Disney to end sourcing merchandise from badly-governed countries

[Lucky]

http://www.nytimes.com/2013/05/02/business/some-retailers-rethink-their-role-in-bangladesh.html?_r=0

I sympathize with the goal, but Disney is taking a sledgehammer approach to this problem. They're not just targetting overseas companies or factories with poor labor and safety standards. They're targetting entire countries (mostly poor ones) based on governance indexes, produced by academic researchers, that have nothing to do with labor and safety standards.

 

[ExtinctJenn]

Saw this and was just going to post so since you have this one out there I'll just add to it:

http://money.cnn.com/2013/05/02/news/companies/disney-bangladesh/index.html?hpt=hp_t2

Here's just some of it for those that can't click a link for some reason:

The Walt Disney Company has stopped production of branded merchandise in Bangladesh, in response to the spate of fatal factory accidents last fall.

The company sent a letter in March to vendors and licensees to transition production out of the "highest-risk countries," like Bangladesh, in order to bolster safety standards in its supply chain.

Disney will also halt production in four other countries: Ecuador, Venezuela, Belarus and Pakistan, by April 2014.

The decision was made before last week's devastating collapse of a factory building in Bangladesh that left more than 400 people dead. It was prompted by the November fire at the Tazreen Fashions Factory in Bangladesh's capital Dhaka thatkilled 112 people, and another fire in Pakistan that killed 262 garment workers last September.
"After much thought and discussion we felt this was the most responsible way to manage the challenges associated with our supply chain," said Bob Chapek, president of Disney Consumer Products.

 

[Master Yoda]

A sledge hammer approach might be needed in this point. Overseas companies can get away with this because the government of those countries either lets them or turns a blind eye. Putting pressure on those governments by pulling up steaks entirely might be the only way to effect large scale change.

 

[RandomPrincess]

I wanted to add this from the CNN article

"Disney said it will continue to source from some countries, like Haiti and Cambodia, that didn't get high marks in the World Bank report, but only with factories that partner with the Better Work program run by the International Labor Organization and the International Finance Corporation. The group works to control health and safety conditions."

They are still working with factories that are willing to use safe practices.

 

[ExtinctJenn]

hey are still working with factories that are willing to use safe practices.

Yep, as it should be in my opinion. I have no problem with outsourcing to other countries if the people are treated properly. I mean sure I wish it was all "American Made" but the reality of it all is that just isn't the world we live in anymore.

 

[Lucky]

I wanted to add this from the CNN article

"Disney said it will continue to source from some countries, like Haiti and Cambodia, that didn't get high marks in the World Bank report, but only with factories that partner with the Better Work program run by the International Labor Organization and the International Finance Corporation. The group works to control health and safety conditions."

They are still working with factories that are willing to use safe practices.

The Better Work program part of this makes sense. But the other indicators (produced by 2 mid-ranking World Bank staff members, but not endorsed by the World Bank's management or Board) have nothing to do with labor standards, and it's not clear how countries could improve their rankings on them in the short term.