Retailers' Bangladesh ties eyed Some of Australia's biggest retailers including Woolworths, the owner of Coles, and department stores Myer and David Jones have distanced themselves from sourcing arrangements in Bangladesh after the collapse of a garment factory in the impoverished Asian nation last month killed 1100 workers. It comes as some of the world's leading retailers, such as Swedish fashion chain H&M and the owner of Spanish giant Zara, have pledged to better monitor the working conditions of factory workers in Bangladesh and help pay for repairs. Citi analysts Elaine Prior and Craig Woolford have sent a detailed questionnaire to leading Australian garment and fashion retailers, about their sourcing systems and ethical standards when buying products from Bangladesh. Those questioned included Australia's biggest retailer, Woolworths, as well as Wesfarmers - the owner of Coles - department stores Myer and David Jones, Premier Investments - owner of fashion brands such as Dotti, Portmans and Just Jeans and Specialty Fashion Group. ""Western retailers are increasingly sourcing garments from Bangladesh. This brings specific risks, as evidenced by the Tazreen factory fire in November (112 dead) and the Rana Plaza building collapse last month (1100 dead),"" the Citi report says. ""Retailers that source from Bangladesh are exposed to various risks if their brands are associated with a factory disaster. Customers" buying behaviour might be negatively affected. A retailer might feel an obligation to provide compensation or relief funding, or face liability, with some NGOs suggesting this may come under the "Remedy" commitments of the UN Guiding Principles on Business and Human Rights." The questions from Citi included: whether the company sourced product from the Rana Plaza factory that collapsed; what additional specific measures if any they were implementing to address these risks; whether the issue was on the board's/CEO's radar as a potential reputation / business risk; whether the company was taking additional steps to ensure the safety of those who may visit Bangladesh factories on their behalf - as employees, representatives, agents or contractors; and whether workers in their supplier factories have the right to refuse dangerous work. In response, Wesfarmers said the issue was on the radar of the CEO, the board and the chairman. Its divisions that source from Bangladesh had all assured Wesfarmers head office that they had in place the necessary requirement on safeguards, safety measures and protocols for worker safety, and none of them sourced from the factory that is the centre of the latest disaster. ""Wesfarmers noted that this is an extremely serious issue and one which will be further discussed by the company's leadership group. Kmart is the most significant buyer from Bangladesh in the Wesfarmers group. Target, and to a lesser extent Coles, also source from Bangladesh,"" Citi said. Kmart senior management are planning a supplier forum in Bangladesh within the next month. The business organises these forums every six months in China, Bangladesh and India. Woolworths has confirmed that it does not source from the factory that collapsed, nor the one that burned down last year. Myer currently sources from one factory in Bangladesh, which also produces for Marks & Spencer. The factory has been safety audited. David Jones said it has not had any direct or indirect exposure to date to any incidents in Bangladesh. Meanwhile, four of the world's largest retailers - H&M, C&A, Primark and the owners of Zara - have agreed to improve safety at Bangladesh's garment factories and to monitor suppliers and pay for repairs at the factory site following the worst industrial disaster in the South Asian country.