Wal-Mart Stores Inc. (WMT) Tuesday said it will conduct an in-depth safety inspections at all the factories in Bangladesh that supply goods for the retail giant. The move comes after last month's deadly collapse of a garment factory in Bangladesh that killed more than 1,100 people.
Walmart, in a statement, said it will complete all reviews within six months and will publicly release the names and inspection information on all 279 factories. The company noted it will perform these inspections at its own cost.
Walmart also said it is increasing the pace and frequency of follow up inspections in all Bangladesh factories, with visits taking place every two months to ensure both compliance and progress.
Global companies that source goods from Bangladesh have been under immense pressure since the accident. UN had urged global clothing brands to work with Bangladesh, international organizations and civil society to improve working conditions in the country's garment sector.
"Transparency is vital to make progress in improving factory conditions, and by disclosing this information, government, workers, non-governmental agencies, and companies can benefit from this work," said Rajan Kamalanathan, vice president of Ethical Sourcing for Walmart.
Walmart said it will immediately order factory owners to stop production at facilities where safety issues are found, and ask them to take required actions and renovations.
Walmart anticipates that the costs of appropriate remediation and ongoing safety investments to be appropriately reflected in its costs of goods purchased.
"If we identify issues that cause us to believe that people's lives are in danger, we will take swift action," said Kamalanathan. "Preventing the kinds of tragedies that have recently taken place in Bangladesh will only happen if all stakeholders across the board set clear parameters and take action to drive real safety and compliance improvements."
Last month, the Rana Plaza factory building collapsed on the outskirts of the capital Dhaka, killing more than 1,100 people, mostly female workers. The garment industry employs some 3-5 million workers in the country.
WMT closed Tuesday's trading at $78.78, up $0.28 or 0.36%, on the NYSE. The stock further gained $0.21 or 0.27%.
For comments and feedback: editorial@rttnews.com