Businesses

Business and its role in the elimination of child labour

"A company that makes profit and little else is not much of a company" Henry Ford

Like all organs of society, businesses have role to play in the elimination of child labour. In the last few years, businesses have been accused of exploiting children and using their labour in the production of their products.

Businesses have a significant role to play in ensuring that no child labour was involved in any part of the supply chain of their products.

Business, trade and investment are essential pillars for prosperity and peace. But in many areas, business is too often linked with serious dilemmas like, exploitative practices (such as child labour), corruption, low pay, environmental pollution, resource degradation and erecting barriers that discourage local development and entrepreneurship.

Not all businesses of course have always behaved in an irresponsible manner, however with the rise of large, influential corporations in the early 20th century, debate about the role of the corporation particularly in relation to concepts around human rights, environmental stewardship, and corporate citizenship began to surface.

What is Corporate Social Responsibility (CSR)?
A widely quoted current definition by the World Business Council for Sustainable Development states that "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large."

"CSR is good for business and good for society"
The term CSR itself came in to common use in the early 1970s although it was seldom abbreviated. The term stakeholder, meaning those impacted by an organization's activities whether in the immediate environment or on a global scale, was used from the late 1980s to highlight the impact of a corporation beyond its shareholders.

While there are many legal requirements that regulate the ways in which a corporation operates, CSR measures are voluntary actions that are taken over and above these proscribed by law.

The UN Global Compact on CSR
The Global Compact was launched by the United Nations on 26 July 2000, when several dozen business leaders came together at UN Headquarters to join an international initiative that would bring companies together with UN agencies, labour and civil society to advance universal social and environmental principles.

Over 4,000 organizations from 116 countries -- among them trade unions, non-governmental organizations (NGOs) and some 3,100 businesses -- have so far subscribed to the Global Compact which has become the world’s largest voluntary corporate citizenship initiative. Through the power of collective action, the Global Compact seeks to advance responsible corporate citizenship so that business can be part of the solution to the challenges of globalization. In this way, the private sector — in partnership with other social actors — can help realize the UN’s vision: a more sustainable and inclusive global economy.

The Global Compact:
1. is a framework for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour, the environment and anti-corruption.
2. is a purely voluntary initiative with two objectives:
a. Mainstream the ten principles in business activities around the world
b. Facilitate cooperation among business partners in support of the UN Global Compact goals
3. it does not “police”, enforce or measure the behavior or actions of companies. Rather, the Global Compact relies on public accountability, transparency and the enlightened self-interest of companies, labour and civil society to initiate and share substantive action in pursuing the principles upon which the Global Compact is based.
4. and its principles are based on UN declarations that have been agreed by government heads from around the world and as such the principles are not new, but they are specifically addressed to business leaders in order that they may fulfill their duty as good "corporate citizens".

The Ten Global Compact Principles

Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights;
Principle 2: make sure that they are not complicit in human rights abuses.

Labour Standards
Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Principle 4: the elimination of all forms of forced and compulsory labour;
Principle 5: the effective abolition of child labour;
Principle 6: the elimination of discrimination in respect of employment and occupation.

Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Principle 8: undertake initiatives to promote greater environmental responsibility;
Principle 9: encourage the development and diffusion of environmentally friendly technologies

Anti-Corruption
Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

Global Compact on child labour
In elaborating on Principle 5 (quoted above) the Global Compact advises: "Although children enjoy the same human rights as adults, their lack of knowledge, experience and power means that they also have distinct rights by virtue of their age. These rights include protection from economic exploitation and work that may be dangerous to their health or morals and that may hinder their development…"

"Employers should not use child labour in ways that are socially unacceptable and that lead to a child losing his or her educational opportunities."

Communication on Progress(COP)
One of the explicit commitments that a company makes when it participates in the Global Compact is to produce an annual COP. A COP is a communication to stakeholders (consumers, employees, organized labour, shareholders, media, government…) on the progress the company has made in implementing the ten principles in their business activities and, where appropriate, supporting UN goals through partnerships. These annual reports are posted on the Global Compact website: www.unglobalcompact.org

Criticism of the Global Compact
Perhaps the single biggest criticism of the Global Compact is that because it is a voluntary action taken by companies the UN has no teeth in enforcing compliance with the principles. Critics state that what is vital is for governments to impose stricter regulations that will force business leaders to comply with the principles.

The U.N.'s Global Compact with international big business "at the moment is so voluntary that it really is a happy-go-lucky club" Ramesh Singh, chief executive of ActionAid

The Geneva Declaration
In July 2007 at the second United Nations Global Compact Leaders Summit, top executives of corporations such as Coca-Cola, Nestle, Levi-Strauss, Fuji Xerox, and L M Ericsson adopted the 21-point Geneva Declaration, which spells out concrete actions for business, governments and United Nations Global Compact participants.

The Geneva Declaration expresses the belief that "globalization, if rooted in universal principles, has the power to improve our world fundamentally -- delivering economic and social benefits to people, communities and markets everywhere".

"The need for action is urgent," the document says. "Poverty, income inequality, protectionism and the absence of decent work opportunities pose serious threats to world peace and markets".

"Business, as a key agent of globalization, can be an enormous force for good".

"Business, as a key agent of globalization, can be an enormous force for good", the Declaration says, adding that companies, by committing themselves to corporate citizenship, can create and deliver value in the widest possible terms. Globalization can thus act as an accelerator for spreading universal principles, creating a values-oriented competition for a "race to the top".

Read the Geneva Declaration at: www.unglobalcompact.org

Global Compact one among many…
While the UN Global Compact represents a serious attempt to engage business and government leaders at the highest levels, it is not the only attempt to apply agreed principles to business practice. Following is just a short list of other initiatives and how they address child labour;

Fair Labour Association (FLA) --- agreed a code of conduct defining working standards for the apparel industry including a standard on child labour; "No person shall be employed at an age younger than the age of completing compulsory education."

Social Accountability 8000 (SA 8000) --- seeks to create an "auditable" code of conduct that can be applied in the sourcing of all materials across all consumer products. The SA8000 standard requires that companies "provide support and actions to ensure the safety, health and education and development of children who have been subjected to child labour…and are dismissed."

Ethical Trading Initiative (ETI) --- based on the International Labour Organisation’s conventions on labour standards. On child labour the ETI simply states; CHILD LABOUR SHALL NOT BE USED. Where child labour has been used companies shall develop or participate in and contribute to policies and programmes which provide for the transition of any child to attend and remain in quality education until the age of 18.

Should we boycott?
Boycotts are not helpful, for anybody. And the issue is not that simple and boycotts could make matter worse for children - it could force then from unsafe factories to unsafe streets. Unfortunately, Child labour is so widespread and supply chains are so difficult to follow, it is hard to promote one company’s record over another. Instead of refusing to buy certain products, consumers should use their power to support those organisations and initiative that are creating the conditions for a child labour-free world.

As we all well know however, Brand manufacturers are very sensitive to consumer pressure so we can put pressure on them to guarantee that no child labour was used in the making of their products. Such pressure can range from asking questions, writing letters directly to the company, retailers, business groups, chambers of commerce and politicians We can also create demand for transparency and accountability in all supply chains.

Child labour will not be eliminated by boycott alone; rather it will only be eliminated when systems are put in place to prevent one group of child labourers being replaced by another. We believe that child labour is not just an issue for a single industry or company alone, but rather it is an issue for all of us. We should all work together towards the elimination of child labour.

No one action will eliminate child labour. Instead, political mobilisation and public action is needed and to be successful, all stakeholders must be involved.
"Boycotts are something that may make the person who's boycotting feel better, but it doesn't necessarily make conditions any better for the child" Carol Bellamy, former Executive Director of UNICEF