Corporate social responsibility (CSR) and ethics are increasingly important forcompanies worldwide. Unfortunately, ignoring CSR and ethical practices has become commonin the business world nowadays. Looking at these phenomena, this study aims to show how CSRand ethics significantly impact businesses as well as society, backed by real evidence. To do so,it looks at information from the historical industrial disaster, the Rana Plaza (RP) collapseincident. Thus, this paper adopts the qualitative critical case study method based on secondarydata. After careful examination of RP catastrophe in readymade garment (RMG) industry, thestudy finds that conforming to CSR and ethical guides are crucial for RMG companies’ successthrough protecting employee and community rights, ensuring fairness, looking out for publicinterests, meeting social responsibilities, following social and ethical obligations, maintaininglaws, and achieving economic interest, which in turn build good company reputation, andultimately leads to enhanced profits and sustainability. In essence, the study supports theconcepts that CSR and ethics really matter from the business domain and social perspectives.The findings stress the importance of businesses in the RMG industry to adopt the practices ofCSR and ethics. The study recommends that appropriate stakeholders, especially businessowners to pay close attention to social and ethical considerations from a broader perspective.Finally, the outcome of this study is crucial for the policy-level stakeholders to take prudentaction to mitigate the likely hazardous occurrence in the coming days, to regain the industry’sreputation and attractiveness.