Bangladesh Factory-Safety Agreements: A Case Study of H&M’s Commitment to Ethical Sourcing

In the aftermath of the tragic Rana Plaza factory collapse in 2013, which claimed the lives of over 1,100 garment workers in Bangladesh, the global fashion industry faced intense scrutiny. 

The disaster highlighted the dangerous working conditions in many Bangladeshi factories, prompting calls for greater corporate accountability and improved safety standards. 

Among the companies that responded to this crisis was H&M, one of the world’s largest fashion retailers and the largest producer of clothing in Bangladesh.

The company played a significant role in the development and implementation of the Bangladesh Factory-Safety Agreements, setting a precedent for ethical sourcing and corporate responsibility.

The Bangladesh Factory-Safety Agreements

In response to the Rana Plaza disaster, more than 200 apparel brands, including H&M, signed the Accord on Fire and Building Safety in Bangladesh. 

This legally binding agreement aimed to ensure a safe and sustainable garment industry in Bangladesh by implementing rigorous safety inspections and remediation processes. 

The Accord was a groundbreaking initiative, representing a collaborative effort between brands, trade unions, and NGOs to address factory safety issues.

H&M Leads the Way

H&M emerged as a leader in the push for safer working conditions. 

The company not only signed the Accord but also committed significant resources to ensure its effective implementation. 

H&M pledged to improve transparency in its supply chain, conducting regular inspections and publishing the results to hold factories accountable. 

This level of transparency was unprecedented in the industry and set a new standard for corporate responsibility.

Challenges and Criticisms

Despite its commitment, H&M faced numerous challenges in the implementation of the safety agreements.

The primary challenge was the scale of the task – inspecting and upgrading hundreds of factories in a developing country with limited infrastructure and regulatory oversight. 

The remediation process was slow and expensive, requiring extensive collaboration between multiple stakeholders.

H&M also faced criticism from labor rights groups who argued that the company was not doing enough to ensure fair wages and labor rights. 

While the Accord focused on safety, broader issues related to workers’ rights and living wages remained contentious topics. 

Critics urged H&M to extend its commitment beyond factory safety to address these systemic issues within the garment industry.

Impact and Progress

Despite the challenges, the Bangladesh Factory-Safety Agreements have led to significant improvements, including the installation of fire doors, strengthening of structural supports, and enhancement of electrical safety systems. 

These improvements have made factories safer for the millions of workers employed in the garment industry.

Moreover, the Accord has been extended and evolved into the International Accord for Health and Safety in the Textile and Garment Industry, reflecting a broader commitment to worker safety beyond Bangladesh.

The executive director of the Bangladesh Center for Workers Solidarity, Kalpona Akter, told Vogue

“The new Accord is [no longer just] for structural, fire and electrical [issues]; the new initiative will look into health and safety as a package. This will work in other production countries, too, to make similar improvements that have been done in Bangladesh. The Accord saves lives.”

H&M’s leadership and ongoing participation in these agreements demonstrate its dedication to ethical sourcing and corporate responsibility.

Lessons Learned

The case of H&M and the Bangladesh Factory-Safety Agreements highlights the importance of corporate accountability and collaboration in addressing complex global issues. 

It highlights the need for transparency, rigorous standards, and ongoing commitment to ensure lasting change. 

While significant progress has been made, the road to a fully ethical and sustainable garment industry continues, with H&M’s experience serving as a valuable case study for other brands.