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Kristine L. CaagbayBSA 301- AACTIVITYPurbani Group: The CSR Pioneer in BangladeshPurbani Group is one of the largest suppliers of garments to the world’s leading fashion brands and retailers such as H&M, K-Mart, and Hanes. In the 1970s, it started as a small textile yarn trader in Dhaka, Banglad...

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Kristine L. Caagbay BSA 301- A

ACTIVITY Purbani Group: The CSR Pioneer in Bangladesh

Purbani Group is one of the largest suppliers of garments to the world’s leading fashion brands and retailers such as H&M, K-Mart, and Hanes. In the 1970s, it started as a small textile yarn trader in Dhaka, Bangladesh, and is now a vertically integrated apparel production facility. Its annual turnover is around $150 million or more than P7 billion, and it employs 7,000 people. The group has several vertically integrated spinning, knitting, apparel, dying, and yarn trading companies. The business model is a self-sufficient one, as it produces yarn from imported cotton, used to produce fabrics in its textile mills and feed the 100% exportoriented apparel manufacturing facilities. Committed to social responsibility, Purbani’s recent collaboration with an Indian company that provides advisory services in the field of international cooperation for sustainable development worldwide is underway to implement an energy services company model (ESCO), which transforms energy usage. The group’s implementation of the ESCO model helps combine various energy sources to maximize cleaner energy use and reduce energy waste by improving building facilities, lighting, and air-cooling system. The company is also a pioneer in women empowerment through employment. More than 60% of its workforce is young women. Given the demography, many of the female employees are young mothers. Purbani has created nursery and schooling facilities within its factory premises, allowing parents to bring their children to work and be taken care of by the nursery staff until the end of shifts. Also, frequent breaks allow mothers to check on and feed their babies, reducing the number of skilled-female workers quitting after childbirth, and encouraging the local community particularly young mothers to participate in livelihood programs. Purbani understands that their initiatives in environmental and social welfare have created a virtuous cycle of sustainability, productivity, and brand image.

Answer the following questions: (5 items x 10 points)

1. Which between Milton Friedman’s and Archie Carroll’s views on business responsibility is being demonstrated on the given case? Archie Carroll’s view on business responsibility is being demonstrated on the given case. Purbani Group is committed to social responsibilities in fact they are the pioneer in women empowerment they also build a nursery for their female employees for them to guide their child while working. With this Purbani Group became successful.

2. Who are the primary stakeholders of Purbani Group based on the facts stated in the case? Based on the given facts stated in the case the primary stakeholders of Purbani Group are as H&M, K-Mart, and Hanes. Which are the leasing fashion brands and retailers in the world. Purbani Group also has 60% of its workforce is young women. They have a sufficient power on bargaining can affect company’s state in the business world.

3. Who are the secondary stakeholders of the company based on the facts stated in the case? Secondary stakeholders are who have indirect state in the corporation but who are also affected by corporate activities. One of the secondary stakeholders of the Purbani Group is an Indian company that provides advisory services in the field of international cooperation for sustainable development worldwide is underway to implement an energy services company model (ESCO), which transforms energy usage.

4. What is/are the influence/s of stakeholders to the strategic decisions of the company? The stakeholders influence to the strategic decisions of the company by like in ESCO model helps combine various energy sources to maximize cleaner energy use and reduce energy waste by improving building facilities, lighting, and air-cooling system. Upon implementing it the company also gain advantages with this while helping the environment and its society. By also reducing the number of skilled-female workers quitting after childbirth, and encouraging the local community particularly young mothers to participate in livelihood programs. Purbani understands that their initiatives in

environmental and social welfare have created a virtuous cycle of sustainability, productivity, and brand image. 5. Which among the basic views of ethical behaviour will contribute to sustaining the success of Purbani Group? Among the basic view of ethical behaviour I think Justice Approach will contribute to sustaining the success of Purbani Group. In this approach decision-makers can be equitable, fair and impartial in the distribution of cost and benefits to individual and groups. With this, Purbani Group can sustain success in the business world....