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Toward Improving Factory Working Conditions in Developing Countries: An Empirical Analysis of Bangladesh Ready-Made Garment Factories

机译：朝着改善发展中国家的工厂工作条件：孟加拉国现成服装工厂的实证分析

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摘要

With supply chains now extending into developing countries, time and again, working conditions in supplier factories have been found to be unsafe. In this study, we focus on factories in the Bangladesh ready-made garment industry that supplies North American and European retailers. These retailers have adopted an innovative approach toward improving the working conditions of supplier factories by forming consortiums. The consortium of North American retailers is the Alliance for Bangladesh Worker Safety ("Alliance"). The consortium of European retailers is the Accord on Fire and Building Safety in Bangladesh ("Accord"). The central question addressed in this study is the following: How do working conditions in a supplier factory impact the supplier's trustworthiness from a retailer's perspective? We characterize supplier factory working conditions in terms of three types of risks, namely, structural risk, fire risk, and electrical risk. Next, we examine the implications of each type of risk for supplier trustworthiness measured as the number of retailers contracting with the supplier factory. The empirical analysis is conducted using archival data on safety inspections from the Alliance and Accord. The results support the contention that retailers are sensitive to working condition risks in a supplier factory; that is, as working condition risks in a supplier factory increase, the supplier's trustworthiness decreases. However, these associations vary with the type of risk. Specifically, fire and electrical risks are associated with decreased supplier trustworthiness, while structural risk has a marginal effect. Furthermore, the negative associations between working condition risks and supplier trustworthiness are moderated by the size of the supplier factory such that the negative associations are significantly attenuated for larger-sized supplier factories compared to the smaller-sized factories. The study findings, taken together, provide nuanced insights into the marketplace implications of working condition risks in supplier factories and highlight the sensitivity of the retailer-supplier relationship to such risks. These findings also provide actionable guidance on how to manage working condition risks.
机译：随着现在延伸到发展中国家的供应链，时间又一次地，已发现供应商工厂的工作条件不安全。在这项研究中，我们专注于孟加拉国现成服装行业的工厂，供应北美和欧洲零售商。这些零售商采用了一种通过形成联盟来改善供应商工厂的工作条件的创新方法。北美零售商的联盟是孟加拉国工人安全（“联盟”）的联盟。欧洲零售商的财团是孟加拉国的火灾和建筑安全（“Accord”）。本研究中涉及的核心问题如下：供应商工厂的工作条件如何影响零售商的角度的供应商的可信度？我们在三种类型的风险方面，即结构风险，火灾风险和电气风险，为供应商工厂工作条件的特征。接下来，我们检查作为与供应商工厂签约的零售商的数量测量的供应商可信度的每种类型风险的影响。经验分析使用来自联盟和协议的安全检查的档案数据进行。结果支持争取者对供应商工厂的工作条件风险敏感的争论;也就是说，随着供应商工厂的工作条件风险增加，供应商的可信度降低。但是，这些关联因风险的类型而异。具体而言，火灾和电风险与供应商可靠性降低有关，而结构风险具有边际效应。此外，工作条件风险与供应商可信度之间的负面关联受供应商工厂的规模进行了调节，以使负联想与较小尺寸的工厂相比，较大的供应商工厂显着减弱。研究结果，共同，为供应商工厂的工作条件风险的市场影响提供了细微的洞察，并突出了零售商供应商关系与此类风险的敏感性。这些调查结果还提供了关于如何管理工作条件风险的可行指导。

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