H&m i Bangladesh

Anna Refsøe, Johan Sørensen, Josephine Skytte & Louise Skovgaard

Studenteropgave: Semesterprojekt


Outsourcing remains an increasingly attractive strategy for many large companies. The enormous distance between the companies and its suppliers, has resulted in a hazy labor policy in the companies suppliers' production factories. Companies find it difficult to maintain ideal working conditions in developing countries due to the geographical distance. This project, focus on H&M's outsourcing to Bangladesh. Bangladesh is interesting because H&M gets 25% of their products produced in the country and is the company's largest exporter. Since H&M outsourced to Bangladesh in 1982, has the country's GDP increased by € 73 billion. Now 75% of Bangladesh’s exports comes from the textile industry. It reflects back on the company if their suppliers' employees are working under poor working conditions. Many multinational companies, including H&M, finds it necessary to implement key Corporate Social Responsibility principles in their Code of Conduct to ensure that their suppliers comply and respect the company's guidelines. A Code of Conduct is a set of guidelines, companies prepare for their employees and contractors that reflects the company's stance on accountability. In H&M's Code of Conduct, the company has implemented significant Corporate Social Responsibility principles of social and economic sustainability. In Bangladesh, several of H&M's suppliers' production factories, have been exposed to fire accidents. The project outlines two fires accidents, where a total of 30 employees died. The accidents has meant that H&M has introduced more audits, in order to increase safety in the factories, in an effort to prevent similar situations. In H&M's Code of Conduct is it described, that all employees have the right to form or join trade unions. In the company’s suppliers' productions factories, there have been situations where employees are eligible for violence and discrimination. The employees attempt to change work conditions through unions can be a risky affairs. Several of H&M's suppliers' productions factories, fires employees if they join a union, as well as a revaluation on a black list. A write-up on the black list, can make it difficult for employees to get a job at another production factory. H&M makes numerous initiatives trying to change the working conditions of the employees on their suppliers' productions factories. The company has set up a sewing school that aims to educate seamstresses, and then secure them a job at one of the company’s suppliers' productions factories. H&M have by several organizations and media, been criticized because their suppliers is not to paying employees a fair living wage. The company consider itself to have done much to raise the minimum wage in Bangladesh, which was changed in 2013, from almost € 30 to € 50. The organization Clean Clothes Campaign believes that a fair living wage in Bangladesh should remain at € 260. The salary is way below, the current salary H&M's suppliers' productions factories pay their employees. The project aims to shed light on the impact, H&M's outsourcing to Bangladesh has had on the country's prosperity development and how the company’s Code of Conduct and application of Corporate Social Responsibility principles in line with practice. In this project, we examine the positive benefits outsourcing leads for Bangladesh and the workers at the company’s suppliers' productions factories. H&M has implemented Corporate Social Responsibility principles and their Code of Conduct in their company policy, we therefore examine how H&M's Code of Conduct works in practice and how H&M uses sustainable supply chain management to achieve greater security to their Code of Conduct compliance. Based on H&M's Code of Conduct, we discuss the working conditions and the rights of employees at H&M's suppliers' productions factories. We also discuss how H&M's current and future initiatives will contribute to the improvement of living standards in the textile industry in Bangladesh. According to the previous paragraph, we have found that there have been improvements in the education of their skills and right, as well as an optimization of the working conditions at H&M's suppliers' productions factories. We conclude that the improvements has had a positive impact on Bangladesh's prosperity. In spite of some differences between H&M's Code of Conduct and working conditions, we find that H&M's outsourcing helps to improve working conditions at the company's productions factories. Based on the theories, we conclude that H&M's outsourcing contributes to the continuous development of Bangladesh, which will make the country competitive in the global market

UddannelserBasis - Samfundsvidenskabelig Bacheloruddannelse, (Bachelor uddannelse) Basis
Udgivelsesdato1 jun. 2014
VejledereBeck Hans


  • Bangladesh
  • Code of Conduct
  • CSR
  • Outsourcing
  • Ansvarlig leverandørstyring
  • H&M