Professional guide

More food for thought on social issues

Most manufacturing companies will at some point operate in countries or interact with business partners that do not take human rights and fair working conditions for granted. Big issues like child and slave labor can result in angry consumers, but this is only the tip of the iceberg.

Child and slave labor are two of the main issues that enrages the public and large companies have felt the wrath of consumers who have discovered why their clothes were actually so cheaply produced. Do you know the difference between living wages and minimum wages? And should child labor always be forbidden?

Well, to answer the last thing first. The UN has made guidelines for work suitable for children at different ages. The definitions are:
– Light work (pocket money): 13 years in developed countries, 12 years in undeveloped countries.
– Normal non-dangerous work: 15 years in developed countries, 14 years in undeveloped countries.
– Dangerous work: 18 years in both developed and undeveloped countries.

In addition Save the Children Denmark has added these guide-lines in their tool-kit:
It is acceptable for children age 12 – 18 to work provided:
Children are not subjected to exploitative and dangerous work
The work of children is continually monitored
The workplace is safe and special consideration is given
Children are given proper training and instruction
Work hours are limited
Work is flexible
Work actively enables children going to school and receiving vocational training.

It is recommend using independent auditors and making unannounced visits to the factories producing the goods. This is not easy for smaller companies, who could consider joint ventures – e.g. in collaboration hire independent auditors or NGO’s to ensure the quality of working conditions throughout their supply chain. When customers think of a brand they rarely differ between the supplier, subcontractors and other business partners. In case of violations of ethic or environmental standards they hold the brand responsible.

The textile industry is notorious for hiring unskilled workers

When it comes to minimum wages, as opposed to living wages; the former is the national set minimum wage - which may be way below what a person needs to cover the most basic costs. The textile industry is notorious for hiring unskilled workers, often young women, with no contracts. The Swedish company Dem Collection did an interesting excercise when they started up production in Indonesia: They asked the workers what wages they needed in order to cover their basic living costs.

The employees’ safety should be of priority at all times. Hazardous equipment, insufferable surroundings or unsafe premises are unacceptable, and improving the working conditions for the employees should be an ongoing concern.. Environmental thinking should be an integrated part of the management planning, as well as promoting environmental responsibility among employees and in all activity.
Employees should be hired because of the ability to do the job, rather than on the basis of religion, sex, ethnicity or national origin. Everybody working for, with or in any way contributing to business is treated with dignity and respect. Corporal punishment or other forms of mental or physical coercion is not permitted. Animals are treated with respect and one must abstain from corruption in any form. Always try to contribute to the betterment of the communities in which you operate. Transparency is paramount in all areas of doing business; and is becoming the guiding light for more and more companies.