(Corrects 6th paragraph to remove reference to Disney; adds 7th
paragraph to give detail on Disney product found near factory)
By Jessica Wohl
April 9 Wal-Mart Stores Inc, the world's
largest retailer, is making its biggest push yet to try to
improve conditions at factories that produce its clothing after
a fire at a Bangladesh factory killed 112 people last year.
The company also said Tuesday it would donate $1.6 million
to help start a new Bangladesh training academy, and outlined
its efforts to regain control over the complex and far-flung web
of factories that make its products.
"With the focus that is there at the moment on fire safety,
everyone is keen to make sure that they get the right level of
controls in place to protect the workers," Rajan Kamalanathan,
Wal-Mart's vice president of ethical sourcing, said in an
interview. "There is a need for that."
Wal-Mart says it was unaware that its private label clothing
was being made in the Tazreen Fashions factory that went up in
flames in November, killing 112 people and injuring at least
150. Bangladeshi authorities said the facility was not safe for
use, and Wal-Mart said it had not authorized anyone to make its
The fire gave rise to criticism that Wal-Mart should have
been more aware of its supply chain. Since the fire, Wal-Mart
has been taking a harder look at what it can do to monitor
safety at the low-cost factories that produce its goods.
While products for other companies, such as Sears Holdings
Corp, were also being made at Tazreen, the biggest
spotlight has been on Wal-Mart to push for safety improvements.
Disney-branded product was also found in the remains of the
factory following the fire, but Walt Disney Co said its
records showed that none of its authorized licensees had
manufactured Disney-branded products there.
Wal-Mart sent a 10-page letter to suppliers in January to
lay out its policies. Since then, it has held meetings with them
in Bentonville, Arkansas, where it is based; in Bangkok; and
The company has given its suppliers until April 15 to
disclose which factories they work with, and says it will sever
ties with those that subcontract work without telling Wal-Mart.
Along with the donation to the Institute for Sustainable
Communities (ISC), Wal-Mart last month started to have Bureau
Veritas, a European testing and inspection company,
assess factories and train workers on its behalf in Bangladesh.
ISC plans to set up an Environmental, Health and Safety
Academy in Bangladesh with the $1.6 million in funding from
Wal-Mart and $2 million from Sida, the Swedish International
(Reporting by Jessica Wohl in Chicago; Editing by Stephen