach CSR before, during and after the collapse of Rana Plaza. The result of the research and data analysis shows that the disclosures varied depending on the company's CSR profile. The media coverage was different depending on the company's CSR initiatives and pro-activity in relation to the collapse. One company got a substantial amount of positive media coverage, while another got a great deal of negative media attention. -
Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse
Are Supply Chains Transnational Legal Orders? What We Can Learn from the Rana Plaza Factory Building Collapse Larry Catá Backer* Abstract: In 2013, over a thousand workers were killed when the Rana Plaza factory building collapsed in Bangladesh, one housing several garment factories producing goods for global consumer markets. The collapse, and its consequences, exposed both the complex interweaving of national law, international standards, and private governance standards that together might be understood as a transnational legal order that has some effects on business behavior. This essay engages in a close examination of the Rana Plaza factory building collapse and its aftermath as the starting point for theorizing systemicity in the emerging interlocking systems of national, private and international governance orders. At one level, the governance architectures around the Rana Plaza building collapse suggests bits and pieces of governance and lawmaking that may point to the development of distinct governance orders that bump into each other serendipitously. Yet it is also possible to theorize systemicity from out of these bits, pieces, and bumps that may suggest the nature and forms that are emerging as a distinct class of transnational legal order. Starting from the governance response to the Rana Plaza building collapse facts, this article examines the way that the collective actions of states, international organizations, enterprises, civil society, and affected groups evidence a robust transnational legal order. That transnational order has a normative structure, operationalizes a legal process, and structures a framework within which international organizations, and state and non-state private actors strive toward building functional coherence within formally polycentric governance orders. -
Analysis on CSR Activities of Multinational Fashion Brands: Evidence from Rana Plaza Incident
Journal of Business Studies, Vol. XXXVI, No. 3, December 2015 Analysis on CSR Activities of Multinational Fashion Brands: Evidence from Rana Plaza Incident Jannatul Naima* Rumana Ahmed** Abstract: With the way of globalization of business functions, the apparel manufacturer, like other manufacturing industries, moved from the developed to the developing countries. At the same time, the global brands have increased their bargaining power in the garments industry and often fail to uphold the rights of the labor of the developing countries. Using In-depth studies of the case Rana Plaza, this paper investigates the corporate social responsibility practices of the multinational foreign brands towards the garments industry. Introduction Bangladesh expanded its textile industry massively in past two decades and became the regular supplier for different popular multinational fashion brands. The 4 million strong communities of men and women working in the garment industry have enabled Bangladesh’s position as the world’s second-largest apparel exporter (United Nations Industrial Development Organization 2015). The Ready-Made Garments (RMG) industry is Bangladesh’s economic engine, representing more than 80% of the country’s exports and over 23% of Bangladesh’s GDP. With the growth in this sector, the issue of corporate social responsibility is attaining more importance than any time before. The issue of advancing worker safety and industry sustainability are largely pronounced in recent time. It is impossible to consider the long-term viability of Bangladesh as a major garment production center without addressing the issue of workers’ rights for safety and other needs. Recent dreadful events occurred at Tazreen Fashion and Rana Plaza put the multinational fashion brands to the question about their corporate social responsibility (CSR) practices. -
Case Study of the Rana Plaza Collapse, Bangladesh Student
The Incubation of Environmental Disasters: Case Study of the Rana Plaza collapse, Bangladesh Student: Diana M. Otlewski Supervisor: Justin Podur Date of submission: Thursday, July 31st, 2014 A Major Paper submitted to the Faculty of Environmental Studies in partial fulfillment of the requirements for the degree of Master in Environmental Studies, York University Ontario, Canada Student’s signature: Supervisor’s signature: Otlewski2 Table of Contents Abstract…………………………………………………………………………………………...3 Foreword………………………………………………………………………………………….4 Introduction………………………………………………………………………………………5 Defining and analysing technological environmental disasters ………………………………7 The Rana Plaza Collapse……………………………………………………………………….11 Politics and the Economy………………………………………………………………………18 Political Circumstances surrounding Rana Plaza…………………………………………………….25 Sohel Rana and Rana Plaza ……………………………………………………………………………..26 Defining consumerism and its role…………………………………………………………….29 Corporate Social Responsibility……………………………………………………………….38 Corporate Social Responsibility and Bangladesh……………………………………………………..38 Corporate Social Responsibility Initiatives and Rana Plaza…………………………………………42 Compensation to victims……………………………………………………………………….47 Non-State Actors ……………………………………………………………………………….54 The Fair Labour Association (FLA)……………………………………………………………………..56 Social Accountability International (SAI)………………………………………………………………58 Future Steps and Recommendations………………………………………………………......60 The Year Since………………………………………………………………………………...……………66 Conclusion………………………………………………………………………………………68 -
2011 ANNUAL REPORT Table of Contents
2011 ANNUAL REPORT TABLE OF CONTENTS 2 Financial Highlights 16 Corporate Governance Practices 4 Message to Shareholders 18 Board of Directors 6 Review of Operations 19 Loblaw Management Board 14 Corporate Social Responsibility 20 Shareholder and Corporate Information PG 2 LOBLAW COMPANIES LIMITED | 2011 ANNUAL REPORT Loblaw’s mission is to be Canada’s best food, health and home retailer by exceeding customer expectations through innovative products at great prices. Unfold for Loblaw at a Glance LOBLAW COMPANIES LIMITED | 2011 ANNUAL REPORT PG 1 Loblaw Companies Limited is Canada’s largest food retailer and a leading provider of drugstore, general merchandise and financial products and services. Over 14 million Canadians shop with us every week. Loblaw at a Glance At Loblaw providing an exceptional shopping experience starts with understanding our customers’ needs. Our two-division structure supports a deeper understanding of different customers and dedicated expertise that help us deliver the right products, to the right place, at the right time and at prices that our customers expect to pay whether in our conventional supermarkets or discount grocery stores. Whether conventional or discount, we have large and small, corporate and franchise stores across the country to help us meet the specific needs of our customers. 22 banners 23 Company and 584 corporate and across 11 third-party-operated 462 franchised stores the country distribution centres coast to coast service our stores PG 3 LOBLAW COMPANIES LIMITED | 2011 ANNUAL REPORT Control Brand Advantage Loblaw offers customers high-quality products and great value through Canada’s most respected control label program with famous brands including President’s Choice, no name and Joe Fresh.