Required information1. Chapter Opening Case: Who Stitched Your Designer Jeans?Chapter Opening Case: WhoStitched Your Designer Jeans?You are about to read a short case on the apparel industry in Bangladesh. As the number two exporter ofready-made garments in the world, Bangladesh has achieved high levels of economic growth over the lastdecade. However, Bangladesh's rise in the industry has not been without controversy. You will be asked toanswer questions linking your knowledge from the chapter to the situation detailed in the case.This activity is important because as a manager, it is important to recognize the need to incorporate ethicalconsiderations into decision making. Many consider benevolent behavior to be a responsibility of successfulcompanies. The goal of this exercise is to demonstrate your understanding of corporate social responsibilityand why it is important for companies to improve the welfare of the communities in which they operate.Read the case and answer the questions that follow.The apparel industry in Bangladesh has been one of that country's great success stories. Bangladesh is adensely populated nation of over 160 million people at the mouth of the Ganges River next door to India. In2018 the country exported around $33 billion in garments. Bangladesh is now the world's second largestexporter of ready-made garments, just behind China. The textile and apparel sector accounts for about 20percent of the country's GDP and 80 percent of its exports, and it employs 4.5 million people. Productsmade in the country end up on the shelves of retailers around the world, from Walmart and The Gap to H&Mand Zara. The success of its textile industry has helped Bangladesh achieve very high levels of economicgrowth, which are lifting the country out of the ranks of the world's poorest nations. Over the past decade,Bangladesh's economy has grown almost 200 percent, one of the best performances in the world.Bangladesh's export success in apparel rests upon low labor costs. The relentless drive to lower the cost ofclothing in developed countries where competition between retailers is intense has driven apparelmanufacturers to outsource production to the lowest-cost locations. In 2019 the minimum wage for garmentworkers in Bangladesh was about $95 a month, significantly lower than the minimum wage in China, whichranged from around $165 a month in some rural areas to $358 a month in Shanghai (in China, the minimumwage is set by provinces and cities).There are few regulations in Bangladesh, and as one foreign buyer noted, “there are no rules whatsoeverthat can't be bent." This may mean that in busy periods, workers may have to work 12-hour shifts, seven daysa week. While it is true that the lack of regulations keeps costs down, it is also the case that the combinationof cost pressures and lax regulation can lead to questionable practices, including the use of child labor and apoor safety environment for workers.For example, in 2015 the charity World Vision profiled the case of a 15-year-old girl called Bithi Bithi hadbeen working in a textile factory since she was 12 years old. World Vision described Bithi as squished insidea second-story room in Dhaka, Bangladesh, flanked by 20 other women, hunched over her sewing machine,illuminated by harsh fluorescent lights, making pockets for designer blue jeans that she'll never be able toafford herself. She worked fast, stitching 60 pockets an hour, eight hours a day, for about a $1 in daily wages.Abject poverty and a sick father forced Bithi's family to send the two oldest daughters to the garmentfactories. Her mother was unapologetic about sending Bithi to work at 12. “There was no food. Not evenrice," her mother explained, so Bithi was sent to the factory. “As a mother I feel sad," she said, “but I still haveto be realistic."Bithi's story is by no means unusual. Research suggests that child labor in Bangladesh is still widespread,with as many as 4 million children under 14 working. In theory, regulations in Bangladesh outlaw theemployment of child labor in garment factories, but as studies have found, labor laws are widely ignored.The legal age of employment in Bangladesh is 14, although the law allows 12- and 13-year-olds to work up to42 hours a week, doing what's deemed to be "light work." However, the government doesn't have the laborinspectors or other officials necessary to enforce existing laws. Moreover, much of the work done by childrenis off the books in the informal sector, making it harder to regulate. Children like Bithi mainly work forsubcontractors in informal garment factories that produce a part of the product that is then sold to formalbusinesses. The formal businesses are the ones that typically contract with foreign apparel companies andretailers, and it is the formal businesses that are most often audited by supply chain compliance specialiststo make sure they are following vendor codes of conduct and national laws.The Guardian, JThe Guardian, JSources: Hannah Abdulla, "Bangladesh RMG Exports Slip in Q1," Just-Style, November 12, 2019; JasonBeaubien, “Child Laborers in Bangladesh Are Working 64 Hours a Week," National Public Radio, December 7,2016; S. Butler, "Why Are Wages So Low for Garment Workers in Bangladesh?" The Guardian, January 21,2019; H. A. Hye, "Sustaining Bangladesh's Economic Miracle," Financial Express, February 17, 2020; M.Nonkes, “A Look at Child Labor inside a Garment Factory in Bangladesh," World Vision, June 10, 2015.1d. A U.S. manager knows that many of his company's...A U.S. manager knows that many of his company's competitors are doing business with an unethical garment factory inBangladesh. The manager is under pressure to look the other way on the subcontractor's violations, but instead choosesa more ethical company knowing that doing so will raise costs. The managerMultiple Choicewill certoinly be fired.has violated social norms in Bangladesh.is displaying moral courage.is showing poor judgment.is putting his company at risk.

Question

Required information1. Chapter Opening Case: Who Stitched Your Designer Jeans?Chapter Opening Case: WhoStitched Your Designer Jeans?You are about to read a short case on the apparel industry in Bangladesh. As the number two exporter ofready-made garments in the world, Bangladesh has achieved high levels of economic growth over the lastdecade. However, Bangladesh's rise in the industry has not been without controversy. You will be asked toanswer questions linking your knowledge from the chapter to the situation detailed in the case.This activity is important because as a manager, it is important to recognize the need to incorporate ethicalconsiderations into decision making. Many consider benevolent behavior to be a responsibility of successfulcompanies. The goal of this exercise is to demonstrate your understanding of corporate social responsibilityand why it is important for companies to improve the welfare of the communities in which they operate.Read the case and answer the questions that follow.The apparel industry in Bangladesh has been one of that country's great success stories. Bangladesh is adensely populated nation of over 160 million people at the mouth of the Ganges River next door to India. In2018 the country exported around $33 billion in garments. Bangladesh is now the world's second largestexporter of ready-made garments, just behind China. The textile and apparel sector accounts for about 20percent of the country's GDP and 80 percent of its exports, and it employs 4.5 million people. Productsmade in the country end up on the shelves of retailers around the world, from Walmart and The Gap to H&Mand Zara. The success of its textile industry has helped Bangladesh achieve very high levels of economicgrowth, which are lifting the country out of the ranks of the world's poorest nations. Over the past decade,Bangladesh's economy has grown almost 200 percent, one of the best performances in the world.Bangladesh's export success in apparel rests upon low labor costs. The relentless drive to lower the cost ofclothing in developed countries where competition between retailers is intense has driven apparelmanufacturers to outsource production to the lowest-cost locations. In 2019 the minimum wage for garmentworkers in Bangladesh was about $95 a month, significantly lower than the minimum wage in China, whichranged from around $165 a month in some rural areas to $358 a month in Shanghai (in China, the minimumwage is set by provinces and cities).There are few regulations in Bangladesh, and as one foreign buyer noted, “there are no rules whatsoeverthat can't be bent.&#34; This may mean that in busy periods, workers may have to work 12-hour shifts, seven daysa week. While it is true that the lack of regulations keeps costs down, it is also the case that the combinationof cost pressures and lax regulation can lead to questionable practices, including the use of child labor and apoor safety environment for workers.For example, in 2015 the charity World Vision profiled the case of a 15-year-old girl called Bithi Bithi hadbeen working in a textile factory since she was 12 years old. World Vision described Bithi as squished insidea second-story room in Dhaka, Bangladesh, flanked by 20 other women, hunched over her sewing machine,illuminated by harsh fluorescent lights, making pockets for designer blue jeans that she'll never be able toafford herself. She worked fast, stitching 60 pockets an hour, eight hours a day, for about a $1 in daily wages.Abject poverty and a sick father forced Bithi's family to send the two oldest daughters to the garmentfactories. Her mother was unapologetic about sending Bithi to work at 12. “There was no food. Not evenrice,&#34; her mother explained, so Bithi was sent to the factory. “As a mother I feel sad,&#34; she said, “but I still haveto be realistic.&#34;Bithi's story is by no means unusual. Research suggests that child labor in Bangladesh is still widespread,with as many as 4 million children under 14 working. In theory, regulations in Bangladesh outlaw theemployment of child labor in garment factories, but as studies have found, labor laws are widely ignored.The legal age of employment in Bangladesh is 14, although the law allows 12- and 13-year-olds to work up to42 hours a week, doing what's deemed to be &#34;light work.&#34; However, the government doesn't have the laborinspectors or other officials necessary to enforce existing laws. Moreover, much of the work done by childrenis off the books in the informal sector, making it harder to regulate. Children like Bithi mainly work forsubcontractors in informal garment factories that produce a part of the product that is then sold to formalbusinesses. The formal businesses are the ones that typically contract with foreign apparel companies andretailers, and it is the formal businesses that are most often audited by supply chain compliance specialiststo make sure they are following vendor codes of conduct and national laws.The Guardian, JThe Guardian, JSources: Hannah Abdulla, &#34;Bangladesh RMG Exports Slip in Q1,&#34; Just-Style, November 12, 2019; JasonBeaubien, “Child Laborers in Bangladesh Are Working 64 Hours a Week,&#34; National Public Radio, December 7,2016; S. Butler, &#34;Why Are Wages So Low for Garment Workers in Bangladesh?&#34; The Guardian, January 21,2019; H. A. Hye, &#34;Sustaining Bangladesh's Economic Miracle,&#34; Financial Express, February 17, 2020; M.Nonkes, “A Look at Child Labor inside a Garment Factory in Bangladesh,&#34; World Vision, June 10, 2015.1d. A U.S. manager knows that many of his company's...A U.S. manager knows that many of his company's competitors are doing business with an unethical garment factory inBangladesh. The manager is under pressure to look the other way on the subcontractor's violations, but instead choosesa more ethical company knowing that doing so will raise costs. The managerMultiple Choicewill certoinly be fired.has violated social norms in Bangladesh.is displaying moral courage.is showing poor judgment.is putting his company at risk.

Accepted Answer

The case is all about Bangladesh's Apparel industry that ranks up to number two in producing ans…