Munich Personal RePEc Archive

Preventing Factory Fires through Contracts: Case study of Garment Factories in Bangladesh

Sato, Hideki (2015): Preventing Factory Fires through Contracts: Case study of Garment Factories in Bangladesh. Published in: International Journal of Business and Social Research , Vol. 5, No. 4 (30 April 2015): pp. 9-13.

This is the latest version of this item.

[img]
Preview
PDF
MPRA_paper_64023.pdf

Download (216kB) | Preview

Abstract

Following a multi-decade history of lethal fires in the Bangladeshi garment industry, Sato (2012) proposed a contract framework that encourages manufacturers to adopt measures that reduce loss of life. Apart from the humanitarian imperative, the manufacturer has an incentive to sign the contract and adopt its preventative measures because an industrial disaster will cancel its relationship with its global retailer and end the related profits. This theoretical study specifies the optimal contract that incentivizes manufacturers and reduces the occurrence of garment industry fires.

Available Versions of this Item

  • Preventing Factory Fires through Contracts: Case study of Garment Factories in Bangladesh. (deposited 02 May 2015 07:05) [Currently Displayed]
UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.