4.2 Child labor and forced labor prevention
8 min read•august 21, 2024
Child labor and forced labor are critical ethical issues in global supply chains. Companies must navigate complex legal frameworks and industry-specific risks to prevent exploitation. Understanding definitions, causes, and indicators is crucial for developing effective prevention and remediation strategies.
Ethical supply chain management involves implementing due diligence processes, conducting supplier audits, and engaging stakeholders. Remediation approaches focus on victim support, compensation, and reintegration. Collaboration with governments, NGOs, and industry partners is essential for driving systemic change and addressing root causes.
Definition of child labor
- Child labor encompasses work that deprives children of their childhood, potential, and dignity while interfering with their education and development
- Ethical supply chain management aims to identify, prevent, and eliminate child labor practices throughout global production networks
- Understanding child labor definitions forms the foundation for developing effective prevention strategies and policies in supply chains
International labor standards
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- ILO Convention No. 138 sets minimum age for employment at 15 years (14 for developing countries)
- Convention No. 182 prohibits worst forms of child labor for all children under 18
- UNICEF defines child labor as work that exceeds a minimum number of hours depending on the child's age and type of work
- Standards distinguish between light work, regular work, and hazardous work based on age thresholds
Forms of child labor
- Hazardous work exposes children to physical, psychological, or sexual abuse
- Slavery or slavery-like practices include trafficking, debt bondage, and forced labor
- Use of children for illicit activities (drug trafficking, prostitution)
- Work that interferes with schooling by depriving children of the opportunity to attend school
- Domestic work often invisible and unregulated, putting children at risk of exploitation
Causes of child labor
- Poverty drives families to send children to work to supplement household income
- Lack of access to quality education reduces alternatives to child labor
- Cultural attitudes that view child work as beneficial for development
- Weak law enforcement allows employers to exploit children with impunity
- Demand for cheap labor in certain industries incentivizes child employment
Forced labor overview
- Forced labor refers to situations where people are coerced to work through violence, intimidation, or more subtle means like debt manipulation
- Ethical supply chain management seeks to identify and eliminate forced labor practices across global production and distribution networks
- Understanding forced labor dynamics is crucial for developing effective prevention and remediation strategies
Types of forced labor
- State-imposed forced labor by government authorities for economic development or punishment
- Debt bondage traps workers through manipulated debts they cannot pay off
- Human trafficking involves recruitment and transportation of people for exploitation
- Domestic servitude often affects migrant workers in private households
- Prison labor when inmates are forced to work without fair compensation
Indicators of forced labor
- Restriction of movement through confinement or surveillance
- Retention of identity documents by employers
- Withholding of wages or excessive wage deductions
- Threats of denunciation to immigration authorities for undocumented workers
- Physical or sexual violence used as punishment or control
Global prevalence
- ILO estimates 25 million people in forced labor globally
- Highest prevalence in Asia-Pacific region, followed by Africa
- Forced labor generates $150 billion in illegal profits annually
- Women and girls disproportionately affected, accounting for 58% of victims
- Sectors with high prevalence include agriculture, construction, manufacturing, and domestic work
Legal frameworks
- Legal frameworks provide the foundation for combating child and forced labor in global supply chains
- Ethical supply chain management requires understanding and compliance with various international and national laws
- Evolving legal landscape creates both challenges and opportunities for businesses to address labor rights issues
International conventions
- UN Convention on the Rights of the Child establishes global standards for child protection
- ILO Forced Labour Convention (No. 29) and Abolition of Forced Labour Convention (No. 105) define forced labor
- UN Guiding Principles on Business and Human Rights outline corporate responsibility to respect human rights
- OECD Guidelines for Multinational Enterprises provide recommendations for responsible business conduct
National legislation
- US Trafficking Victims Protection Act criminalizes human trafficking and forced labor
- UK requires large companies to report on steps taken to address slavery in supply chains
- California Transparency in Supply Chains Act mandates disclosure of efforts to eradicate slavery and trafficking
- Australian Modern Slavery Act imposes reporting requirements on businesses operating in Australia
Corporate liability
- French Duty of Vigilance Law requires large companies to identify and prevent human rights violations in supply chains
- German Supply Chain Due Diligence Act imposes mandatory human rights due diligence obligations
- Increasing trend towards holding parent companies liable for subsidiaries' human rights violations
- Civil liability risks for companies failing to address forced labor in their supply chains
- Criminal liability possible in cases of knowingly benefiting from forced labor
Supply chain risks
- Supply chain risks related to child and forced labor pose significant ethical and operational challenges for businesses
- Ethical supply chain management involves identifying, assessing, and mitigating these risks throughout the value chain
- Understanding risk factors enables companies to prioritize prevention and remediation efforts effectively
High-risk industries
- Agriculture and fishing vulnerable due to seasonal demand and remote locations
- Garment and textiles often rely on informal subcontracting and piece-rate work
- Mining and extractives associated with hazardous working conditions and isolated worksites
- Electronics manufacturing characterized by complex supply chains and high-pressure production targets
- Construction industry susceptible to exploitation of migrant workers and informal employment practices
Geographical hotspots
- Southeast Asia (Thailand, Malaysia, Indonesia) faces challenges in seafood and palm oil industries
- South Asia (India, Bangladesh, Pakistan) grapples with child labor in garment and brick kiln sectors
- West Africa (Ghana, Côte d'Ivoire) confronts issues in cocoa production and artisanal mining
- Central and South America (Brazil, Peru) combat forced labor in cattle ranching and logging
- Middle East (Qatar, UAE) addresses exploitation of migrant workers in construction and domestic work
Subcontracting issues
- Multiple tiers of suppliers reduce visibility and control over working conditions
- Unauthorized subcontracting to informal workshops increases risk of labor violations
- Pressure to meet tight deadlines and low prices can lead to exploitative practices
- Lack of direct contractual relationships complicates enforcement of labor standards
- Cultural and linguistic barriers may hinder effective monitoring of subcontractors
Prevention strategies
- Prevention strategies form the core of ethical supply chain management efforts to address child and forced labor
- Proactive approaches aim to identify and mitigate risks before violations occur
- Effective prevention requires a combination of policies, processes, and collaborative initiatives
Due diligence processes
- Risk assessment identifies potential labor rights violations in supply chains
- Supplier mapping creates visibility into all tiers of the supply chain
- Integration of human rights criteria into supplier selection and contracting processes
- Regular monitoring and evaluation of supplier performance on labor standards
- Grievance mechanisms allow workers to report violations without fear of retaliation
Supplier audits
- On-site inspections verify compliance with labor standards and company policies
- Worker interviews conducted in safe, confidential settings to gather accurate information
- Document review examines wage records, time sheets, and age verification procedures
- Unannounced audits help prevent staged compliance during scheduled visits
- Corrective action plans developed to address identified non-conformities
Capacity building programs
- Training for suppliers on labor rights, ethical recruitment, and management systems
- Worker education on their rights, grievance procedures, and available support services
- Collaboration with local NGOs to provide culturally appropriate training and resources
- Technical assistance to help suppliers improve working conditions and productivity
- Peer learning networks facilitate knowledge sharing among suppliers facing similar challenges
Remediation approaches
- Remediation approaches focus on addressing identified cases of child or forced labor in supply chains
- Ethical supply chain management requires robust mechanisms to support victims and prevent recurrence
- Effective remediation involves collaboration between businesses, governments, and civil society organizations
Victim support services
- Immediate removal of children or forced laborers from exploitative situations
- Safe housing and emergency shelter provided to victims
- Medical care and psychological counseling to address physical and mental health needs
- Legal aid to assist victims in understanding their rights and pursuing justice
- Family reunification services for trafficked individuals or separated children
Compensation mechanisms
- Back pay calculations to ensure workers receive fair wages for work performed
- Establishment of compensation funds to provide financial support to victims
- Collaboration with local authorities to facilitate access to government assistance programs
- Support for civil litigation to seek damages from perpetrators of labor exploitation
- Provision of vocational training or education scholarships as forms of non-monetary compensation
Reintegration programs
- Educational support to help child laborers return to school or access vocational training
- Job placement assistance for adult victims of forced labor
- Life skills training to build self-sufficiency and reduce vulnerability to re-exploitation
- Community-based programs to address root causes and prevent re-trafficking
- Long-term monitoring and follow-up to ensure successful reintegration of victims
Stakeholder engagement
- Stakeholder engagement is crucial for developing comprehensive solutions to child and forced labor issues
- Ethical supply chain management requires collaboration with diverse actors to leverage expertise and resources
- Effective engagement strategies build trust, align efforts, and drive systemic change
Government collaboration
- Policy advocacy to strengthen legal frameworks and enforcement mechanisms
- Public-private partnerships to implement national action plans against child and forced labor
- Information sharing on high-risk areas and emerging trends
- Capacity building for labor inspectors and law enforcement officials
- Joint initiatives to improve access to education and social services in vulnerable communities
NGO partnerships
- Leveraging NGO expertise in identifying and addressing labor rights violations
- Collaboration on worker empowerment and community development programs
- Independent monitoring and verification of company efforts to address labor issues
- Joint research projects to better understand root causes and effective interventions
- Awareness-raising campaigns to educate consumers and mobilize public support
Industry initiatives
- Multi-stakeholder initiatives bring together companies, NGOs, and governments to address sector-specific challenges
- Development of industry-wide standards and codes of conduct
- Pooling resources for joint auditing and capacity building programs
- Sharing best practices and lessons learned through industry working groups
- Pre-competitive collaboration to tackle systemic issues in shared supply chains
Key Terms to Review (18)
Better Cotton Initiative: The Better Cotton Initiative (BCI) is a global nonprofit organization that aims to improve the cotton industry by promoting more sustainable farming practices. It focuses on reducing the environmental impact of cotton production and improving the livelihoods of cotton farmers, particularly in developing countries. By advocating for better agricultural practices, BCI also addresses issues related to child labor and forced labor, fostering a more ethical and responsible supply chain within the cotton sector.
Child labor laws: Child labor laws are regulations that prohibit the employment of children in work that is harmful to their physical, mental, or emotional well-being. These laws aim to ensure that children are protected from exploitation and can enjoy their rights to education and a safe upbringing, highlighting the importance of preventing both child labor and forced labor in various industries.
Child Labor Prevention Act: The Child Labor Prevention Act is legislation aimed at eradicating child labor by establishing legal frameworks and regulations that prohibit the employment of minors in hazardous conditions and certain industries. This act serves as a vital component of efforts to protect children's rights and welfare, ensuring that they are not exploited for labor at the expense of their education and development.
Community engagement: Community engagement is the process of involving individuals and groups in decision-making and activities that affect their lives, fostering collaboration and partnerships between organizations and communities. It emphasizes mutual respect, transparency, and building trust, which are essential for ensuring that the needs and concerns of community members are recognized. This practice plays a vital role in various contexts, including promoting supplier diversity, preventing child labor, supporting inclusive practices in supply chains, and marketing ethical products.
Corporate Social Responsibility: Corporate Social Responsibility (CSR) is a business model in which companies integrate social and environmental concerns into their operations and interactions with stakeholders. This approach emphasizes accountability and ethical behavior, extending beyond profit generation to include the impact of business practices on society and the environment.
Fair Labor Association: The Fair Labor Association (FLA) is a nonprofit organization that aims to promote and protect fair labor practices in the global supply chain. It brings together companies, universities, and civil society organizations to work collaboratively in creating and enforcing standards that ensure safe working conditions, fair wages, and the elimination of child and forced labor. Through its monitoring and evaluation processes, the FLA helps organizations improve their labor practices while fostering transparency and accountability.
Fair Trade: Fair Trade is a social and economic movement aimed at ensuring that producers in developing countries receive fair prices for their goods, while also promoting sustainable practices and improved working conditions. This concept is deeply tied to ethical supply chain management as it emphasizes equity, transparency, and respect throughout the supply chain.
Forced labor indicators: Forced labor indicators are specific signs or evidence that suggest an individual or group may be subjected to forced labor, where people are coerced into working against their will. These indicators help organizations identify and address situations of forced labor within supply chains, contributing to broader efforts in preventing child labor and forced labor practices.
Human Rights Impact Assessment: A human rights impact assessment is a process that evaluates the potential effects of policies, projects, or business practices on the human rights of individuals and communities. This assessment helps organizations identify risks, mitigate negative impacts, and promote respect for human rights, particularly concerning vulnerable groups such as children and workers affected by labor practices.
International Labour Organization Conventions: International Labour Organization Conventions are legally binding agreements developed by the International Labour Organization (ILO) to establish international labor standards. These conventions aim to promote fair and equitable labor practices across the globe, focusing on key issues such as child labor and forced labor prevention, ensuring workers' rights, and enhancing social justice.
Modern Slavery Act: The Modern Slavery Act is a legislative framework established to combat various forms of modern slavery, including human trafficking, forced labor, and child exploitation. It aims to increase transparency in supply chains and requires businesses to disclose their efforts in preventing these practices. This act serves as a critical tool for protecting vulnerable populations and promoting ethical practices in the global economy.
Remediation processes: Remediation processes refer to the actions taken to address and rectify violations of human rights or labor standards, particularly concerning child labor and forced labor. These processes aim to restore the rights and dignity of affected individuals by providing support, reintegration, and compensation, ensuring that similar violations do not occur in the future. Effective remediation is crucial in ethical supply chain management as it addresses harm and promotes accountability among businesses.
Risk-based due diligence: Risk-based due diligence is a proactive approach that organizations use to assess and manage potential risks in their supply chains, particularly concerning human rights abuses like child labor and forced labor. This process involves evaluating the likelihood and impact of risks associated with suppliers and their practices, allowing companies to prioritize their efforts on the highest-risk areas. By focusing on risk factors, organizations can implement strategies to prevent and mitigate harmful practices before they occur.
Social compliance audit: A social compliance audit is a systematic evaluation of a company's adherence to social responsibility standards and ethical practices throughout its supply chain. This process typically involves assessing labor conditions, environmental impact, and overall corporate social responsibility, ensuring that suppliers meet specific ethical benchmarks. These audits are crucial for identifying and mitigating risks related to child labor, forced labor, and other unethical practices, as well as for supporting ethical supplier selection and ongoing evaluation processes.
Supplier accountability: Supplier accountability refers to the responsibility that suppliers have to adhere to ethical practices, regulations, and standards throughout the supply chain. This concept emphasizes the need for suppliers to ensure their operations are free from unethical practices such as child labor and forced labor, while also being transparent about their sourcing methods. By holding suppliers accountable, organizations can create a more ethical supply chain that promotes fair treatment of workers and compliance with labor laws.
Supply chain mapping: Supply chain mapping is the process of visualizing and analyzing the flow of materials, information, and finances throughout the entire supply chain, from raw materials to end consumers. It helps organizations identify inefficiencies, risks, and opportunities for improvement in their operations. By creating a clear representation of the supply chain, companies can better understand their impact on social issues such as child labor and forced labor, as well as develop responsible purchasing practices and effectively manage crises related to ethical breaches.
United Nations Guiding Principles on Business and Human Rights: The United Nations Guiding Principles on Business and Human Rights (UNGPs) are a set of guidelines designed to protect human rights in the context of business activities. They establish a global standard for preventing and addressing the risk of human rights abuses linked to business operations. These principles emphasize the responsibility of businesses to respect human rights, aligning closely with international labor standards and the prevention of child labor and forced labor, ensuring ethical practices within supply chains worldwide.
Worker voice mechanisms: Worker voice mechanisms refer to the systems and processes that allow employees to express their opinions, concerns, and suggestions about workplace practices, policies, and conditions. These mechanisms can take various forms, such as surveys, suggestion boxes, grievance procedures, or representation through labor unions. They are essential for promoting transparency and accountability in organizations, especially when addressing critical issues like child labor and forced labor prevention.