EXECUTIVE SUMMARY

Helping Business to Help Stop Child Labour

 

Comments on How Company Codes of Conduct, `Child Labour Free' Labels and the Social Clause Can Help Eliminate Child Labour

 

A 1996 Report by Anti-Slavery International

 

NOTE: the full text of this report can be ordered from Anti-Slavery International…contact Librarian by e-mail: [email protected]

www.antislavery.org

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EXECUTIVE SUMMARY

             “In all actions concerning children ... the best interests of the child shall be a primary consideration.”

Article 3 of the United Nations Convention on the Rights of the Child (1989)

  

Dozens of well-known companies based in the industrialised countries of Europe, North America and the Pacific region have recently adopted "codes of conduct" to demonstrate that they are not involved in exploiting workers or resources in ways consumers might not approve of. Some cynical observers have suggested that the rush to adopt codes and other guidelines is simply a marketing strategy, offering opportunists a way to get ahead of their competitors: instead of selling a better or a cheaper product than other companies, they are trying to persuade buyers that the conditions in which their products are made are better than anyone else's.

            Just how meaningful are these "codes of conduct"? This report takes a look at one particular aspect: how companies engaging in international trade can try to prevent the unacceptable commercial exploitation of children. While looking at the efforts which companies have taken to curtail other unacceptable forms of exploitation, it concentrates on the issue of child labour. It is this issue which has received special attention from some of the multinational retailing giants, such as Reebok. It has received particular attention from businesses dealing in goods which are bought by children: toys and sporting goods. It has also received significant attention from retailers selling clothes, as children have frequently been employed in the garment industry in both developing countries and industrialised ones.

             The report shows that while campaigns against child labour usually have the "best interests" of the children concerned at heart, they can nevertheless end up damaging the interests of some or even many children. Similarly, it indicates that companies may genuinely want to introduce effective measures against child labour, but in practice take steps which satisfy their consumers without necessarily proving helpful for the children concerned.

             The report concludes that companies can do something helpful, both to prevent young children from being exploited and to ensure better conditions for children who currently have to work. But it also observes that many of the standards and definitions being applied to child labour are muddled or vague, and that some of the initiatives which have been taken to help children have been ill-prepared or even counter-productive.

             The report is intended for activists campaigning against child labour and also for company managers and other policy-makers involved in assessing what is the most appropriate action to take against child labour. It contains detailed suggestions about the provisions of company codes of conduct being designed to prevent the exploitation of child labour (in Chapter 5), commenting on the choice of standards to be observed, the way codes should be prepared and introduced, and some of the measures needed to ensure they are being respected.

             The report begins by presenting details about the international standards which already exist as far as child labour is concerned. It emphasises the importance of the principle guaranteed by the United Nations (UN) 1989 Convention on the Rights of the Child, that in any decision taken about a child, the "best interests of the child" should always be a primary consideration. Some standards on child labour are open to different interpretations and the most important one, the International Labour Organization's (ILO's) Convention _ 138 concerning Minimum Age for Admission to Employment, has been ratified by relatively few countries -- and none of the states in South and Southeast Asia where child labour has been a major concern. However, it is clear that international standards do not prohibit all children from working in all circumstances.

             Western-based companies and activists sometimes impose the definition of "child labour" developed in their own countries on developing countries. The report explains why this is inappropriate. It also points out the limitations of existing age-based thresholds for allowing children to enter employment, while explaining that the ILO's Convention _ 138 allows for 14-year-olds in most developing countries to take full-time jobs. Indeed, this convention allows children aged as young as 12 to be employed on "light work" in developing countries. The fact that this convention allows different standards in different countries has permitted both employers and governments to claim that they are adhering to international standards when in fact children are being exploited.

             In addition to the criterion of age, the report refers to the international standards which oblige employers to ensure that children do not work excessively long hours, are not put in "hazardous" jobs, and are not victims of forced labour or any slavery-like exploitation in the course of their recruitment.

             All sorts of people -- governments, employers and social activists -- have criticised the current international standards on child labour, both because they do not appear to be effective in preventing the commercial exploitation of children and because they do not provide a clear enough standard for objective measurement about what employment for children is or is not acceptable. The ILO has recently decided to prepare a new convention designed to prohibit the "most abusive" and "most exploitative" forms of child labour, which is expected to produce clear agreement by 1999 on what forms of child labour are definitely not acceptable.

             After examining the various international standards concerning child labour, the report concludes: "One clear implication is that it would not be appropriate to place a ban on the employment of all young people under 16". Equally clearly, international standards do not envisage any cases in which children aged 11 or younger can be employed -- even though tens of millions of children below 12 are reported by the ILO to be in employment around the world.

             As far as working children are concerned who are under an acceptable age threshold and who are found to be working directly or indirectly for companies at the time that codes of conduct are adopted, the report stresses a company's responsibility not to give in to the temptation of simply dismissing them. Working children of primary school age should be helped to complete their education, and, while children aged 11 or younger should not be in employment and employers should reintegrate them into the education system, companies should ensure that children aged 12 and 13 can continue working and earning at least on a part-time basis while they are educated.

             After looking at the international standards, the report examines an idea currently supported by many campaigners -- of establishing formal links in international trade agreements, both multilateral and bilateral, with labour standards. Many trade unionists and other activists have been campaigning to make international trade agreements contingent on respect for certain "core" internationally-recognised labour standards, such as the right to form trade unions and the right to collective bargaining, and bans on forced labour and any forms of slavery such as debt bondage. Some campaigners have called for a ban on child labour to be one of the core standards to be adopted. The report points out the problems of doing so at present, when there is a lack of international consensus on exactly what forms of child labour should be excluded. It also refers to the opposition by employers' organisations to such a move.

             One country whose experience serves to show the possible effects of making trade contingent on an effective ban on child labour is Bangladesh, where campaigners in the USA exerted enormous pressure from 1993 onwards. The report points out some of the counter-productive effects of the way the pressure was applied and draws a number of lessons, in particular on what the process should be, emphasising the importance of involving local activists, of taking decisions on the basis of priorities and needs identified in the country where children are working -- not just in the industrialised countries which import products made by children.

             The Bangladesh experience shows that if a rule against child labour is going to be enforced in trade arrangements, it must be based on clear standards and some common agreement about what the standards are. The case also illustrates the dangers of purely bilateral action being taken by one powerful industrialised country against one poor developing country -- for the industrial power concerned will inevitably be suspected of acting in its own self-interest and of protectionism.

             The report next examines the experience of companies which have adopted their own code of conduct and cites details of the codes and guidelines adopted by a wide range of employers. While welcoming the sentiment behind some of the codes, the report nevertheless criticises the lack of thought given to turning the codes into reality and stresses the need for monitoring and audit systems.

             The report reaches some conclusions about what should be in codes of conduct as far as child labour is concerned.  

1.         A code should apply not just to the company which sells products in industrialised countries, but also to its suppliers. 

2.         A code should specify standards which are precise and measurable. In the absence of precise and measurable standards (in relation to child labour or other issues), it is reasonable to conclude that codes of conduct are probably statements of intent rather than anything more serious. If so, it is reasonable for consumers (and campaigners) to press for more substantial guidelines to be introduced. 

3.         A code does not have to prohibit all cases of child labour, that is to say to prohibit all children aged under 18 or under 16 from working. It should prohibit the recruitment of children into full-time employment if they have not reached their 14th birthday. It can allow for children aged 12 and 13 in developing countries to be employed for "light work", preferably on a part-time basis while they finish their schooling. It should certainly prohibit the employment of children aged 11 and younger.  

4.         A code should stipulate that if children of primary school age are found to be working in enterprises connected to the company, they must be able to continue attending school or, if they have never attended school, be helped to attend school. It would be logical to prohibit the recruitment of children of primary school age, but not simply to dismiss children of this age who are found to be working. Furthermore, a code should provide for the company to engage in some process to rehabilitate children below the minimum age who are found to be working, particularly children of primary school age, as well as to prevent other young children from entering employment; it is not legitimate for companies to simply dismiss working children. 

5.         As well as any ban on children below a certain age being employed, company codes should deal with the conditions for children -- anyone under 18 -- who are at work. A code should, as a matter of priority, aim to prevent abusive or exploitative forms of child labour (which international organisations have recently called "the most intolerable" forms of child labour). Employers should recognise that it is undesirable for children entering employment to be subjected to conditions which are as severe as those of adult workers. Children under 18 require greater protection than adults -- and certainly not less. A code should guarantee certain minimum conditions for children and adolescents under 18 years of age who are employed. It should ensure that children under 18 years of age are not involved in hazardous work, that is to say in work which would expose them to physical or other sorts of harm on account of the job they are doing. It should stipulate some maximum hours for children to work during the day and week, as extremely long hours of work can constitute a hazard for young people. It should also guarantee that children have periodic holidays. 

6.         A code should explicitly ban the use of any form of corporal punishment for child workers. 

7.         A code should prohibit the employment of any child (or other employee) on the basis of debt bondage or any other form of forced labour. Debt bondage (also known as bonded labour) commonly takes the form of employers or recruitment agents giving advances of money to parents in return for the children being pledged to work elsewhere either for a specified period or indefinitely (for example, until the money is repaid).  

8.         Information about new standards has to be communicated in a careful way when companies adopt codes of conduct, with the code translated into the language (or languages) which employers and employees usually speak, and displayed or (if not everyone can read) communicated in a clear way. 

9.         Companies have to check whether their code is being respected. This means checking how a code is monitored -- a company's own quality assurance of the monitoring process -- and also being prepared to allow independent auditing of the monitoring procedures to ensure that they are effective and that the terms of the code of conduct are being implemented. 

            After reviewing how company codes of conduct work, the report goes on to look at the experience of labels attached to certain products which have guarantees about the conditions in which the product was made. In contrast to the codes of conduct, which tend to have been adopted by individual companies, labels have tended to set an industry-wide standard. Furthermore, instead of being developed exclusively by companies importing into industrialised countries, some labelling schemes have been established in developing countries at the initiative of local activists who want to give a guarantee about the conditions in which a product is made, which is backed up by a credible monitoring system. The report examines the experience of a label in use for carpets exported from India -- the "Rugmark". 

            Finally, the report reviews what steps companies and organisations based in industrialised countries can take to ensure that their employees working in developing countries do not become involved in the commercial exploitation of children, either at home or at work. One obvious guideline would discourage or prohibit the staff of multinational organisations or companies from employing children as domestic servants; only one organisation is known to have adopted an explicit rule on this. Local laws against the commercial sexual exploitation of children -- child prostitution -- are assumed by most employers to be sufficient dissuasion, although it is evident that in this case too, employers are reluctant to issue rules about their employees' private lives. Once again, it would be appropriate to define what is not acceptable by international standards: it is not just the exploitation of boys or girls who have not reached puberty which is banned; the employment of 15, 16 or 17-year-old prostitutes is also incompatible with the Convention on the Rights of the Child

            The conclusion of this report is that businesses involved in international trade have a great deal to do in order to improve employment standards, particularly as far as children are concerned. In addition to taking responsibility for the actions of their sub-contractors, companies involved in international trade should be able to provide verifiable evidence of how their products are made. Many positive initiatives can be taken by individual companies. However, competition between companies which want to out-perform their competitors in terms of the guarantees they offer against child labour or other forms of exploitation also has a negative implication: companies end up taking initiatives designed to impress their customers more than to help children, or adopting standards which are inappropriate in the countries where they are working or buying. Because of this, in most cases it would be best if standards could be agreed by as wide a group as possible. At one level, discussions organised by the ILO over the next three years, involving governments, employers and trade unions, will help secure agreement on what the standards on child labour should be. At a different level, however, it is clear that companies, instead of following their usual practice of competing against one another, should be cooperating with each other on an international basis to agree industry-wide standards. And although the focus of this report is on child labour, it is clear that industry-wide standards should set out not only to prevent the commercial exploitation of children, but also to ban other employment practices which are incompatible with international human rights and labour standards.