Child Labor

HRM 470: Negotiations
Section: 02
Case: Child Labor and Multinational Conduct: A Comparison of
International Business and Stakeholder Codes
Submitted By: Submitted To:
Group C Mr. Tajuddin Ahmed
Mubashira Khan 1610976030

Lecturer,
Mumta Hina Saif 1530158630
Department of Management
Nawshin Jahan 1731258030 School of Business & Economics
North South Unviersity
Tasmia Faiza Fatima 1610956030
Executive Summary
The first of this case solution explores the way by which
multinationals, commerce affiliations, regulatory and non-
legislative affiliations oversee child work in their codes. With an
institutionalized framework, it dismembers more than 50 codes
drawn up by these different on-screen characters to affect firms'
external, social conduct.
The second part of the solution highlights some important dates

and data that are relevant to the scenario For example, the early
20th century; the issue of child labor has been the subject of far
reaching administrative and societal attention. Then, we
proceeded to explaining what sort of environmental analysis tool
will best investigate the case in discussion; We gave four strong
reasons behind our logic of choosing to do a PESTEL analysis
over SWOT analysis.
The next part of the solution moves on to identifying 10 problems

that we have realized throughout analyzing the case. Then, with all
these information discussed, we raised a question that can be
identified as the main issue in this scenario.
The next part of the solution elaborately explains different external

factors such as – politics; economic condition, socio-cultural
factors, technology, environment and legal perspectives can highly
influence child labor positively or negatively. We have established
different relations between these factors and child labor.
We then proceeded to form multiple agendas to be accomplished

by the management in its future endeavors to handle child labor.
With the overall welfare in mind, we finally advised numerous
recommendation and implementation plans to support our agenda
and to resolve the main issue that we had identified within the
case.
Table of Contents
Background.....................................................................................4
Dates & Data...................................................................................9
Justify SWOT/PESTEL.................................................................12
Problem Identification...................................................................13
Main Issue.....................................................................................14
PESTEL Analysis..........................................................................14
Management Agenda....................................................................20
Recommendation & Implementation.............................................22
Appendix……………………………………………………………….26
Case Solution: Child Labor
and Multinational Conduct
Background
This case is about the manner by which multinationals, business

affiliations, administrative and non-legislative associations manage
child work in their codes. With an institutionalized system, it
dissects more than 50 codes drawn up by these various on-screen
characters to impact firms' outer, cultural conduct. The exploratory
investigation assists with distinguishing the principal issues
identified with youngster work and the utilization of willful
instruments, for example, implicit rules. Aside from a particular
sign of the themes secured by the code, particularly the least age
prerequisites, this additionally incorporates observing frameworks
and checking parties. Generally critical to organization codes are
the authorizations forced on colleagues if there should be an
occurrence of resistance. Serious measures might be
counterproductive as they don't change the fundamental reasons
for child work and can compound the circumstance of the child
laborers by driving them to increasingly dangerous work in the
casual segment. This underlines the significance of a wide as
opposed to a prohibitive way to deal with child work in sets of
principles.
Attributes of Child Labor
The international measures, or codes, drawn up by associations,

the ILO uncovers the presence of a continuum that ranges from
satisfactory to unsatisfactory types of child labor. Work which is not
dangerous for a child’s health and development and does not
create problems in their education are acceptable as per ILO
convention 138 which also requires a minimum age of 13 years.
ILO convention 182 characterizes the worst child labor which is
dangerous for their health and development. All kinds of abuse,
inappropriate working environments are unacceptable. In spite of
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Solution By: Group C
HRM 470; Section: 02
the fact that impression of youngster work additionally relies upon

social customs, and levels of the financial turn of events and social
conditions, there is an enormous agreement on the unsatisfactory
quality of these most noticeably terrible types of kid work. This is
underlined by the generally quick acknowledgment of C182, which,
following one year, has been confirmed by 56 nations, with
endorsement forms in progress in numerous others. Particularly for
little, neighborhood organizations, utilizing a child is an essential
segment of a cost-decrease procedure and imperative to
expanding the exceptionally low-net revenues. While the cost
investment funds accomplished right now a moderately little level
of the last buyer value, the utilization of child work can twofold the
neighborhood business visionary's own little pay, as an ILO
concentrate in the Indian rug and bangles ventures appeared. The
issue with the execution of global standards, be that as it may, is
that most of the child labor happens in the casual segment, in
farming, administrations and little scope fabricating. These are
normally not satisfactorily secured by national enactment.
Implementation of Child Labor code of conduct
Forty organization codes were drawn from a lot of around 100

codes of the biggest MNEs or of organizations that have been
pioneers in the field of corporate social obligation. This choice
procedure has uncovered that solitary a generally modest number
(13%) of the biggest (Fortune 500) firms have an organization
code that remembers arrangements for child labor. The additional
choice of somewhat littler firms, yet guides in the selection of
codes, shows a significantly higher portion of child labor
arrangements. The divisions wherein these driving firms work are
the ones with the most elevated probability of youngster work:
retail and attire. Of the 24 significant universal codes of business
affiliations, just 6 (25%) incorporate child labor arrangements. Most
codes of global associations managing child labor issues. The IO
codes right now the principal norms and shows as to child labor
(Nos. 138 and 182), and the UN Convention on the Rights of the
Child and to multinational conduct the recently revised OECD
2
guidelines. Around 40% of the most notable worldwide NGO codes

remember arrangements for child labor. The issue of child labor is,
in this way, least tended to by organizations and business
affiliations, and most by NGOs and universal associations. In any
case, the conversation on child work appears to concentrate
basically on the capacity of organizations to successfully address
the issue through a set of accepted rules. All codes were inspected
with an institutionalized system of investigation that was utilized in
past research yet adjusted to suit the idiosyncrasies of a child work
It centers around the explicitness of the child work arrangements
remembered for the codes, especially the base age prerequisite,
and the consistency systems, remembering checking and the sort
of assets for instance of infringement. A portion of the fundamental
highlights of the code examination will be quickly talked about
beneath, partitioned into three segments: explicitness, observing,
and types and ramifications of authorizations.
The specificity of child labor codes
As inspected in the past segment on the meaning of child labor,

one of the primary points concerning the explicitness of codes has
been the base age necessity. Particularly ILO Convention No. 138
has been significant in the conversation on worldwide guidelines.
Taking into account the special cases that it makes to the
generally relevant least age of 15 years, this ILO code is excluded
from. The table gives a review of the base ages stipulated in the
other three IO codes, the five NGO codes, the six business bolster
bunches codes, and the 40 MNE codes. Practically 50% of the
codes don’t specify a base age. In the event that they do, in any
case, 14 is most as often as possible demonstrated, which applies
especially to business codes. This age is inconsistent with
Convention 138. A couple of organization codes expressly allude
to this ILO code, which implies that 15 years is referenced, with 14
as the creating nation special case. Just a single NGO and one
MNE code stipulate 18 as least age; the organization concerned,
Nike, in any case, incorporates two least ages: 18 for the creation
of footwear, and 16 for attire, embellishments, and hardware. Of
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the codes that notice a base age to business, just a little minority
has widespread materialness. Normally, codes are nation explicit,
which implies that they detail a base age, yet that a higher age will
win if nation laws stipulate this higher age for work or for
concluding instructive necessities. The Reebok set of principles
can be referred to for instance:
The organization won't work with colleagues that utilize child labor.
The term 'child' for the most part alludes to an individual who is
under 14 years old or more youthful than the age for finishing
obligatory training if that age is higher than 14. In nations where
the law characterizes 'kid' to incorporate people who are more
seasoned than 14, the organization will apply that definition.
Observing codes
A dominant part of the codes shows how the arrangements of

codes are observed, and 80% of the NGO codes obviously
indicate the observing procedure and framework, including the
criteria for appraisal; this additionally applies to 28% of the MNE
codes. Most BSG codes and half of the IO codes visualize an
observing procedure however don't make reference to criteria or
time allotments. The staying just ambiguously alludes to observing
without giving any further subtleties. With respect to the observing
party, most MNEs want to do this without anyone's help, while
global associations depend on legitimate specialists. Outsider
checking, by outer experts, is referenced in 10% of the MNE codes
17% of the codes with observing arrangement. Most NGOs incline
4
toward checking by mixes of entertainers, for example, NGOs and

BSGs; a few firms have remembered this for their codes.
Deterrent and Inference of child labor action
The inconvenience of serious assents, be that as it may, ends up

being a muddled issue. From the start sight, one is slanted to extol
severe measures to boycott child labor as this appears the
intelligent outcome of the business approach, generally created
after solid cultural weight. In any case, on further thought, for
example, "clean hands' ' likely could be counterproductive on the
grounds that it doesn't handle the child labor issue and its basic
causes. Besides, it can intensify the circumstance for the
youngsters who are compelled to look for some kind of
employment somewhere else, regularly in the casual area. Right
now, it is essential to take note of that line a little part of the
assessed 250 million youngster laborers are utilized to send out
related businesses. Over 95% works in horticulture, independent
companies or offers types of assistance outside the conventional
economy.
Regardless of this proviso, in any case, the position taken by

multinationals can be significant. They set a standard for corporate
directors and impact different firms and governments, in this way
may be assisting with facilitating global endeavors to address child
labor. This is, much more, the case in the event that they assume
liability for improving child working conditions, training, and
wellbeing, or help with discovering elective methods for money age
for the families. Such an expansive methodology is just removed
by three multinationals from the arrangement of 40 broke down
right now. Since the 40 codes just speak to a little part of the
multinationals with an organization code, it very well may be
surveyed that the wide way to deal with the child labor issue is as
of now grasped by fewer than 5% percent of organizations. By and
5
by, the potential job of enormous universal organizations stays

fascinating, yet can't be considered in segregation. Right now, it
must be noticed that the explicitness of codes drawn up by other
cultural partners stays higher, while the activity of global
associations, for example, FIFA can all the more likely trigger more
extensive characterized codes than organizations themselves.
Simultaneously, be that as it may, legislative endorsements of
global understandings, for example, the ILO child labor show are
as yet encompassed by numerous admonitions. This suggests the
issue of child labor can't be settled by business-government
collaboration just, however requires the contribution of other
national and universal partners too. Research endeavors right now
center around the significance of firms' nation of birthplace,
especially the administrative and cultural setting, including the job
of partners. Accessible information on morals of the board in
various societies can be useful right now. Aside from the
investigation of bigger arrangements of multinationals with various
nationalities, part explicit contextual analyses of sets of principles
can be valuable to comprehend the elements. This article has
given understanding into the substance and consistent probability
of sets of accepted rules that address the significant good issue of
child labor. The genuine viability of sets of accepted rules in
handling this child labor issue is hard to evaluate, be that as it
may, on account of its multifaceted nature. A portion of the
organizations that we drew nearer for this examination proposed
that it may be progressively powerful not to have implicit rules.
Initially, they contend that an exacting code without the more
extensive methodology as recognized right now even irritates the
issue. Furthermore, a more extensive code may harm an
organization's notoriety for being a consequence of negative media
inclusion in its nation of cause. Thirdly, the organization seen on
youngster work, as remembered for the code, can vary from that of
the host government, potentially prompting hindrances to sections
for organizations that may in some way or another have positively
affected the liberation of child.
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Dates & Data

1. Since the early 20th century, the issue of child labor has been
the subject of widespread regulatory and societal attention.
2. The main vehicle of these international attempts has been the

International Labor Organization, created in 1919 with the
abolishment of child labor as one of its fundamental objectives.
3. In the course of the century, several other international

initiatives have been taken to protect children, particularly the 1924
Declaration of Geneva, the creation of UNICEF.
4. ILO’s 1973 minimum age convention (No. 146), the 1989 UN

Declaration on the Rights of the Child and, most recently, the 1999
ILO Convention to combat the worst forms of child labor (No. 182).
5. According to the ILO (1998), a large number of the estimated

250 million child workers between 5 and 14 years is confronted
with some kind of hazards; in some countries, this even amounts
to two-thirds (69%).
6. According to this convention children are defined as all persons

younger than 18 years.
7. Of the 24 important international codes of business

associations, only 6 (25%) include child labor provisions.
8. Forty company codes were drawn from a set of approximately

100 codes of the largest MNEs or of companies that have been
pioneers in the field of corporate social responsibility.
9. Almost half of the MNE codes does not include sanctions, while
45% takes strong measures, such as the termination of business
relationships or the cancellation of orders.
7
10. This debate that re-emerged in the 1990s has centered around
the relocation of production to developing countries with lower
social and environmental standards.
11. More than 80% of the BSG codes also announces to take such
severe sanction.
12. It is important to note that only a small fraction of the estimated

250 million child workers is employed in export-related industries.
13. This exploratory study of 55 international business and

stakeholder codes has provided insight into the way in which child
labor issues are addressed in these formal documents aimed at
regulating corporate conduct.
14. The 40 codes only represent a small portion of the

multinationals with a company, it can be assessed that the broad
approach to the child labor issue is currently embraced by less
than 5% percent of companies.
15. More than 95% works in agriculture, small businesses or

provides services outside the formal economy.
16. It gives an overview of 55 codes drawn up by multinationals,

business associations, international organizations and NGOs
17. The convention stipulates a minimum age of 13 years for this

type of employment; in exceptional cases, this may be lowered to
12 years.
18. ILO Convention No. 182 (1999), for example, characterizes

worst forms of child labor as “all forms of slavery or practices
similar to slavery, such as the sale and trafficking of children, debt
8
bondage and serfdom and forced or compulsory labor, including

forced or compulsory recruitment of children for use in armed
conflict”.
19. This is underlined by the relatively rapid acceptance of C182,

which, after one year, has been ratified by 56 countries, with
ratification processes under way in many others.
20. This selection process has revealed that only a relatively small
number (13%) of the largest (Fortune 500) firms has a company
code that includes provisions on child labor.
21. In view of the exceptions that it makes to the universally

applicable minimum age of 15 years, this ILO code is not
included.
22. The term ‘child’ generally refers to a person who is less than 14
years of age, or younger than the age for completing compulsory
education if that age is higher than 14.
23. ILO convention 138 is not included as it defines exceptions to

the minimum age of 15.
24. 80% of the NGO codes clearly specifies the monitoring process
and system, including the criteria for assessment; this also applies
to 28% of the MNE codes.
25. It can be assessed that the broad approach to the child labor
issue is currently embraced by less than 5% percent of companies.
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Justification: SWOT vs. PESTEL

The case in discussion explores multiple aspects of child labor in
different organizations and its multinational conducts. After
analyzing the whole case, we have decided to go for a PESTEL
analysis instead of SWOT to analyze the environment and how it
supports or eradicates child labor.
A SWOT analysis usually provides information about the internal

and external factors that influence an organization. However, there
was no particular ‘organization’ discussed in the case study to
analyze. This was the primary reason why we eliminated SWOT
analysis as our environmental analytic tool.
Secondly, the SWOT analysis tends to be more product/service

specific as an individual or an entity conducts this analysis based
on that product/service. This sort of information was not at all
relevant to the case in discussion, thus a SWOT analysis would
have been completely inappropriate.
Thirdly, the case had a lot of relevant information to conduct a

PESTEL analysis. This means, the case had sufficient information
regarding political, economic, socio-cultural, technological,
environmental and legal factors that affect child labor and its
multinational conduct and implications.
Finally, a PESTEL analysis successfully identified major

determinants of child labor in various countries and allowed a
elaborate description of this works. This information can help in
strategic development of eradicating this social issue. To the
contrary, a SWOT analysis would have attempted to identify
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strengths and opportunities of child labor without any further

elaboration, which would have been completely inappropriate.
Problem Identification
1. Lack of specificity about the required age which will be

considered a person as a child creates problems in different
companies.
2. An elevated level of tax collection by the government can

urge numerous modern associations to be engaged with
child labor to complete work at the very least conceivable
pay.
3. A more extensive code of conduct of child labor may harm

an organization's repute for being a consequence of negative
media inclusion in its nation.
4. The lawful structure for contract implementation set by the

administration additionally supports child labor.
5. The political uncertainties fluctuate from unexpected

changes in existing political systems to common distress to
significant choices taken by the administration also lead child
labor.
11
6. Economic conditions make children work to earn money to

financially support their own family.
7. Even if organizations fire all the children who are working

they will continue searching for a new workplace.
8. Multiple viewpoints on child labor of organizations and host

governments perhaps lead to boundaries to passage for
organizations that may somehow have negatively affected
the freedom of children.
9. Less concern social measures are also influencing the child

labor to increase day by day.
10. Inefficient deterrent law measures are creating a

tendency of insignificance about all the legal law and code of
conduct.
Main Issue
What are the initiatives that management of organizations,

governments and international organizations take to develop
country-specific laws and conducts to in time eradicate child labor,
benefitting individuals, nations, and the international community?
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PESTEL Analysis
Political Factors
The political risks vary from sudden changes in existing political

regimes to civil unrest to major decisions taken by the government.
In cases of possible multinationals, one may also include political
factors that take place/ affect not only the host country but also all
countries that contain business operations, or that may engage in
trade with child labor. However, governments around the globe are
trying to put national and international pressure to impose laws
and stimulate company behaviors that eliminate child labor from
eventually the whole world.
The trade barriers that the host country has would protect Child
Labor in a country. However, trade barriers that countries with
potential trade partners would harm companies by preventing
potential exports. A high level of taxation by the government can
encourage many industrial organizations to be involved in child
labor to get work done at a minimum possible wage. The legal
framework for contract enforcement set by the government also
encourages child labor. The government is responsible for setting
the labor-related legislation. It usually includes a minimum wage
rate, as well as a minimum age at which a person can be involved
in different types of work. For example, A low minimum wage and
age of laborers would mean higher profits and, thus, higher
chances of survival for child labor in a country. Level of corruption
of the governments - especially levels of regulation in the services
13
sector often influence child labor. This is faced by countries like

India and Bangladesh.
Governments of different countries must show political will and

cooperate with employers' and workers' organizations, as well as
with the media and universities, to eradicate child labor
Economic Factor
One of the major factors that influence child labor is a country’s

economic condition. Even if the organizations terminate all of their
child labor, the problem surrounding it does not disappear as long
as the economic condition remains the same. As a matter of fact, it
can worsen the situation as many children will then be living off the
streets as beggars or working somewhere else with severely poor
work conditions. For example, after Bangladeshi garment
companies dismissed 40,000 children, around 5,000-7,000 girls
moved to prostitution. This sort of research results is an indication
that the economic conditions of countries like Bangladesh or India
are not fully ready to eliminate child labor from its society.
In many under-developed and developing countries, it becomes

hard for families to survive with little earning. Considering these
situations, the International Labor Organization and UNICEF
identified that light work can be provided to children at the age of
13 (in special cases 12) with confirmation that it won’t harm
14
studying opportunities. This is even identified to be economically

beneficial for nations and potentially beneficial for children as well.
Policies that affect income and GDP will have the most significant
effect on child labor. Development and trade correspond with child
labor and labor regulation primarily because integration into the
modern economy correlates strongly with other factors that link to
child labor. For example, development and trade are significantly
linked to income. the dynamic effects of trade and development—
such as capital accumulation and improved political infrastructure
—also discourage child labor and encourage regulation. Analyzing
the economic roots of child labor and the effects of existing
regulation polic eliminating child labor—a goal that will benefit
individuals, nations, and the international community at
larillustrates the need for an innovative solution. Effective policy
must have the ultimate goal of eliminating child labor—a goal that
will benefit individuals, nations, and the international community at
large.
Socio-cultural Factors
With high increasing social awareness about the adversity of child

labor in many developing countries, the International Labor
Organization (ILO) was established in 1919 with its primary
mission of abolishing child labor across the globe. In 1970, a
controversy started surrounding multinational enterprises and its
social implications of large-scale international investments. Many
industrialized countries were moving their production operations to
15
the developing countries to reduce production cost using its cheap

labor costs. But, news spread about much unethical conduct
related to child labor, poor working conditions, and negligence to
standard compliances raising social awareness and protests to
eliminate these conditions.
There were many intolerable forms of child labor practices around

the globe including slavery, trafficking, debt bondage, forced labor
and many more. News spread about many multinational
companies being directly or indirectly involved in such activities.
For example, when the news about Foxconn, Apple’s production
company came out, it generated massive social rage among
people across the world.
The perception of child labor largely varies around different cultural

traditions. For example, in agricultural countries and countries with
domestic labor often normalize child labor. For example, countries
like Bangladesh and India. It is also observable in countries that
are highly industrialized, for example, China.
With rising social-awareness, many international companies,

NGOs, Business Support Groups and Multi-national Enterprises
came up with a code-of-conduct highlighting child labor. However,
the vast majority of these companies did not mention a specific
age group, the ones who did, 14 was the most frequented age
group that was socially acceptable to work. Many organizations
also excluded their business partners, suppliers, vendors, sub-
16
contractors, manufacturers - leaving a type of loophole in their

code of conduct.
Technological Factors
As previously mentioned, child labor is dominant usually in

agricultural societies. The growth of agricultural technology is
mechanical in nature and it substitutes machine energy for human
energy, it is labor-saving. As a result, the increasing trend of using
technology in agriculture can significantly drop child laborers in the
under-developed and developing countries.
The recent technological developments and breakthroughs made

by competitors, as mentioned above. If child labor encounters a
new technology that is gaining popularity in the industry in
question, it is important to monitor the level of popularity and how
quickly it is growing and disrupting its competitors’ revenues. This
would translate to the level of urgency required to adequately
respond to the innovation, either by matching the technology or
finding an innovative alternative.
The impact of the technology on the costs that most companies in

the industry are subject to have the potential to increase or reduce
the resulting profits greatly. If these profits are great in number,
they may be reinvested into the research and development
department, where future technological innovations would further
17
raise the level of profits, and so on, ensuring sustainable profits

over a long period of time.
Environmental Factors
Distinctive businesses hold diverse benchmarks of natural security
in their head as the standard. This standard at that point directs
what each company ought to point for, within the slightest, to avoid
getting to be the target of weight bunches and boycotts due to a
need of environmental conscientiousness. A company within the
material industry, for illustration, is not anticipated to cause the
same level of contamination and natural debasement as an oil
company. The unused buyer, equipped with the intrigue and the
information it carries, leans towards donating its commerce to
companies it sees as more moral, especially around the
environment within the wake of worldwide warming.
The environmental factors that may significantly affect Child Labor

include:
The current climate conditions may altogether affect the capacity

of Child Labor to oversee the transportation of both the assets and
the wrapped up item. This, in turn, would influence the conveyance
dates of the ultimate item within the case of, say, an unforeseen
monsoon. Climate change would also render a few items futile. For
example, within the case of materials, in nations where the winter
has ended up exceptionally gentle due to Worldwide Warming,
warm winter dress has much less of a market. Those companies
that deliver amazingly expansive sums of squander may be
required by law to oversee their natural propensities. This may
incorporate contamination fines and shares, which may put a
budgetary strain.
Those companies that deliver greatly huge sums of squander may

be required by law to oversee their natural propensities. This may
incorporate contamination fines and shares, which may put a
monetary strain. If Child Labor ought to (intentionally or unwittingly)
contribute to the advance endangerment of an as of now imperiled
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species may confront not as it were the results from the law but
moreover confront a backfire from the common open who may at
that point boycott Child Labor in striking back.
Legal Factors
It has become especially observable in industrialized countries to

adopt laws that limited the minimum working age of children and
their working conditions. Multinational companies were requested
to advance similar measures worldwide. Declaration of Geneva,
the development of UNICEF (1946), the UN declaration of Child
Rights in 1989 and the ILO Convention (No. 182) in 1999 helped to
establish legal measures surrounding child labor across various
developed and developing countries. In response to rising social
concerns about child labor, guidelines were drawn up by many
international organizations. In spite of the efforts of many
governments, non-government organizations, it was very difficult to
make the guidelines legal in many countries.
Minimum Age Convention, 1973 (No. 138) by the International

Labor Organization sets the general minimum age for admission to
employment or work at 15 years (13 for light work) and the
minimum age for hazardous work at 18 (16 under certain strict
conditions) of continuous advocacy, the Government of
Bangladesh ratified the ILO Convention on the Worst Forms of
Child Labor, 1999 (No.182) on 12 March 2001. National legislation
on hazardous child labor was subsequently revised in 2006 and a
list of hazardous forms of child labor was adopted in 2013.
Although organizations around the globe are becoming

increasingly concerned about child labor, they have also realized
that rules and legal measures cannot wholly eradicate child labor.
19
Instead, social improvement measures are more significant than

legal measures.
Management Agenda
1. Statement: Management wants to take three strategic actions
regarding hiring, hazards, and hours of child labors with
compliance with national legal restrictions and international
conducts.
Justification: The management has established this agenda
with the belief that an immediate lay off of children can be
harmful to them and to the welfare of their families. Thus,
management wants to adhere to this the 3 H's approach: a stop
to under-age hiring, removing children from tasks where the
risks from hazards are high and reducing hours to the legal
level.
Explanation: With the 3H strategy, employers will immediately

stop the hiring of children. This will ensure that we, the
employers are not adding to the problem. This is a not a freeze
on hiring but rather a permanent ban. Secondly, employers
want to ensure that children are working in conditions in which
the risks from hazards are high. This has to maintain
compliance with the ILO standards of health and safety. The
work hours of currently working children will be managed by the
employers to do light work for a limited duration each week.
This time limit will be set according to the country’s national
legislation so that the organizations do not face any national or
international pressure in the future.
2. Statement: Management wants to identify compensatory
programs for currently working child labor force by supporting
them and their families.
Justification: Immediate dismissal of child labors may reduce
the problem of child labor in that specific company but not
eliminate it as a social issue. Children may still be working at or
near full time in other companies. It is dangerous to simply
dismiss these children as it can cause hardship for them and
their families. This is proven by a research that indicates female
children lead to prostitution after dismissal from workforce. So,
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actions have to be taken in a way that balances the dual

concerns of removing children from work and finding ways to
ensure that family income is maintained. The management’s
agenda, thus, is to come a number of suggestions are put
forward that may be more or less suitable depending on the
size and financial means of the enterprise.
Explanation: Compensation program for the loss of a child's

wage and getting children into school generate costs. So, the
implementation of this agenda will eventually rely on the support
of projects funded by governments and donors efforts to reduce
child labor. With such support, the management’s agenda is to
provide solutions to the children labor, such as lowering or
eliminating school fees and related expenses, providing
stipends, providing transitional schools, offering vocational
training programs and organizing income-generating activities
for parents.
3. Statement: The management’s agenda is to eradicate child

labor not only within, but also from its supply chain of
operations.
Justification: Legally, businesses are only responsible for their
own hiring and employment practices. They are not responsible
for whether other businesses engage child labor. However,
many international buyers will now only purchase from
businesses that respect certain standards. Thus, child labor has
to be eliminated not only within, but from the supply chain.
Explanation: To avoid bad publicity, brand name companies

from Europe, North America and elsewhere need to ensure that
child labor is not being used by any of its suppliers or by any of
its suppliers' suppliers. Buyers of both finished goods and inputs
find it difficult and costly to ensure that suppliers further up the
supply chain are meeting agreed-on child labor and other
standards. Buyers now seek suppliers who understand and
share similar values concerning the problems of child labor. The
initial screening includes checking conditions and practices at
the premises of a potential supplier. As a result, enterprises
have to be extra confirming that no such practice is conducted
21
by them to enjoy the growth of the industry. This agenda of

management is based on these scenarios.
Recommendation & Implementation
What is the problem?
After studying the case it is evident that working children are

deprived from a proper physical and mental development.
What is the recommended solution?
The idea that could be implemented is that the benefit of creating a

safe workplace and allowing children to work is helpful in certain
situations.
Why is it the best solution?

It would be the best solution because some argue that poor
families would be even poorer without the supplemental financial
contribution of children. So, an increase in poverty would make
children even more susceptible to exploitation. To fight from that
situation it is the best suggestion for them.
How would we implement our recommended solution?
It should be implemented by emphasizing on the fact that child

workers should not be mental & physically abused and they must
get the opportunity to continue their schooling beside work.
Who would conduct the implementation process?
The stakeholders most directly affected are the children and their
families so the process should be implemented by them.
22
When would it be implemented?
This emergency response system should be implemented as soon

as possible to avoid any farther child is abused due to labor work.
Recommendation and implementation – 2
Children are working at the expense of their education and normal

mental development.
The best solution would be that the children should not deprived
from schooling conditions with a limited number of hours per day.
It is the best solution because education is important not only for

the intellectual development but also for the empowerment and
acquisition of new skills for adult life. The health of children is
endangered by work in hazardous conditions, abuse, exhaustion,
malnutrition, or exposure to toxic materials.
The fund can be created for the children for their health safety and
schooling. The company that the children are working should
allocate a percentage of their annual profit for this fund. The
finance department can invest this fund’s money on their schooling
and other activity.

23
HR managers can implement the process for the betterment of the

underage employees.
We suggest that it should be implemented right after analyzing the

feasibility of such fund and financial constraints
24
To date, there is no international agreement to define child labor.

Every country has different laws and regulations regarding the
minimum age for starting working based on the type of labor. The
lack of international consensus on child labor makes the limits of
child labor very unclear.
International policies should be created which will adopt a holistic

approach to free quality education for all children, including labor
children from poor families.

It is the best solution because it is essential to know how your
national law defines child labor. An employer needs to understand
the content of the national Labor Code and other laws that relate to
child labor. It is against the law for a company to break the rules
concerning minimum age and hazardous work.
The public educational system should be expanded to

accommodate laborer children who still do not have access to
school. The development of schools in the rural areas would
decrease the load of children in urban schools. This will allow
parents to accommodate children's needs without having to
migrate in big cities.

Professionals can provide valuable insights to the company
officials and reach out to staff members and managers for
feedback.
25

We suggest that it should be implemented as soon as all the
research have completed regarding the situation.
Another phenomenon that should be addressed in the case is the

social exclusion. Children engaged in the worst forms of child labor
come from the lowest strata of the society.
International Labor Organization launched a project on indigence

and tribal people, who are the most targeted by social exclusion.
This project promotes their rights and encourages building
capacity among their community. Proper enforcement of this
project should be implemented.
It is the best solution because child labor is a public health issue

with negative outcomes that demands special attention. So, more
projects like this and proper implementation of this program will
help us to tackle a major issue like child labor.
This could be implemented by obtaining information from the

website of the Ministry of Labor on the national law regulating
employment of children, to get a clear view of provisions regarding
the minimum age for employment that will enable us to meet legal
requirements.
26
ILO should implement the process on every organization and then

the organization head will check if there’s any child labor is
happening in their organization.
We suggest that it should be implemented as soon as all the

research regarding the projects have completed.
Appendix
Name: Mubashira Khan
27
Name: Mumta Hina Saif

Name: Nawshin Jahan
Name: Tasmia Faiza Fatima
28

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HRM 470: Negotiations

Submitted By: Submitted To:

Group C Mr. Tajuddin Ahmed

Mubashira Khan 1610976030

The second part of the solution highlights some important dates

The next part of the solution moves on to identifying 10 problems

The next part of the solution elaborately explains different external

We then proceeded to form multiple agendas to be accomplished

This case is about the manner by which multinationals, business

Attributes of Child Labor

The international measures, or codes, drawn up by associations,

the fact that impression of youngster work additionally relies upon

Implementation of Child Labor code of conduct

Forty organization codes were drawn from a lot of around 100

guidelines. Around 40% of the most notable worldwide NGO codes

The specificity of child labor codes

As inspected in the past segment on the meaning of child labor,

A dominant part of the codes shows how the arrangements of

toward checking by mixes of entertainers, for example, NGOs and

Deterrent and Inference of child labor action

The inconvenience of serious assents, be that as it may, ends up

Regardless of this proviso, in any case, the position taken by

by, the potential job of enormous universal organizations stays

Dates & Data

2. The main vehicle of these international attempts has been the

3. In the course of the century, several other international

4. ILO’s 1973 minimum age convention (No. 146), the 1989 UN

5. According to the ILO (1998), a large number of the estimated

6. According to this convention children are defined as all persons

7. Of the 24 important international codes of business

8. Forty company codes were drawn from a set of approximately

12. It is important to note that only a small fraction of the estimated

13. This exploratory study of 55 international business and

14. The 40 codes only represent a small portion of the

15. More than 95% works in agriculture, small businesses or

16. It gives an overview of 55 codes drawn up by multinationals,

17. The convention stipulates a minimum age of 13 years for this

18. ILO Convention No. 182 (1999), for example, characterizes

bondage and serfdom and forced or compulsory labor, including

19. This is underlined by the relatively rapid acceptance of C182,

21. In view of the exceptions that it makes to the universally

23. ILO convention 138 is not included as it defines exceptions to

Justification: SWOT vs. PESTEL

A SWOT analysis usually provides information about the internal

Secondly, the SWOT analysis tends to be more product/service

Thirdly, the case had a lot of relevant information to conduct a

Finally, a PESTEL analysis successfully identified major

strengths and opportunities of child labor without any further

1. Lack of specificity about the required age which will be

2. An elevated level of tax collection by the government can

3. A more extensive code of conduct of child labor may harm

4. The lawful structure for contract implementation set by the

5. The political uncertainties fluctuate from unexpected

6. Economic conditions make children work to earn money to

7. Even if organizations fire all the children who are working

8. Multiple viewpoints on child labor of organizations and host

9. Less concern social measures are also influencing the child

10. Inefficient deterrent law measures are creating a

What are the initiatives that management of organizations,

The political risks vary from sudden changes in existing political

sector often influence child labor. This is faced by countries like

Governments of different countries must show political will and

One of the major factors that influence child labor is a country’s