Executive Briefings

Wal-Mart Says It Will Promote Safety Training in Global Supply Chain

Wal-Mart Stores Inc., the world's largest retailer, says that after a fire at a Bangladesh factory last year killed 112 people it is making its biggest push yet to try to improve conditions at factories that produce its clothing.

Wal-Mart Says It Will Promote Safety Training in Global Supply Chain

The company also said it would donate $1.6m to help start a Bangladesh training academy, and outlined its efforts to regain control over the complex and far-flung web of factories that make its products.

"With the focus that is there at the moment on fire safety, everyone is keen to make sure that they get the right level of controls in place to protect the workers," Rajan Kamalanathan, Wal-Mart's vice president of ethical sourcing, said. "There is a need for that."

Wal-Mart says it was unaware that its private-label clothing was being made at the Tazreen Fashions factory in Bangladesh, which went up in flames in November, killing 112 people and injuring at least 150. Bangladeshi authorities said the facility was not safe for use, and Wal-Mart said it had not authorized anyone to make its garments there.

The fire gave rise to criticism that Wal-Mart should have been more aware of its supply chain. Since the fire, Wal-Mart has been taking a harder look at what it can do to monitor safety at the low-cost factories that produce its goods.

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The company also said it would donate $1.6m to help start a Bangladesh training academy, and outlined its efforts to regain control over the complex and far-flung web of factories that make its products.

"With the focus that is there at the moment on fire safety, everyone is keen to make sure that they get the right level of controls in place to protect the workers," Rajan Kamalanathan, Wal-Mart's vice president of ethical sourcing, said. "There is a need for that."

Wal-Mart says it was unaware that its private-label clothing was being made at the Tazreen Fashions factory in Bangladesh, which went up in flames in November, killing 112 people and injuring at least 150. Bangladeshi authorities said the facility was not safe for use, and Wal-Mart said it had not authorized anyone to make its garments there.

The fire gave rise to criticism that Wal-Mart should have been more aware of its supply chain. Since the fire, Wal-Mart has been taking a harder look at what it can do to monitor safety at the low-cost factories that produce its goods.

Read Full Article

Wal-Mart Says It Will Promote Safety Training in Global Supply Chain