A report portraying the ethical issue regarding the tannery of Bangladesh and suggesting various recommendations to prevent such practices.

1. Unethical Practices in the Bangladesh Leather Industry
MGT489, Section 16
Submitted to – Syed Javed Iqbal (SJI1)
Submitted by- Group 6
Name ID
Iraz Mohiuddin (Group Leader) 1712355030
Waseka Nourin 1712579630
Md. Inzamamul Haque 1620751030
Asif Ahmed 1620493030
Fatema-Tuj-Johora 1621826030
Annaba Gazi 1711219630
Zahid Alam Shovon 1712361630

2. introduction

3. Industry Analysis
2nd Largest
Export Category
Major players
Include Apex, Amin, Bay.
Disruption by
relocation
Declining industry
due to substitute
and practices
Where is the
industry right
now?

4. Industry Analysis
Growth Drivers
Bustling
Economic
Growth
Rise of
Overall
Income
Rapid &
Progressive
Urbanization
Raw
Materials &
Cheap labor

5. Industry Analysis
Industry Limitation
• Noncompliance and safety issues
• Difficulty in obtaining financing
• Exchange rate risk
• Hassle with relocation
• Outdated operational process

6. Industry Analysis
PESTLE
POLITICAL
1. Overall stability
2. Extension of incentives policy
ECONOMIC
1. Huge capital crisis
2. Bank’s control over the value
of currency
SOCIAL
1. Demographic acceptance of
leather good
2. Religious festivals support
sourcing
TECHNOLOGICAL
1. Outdated industry
2. Government’s encouragement
of technological base
LEGAL
1. Not well designed policies
2. Requires long-term policies
ENVIORNMENTAL
1. Compliance with safety
measure has always been an
issue
2. Pollution of Daleswari river

7. Current Scenario
Unethical Practices
Pollution of The
environment

8. Current Scenario
Unethical Practices
Child
Labor

9. Current Scenario
Unethical Practices
Employee health
hazard & wage issue

10. Current Scenario
Unethical Practices
Loan
Default

11. Current Scenario
Unethical Practices
Low price of
rawhides

12. Current Scenario
Unethical Practices
Market
Syndicates

13. Stakeholders Impact Analysis
BTA
Exposed
People
Workers
Force
Local
buyers
Political
leaders
International
buyers
Tannery workers
Union
Understanding them

14. Stakeholders Impact Analysis
Stakeholder Impact
Bangladesh Tanners Association (BTA) High
Workers High
Tannery Workers Union High
Exposed People High
Political Leaders Low
Local Buyers Low
International Buyers High

15. Alternative Scenario
Labour law will assure the worker’s
safety and wage.
The child labour could leave the
work for education.
Technologies would be easily
accessible for tanneries.
Presence and execution of strict
laws to demolish malpractices.
Buyers and sellers both would
abide by the restrictions.

16. Alternative Scenario
Draft of the policy
Encouragement
towards environment-
friendly technology
Reshaping the labour
law and safety standard
for international image.
Corporate insurance
social benefits
Cash incentives
and facilities
Where
will the
industry go?

17. Teleological Perspective
Reliance
On Child
labour
Work
On health
hazard
Paying
Adequate
wage
Government
Should be
responsible

18. Deontological Perspective
Abolishing child
labor is
absolute
Informing every
Workers about
the risks
Health insurance
& minimum wages
Should be ensured
Government policy
Should be abided
By stritctly
Waste should not
Harm any living
being
There should be
A fixed price
For rawhides

19. Current Laws and Regulations
Labor
Standards
• At least presence of one
welfare officer with more
than 500 workers
• Force labor can’t be used
(Constitution of
Bangladesh, article 34)
• Child can’t be labor
(Bangladesh Labor law
2013, section 34-44)
• Presence of at least one
health safety committee with
more than 50 workers
• Workers involved with
dangerous work has to be
provided with check up
(Bangladesh labor rule, 2015)
• Restricting hazardous vehicles
(Bangladesh Environmental
Clearance Certificate Act,
1995)
• Presence of clearance of
environment certificate (
Bangladesh Environmental Act,
1995)
Health
Standards
Environmental
Standard

20. Recommendation

21. Recommendation
Steps to Take
Management of
the location
Increasing the size
Of dumping yard
1
2

22. Recommendation
Adopt proper
cleaning process
Avoid
Child labour
Improve
Workers safety
Improve
accommodation
3
4
6
5

23. Recommendation
Improve
Sewage system
Separate board
For leather industry
Training for
seasonal providers
Eradicate
the syndicate
7
8
10
9

24. Recommendation
Onward Toward Progress
Moving towards
substitute 12
Inspection
of foreign buyers11

25. Constraints
Inefficient public administration
Corruption rate
Poverty
Lack of resources and funding
Illiteracy

26. Conclusion