The Small Cost for Safety in Bangladesh

Photo: NBC News

I just read an short article on Bloomberg by two professors from Harvard Business School. The piece looks at ways to improve safety in Bangledeshi factories in light of the 800 deaths that took place at Rana Plaza.

What got my attention was a section of the article that evaluated the cost of improving conditions. Notably, the amount is small, especially if it is spread out and assessed on consumers.

It notes that, by some estimates, it would cost roughly $600 million each year to bring all Bangledeshi factories up to "Western standards." Factoring in Bangladesh's $18 billion of annual clothing exports, the authors determined that improvements would lead to a meager 3.3% cost increase for garments.

Karan Girotra and Serguei Netessine simplify it even more, noting that the cost of making a T-shirt would increase by a dime, to $3.10 per garment. "This is a very small price to pay for the ability to claim that no workers producing your clothing were in any danger of dying," they write.

You can read the entire article here.