The textile industry in Bangladesh employs three million people and makes up 80% of

the countrys exports (ABC News 2013). However, there is a history of unsafe working
conditions and deaths (Ahmed and Peerlings 2009; Ahmed 2004, 38). A factory collapse
recently killed over 1000 workers and as a result, various companies are signing a
safety accord (Ferguson and Jolley 2013). This is an ethical decision that can impact
those companys stakeholders. The decision can be made under various ethical models,
such as moral rights, social justice (Waddell, Jones and George 2011, 148) and
utilitarianism (Duska 2007, 22-25). This paper will argue that the accord should be
signed according to the utilitarian model.
The moral rights model argues that decisions should be made to protect fundamental
rights of stakeholders and do no harm (Casali 2011, 489). The poor working conditions
in Bangladesh violate the concept that workers, who are stakeholders (Phillips 1997,
52-53), have a right to safety (Byrne 2011, 499; Gavai 2010, 13). Inaction will harm
workers by failing to improve conditions, which is the purpose of the accord. Under this
model, the accord should be signed to protect workers rights.
The social justice model argues that benefits and harms should be distributed fairly
among all stakeholders (Waddell, Jones and George 2011, 148). The accord will
improve working conditions for workers. However, improvements are costly (Ahmed and
Peerlings 2009). The increased costs reduce profit and potentially harm shareholders.
As such, under the justice model the accord should not be signed as it benefits one
group and harms another.
Under classical utilitarianism, the goal is to increase the good or happiness for the
largest group (Jones and Phelps 2013, 354). However, the modern interpretation is
increasingly moving towards a strategic model aiming to improve profitability (Yim and
Fock 2013, 282, 293-294). Companies using Bangladeshi factories and operating in
Australia need to take consumer ethics into account. As Australia is a low power
distance country with consumers that will less easily accept unethical behaviour
(Hofstede 1980; Swaidan 2012, 206), under the enlightened self-interest model of CSR,

improving ethical standards by signing the accord will improve profits (Duska 2007, 9).
According to utilitarianism, the accord can increase good for workers, shareholders and
customers, therefore it should be signed.
The Bangladesh workers rights problem can be examined from multiple ethical
standpoints, including moral rights, social justice and utilitarianism. Under moral rights
and utilitarian models the accord should be signed, whereas under social justice it
should not. This paper argues that based on the utilitarian model of ethics, the accord
should be signed by any company using Bangladeshi factories.

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