Fortunately, the issues brought to light by the recent horrors in Bangladesh are not disappearing from the headlines. Unfortunately, those who are culpable are not acting swiftly enough.

What little consensus has emerged from the rubble of a collapsed eight-story factory, which claimed over 1,120 lives, underscores the fact that public-private collaboration is vital to enact the sweeping reforms required for real change rather than corporate social responsibility campaigns. Major retailers including Walmart, Gap, JCPenney and Sears have yet to sign the proposed fire and safety agreements, while Walmart, like the wolf guarding the hen house, said it will monitor its 300-plus Bangladeshi suppliers itself. However, H&M, along with 30 other international retailers committed to the $3 billion fund to improve the safety of garment factories in Bangladesh.Continue reading...

It turns out that angry consumers aren't the only ones that American retailers need to worry about. In a joint statement published Thursday, a group of investors sought out to express their dissatisfaction with US retailers that have refused to sign the Bangladesh fire and safety agreement.

The release, undersigned by Amalgamated Bank Longview Funds and 14 others said, "We expect companies in our portfolios to ensure the integrity of their supply chains." The group, which reportedly holds a combined $1.35 trillion in assets, called out both Walmart and Gap, two major US retailers who spoke out against the accord, advising them to act swiftly and effectively in agreeance with the legally-binding proposal, which was signed by over 30 international companies by its May 15 deadline. 

The response is a reaction to the late-April factory collapse in Savar, Bangladesh that has now claimed over 1,120 lives. The accord, which is a version of a previously proposed agreement that was in effect turned down by several US retailers in 2011, hopes to protect the millions of Bangladeshi people that work in the country's 5,000 garment factories, for as little as $38 per month. The industry, now the second largest garment producer next to China, has seen a surge in recent years, resulting in the creation of faulty building sites and poor labor conditions. The circumstances surrounding the collapse of the Rana Plaza factory highlight the shortcomings of an industry built on loose ethics and fast, inexpensive turnaround. While the agreement looks to enforce independent building inspections and fire and safety training, it also hopes to create a more open administrative atmosphere for workers to present their concerns.Continue reading...

Old/new JCPenney CEO Mike Ullman keeps reaching backward into his pre-2012 bag of tricks for things that will revive the brand that he ran, then lost, and is now running again in the post-Ron Johnson era. But unfortunately, he hasn't yet been able to reach back to a time when the company still made money: Still smarting from the damage done during Johnson's tenure, JCPenney reported a worse-than-expected loss of nearly $350 million for the first quarter on Thursday afternoon.

Ullman had told investors to anticipate about a 16 percent drop in sales for the fiscal first quarter from a year ago, when Johnson was just putting his "reforms" into place. But the bottom line for the just-concluded period was much worse that analysts had expected, a loss amounting to $1.58 a share when the consensus forecast called for a loss of just 43 cents a share.

"Our objective is to put JC Penney back on a path to profitable growth," Ullman said in a press release, according to USA Today. "We are looking forward, not back, and undertaking initiatives to ensure that we have a successful future."Continue reading...

As the May 15 deadline has come and gone to sign the IndustriALL-backed Bangladesh safety agreement, the abscence of a number of US brands has become even more apparent as more than 30 international retailers have agreed to the terms defined by international labor organizations to ensure the repair and future maintenance of Bangladesh's growing garment industry. Last month, Rana Plaza, an eight-story factory employing mostly young women collapsed, killing 1,127 people.  

While American clothing brands and retailers have been actively involved in the ensuing dialogue, the only two to sign the agreement by the deadline were PVH (which owns the Calvin Klein, Tommy Hilfiger and Van Heusen brands) and Abercrombie & Fitch, while Walmart and Gap publicly declared their opposition to the plan. 

To date, the list of signatories includes: Abercrombie & Fitch, Aldi, Benetton, C&A, Carrefour, El Corte Ingles, Esprit, G-Star, H&M, Helly Hansen, Hess Natur, Inditex (Zara's owner), jbc, KiK New Look, Lidl, Loblaws on behalf of its Joe Fresh and Primark brands, Mango, Marks & Spencer, Mothercare, N Brown Group, Next, PVH, Rewe, Sainsbury's, Stockmann, Switcher, Tchibo, Tesco and WE Europe.Continue reading...

Google CEO Larry Page discloses vocal-cord condition as company plans music-streaming service.

Apple is being investigated for its role in e-book pricing.

Burger King rolls out BK Rib to bust McRib by McDonald's.

ABC tests expanding Nielsen ratings to mobile and plans to consolidate Dancing with the Stars to Monday evenings.

Amy's Baking Company goes rogue after Kitchen Nightmares rejection, shows what brands shouldn't do on social.

Bloomberg terminal-use issue highlights stress in corporate culture as Wall Street firms begin to regard it as competitor.

Dell will miss profit estimates.

Dollar General looks to hire 10,000 new employees this month.Continue reading...

As it stands, 1,127 lives were lost in the factory collapse in Bangladesh and over a dozen international retailers have signed on to the binding Bangladesh Fire and Building Safety Agreement as the May 15 deadline looms. 

In a move that was hailed as "game-changing," H&M, Bangladesh's largest producer, signed on to the agreement on Monday, which promises to ensure independent inspections of all factories and financial aid to improve factory safety. “With this commitment we can now influence even more in this issue," said Helena Helmersson, Head of Sustainability for H&M, in a statement posted on the fast-fashion retailer's corporate website. 

While H&M's decision may have influenced other signatories like Italy's Benetton, Spain's Mango and Britain's Marks & Spencer, it has yet to affect the decisions of North American retailers including Gap Inc. and Walmart.Continue reading...

Maybe all that JCPenney really needed to turn things around was to get rid of Ron Johnson as CEO. A couple of weeks ago, the chain apologized for how the brand had behaved under him in 2012 and told consumers it was listening to their concerns. Now, it appears that JCPenney management believes the worst is over—and already is thanking customers for coming back.

It might be a bit premature for JCPenney to be running its new ad in which it claims, "Now, we're happy to say, you've come back to us. We're speechless, except for two little words. Thank you." After all, later this week the brand expects to report that fiscal first-quarter sales dropped by another 16 percent compared with a dismal 2012, a further decline beyond the $4.3 billion in sales that JCPenney lost for all of last year, as former CEO Johnson attempted to "transform" the brand.Continue reading...

BMW is investing 3 billion euros in EVs and marketing. 

AP execs outraged over government probe of phone records.

Sony is targeted for breakup by American investor.

Airbus aims to steal limelight from Boeing at upcoming Paris Air Show.

Amazon workers go on strike in Germany.

BNP Paribas eyes mobile and online banking.

Citibank says "no fees" means "never."

Coach approached Tory Burch about a deal.

Coca-Cola faces claim that Coke top-secret recipe has been found.Continue reading...