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Part One

Introduction

1.0 Introduction
The main purpose of this report was to perceive the real life situation. It helps to face the real working environment.

1.1 Background of the study


There are several industries in Bangladesh. But the most profitable and renowned industry is Garments industry. Among the all industry garments industry in Bangladesh have been leading all over the world. There are many countries like; Canada, USA, UK, and many other developed countries import several types of garments products from Bangladesh. But it is unfortunate that the garments employees in Bangladesh have been neglected from the start up of the industry. They are paid a very poor scale salary, and no extra admissible benefits. All the employees of this industry are living under poorest line.

1.2 Significance of Report


As because all the garments employees are living under poverty line and owner break law of workers in every steps, in this report we try to find what is the basic reason behind this, why they are neglected, who are the persons liable for this situation. And we also try to find out are there any prospect to overcome this problem. What is the trend, and can it be minimized?

1.3 Scope of the report


Labor is the key resources for all production sector. Without them no finished product can be produced. So they have to provide more facility thus they are motivated to work effectively and efficiently. In garments sector labors are more valuable resources but unfortunately in our county they are neglected by top executive or owner of garments. In this report we try to find what type of problem they have faced during their working period, are their salary structure is satisfactory, are there any extra other facility provided, working environment, what type of role does organization play etc. are included in this report.

1.4 Objectives
1.4.1 Broad/General To find out Legal Forces of garments Industry. 1.4.2 Short/Specific
To have an idea about their motive and attitude toward their organization. To have an idea about their job and salary satisfaction. To submit the report to fulfill the academic purpose. To know the proper way to study a subject To increase the knowledge of conducting a research and writing the report.

1.5 Methodology
Methodology can properly refer to the theoretical analysis of the methods appropriate to the field of study or to the body of the methods and principles particular to a bench of knowledge. The methodology used by the study requires a systematic way selection of the topic to preparation of the final report. The overall process of methodology is given in the followings:

1.5.1 Types of research


This is an Exploratory Research.

1.5.2 Sources of Data


Both primary and secondary sources of information have been collected for the purpose of this report.

1.5.2.1 Primary Data


The primary information has been collected by survey method. A standard questionnaire was developed on the basis of Legal forces of garments Industry. And we communicate respondent through person to person interview.

1.5.2.2 Secondary Data


Different types of secondary data have been elaborated such as Websites, Prior research report, news report etc.

1.5.3 Data Collection Procedure


The information for this report obtained through primary and secondary sources method and questionnaire survey among 10 respondents of two garments company. The method, which followed, for data collection is survey and communication study.

1.5.3.1 Primary
Primary data are collected through survey method. A questionnaire was developed with different types of measurement scale such as simple dichotomy question both open-ended question and fixed alternative questionnaire and we contact with respondent through person to person interview with 10 respondents.

1.5.3.2 Secondary
Secondary data are collected through the relevant documents such as website, news paper, prior research report etc.

1.5.4 Questionnaire
Both open-ended and fixed alternative questions are used in the questionnaire. Fixed alternative question includes simple dichotomy question, simple attitude scale and multiple choice questions.

1.5.5 Sampling Plan


1.5.5.1 Population
The target population is garments employees.

1.5.5.2 Sample elements


Among the population, any type of garments employee are selected to survey.

1.5.5.3 Sample frame


We design sample frame on the basis of region. Mirpur-1 Mirpur-2 Asulia (Savar area)

1.5.5.4 Sample Method


Non probability convenient procedure was used for drawing sample elements.

1.5.5.5 Sample Size


The sample size is limited to 10 for all type of garments employees.

1.6 Limitation
Unavailability of specific data from every sector. Lack of Statistics. Cost Constraint. Time Constraint. Confidentiality.

Sometimes employees of the organization felt uneasy to supply relevant information as


needed for the study. The employees were very busy, so they could not give me enough time for discussion about various aspects of legal forces.

Part Two
Company Profile

2.1Background
The journey of Babylon group began in 1986 with a handful of sewing machines to produce woven products in small scale. Sincere efforts, constant strive towards efficiency and commitment towards highest level of quality fueled the growth of Babylon to become one of the iconic ready-made garment and textile industries of the country employing over 10,000 skilled workers in 14 concerns and has an annual revenue earning surpassing 90 million US Dollars (2009). All units of Babylon thrive for excellence in knit, woven and casual wear manufacturing; washing, dyeing, garment accessory manufacturing, printing & packaging, embroidery & screen print, transporting, clearing & forwarding and fashion wear retailing.

2.2Vision
We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization.

2.3Mission
Our Mission is to produce and provide quality & innovative product for people, and maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.

2.4Objective
Our objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.

2.5 Organogram
Babylon group

2.6 SWOT Analysis


Strength The strength of Babylon Group lies in its facilities, skilled human resource and management. Following are some of the highlights Ample storage and computerized inventory management system at every factory facility All the factories have their own power generation and distribution facilities The quality of Babylon is recognized by the international standardization authorities like ISO and WRAP Availability of modern machinery and equipment that can cater the diverse requirements of customers The group has all sorts of support facilities within its concerns which directly contribute to smoother execution of the orders and cost reduction

Weaknesses
Determine an organisations weaknesses, not only from its point of view, but also more importantly, from customers. Although it may be difficult for an organisation to acknowledge its weaknesses it is best to handle the bitter reality without procrastination. A weakness is a Not connected with final user. Lack of financial support. Need more external and internal network supporter.

Opportunities
Another major factor is to determine how organisations can continue to grow within the marketplace. After all, opportunities are everywhere, such as the changes in technology, government policy, social patterns, and so on. An opportunity is a major situation in a firms environment. Key trends are one source of opportunities. Identification of a previously overlooked market segment, changes in competitive or regulatory circumstances, technological changes, and improved buyer or supplier relationships could represent opportunities fro the firm. Threats No one likes to think about threats, but we still have to face them, despite the fact that they are external factors that are out of our control, for example, the recent economic slump in Asia. It is vital to be prepared and face threats even during turbulent times. A threat is a major unfavourable situation in a firms environment. Threats are key impediments to the firms current or desired position.

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The entrance of new competitors, Slow market growth, Increased bargaining power of key buyers or suppliers, Technological changes, and New or revised regulations could represent threats to a firms success.

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2.7 Background
VIYELLATEX started its journey in 1996 as a knit apparel and textile manufacturing company. Since then, it has expanded gradually to become a conglomerate with spinning, printing, accessories and woven garments facilities. VIYELLATEX is now looking towards a more vibrant future by diversifying the business in different sectors. Starting as a quality textile manufacturing company, it has come a long way to diversify into logistics and agro business. Now it is also venturing into the energy and engineering sector. VIYELLATEX considers corporate sustainability as an important edifice of its ethics. It gives special importance to all its Corporate Sustainability activities. It values the environment and realizes that only by being responsible to the nature can we truly be responsible to the society. It considers corporate sustainability as an investment for the future, both for itself and the environment. VIYELLATEX has one of the best, dedicated and skilled workforces in the country. These are the people with the best talents, commitments, and expertise with the blend of experience and enthusiasm. They work hard closely with the clients and are fully committed to deliver the best results, ensuring customer satisfaction underpinned by the VIYELLATEX Values.

2.8 Vision
At Viyellatex, we strive to provide world class service and the best value to our customers. We thrive for excellence and work for ensuring a pleasant, clean and professional working condition for our employees and the people we do business with.

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2.9 Mission
Our Mission is to produce and provide quality & innovative product for people, and maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large.

2.10 Objective
Our objectives are to conduct transparent business operation based on market mechanism within the legal & social frame work with aims to attain the mission reflected by our vision.

2.11 Organogram

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2.12 SWOT Analysis

A marketing strategy consists of specific strategies for target markets, positioning, the marketing mix, & marketing expenditure levels. It outlines how the company intends to create value for target customers in order to capture value in return. In this section, the planner explains how each strategy responds to the threats, opportunities & critical issues spelled out earlier in the plan. Additional sections of the marketing plan lay out an action program for implementing the marketing strategy along with the details of a supporting marketing budget. The last section outlines the controls that will be use to monitor progress, measure return on marketing investment, & take corrective action.

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Part Three
Theoretical Aspects

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3.0 Theoretical Aspects

3.1 Porter's five forces Model

Introduction
It is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. Three of Porter's five forces refer to competition from external sources. The remainder is internal threats. Porter's five forces include - three forces from 'horizontal' competition: threat of substitute products, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers. This five forces analysis is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies.

3.2 LEPEST C analysis


This analysis enables the manager to assemble a logical and comprehensive picture of the environment. The abbreviation of LEPEST C is L is legal environment E is Economic environment P is Political environment E is Ecological environment S is social- cultural environment 17

T is technological environment C is Competitive environment 1. Political factors are how and to what degree a government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade restrictions, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or be provided (merit goods) and those that the government does not want to be provided (demerit goods or merit beds). Furthermore, governments have great influence on the health, education, and infrastructure of a nation 2. Economic factors include economic growth, interest rates, exchange rates and the inflation rate. These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy 3. Social factors include the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. Trends in social factors affect the demand for a company's products and how that company operates. For example, an aging population may imply a smaller and less-willing workforce (thus increasing the cost of labor). Furthermore, companies may change various management strategies to adapt to these social trends (such as recruiting older workers). 4. Technological factors include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. They can determine barriers to entry, minimum efficient production level and influence outsourcing decisions. Furthermore, technological shifts can affect costs, quality, and lead to innovation. 5. Environmental factors include ecological and environmental aspects such as weather, climate, and climate change, which may especially affect industries such as tourism, farming, and insurance. Furthermore, growing awareness of the potential impacts of climate change is affecting how companies operate and the products they offer, both creating new markets and diminishing or destroying existing ones.

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6. Legal factors include discrimination law, consumer law, antitrust law, employment law, and health and safety law. These factors can affect how a company operates, its costs, and the demand for its products. Legal forces can inuence marketing decisions by setting the rules by which Business can be conducted. For example, smoking bans in public places can have Dramatic short- and long-term effect on the demand for cigarettes. Because of politicians Sometimes, sizable contributions to the funds of political parties are made in an attempt to maintain favorable relationships. Never has the relationship between legal forces and business been more apparent than in the recent credit crunch, which has forced governments to nancially support banks and, in the case of the British Government, acquire Northern Rock.

3.3 Criticism
Porter's framework has been challenged by other academics and strategists such as Stewart Neill. Similarly, the likes of Kevin P. Coyne and Somu Subramaniam have stated that three dubious assumptions underlie the five forces:

That buyers, competitors, and suppliers are unrelated and do not interact and collude. That the source of value is structural advantage (creating barriers to entry). That uncertainty is low, allowing participants in a market to plan for and respond to

competitive behavior.

3.4 The legal environment


As indicated in the introduction to this section, the international legal framework is somewhat confused. Most controls or regulations revolve around export and import controls, transfer pricing, taxes, regulation of corrupt practices, embargoed nations, antitrust, expropriation and distribution of equity, patents and trademarks. The following touches on a number of these issues and in particular the import/export regulations (terms of access).

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3.5 International law

To many, the supreme body is the International Court of Justice, situated in The Hague, Holland. Here a number of international disputes may be taken for ultimate adjudication. However, a series of other bodies and legislation exists. a) FCN (Friendship, Commerce and Navigation) and Tax Treaties primarily US based and concerned with giving protection of trading rights and avoiding double taxation. b) IMF and GATT already discussed in the previous section and concerned with member nations international trade restrictions and dumping. c) UNCITRAL (UN) international trade law commission set up with the intent to provide a uniform commercial code for the whole world, particularly international sales and payments, commercial arbitration and shipping legislation. Works with international chambers of commerce and Governments. d) ISO (International Standards Organization) often works with ILO, WHO etc. and contains technical committees working on uniform standards. e) Patents and trademarks there is no such thing as international patent. The most important patent agreement is the International Convention for the Protection of Industrial Property, first signed in 1983 and now honored by 45 countries. The treaty provides that if a files in a signatory country within one year of the first filing, the file will be afforded the date of the first filing for priority purposes. A patent cooperation treaty (PCT) and a European Patent Convention are also in effect. The PCT has 39 countries including the USA, Japan and Brazil. The EU convention covers 15 countries and gives patent protection in all 15 if signified in one. f) Air transport is covered mainly by IATA (International Air Transport Authority), ICAA (International Civil Aviation Authority) and ITU (International Telecommunication Company).

g) Codes of conduct, like those in the OECP, are not technical law but important. Member countries produce guidelines for multinational enterprises covering aspects of general policy, disclosure of information, competition, financing, taxation, employment and industrial relations.

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h) Recourse arbitration is an attempt to reduce disputes by consultation. Some of the most widely used are the International Chamber of Commerce, the American Arbitration Association, the London Court of Arbitration and the Liverpool Cotton Exchange.

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Part Four
Analysis and Findings

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1. Have you heard the word Legal forces?

We see that most of employees in Garment Industry heard the concept legal forces. In this graph 60% of the employees hear and 40% employees do not know about the concept of legal forces. But many of them didnt know appropiately. 2. What do you know about it? Most of the employees tell that it is just maintain the rules regulation of Govt. Some of said talk to the right of the employees that have been neglected the organization. 3. Do you think Garments Industry have occur legal activities with employees?

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Maximum employees said they are negleted in their working area and company occur illegal activities by their employees. They work more but get less. The firm earn more but they give their employees small amount of benefit and employees life is so harder. 4. Do you think Garments Industry maintain a sufficient salary structure in every employee?

The garment industry should not maintain a sufficient salary structure in every employees. Employees work hard but they get less amount of salary. About 80% employees said the salary structure is lower. They didn,t get any incentives, bonus in their performance and festival. Many of the garments didnt pay salary in due time so employees life made harder. They also said the price of daily necessary thing increasing quckly but their salary didnt increase. 5. Do you think they made gender discrimination between man and woman?

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Most of the employees said organization didnt occur gender discrimination but approximately same of the said they occur gender discrimination. About 60% said farm pay equil benefit between man and woman. 40% said organization should not pay equal benefit, they also said woman work more rather than the man but woman get low salary and other benefit to the man. 6. Do you think the organization recruit employees as satisfactory age of law?

Most of the said recruit employees as satisfactory age according to the law of Govt. 30% said farm recruit emploees as dissafactory age,they also said they higher employees as child labor. 10% of employees didnt want to talk in this subject. They said farm higher child labor because of low salary. 7. Do you think the working environment of garment industry is better?

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Maximum employees said the working environment of garment industry is not good. About 80% employees said they work in a bad environment, they also said huge employees work at a small place. There is no medical facility and there is no man and woman different working place they work together. The hotness, noising, and the most important thing are the shortness of bathroom employees occur became seek. 20% employees said the work environment is better. 8. Do you think the garment industry maintain the rules and regulation of Govt. in their Business activities?

About same as employees said garment industry should maintain the rules and regulation of Govt. in their business activities. They also said this is their thinking but not absoulately right.

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9. Do you think the garment Industry occur environmental pollution?

Maximum employees said garments industry should not polluted in environment and 30% of employees said they polluted the environment and also 30% didnt want to talk any comment. They said farm chemical polluted the water and their wastege fall in outside the farm so it can polluted the enviroment. 10. Do you think the garment Industry gives an enough Tax in Govt. that has calculated in every year?

Most of the employees didnt want to tell any comment because they dont know how many profit earn in each year and how much they paid taxes in govt. some are contraceptive to tell about this thing.

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11. Do you think the garment Industry employees work more hours compare to the other industry?

Maximum employees said garment worker work more hour compare to the other industry. Almos 90% employees said this thing. They said they work huge but get small salary. Sometimes they work overtime, so they didnt have enogh time in hand to share in their family, entertainment or other work. 12. Do you think the work environment is safe for employees?

About 78% employees said the work environment is not safe for him especially the female worker. Male and female worker work together so they always have tension to get an

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violance. The male worker said they work in heavy machine but they have no security instrument so they have tension to occur any kind of accident. 13. Do you think Garment workers are neglected in every steps of their work environment?

Most of the employees said they are always neglected in their work environment and some of said they are neglected in sometime also some said they atre not negleglected in work environment. They said we are work harder but get small benefit and many employees work nothing but they get more. They neglected in every steps in not only inside the farm but also in outside the farm. 14. Do you think the activities of Garment Industry are benefited for society?

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Maximum employees said the activities of garment industry are benefited the society. More garments set to create more vacancy and more people get job. Industry develop the road, bridge those are needed to transportation of product and also occur various work for their reputation. In this case the society is more benefited. 15. Do you believe the Govt. should take appropriate action about those is breaking the Law?

Most of the employees believe that govt. has not taken any action those are braking the laws because of political reason. They said most of the owner of the garments is politically established so they use power if govt. should taken any action. But 20% said they believe govt. should taken action those are breaking the laws if not now even future. 10% didnt want tell nothing.
.

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Part Five
Major Findings

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5.0 Major Findings


1. The owner of the Garment industry has doing illegal activities that are against the laws. 2. The salary structure of Garment industry is lower.
3. Maximum number of garments employees are primary level educated.

4. Gender discrimination has occurred the garment industry. 5. The age of the employees is lower that the govt. law and garment industry recruit the child labor. 6. Employees are work in a bad environment, the working environment of garment is bad.
7. Same as employees said garment industry should not maintain the rules and regulation of govt.

8. Garment industry has liability to pollute the environment. 9. The owner of the garment has tried to give a small amount of money in tax by govt. 10. 90% of employees said they work more hour compare to the other industry but they have get
small.

11. 78%% of respondents said their work environment is not safe from him. 12. Maximum number respondent said they are neglected in their work area even also outside the
organization.

13. The garment industry should have work for society and their business activities or other societal
activities have much more benefited for society.

14. Employees of the garment industry believe that govt. should occur nothing those who are
breaking the laws because of political benefit.

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Part Six
Conclusion

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6.0 Conclusion
In Bangladesh Garments industry plays an important role to cycling the economic wheel of the country. Every year the county earns a huge amount of money by exporting its products from various countries. Its main imported countries are USA, UK, Canada, Japan, and Saudi Arabia and so on. But unfortunately the workers who are the key person to make up products are being neglected since initial stage of this industry. Their salary level is very low in compare to their level of work they are doing. The huge employees age is less than 18 and they work in very dangerous situation. The work environment is very much poor and gender discrimination is huge. In this report we try find out the legal forces of the garments industry. By analyzing them we found that they are actually neglected even from their general rights that they can claim from the organization. The organization occur huge amount unlawful activities in compare to the other organization.

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Part Seven
Recommendation

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7.0 Recommendation
1. Organization should increase salary for the employees to reduce Grievance and increase
productivity.

2. Organization tries to break the gender discrimination.


3. Govt. should have more taken strong laws about the child labor and implement it, organization have to stop the recruit the child labor.

4. Employees workplace should be kept in safety.


5. The Govt. should take strong action those are breaking the rules and regulation of Govt. and motivate the employer to maintain the rules and regulation of govt. 6. Garments should stop to pollute the environment and give penalty those are polluted the environment. 7. Govt. is more conscious about the tax and higher efficient people to audit their tax. 8. Increase the salary of the employees because they work more and pay it in due time. 9. Employees should give an honor about their position because they work are great impact on economy. 10. Govt. should give and strong penalty those are breaking the laws and try to stop it to get an political benefit of the garments owner.

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Part Eight
Bibliography

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8.0 Bibliography
Book reference-the business environment challenges and changes by IAN Brooks and Jamie
Weatherston

Website referenceWWW.google.com / legal forces of business environment. www.babylon.gov.bd

Other reference
Annual report of Babylon group. Annual report of Viyellatex

Conversation with employees and customer. Helps form senior students of BBA

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Part Nine
Annexure

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9.0 Annexure
9.1 Raw Tables Q 9- Have you heard the word Legal forces
Yes No 6 4

Q 10-Garments Industry have occur legal activities with employees


yes no no comment 1 7 2

Q 11-Garments Industry maintain a sufficient salary structure in every employee


yes no no comment 0 8 2

Q 12-occur gender discrimination


yes no no comment 4 6 0

Q 13- recruit employees as satisfactory age of law


yes no no comment 6 3 1

Q 14- working environment of garment industry is better


yes no no comment 0 8 2

Q 15- garment industry maintain the rules and regulation of Govt. in their Business activities
yes no 5 5

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no comment

Q 16- garment Industry occur environmental pollution


yes no no comment 3 4 3

Q 17- garment Industry gives an enough Tax in Govt.


yes no no comment 1 2 7

Q 18- garment Industry employees work more hours compare to the other industry
yes no no comment 9 0 1

Q 19- work environment is safe for employees


yes no no comment always something nothing 1 7 1 7 2 1 9 1

Q 20-Garment workers are neglected in every steps of their work environment

Q 21- activities of Garment Industry are benefited for society


yes no

Q 22- Govt. should take appropriate action about those is breaking the Law
yes no no comment 2 7 1

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9.2 Questionnaire
[Dear respondent,

We are the students of BBA Program in Bangladesh University of Business & Technology (BUBT). For the potential fulfillment of the course entitled Business Environment", we have to prepare a report on Legal Forces. So that, some information would be needed from you. It is assured that all the information will keep confidential and safely use in this report only. Your
kind cooperation will be highly appreciated

Please read carefully the question and put a tick () in the respective number and kindly give your responds where necessary. Office use only Date of interview: Serial No.

Name

Contact Number:
E-mail (If you have) 1 2.

---------------------------------------------------------------------------------------------------

Personal Information:
1. Sex Male 2. Age: Years Female

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3. Religion Muslim 4. Marital Status Single Married Divorced Widowed Hindu Christian Buddhist Other

5. Permanent address: ........... .. 6. Correspondence address: . 7. Academic qualification Primary 8. Position SSC HSC Graduate Post-graduate Others

Question related to subject


9. Have you heard the word Legal forces? Yes 10. What do you know about it? 11. Do you think Garments Industry have occur legal activities with employees? Yes Yes Yes Yes Yes No No No No No No Comment No Comment No Comment No Comment 12. Do you think Garments Industry maintain a sufficient salary structure in every employee? 13. Do you think they occur gender discrimination between man and woman? 14. Do you think the organization recruit employees as satisfactory age of law? 15. Do you think the working environment of garment industry is better? No

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16. Do you think the garment industry maintain the rules and regulation of Govt. in their Business activities? Yes Yes year? Yes industry? Yes Yes Always Yes Yes Signature of respondent No No Sometime No No No comment Signature of interviewer No comment No comment Nothing 20. Do you think the work environment is safe for employees? 21. Do you think Garment workers are neglected in every steps of their work environment? 22. Do you think the activities of Garment Industry are benefited for society? 23. Do you believe the Govt. should take appropriate action about those is breaking the Law? No No Comment 19. Do you think the garment Industry employees work more hours compare to the other No No No Comment No Comment 17. Do you think the garment Industry occur environmental pollution? 18. Do you think the garment Industry gives an enough Tax in Govt. that has calculated in every

Thanks for your cooperation


Any other suggestion;

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