Rejecting Silence 2: What Not To Do (or Corporations Behaving Badly)

The Walt Disney Corporation offers what is perhaps the best example of irresponsible response to the disaster in Bangladesh. Initially acting as a reasonable contracting firm, Disney halted its garment production in the country, responding to troubling reports of bad working conditions among firms with which they contracted. Following the factory collapse, just days later, Disney made the decision to pull out of the country entirely "until local conditions improve."¹ Just one percent of Disney's manufacturing takes place in Bangladesh, so changing locations won't be too costly for them. But for the Bangladeshi employees who will go from unsafe employment to no employment, rather than to safe employment, this will be an extremely exploitative move. And how is the public expected to react? Perhaps some will take the naive view that by abandoning the culture of local corruption and neglect they are taking a stand in support of reform. What such individuals fail to understand is that such behavior only demonstrates lack of responsibility. Rather than rejecting bad labor practices, they are abandoning the very people whose abuse drove them to halt production--essentially punishing them for the crimes of their overseers and local officials. Furthermore, Bangladesh is not the only site of bad working conditions, and it is unlikely they will set up facilities in countries with much improved conditions.
Essentially, they are exploiting bad practices in other countries for the sake of the company's public relations, rather than paying due diligence to those they have now famously victimized. This is despicable.

While it is hard--even unsettling--to embrace companies like H&M who are, perhaps, the retailer most culpable for this tragedy, it, and other retailers who pledged to improve conditions are those most worthy of praise. Abandoning workers will not assist those victimized in the industry. Improvements, however, demonstrate respect for workers. Of course, whether or not these companies will live up to their commitments is yet to be seen. But public support for the stated reforms, rather than persistent condemnation, is a promising way forward.

As such, Disney's behavior explicitly demonstrates a problematic approach to reform. Public support--or at least tolerance--for those companies who continue to employ Bangladeshi workers, but with demonstrated commitment to reforms, is important both for the industry, and for those victimized by its past behavior. Nevertheless, consumers should be wary of promises, and continue to be vigilant  as reforms unfold--or don't--and speak up when companies' commitments are abandoned.

¹ The key point here is that Disney has a responsibility--as an employer--to be part of the solution, rather than outsource the responsibility for "cleaning up" to others in the industry. If every retailer took this position, there would be no improvement. This behavior epitomizes the wrong approach to correcting the wrongs already done to the society, as will be further explained throughout this posting.