In the wake of the fire last month at a Bangladeshi clothingfactory, a Wal-Mart executive acknowledged to Reuters that thecompany needs to do more to control its supply chain.
|Tazreen Fashions, where a fire killed more than 100 workers, wasmaking clothing for Wal-Mart. The company says the factory was notcleared to be doing Wal-Mart manufacturing.
|Rajan Kamalanathan, Wal-Mart's vice president of ethicalsourcing, notes that under its current system of controls, theretailer can't do much if its suppliers subcontract Wal-Mart workwithout notifying the company. Kamalanathan says Wal-Mart isthinking about better ways to work with suppliers that work withagents that place production. The story also notes that retailersare discussing stipulating fire safety codes in their contractswith suppliers.
|Separately, Bloomberg reports that the Worker Rights Consortiumestimates the global garment industry would have to spend $3billion over five years to bring Bangladesh clothing factories upto Western fire safety standards.
|See the full Reuters story here and the Bloomberg story here.
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