Stolen Childhoods: How Businesses Can Protect Children
June 12th marks World Day Against Child Labor, a global movement started by the International Labour Organization (ILO) in 2002. This day unites governments, businesses, and individuals like you and me in a shared mission: to eradicate child labor completely and ensure all children have the opportunity to learn, play, and grow in a safe and nurturing environment.
Why Children Work
Poverty: Families need every income stream to survive, especially in rural areas where agricultural work incentivizes child labor.
Exploitation: Children are cheaper, less likely to complain about harsh conditions and low wages. And often families often can't afford schooling.
Lack of Awareness: Limited understanding of child rights or a belief that education won't improve lives leads some families to send children to work.
Migrant Labor: Constant movement forces children of migrant workers to work alongside their parents instead of attending school.
Child Labor's Impact on Socially Responsible Businesses
For businesses committed to Environmental, Social, and Governance (ESG) principles, child labor is a critical consideration. Presence of child labor down the supply chain directly undermines the "Social" pillar of ESG, which focuses on ethical labor practices, human rights, and responsible community engagement.
Why It's So Hard to Detect
Identifying and mitigating child labor is incredibly difficult for a few reasons:
Hidden Labor: Child labor often occurs in less-scrutinized subcontracted facilities.
Age Verification: Verifying child age can be difficult in countries with unreliable birth records.
Employer Deception: Employers may conceal child workers or send them home before inspections.
Fearful Silence: Children may stay silent due to fear of losing income or jeopardizing their families.
Ethical and Reputational Risks
Looking the other way on child labor opens organizations to risks beyond social impact, posing severe ethical and reputational risks for businesses:
Exploitation of Vulnerable Populations: Businesses risk violating ethical standards by profiting from child labor.
Damaged Social License: Ignoring child labor can erode public trust and damage a company's reputation.
Legal and Reputational Consequences: Businesses may face fines, sanctions, and boycotts for non-compliance with labor laws and international conventions.
Beyond Social Impact: Governance Concerns
The "Governance" aspect of ESG focuses on corporate ethics, risk management, and compliance. Failure to implement strong policies and due diligence processes to prevent and address child labor within a company's operations and supply chains exposes them to significant legal and reputational risks.
Hidden Within Supply Chains
The reality is that many children are exploited within complex supply chains. According to a 2020 US Department of Labor report, child labor can be found in the production of agricultural goods (carpets, cotton, cocoa, coffee), apparel, electronics, and more.
Fighting Back Against Child Labor
We don’t know what we don’t know. But taking proactive steps can create a positive impact on children's lives and their communities. Here are some practical things businesses can do:
Conduct Rigorous Audits: Partner with independent, specialized auditors like the Fair Labor Association for in-depth assessments of factories throughout the supply chain. Don't settle for superficial checks.
Collaborate with Suppliers: Move beyond contracts and develop long-term, collaborative partnerships with suppliers. Working directly with them can help increase transparency and help drive systemic change.
Focus on High-Risk Regions: Target resources towards areas with known child labor exploitation. Organizations like Design for Freedom provide valuable resources like targeted lists of locations and industries with high risks.
Demand Transparency and Accountability: If you don’t already have a Supplier Code of Conduct, it is time to create one. Encourage and where possible, require regular labor practice reports from suppliers, including details on worker demographics, working hours, and wages. For example outdoor clothing company Patagonia publicly discloses suppliers' factories and practices.
Engage Stakeholders: Partner with NGOs and advocacy groups dedicated to eradicating child labor by tackling the source of the issue- supporting families who are living in poverty and providing their children with food and education.
Working Together to Change Tomorrow
By working together and integrating ethical practices into our business operations, we can create a world where every child has the opportunity to shine- no matter where they are located.