Child Labor: Examining the Role of Supply Chains in Eliminating Child Labor

By?Rafael Vela?/ April 25, 2023

Let′s start with this, ¨child labor is a grave violation of human rights¨. Children who are forced to work are often denied their rights to education, health, and a safe and healthy childhood and this goes against The United Nations Universal Declaration of Human Rights which recognizes all these rights for children. Child labor is also a form of exploitation that is detrimental to the well-being and development of children. As such, its elimination must be a critical and urgent matter for governments, businesses, and civil society organizations around the world.

According to the International Labor Organization (ILO), child labor refers to work that deprives children of their childhood, their potential, and their dignity, and that is harmful to their physical and mental development and includes both paid and unpaid work, and it can occur in formal and informal settings.

WHERE DOES IT OCCUR?

Contrary to what most people think, child labor is not a phenomenon that occurs only in poor or developing countries, it also exists in developed countries, although the prevalence and types of child labor may differ. In developed countries, child labor is typically defined as the employment of children under the age of 15 in any economic activity, either paid or unpaid, that deprives them of their childhood, interferes with their schooling, or is harmful to their physical, mental, or social development.

Child labor in developed countries can take many forms, including agriculture, manufacturing, mining, services, and domestic work. Children who work in these industries may be exposed to physical, psychological, and social risks that can affect their health and well-being. For example, children working in agriculture may be exposed to pesticides and other hazardous substances, while those working in manufacturing may be at risk of injury from machinery or exposure to harmful chemicals.

While child labor is illegal in most developed countries, it still occurs in certain sectors and industries, particularly in the informal economy. Children from marginalized communities, including migrants, refugees, and indigenous populations, are particularly vulnerable to exploitation and abuse. Additionally, the global supply chains of many multinational corporations have been linked to child labor and other forms of labor exploitation, which highlights the need for stronger regulations and accountability measures.

Data on child labor in developed countries can be difficult to obtain due to its informal nature and the challenges of measuring its extent. However, here are some general statistics and trends related to child labor in developed countries:

1. According to the International Labor Organization (ILO), an estimated 7.4 million children aged 5-17 are in child labor in developed countries. This figure is likely an underestimate, as it does not include children working in informal and hidden forms of child labor.
2. In the European Union, an estimated 2.4 million children aged 5-17 are in child labor, with the highest numbers found in agriculture, construction, and domestic work.
3. In the United States, an estimated 1.6 million children are employed in hazardous occupations, including agriculture, manufacturing, and construction. Additionally, there are concerns about the use of child labor in the garment industry and other sectors of the economy.
4. In Japan, an estimated 1.3% of children aged 5-17 are engaged in child labor, with the majority working in the agriculture and fisheries sectors.
5. In Australia, child labor is most prevalent in the agricultural and horticultural industries, with an estimated 2.7% of children aged 5-14 engaged in child labor.

It is important to note that child labor statistics may not capture the full extent of the problem, as many cases go unreported or unnoticed.

On a global scale, the International Labor Organization estimates that approximately 152 million children are engaged in child labor, with nearly half of them (72.5 million) engaged in hazardous work. Asia and the Pacific have the highest number of child laborers, with 62 million children, followed by Sub-Saharan Africa with 72 million. The agriculture sector is the largest employer of child laborers, accounting for 71% of all child labor, followed by the services sector with 17%, and the industry sector with 12%.

INDUSTRIES THAT USE THE MOST CHILD LABOR

Child labor is prevalent in many industries, but some industries use it more than others. The agriculture sector employs the most child laborers, with children working in fields, farms, and plantations. The fishing industry is another sector that uses child labor, with children working on boats, processing fish, and selling fish. The mining and quarrying sector also employs children that work in dangerous conditions in mines and quarries.

There have also been numerous well-documented cases where multinational companies have been linked to child labor in their supply chains. Here are some examples:

1. Nestle: In 2016, Nestle was sued in the United States for allegedly using child labor in its chocolate supply chain in West Africa. The company settled the lawsuit in 2018, but the issue of child labor in its supply chain has continued to be a concern.
2. H&M: In 2020, the Swedish fashion company H&M was accused of using forced labor, including child labor, in its supply chain in China's Xinjiang region. H&M subsequently faced a boycott in China and was forced to close some of its stores in the country.
3. Apple: In 2013, Apple admitted that child labor had been used in its supply chain, after an audit revealed that some of its suppliers in China had hired underage workers. The company subsequently pledged to improve working conditions in its supply chain.
4. Primark: In 2008, the UK-based retailer Primark was found to be using child labor in its supply chain in India. The company subsequently apologized and pledged to improve its monitoring of suppliers.
5. Nike: In the 1990s, Nike faced criticism for using child labor in its supply chain in developing countries. The company subsequently implemented a range of measures to address labor abuses in its supply chain, including monitoring and auditing programs.
6. Samsung: In 2018, a report by the human rights group Amnesty International found that child labor was being used in the mining of cobalt, a key component in smartphone batteries, in the Democratic Republic of Congo. Samsung was among the companies named in the report.
7. Unilever: In 2016, an investigation by The Guardian newspaper revealed that children as young as six were working in the palm oil industry in Indonesia, which supplies palm oil to companies including Unilever. The company subsequently pledged to improve its monitoring of suppliers.
8. Gap: In 2007, Gap faced criticism for using child labor in its supply chain in India. The company subsequently pledged to improve its monitoring of suppliers and to provide support to children who had been affected by the use of child labor.
9. Cargill: In 2014, a report by the human rights group Verité found that child labor was being used in the cocoa supply chains of several major companies, including Cargill. The company subsequently pledged to address the issue and improve its monitoring of suppliers.
10. Walmart: In 2012, a fire at a textile factory in Bangladesh that was producing clothing for Walmart killed 112 workers. The factory was found to have numerous safety violations, including the use of child labor. Walmart subsequently pledged to improve its monitoring of suppliers and to invest in improving factory safety in Bangladesh.

These are just a few examples of the many cases where multinational companies have been linked to child labor in their supply chains. It highlights the importance of implementing effective monitoring and enforcement mechanisms to ensure that labor standards are upheld throughout the entire supply chain.

THE ROLE OF SUPPLY CHAIN MANAGEMENT IN CHILD LABOR

Global supply chains can play a significant role in perpetuating child labor, especially in developing countries. Many multinational corporations rely on complex supply chains that involve multiple tiers of suppliers and subcontractors, often in different countries. This can make it difficult to monitor and enforce labor standards throughout the entire supply chain (challenging yet accountable), including at the lower tiers where child labor and other forms of labor exploitation may occur.

In some cases, companies may intentionally or unintentionally turn a blind eye to child labor in their supply chains in order to keep costs low and maximize profits.

Supply chain management plays a critical role in addressing child labor in industries. Companies can use their influence and leverage in their supply chains to prevent and address child labor by conducting due diligence, monitoring their supply chains more effectively, and engaging with suppliers to improve working conditions. They can also work with governments, civil society, and other stakeholders to promote policies and programs that prevent child labor.

BEST PRACTICES – PREVENTING CHILD LABOR

As in everything else in life, there are best practices that, in this case, can guide supply chain management in the prevention and elimination of child labor in their operations. Here are some of them:

1. Establish clear policies and standards: Companies should establish clear policies and standards that prohibit the use of child labor in their supply chains. These policies and standards should be communicated to suppliers and other stakeholders and should be enforceable through contracts and other means.
2. Conduct regular risk assessments: Companies should conduct regular risk assessments to identify potential sources of child labor in their supply chains. This may involve reviewing supplier data, conducting on-site inspections, and engaging with local stakeholders.
3. Encourage supplier transparency: Companies should encourage transparency in their supply chains by requiring suppliers to disclose information about their labor practices, including their use of child labor. This can help to identify potential risks and to ensure that suppliers are held accountable for their labor practices.
4. Implement supplier monitoring and auditing: Companies should implement a robust monitoring and auditing program to ensure that their suppliers are complying with child labor policies and standards. This may involve conducting on-site inspections, reviewing supplier employment records, and interviewing workers.
5. Provide training: Companies should provide training and capacity building to their suppliers to help them understand and comply with child labor policies and standards. This may include training on child labor laws and regulations, as well as capacity building on labor management and human rights.
6. Promote responsible sourcing: Companies should promote responsible sourcing practices, such as buying from suppliers that have strong labor practices and that are committed to eliminating child labor from their operations.
7. Engage with stakeholders: Companies should engage with stakeholders such as civil society organizations, trade unions, and government agencies to share information, collaborate on initiatives, and promote best practices in addressing child labor.
8. Support community development initiatives: Companies can support community development initiatives that help to address the root causes of child labor, such as poverty, lack of access to education, and social inequality. By investing in initiatives that promote economic development, education, and social welfare, companies can help to reduce the prevalence of child labor in their supply chains.
9. Leverage technology and data analytics: Companies can leverage technology and data analytics to monitor and track their supply chains for potential risks and to identify instances of child labor. This may involve using software tools to monitor social media and other online sources, as well as data analytics to identify patterns and trends in supplier data.
10. Remediation and mitigation: Companies should have a clear plan in place to remediate any instances of child labor that are identified in their supply chains. This may involve removing children from work, providing them with education and training, and supporting their families.
11. Report publicly on progress: Companies should report publicly on their progress in addressing child labor in their supply chains. This can help to build trust with stakeholders and to demonstrate a commitment to ethical and responsible business practices. Public reporting should be comprehensive, transparent, and focused on measurable outcomes.

The key to preventing the use of child labor in supply chains is a proactive and comprehensive approach that involves policies, monitoring, training, and collaboration with stakeholders. By taking these steps, companies can ensure that their supply chains are free from child labor and are promoting the rights and well-being of children.

CORPORATE RESPONSIBILITY

Companies have ethical and legal obligations to ensure that their supply chains are free from the use of child labor. Complexity in supply chains and geographical location is not to be used as justification for not doing what is necessary to prevent the use of child labor. This means that companies are expected to take active steps to identify, prevent, and remediate any instances of child labor that are found in their supply chains.

Corporate responsibility in matters of child labor is a critical issue that is increasingly being addressed by companies around the world. Many multinational corporations recognize that they have a responsibility to ensure that child labor is not used in their supply chains, and that they must take steps to prevent and remediate any instances of child labor that are identified. This responsibility extends beyond legal compliance and includes a commitment to respect the human rights of all workers, including children. Companies that fail to take steps to address child labor in their supply chains risk damaging their reputation, facing legal and regulatory sanctions, and losing the trust of customers and stakeholders. Therefore, it is important for companies to prioritize corporate responsibility in matters of child labor, and to implement comprehensive policies and practices that promote ethical and responsible business practices.

Child labor has become a significant challenge in many countries. Supply chain management plays a critical role in addressing child labor in industries, and companies can use their influence and leverage in their supply chains to prevent and address child labor.

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