How do codes of conduct and supplier guidelines work? This approach seems popular, with many companies having introduced their own guidelines. Some NGOs have developed, or provide advice on developing such codes. In the carpet and rug industry, Rugmark is a name to remember. It is a voluntary scheme that seeks to control the worst excesses of the rug and carpet industry in Asia by encouraging loom owners to register their looms and hence qualify to apply the Rugmark to their product. Loom owners must: · Commit to working without illegal child labor · Provide a comprehensive list of all looms in their company · Pay at least the minimum wage · Have at least one third of all looms inspected before acceptance within the scheme · Agree to unannounced inspections · Contribute 1% of export revenue into a central fund to rehabilitate and support exploited children. Once accepted each carpet is labeled with a unique reference, enabling the ultimate buyer to contact the Rugmark Foundation and verify the exporter, the type of carpet and the loom on which it was made. One the one hand, in the absence of external monitoring and verification, codes of conduct may be seen as, and indeed prove to be, little more than rhetoric and may even prove counter productive if introduced without sufficient thought. On the other hand, codes of conduct can be useful when introduced by companies with a detailed understanding of the complexities of child labor. How do businesses learn from the experiences of others? Officially no business tolerates the scourge of working children. Experience illustrates, nevertheless, that different groups in society may perceive the problem of child labor in very different ways. Indeed, sometimes these views may be in conflict and this could present a company with a dilemma. Focus on customers. Take for example a company that prioritizes the views of its customer stakeholders. Where customers demand that the company “stop using child labor” as has happened with some retailers, the company might concentrate on ensuring that children are not employed at its own or its suppliers’ premises. The company might see such a move as necessary in order to avoid any association with child labor, thereby preserving its reputation with customers. It’s the shortest cut to the solution to the problem. Nevertheless, the risk with such a response is that simply removing children from the workforce, and therefore taking away their income, may have predominantly negative consequences, possibly leading to the child becoming involved in more hazardous work than before.
Posted on: Thu, 09 Oct 2014 14:03:10 +0000
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