Child Labor: Impact on Education and Demographic Development

BUSINESS SOCIETY AND POLICY 1
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BUSINESS SOCIETY AND POLICY 2
Executive summary
A major impact of child labor to the economy is through the debilitating effect it has on
education which is a crucial component to human capital. Also, the country’s demographic
development is also greatly impacted by child labor incidences. Higher incidences of child labor
are generally found in poor countries where children are bound to work in hazardous situations
because of poverty. Due to this, the respective governments have taken many initiatives that
prevent companies from violating children’s rights through child labor. But still, lots need to be
done in connection to child labor as poverty level in many countries is quite concerning which
contributes to more and more children opting to work instead of schooling. So, the government,
companies, NGOs and also the public should take appropriate steps to impoverish children who
are vulnerable to child labor, ensure enforcement of laws, and awareness buildings aimed at
minimizing these incidences as the level of child labor plus the victims of various disparities is
quite concerning to the future generations.

BUSINESS SOCIETY AND POLICY 3
Contents
Introduction.................................................................................................................................................4
Issues from literature review.......................................................................................................................4
Presentation of an original case..................................................................................................................6
A critical review of the case.........................................................................................................................7
Conclusion...................................................................................................................................................9
References.................................................................................................................................................11

BUSINESS SOCIETY AND POLICY 4
Introduction
Child labor is a global problem, especially in the developing countries (Jafarey and Lahiri
2012, p. 139). International Labor Organization (ILO) states that approximately 215 million
children are working across the world today. Around 70% of these children are working in the
agricultural sector and around 115 million are in the worst forms of child labor. Despite this,
many companies claim that they adhere to the strict policies put in place about child labor. This
report explores the issue of child labor by reviewing the theoretical literature available where we
shall develop and critically analyze a case study, and also review the responses from the
businesses, society and the government on the issue.
Issues from literature review
Opinions about child labor greatly depend on historical and cultural traditions, general
social conditions, and the stages of economic development, however, there is a broad consensus
on the unacceptability of the worst child labor forms (Galli 2011, p.60). Amnesty International
conducted a report where they found out that there are a number of supplier companies, which
are linked with the major technological and automotive companies, still profiting from child
labor. Companies like Nestle which has assured their customers that their products use
sustainable palm oil, usually turn a blind eye to the worker's exploitation in their supply
companies (Grootaert and Kanbur 2015, p. 187). These companies can exercise they due
diligence by investigating the sources of raw materials to determine whether they have been
acquired ethically. These companies are supposed to care about child labor by limiting child
labor case in their supply chain.
One possibility why child labor is still a challenge is the constraints and preferences faced
by the children or their parents do not figure out what happens to the children (Hilowitz 2017, p.