Major corporations with overseas subcontractors (such as IKEA in Bangladesh, Uni

Question

Major corporations with overseas subcontractors (such as IKEA in Bangladesh, Unilever in India, and Nike in China) have been criticized, often with substantial negative publicity, when children as young as 10 have been found working in the subcontractor's facilities. The standard response is to perform an audit and then enhance controls so it does not happen again. In one such case, a 10-year-old was terminated as a result of an audit by the parent company. This action however created unforeseen problems for the family of the child as well as for the 10 year-old as well as an ethical dilemma for the company. Shortly after the dismissal or termination, the family, without the 10-year-olds contribution to the family income, lost its modest home, and the 10-year-only was left to scrounge in the local dump for scraps of metal. Was the decision to hire the 10-year-old ethical? Was the decision to terminate the 10-year-old ethical? What questions would you ask local management concerning both the hiring and firing process? What other questions might you want to ask local management? As a consultant or manager for the parent company, what would be your recommendation? Answer only what you read in the dilemma. If you do make assumptions then state the assumptions that you have made and state your decision or comments based on that (those) assumptions.

Explanation / Answer

It was unethical to hire 10-year old in the first place. Had he been not hired, the family would not have been dependent on her income for their livelihood. Instead, they would have figured out another way to make ends meet.

It was ethical for an organization to terminate the 10-year-old because local regulations do not permit employing a child, as is the case in most countries including India and Bangladesh. It would be highly unethical for multinationals to keep a 10-year-old in employment after it is brought into the notice of higher management.

Local management should seek legal advise in hiring and firing children and should conduct their business within the available legal framework of a country. There are some jobs that requires child labor, for example child artist working in television series or movies. (The world does not make a fuss about that, unfortunately.) Local management should make sure that children that are employed should not be exploited, are adequately compensated and their school schedule is not adversely being affected due to the job.

While firing, the local management should consider the economic implication of the decision on the child's family. If possible, the local management should hire some one from the child's family to replace her. Also, most of the multinationals have their own CSR function in today's time. It should be ensured that the child is given proper shelter, food and education through collaboration with other NGOs.

Local management should always consider the rule of law supreme and strictly adhere to local regulations. Once a wrongdoing is identified, the local management should be made personally responsible and strict actions should be taken against such individuals.

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.