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Corporate Social Responsibility Performance And Outsourcing: The Case Of The Bangladesh Tragedy, Daniel Gyung Paik, Brandon B. Lee, Kip R. Krumwiede

Accounting Faculty Publications

Multinational firms frequently outsource the manufacturing of their products to factories in less- developed countries to take advantage of much lower labor costs. A tragic disaster occurred in Bangladesh in April 2013 when a clothing factory building collapsed, killing more than a thousand workers. Subsequently, textile companies in the U.S. and in Europe who outsource their manufacturing in Bangladesh had to decide whether to commit to better working conditions by signing one of two worker safety agreements (WSAs) born in the after-math of the tragedy. Although many firms signed one of these agreements, many more did not. This study explores …