Written
by: Gjergji Gega
History
If child labor as a mass phenomenon occurs not
because of parental selfishness but because of the parents’ concern for the
household survival, the popular argument for banning child labor loses much of
its force. However this assumption about parental decision-making coupled with
the assumption of substitutability in production between child and adult labor
could result in multiple equilibria in the labor market, with one equilibrium
where children work, and another where adult wage is high and children do not
work. (Basu, Van, 1998).
Child labor has been a persistent problem throughout
the world. Though restrictions on child labor exist in most nations, many
children that live in undeveloped countries do work and leaves them open to
exploitation from foreign corporations. The International Labour Office reports
that children work the longest hours and are the worst paid of all laborers
(Sadiqi and Patrinos, 1998)
Africa and Asia together account for over 90 percent
of total employment (Basu and Van, 1998). Underdeveloped countries such as
Ghana, Tunisia, Burma, and Cambodia have a really high unemployment rate and a
corrupt government that does not enforce child labor laws. This makes it very
appealing for companies that want to cut costs down and increase revenue.
Companies such as Hershey’s, one of the largest companies in North America are
raking in over $6 billion in annual revenues (Bloxam, 2012). After looking at
the revenues of these companies, it is not surprising that they are paying
workers at an extremely low rate and using child labor.
Attributes
to Child Labor
Child labor is especially common in rural areas. For
example, 66 percent of the officially employed children aged 6 to 14 years in
Peru work in the countryside (Basu and Van, 1998). There are many reasons why
child labor occurs in undeveloped countries. The most important reason for
child labor is poverty, and the induced pressure upon them to escape from this
world of slavery. Schooling is another contributing factor to child labor. All
parents would like their children to get an education. When there is no access
to school, or there might be a low quality of education, parents will want
their children to find ways to make money or learn new skills such as
agriculture to bring income to the family. This vulnerable state leaves
children prone to exploitation.
Exploitation
of underdeveloped countries
During the past decade the economics of the whole
world has been in a declining state. Due to the declining state of our
economics and prices have kept rising. Companies have found different ways to
cut costs down. Some ways that companies have been able to cut costs down are
outsourcing and using child labor. Even though this may not be legal or ethical
in the United States some companies do capitalize on child labor. Companies
such as Nike, Apple, Microsoft, and Hershey’s exploit the lack of laws from underdeveloped
countries.
Just this month Whole Foods Market said it has
halted orders of Scarffren Company’s artisan chocolate brands over concerns
about child labor in Hershey’s West Africa supply chain (Stevens, 2012).
Another example of a famous company exploiting child labor is Nike. One of the
plants (Subakumi Plant) in Indonesia, say that supervisors frequently throw
shoes of them, slap them in the face, kick them, and call them dogs and pigs.
It’s understandable that child labor laws are not the same throughout the
world. This fact does not mean that company’s such as Hershey and Nike don’t
have responsibility for every supply chain or plant managers that break those
laws. These companies have to be held responsible, but at the same time need to
find solutions and ways to reduce or completely abolish child labor. Most
companies have begun to work to find ways to make life better and fair for
workers in underdeveloped countries.
Solutions
for Child Labor
Abusing human rights can be costly and can have a
negative image on a company. Most companies are changing policies and trying to
find ways to help workers. Nike is one of the companies that is taking a big
step forward and is allowing outsiders from labor and human rights groups to
join the independent auditors who inspect the factories in Asia, interviewing
workers and assessing working conditions (Cushman, 1998). Another company that
is committed to eliminating child labor is Hershey’s. Hershey’s has committed
to sourcing 100 percent certified cocoas for all its products by 2020 (Stevens,
2012). Hershey’s also introduced a program called COCOALINK. COCOALINK
distributes information about climate and pest control (DuBois, 2012). .
Programs such as COCOALINK help farmers double their crop yield in a couple of
years (DuBois, 2012). All these different programs and solutions will educate
managers to provide better conditions for workers and at the same time,
eliminate child labor.
Conclusion
Employers have always capitalized in underdeveloped
countries where they know that laborers cannot legally form unions, and where
child labor laws are not enforced. This does not make it morally or ethically
right for companies to exploit children in poor rural areas. Companies such as
Nike and Hershey’s need to lead by example, by following not only the laws of
that country but also international laws of child labor. If laws are not forced,
then child slavery will continue and these children will be deprived of the
simple joys of childhood.
Reference
Siddiqiq, Faraaz, Patrinos A., Harry (June 1998). Child Labor: Issues,
Causes, and Interventions.
Basu, Kaulshik, Van H., Pham. The Economics of Child Labor. Vol. 88, No
3 (June., 1998), 412-427.
Fallon, Peter,Tzannatos, Zafiris. (February, 1998). Child Labor: Issues
and Directions for the World Bank.
Stevens, Harry (October 19,2012). Child Labor Concerns Across Hersheys
Supply Chain Prove it Pays to be Proactive .GreenBiz.
Cushman, H., John, (May13, 1998). International Business; Nike pledges
to End Child Labor and Apply U.S. Rules Abroad.
DeBois,
Shelley. (February 7, 2012). How Big Chocolate Plans to Save its Cocoa Supply.
CNN Money.
http://management.fortune.cnn.com/2012/02/07/big-chocolate-cocoa-supply/
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