The document discusses ethics and leadership practices at AKH Group, a large garment manufacturer in Bangladesh. It summarizes AKH's human resources policies including recruitment, training, performance reviews, compensation and benefits. It also describes the company's efforts to ensure quality, safety measures, environmental initiatives, and corporate social responsibility programs. Overall, the document paints AKH Group's leadership and practices in a positive light with regards to treating employees fairly and prioritizing ethics.

1. ETHICS AND
LEADERSHIP
Presented To:
Sutapa Bhattacharjee
Assistant Professor
Institute of Business Administration,
University of Dhaka
Presented By:
Zareen Tasnim
Adnan Ahmed
ASM Arman Pavel
Zahin Azad Moslem
Abdullah Ar Rafee
RH – 83
ZR – 100
ZR – 120
ZR – 121
ZR - 127

2. PROBLEM

3. RMG

4. RMG
› Exports worth 18 billion USD
› 80 % of total exports
› 13 % contribution to GDP
› Employs 4.2 million workers
› 50% of them are women
› 2nd largest RMG exporter

5. RMG
The huge dependency of the
Bangladesh economy on
this sector augments the need for
RMG organizations to act ethically

6. HOWEVER…

7. Tajrin Garments Fire

8. Rana Plaza Collapse

9. Riots Over Salaries

10. Prompts managers
to resort to
unethical practices
Competition
for cheap
garments
Leads to
exploitation of
workers
WHY??

11. AKH Group

12. AKH Group
One of the largest RMG
organizations in Bangladesh
› Established in 1997
› Employs 14,000 workers
› Exports worth _______

13. AKH Group
› Higher Level Managers
› Code of Ethics
› Other rules and regulations
Take
Information
Match
› Lower Level
Employees and
Consumers

14. Higher Level
Managers

15. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE

16. HUMANRESOURCE
Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
Labor
› Appropriate measures are taken to avoid discrimination.
› Handicapped and pregnant women get equal opportunities as others.
› Medical screening is undertaken for every worker to prevent child labor.
Management
› Recruitment policies somewhat flexible.
› Experience and trust given more priority over qualification.
› However, working capability remains the most important criterion.

17. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Labor
› 3 – 6 months of initial operational training
› Followed by working under a supervisor
Management
› On-the-job training under supervision

18. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
› Conducted annually
› Main judging criteria being the amount of profit
made per person
› Inaccessible to regular employees
› However, employees can receive it in case they
have any doubt regarding the report

19. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
WORKER TIMINGS

20. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
What about worker timings??
› Worker timings are maintained strictly
› Overtime work during peak seasons or hartal delays is compensated
later on
› No forced labor during holidays

21. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
INABILITY TO
MEET DEADLINES

22. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
What if deadlines are not met by individuals??
› For first-timers, negative reinforcement in the form of cutting wages is
avoided.
› Mistakes are identified and correct method is shown
› Repetition of mistakes is penalized.

23. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
WORKER LAY-OFF

24. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
Worker’s welfare committee present to aware workers about their rights.
What about the lay-off policy??
› Work pressure uniform throughout the year
› Hence, no one is laid off due to redundancy, usually.
› Workers are usually laid off because of inefficiency and malpractices.
› They are provided with 1 month’s pay before leaving.
› While introducing automation, recruitment is curtailed, instead of
laying-off.

25. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
COMPENSATION
› Managerial salaries start from 13,000 BDT
› Overtime is paid at a 200% rate
› Special Friday allowance for Friday workers
› Provision of festival bonuses, annual bonuses,
group insurance, lunch money.
› No Provision Fund

26. Recruitment
Training
Performance
Appraisal
Worker’s
Rights
Compensation &
Benefits
HUMANRESOURCE
FRINGE BENEFITS
› 14 days of annual sick leave
› AKH bears upto 50% treatment costs for any
employee (off-the-job)
› Job opportunity for family of any deceased employee
› Maternity leave provided according to law
› Child care facility available in factories

27. SUPPLYCHAIN &
PRODUCTION

28. SUPPLYCHAIN &
PRODUCTION
Manufacturing
Process
Before
Shipment
During
Transportation
Quality Controlled
(QC) Sticker
Accepted Quality Level
(AQL)
Code Enabled Locks
ENSURING
QUALITY

29. SUPPLYCHAIN &
PRODUCTION
BRIBES
NO WAY TO AVOID

30. MARKETING

31. MARKETING
BTLCampaigns
ONLY
BRAND VALUE depends on
› PRICE
› QUALITY
› MEETING DEADLINES

32. FINANCE

33. TO LOWER LEVEL MANAGERS
NOT AVAILABLEEXTERNAL AUDITS
ANNUAL
INTERNAL AUDITS
MONTHLY
FINANCE

34. ETHICSBRIGADE

35. ETHICSBRIGADE
VIGILANCE TEAMS
In Every Department
Reports to COMPLIANCE
DEPARTMENT
Review Meetings Held Regularly

36. ETHICSBRIGADE
ACHIEVEMENT

37. SAFETY MEASURES

38. SAFETY MEASURES
› WEEKLY evacuation drills
› Externally activated WATER
SPRINKLER system
› 7000 gallons of reservoir water
FIRE
Received a Structural Approval
Report from “Gary Gabriel
Associates”
BUILDING

39. ENVIRONMENTAL
CONCERNS

40. ENVIRONMENTAL
CONCERNS
PRE-MANUFACTURING
FABRIC
POST-MANUFACTURING
WATER
EFFLUENT
TREATMENT
PLANT
TREATS AND
RECYCLES
ORGANIC
FABRIC
ESCALATES COSTS

41. CSR

42. CSR
Plastic Surgery Camps
Eye Camps
HEALTH CAMPS
Holland Children House
In Faridpur
Shelters 200 Orphans
ORPHANAGE
Australian International
School in Gulshan
220 Students Enrolled
EDUCATION

43. Lower Level
Employees

44. EMPLOYEES
1) Pay-Scale and Fringe Benefits
2) Timely Payment
3) Overtime Policies
4) Lay-off Packages
5) Adequate Training
6) Safety Measures
7) Deadline Tardiness dealt amicably








45. CONSUMERS
1) Meeting Deadlines
2) Employee Behavior
3) Quality Management
4) Professionalism





46. LIMITATIONS
1) Meeting Deadlines
2) Employee Behavior
3) Quality Management
4) Professionalism





47. THANKYOU