Child labour is work done by children under the age of 15 that limits or damages their physical, mental, social or psychological development. In some countries an exception is made on grounds of poverty or a lack of educational resources and the minimum age for work is lowered to 14 years. Hazardous work is prohibited until 18 years. Children are also prohibited from working the same number of hours as adults. Many child labourers are deprived of an adequate education, good health and basic freedoms. Evidence points to a strong link between household poverty and child labour. Child labour perpetuates poverty across generations by keeping the children of the poor out of school and limiting their prospects for upward social mobility. According to the ILO, there are over 200 million children working throughout the world, many full-time. Of these, 126 million (one in every 12 children worldwide) are exposed to hazardous forms of child labour. In 2008, UNESCO reported that 75 million children worldwide do not have access to basic primary education (compared to 103 million in 1999).
Implications for businessChildren who do not complete their basic education are likely to remain illiterate and never acquire the skills needed to get a job and contribute to the development of a modern economy. This lowering of human capital has been linked to slow economic growth and social development. The most frequent accusations of business complicity involve child labour in the value chain, where adequate policies and monitoring systems are lacking or poorly enforced. Companies operating in countries with formidable economic, cultural or other challenges to the elimination of child labour, may aid in the elimination of the worst forms of child labour through continuous improvement. While recognising a child's right to childhood and education, it is pertinent to note that children may play an essential role in contributing towards a family’s income. Responsible work practices may, therefore, be preferable to eliminating children from the workplace in ways that increase their vulnerability to exploitation. Although economic exploitation is in general more linked to business activities, companies may eventually be accused of complicity in sexual exploitation of minors, for example, if it does not act to prevent these activities in the surroundings of their business.
The following examples were identified through background research:
Identifying the dilemmaHow does a company act when child labour is discovered in its value chain when there is credible evidence that removing income generating opportunities from the child will push them and their families into deeper poverty and possibly into prostitution or other forms of sexual exploitation?
The following have been identified as possible components of this dilemma:
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