Case study
Levi Looks to Cut Differently by Rewarding Responsible Suppliers
Questions. 1. Consider what happened in Bangladesh (see the opening profile.) To what extent do you
think the efforts by Levi Strauses can resolve the kinds of problems that led to that diaster?
Answer. In this describe the incident of Rana Plaza factory in the year 2013 in Bangladesh that time
about 1100 people were dead. The company started to upgrade supply chains of new fashion brands.
There are many efforts which helpful to resolve the problems which are occurred by diaster, the
suppliers of Levi Strauses can use through IFC facility to access to cheaper capital as compared to to
the home countries. The company wants to offer to reward their suppliers with new policies lower
interest rate on working capital for improving and increasing quality of conditions and and
environmental performance.
Questions.2 What other people and factors are involved? Who are the stakeholders, and how are
they affected? Consider the process and what steps are necessary to make this good idea happen.
Answer. In this case number of person involved like suppliers, workers and customers. The largest
group that this affects is the suppliers in Bangladesh in china they affected directly . The customers
of this brands made more ethically they pay more for the same product. Moreover, the companies
who are offering the low cost loan on working capital and workers consider the earning of his
investment.
To make this good idea happen, regulary audits the working conditions and standards for this
company hired the experts. Levi Strauses company need to security of their suppliers in lower cost
and they want to more efforts from suppliers to sustain standard.
Questions.2. How do these types of incentives relate to the overall goal of sustainability for the
company?
Answer. The overall goal sustainability of Levis will by achieved by following incentives. These
incentives directly affected the policies and strategies of company and they arranged the incentevis.
The world bank private sector and IFC improved the relations of suppliers with market, goodwill
and bargaining power and sales which will helpful in the company’s sustainability in the market.