CSR - Avoiding the child labour hotspots

Several prominent businesses have been caught out when investigations have highlighted the exploitation of child labour in their supply chains. Primark and Apple are great examples that are likely to popular research examples for students preparing for AQA BUSS4 in June 2011. So the latest Child Labour Index will probably be required reading for businesses keen to avoid the reputational damage that can arise from being seen to profit from extremely low pay. As this Guardian article explains, the worst-offending countries include many of the emerging markets which have provided the source of low-cost supply for many multinational brands. India performs particularly badly. A good quote in the article from risk management specialists Maplecroft who produce the index makes an important point: [my emphases in bold]

“These large emerging economies are essential to the strategic interests of multinational business. Not only is child labour wrong but the existence of child labour within a company’s value chain can have significant impacts on reputation and profits and it is critical that companies undertake stringent monitoring of all suppliers.”