Social Sustainability: The Dilemma of Child Labor in Manufacturing

SOCIAL SUSTAINABILITY
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INTRODUCTION
• MANUFACTURING IS THE PRODUCTION PROCESS OF A FIRM AND HAS
SIGNIFICANT COSTS ASSOCIATED WITH IT.
• COMPANIES AIM AT REDUCING THESE COSTS FOR THE PURPOSE OF
HIGHER PROFITABILITY.
• FOR THIS PURPOSE, COMPANIES HAVE BEEN OUTSOURCING THE
MANUFACTURING PROCESS, TO THIRD WORLD CONTRACTORS.
• THIS IS BECAUSE LABOR AND RAW MATERIALS ARE THE CHEAPEST IN
THE THIRD WORLD COUNTRIES, THEREBY REDUCING PRODUCTION
COSTS FOR THE FIRMS.

THE ISSUE
• SOCIAL SUSTAINABILITY IS THE BIGGEST ISSUE IN THIS CONTEXT.
• FAMILIES IN THE THIRD WORLD COUNTRIES ARE IN DESPERATE NEED FOR FINANCES.
• HENCE, CHILD LABOR IS THE BIGGEST ISSUE WHICH THE COMPANIES CAN BE
ACCUSED OF IN THIS CONTEXT.
• THE DILEMMA IS WHETHER TO LET THESE CHILDREN WORK, OR TO CARE FOR THEIR
FUTURE AND STOP THEM FROM WORKING.
• IT IS A DILEMMA SINCE THE OUTSOURCING PRACTICES OF MANUFACTURING
PROCESSES HAVE YIELDED GREAT EMPLOYMENT OPPORTUNITIES IN THE THIRD
WORLD COUNTRIES.

A CASE STUDY OF T&T
• STEINER, WHO IS A BUSINESS MANAGER IN T&T, VISITED PAKISTAN, TO CHECK ON THE
PLANT WHICH OPERATES MANUFACTURING PROCESSES FOR THE FIRM.
• HE LEARNS THAT THERE HAVE BEEN SIGNIFICANT NUMBER OF CHILDREN, MAINLY GIRLS
UNDER THE AGE OF 14, WHO HAVE BEEN WORKING WILLINGLY IN THE PLANTS.
• THIS IS AGAINST THE GUIDELINES OF THE FIRMS TO ALLOW CHILD LABOR, BUT STEINER
LEARNS FROM THE EXTERNAL CONTRACTORS THAT IT IS FOR THE MUTUAL BENEFITS.
• CHILD LABOR SIGNIFICANTLY REDUCES PRODUCTION COSTS FOR THE COMPANY.
• FAMILIES BENEFIT FROM THEIR CHILDREN WORKING IN THE PLANTS, SINCE IT YIELDS THEM
FINANCIAL SUPPORT.
• THE QUESTION, WHAT SHOULD STEINER POSSIBLY DO FROM A BUSINESS PERSPECTIVE?