Week 11: Global Supply Chain Under Disruption

Question 1

Case 1: Rana Plaza Collapse 2013

Answer 1

• A building in the city of Dhaka, Bangladesh
• It housed around 5,000 people

•This building housed some garment factories that
supplied to leading fashion retailers in Europe and
North America.

•The factory owners ignored the signs of structural
failure and continued their operations.

•The following day, the building collapsed, resulting
in the deaths of 1134 people

Question 2

Rana Plaza 
Collapse: 
Not the first 
one, Not the 
last one

Answer 2

Sweat shop that collapse

Question 3

Case 1: Rana Plaza Collapse 2013

Answer 3

Politician (EU, UK, etc.): Asks action to improve the
conditions of workers

Industry: This tragic incident shook the world, and
there was a backlash against the brands sourcing
their products from the unfortunate building.

Academic community: They streamlined their
efforts to understand the instruments which could
incentivize firms to adopt more responsible and
sustainable sourcing practices.

Question 4

Case 2: Video Notes

Answer 4

For later Kale ;)

Question 5

Case 2: Mattel Toys Recall

Answer 5

•An American multinational toy manufacturing
company founded in 1945

•One of the suppliers did not report the exceeded
use of lead in painting operations

•More than 20 million toys

Question 6

Case 3: Dollarama Inc. Toy Recall 2018

Answer 6

Dollarama recalled an outsourced toy containing
excessive levels of a hazardous chemical.

See video for exact numbers Around the 1 minute mark

Question 7

Impact

Answer 7

Socially conscious consumers:
who reward firms through price
premiums and penalize through
boycotts.

Question 8

Compliance legislation

Answer 8

During the last fifteen years, environmental, health, and safety concerns have gained much traction, and consequently, legislative frameworks requiring
compliance with certain standards are in place.

•European Union’s Restriction on Hazardous
Substances, (2003, 2011, 2015, & 2017).

•China is also contemplating an implementation of its
version of the restricted material list.

•Phthalates Regulations in Canada for children’s toys.

Question 9

Product compliance Video 2

Answer 9

Materials and chemical reporting
Extended producer responsibility obligation
Product certification

Video at about 22 minutes in first video

Question 10

Product Compliance

Answer 10

•In 2001, Sony game consoles were confiscated in the
Netherlands costing the firm 162 Mn USD due to the
environmental compliance violation

•This would come at significant cost inflation as a 10%
price inflation with the implementation of the RoHS (restriction of certain hazardous) Directive. Therefore,
this option is limited to reputable brands with high-profit margins.

Question 11

Made in Bangladesh

Answer 11

Video Amir shows us about the collapsed factory