MEMO- ENSURING THAT WE REMAINS COMMITTED TO ETHICAL PRACTICES IN

RELATION TO THE SOURCING OF GARMENTS FROM BANGLADESH.

M DALLAS MEGA EMPIRE LTD.
Date: 15/10/2016

TO: Mr. Matt Dallas, CEO

FROM: Rohit Louis, Junior Executive
SUBJECT: Response to recently acquired knowledge regarding our Asian clothing situation.

Mr Dallas, after receiving information that a sub-contractor has engaged in unethical business

practices in Bangladesh, we have a decision to make whether or not to continue sourcing our garments

from this region. It is my firm belief that we should continue to do so, but, in order to satisfy our

stakeholders, we must not stop there; but implementing three steps; an independent audit, releasing a

list of approved factories that we contract the manufacture of clothing, and forming an initiative

against corporate exploitation would help to minimise the impact of these findings on our brand.

Firstly, Following the death of a thousand Bangladeshi factory workers in 2010 1, issues of corporate

exploitation have been raised globally, but anti exploitation sentiment has been high in Australia. 2

Therefore, we must coordinate an effective response in order to successfully show the community that

we as a brand are serious about the welfare of our workers and not solely profit, which would improve

our customers satisfaction with our products.

1. Independent Audit. I believe that an independently verified audit of the sustainability

practices of our contractors and sub-contractors would be extremely reassuring to our

stakeholders as they will feel that something is being done regarding this issue. This would

consist of stringent checks of payrolls, accommodation conditions and factory sanitation by

an independently verifiable organisation. Furthermore, I feel that the results of these studies

1www.bbc.com/news/world-asia-22476774.> accessed 16/10/16

2 http://www.afr.com/leadership/management/corporate-social-responsibility-has-
an-image-problem-but-dont-kill-it-20160229-gn6cma.> accessed 16/10/16
 should be included as a separate section in annual sustainability reports for maximum

enhancement of our brand.

2. Releasing a List of Approved Factories. Following in the footsteps of Kmart3, I feel that

this measure in conjunction with what is mentioned above will enable our companys image

to remain solid in the wake of exploitation scandals. Formulating a list of the names,

addresses, locations, contact numbers and websites (if applicable) of the contractors and

subcontractors as well as factories we use, could help in avoiding the public backlash that has

undermined several brands as a result of their lack of transparency, openness and honesty

with their stakeholders.

3. Forming an Initiative Against Corporate Exploitation. This measure, Mr Dallas, is a

tokenistic one, although the public seem to like those. By initiating contact with similar

companies, and collectively coming out in support of more transparency in the industry and

signing a pact together saying that companies will work together to source contractors who

are deemed to be taking care of workers, our company will be positioned as pioneers in social

justice and fairness and we will be regarded as champions of ethics and corporate

responsibility.

In conclusion, the following measures would help to reposition our brand as ethical and reassure the

public of our commitment to workers rights without having to compromise profit margins.

Bibliography

Websites:
www.kmart.com.au/ethical-factories.
3 www.kmart.com.au/ethical-factories> accessed 16/10/16.
http://www.afr.com/leadership/management/corporate-social-responsibility-has-an-image-problem-
but-dont-kill-it-20160229-gn6cma.

www.bbc.com/news/world-asia-22476774.