Child Labor in India and Indian Companies: Is There a Case for Extended Responsibility?

Child Labor in India and Indian Companies: Is There a Case for Extended Responsibility?

Mitali Roy (Mitali) and Manika Arora (Manika) did their MBA (with a specialization in HRM) from a prestigious management school in Hyderabad, Telangana, India. After the completion of their course, both took up jobs as HR Managers with different companies. Manika joined a software firm in Hyderabad and Mitali joined a reputed branded apparel firm in Bangalore, as HR Manager.

After 2 years, while on a business trip to Hyderabad Mitali met Manika and over a cup of coffee both of them were catching up as well as sharing their experiences at their current jobs. As they were talking, a boy of around 13 years of age came to their table, cleaned it and served their order. Manika was quick to notice the change in Mitali, as she seemed disturbed and asked the reason.

Mitali: Seeing this young boy serving here, brought back to my mind the plight of the young children I happen to see during my visits to the factories of our suppliers. I do not understand why people do not comply with the laws. Do you recollect the heated debates that we had during our HR specialization course, “Industrial Jurisprudence and Labor Law Applications”?

Manika: Yes, I do recollect those heated and animated discussions. But, young children working in cafes, restaurants, small shops, etc., is a common sight in India. Moreover, are they not earning a living for themselves and their families? Why is it bothering you so much?

Mitali: It is worrisome that despite so many laws prohibiting the use of child labor and provisions to provide education and development, child labor is rampant in the country/across industries. This deprives them of their basic rights like education, freedom, play and thereby their right to a healthy and prosperous future. Who will stop this? When will it end? Will it end, at all?

Manika: Is child labor prevalent in the industry you work?
...................

Child Labor: Global Scenario

Many international organizations considered child labor – employment of children in any work that deprived children of their childhood and regular schooling, and which is mentally, physically, socially or morally dangerous, abusive and harmful – as exploitative. Legislations across the world too prohibited child labor. However, International Labour Organization (ILO) does not classify all work done by children as child labor. Work that does not affect a child’s health, personal development or interfere with schooling was not child labor – exceptions included work by child artists, work carried out under supervised training, helping their parents around the home, assisting in a family business or earning pocket money outside school hours and during school holidays, etc.....

Child Labor in India

Raju, Chotu, Chutki, Munni, etc., are some of the names heard quite commonly across the country in the road-side restaurants, small retail stores, workshops, motorcycle repair shops, construction sites, etc. They are children aged 5 to 14 who work for 300–500 per month2 and sometimes without pay as their employers provide them food, and in many cases boarding and lodging.

India, the world’s second-fastest growing economy, which on one hand boasts about its economic growth, increased living standards and incomes, IT industry, modern infrastructure, scientific/space research achievements, etc.......

Child Labor: The Cause and Effect

Millions of children in India are employed in various industries and their work range from carpet weaving, construction, mining, agriculture, restaurants, silk industry, firecracker units, garment manufacturing, domestic help, glass blowing, etc., and are exploited by the employers (Exhibit IV).

Child labor existed in both organized (directly or indirectly) and unorganized sectors and more so in the rural parts of the country. A majority of them were engaged in hazardous activities – working with dangerous machinery and sharp tools and carrying loads they were not strong or mature enough to handle........

Laws or Extended Responsibilities?

While no one disagrees with the enactment of appropriate and sufficient laws to prevent and prohibit instances of child labor over the decades, everyone question the enforcement of these laws. How come despite a plethora of laws (including constitutional provisions), the children are employed and abused? One of the often-cited reasons for non-satisfactory enforcement is due to inadequate manpower with government. Should companies therefore assume extended responsibilities to eradicate this practice?..........

Assignment Questions

I. What are the reasons for prevalence of child labor despite several laws, including provisions in the Indian Constitution?

II. Why do you think, child labor is prevalent in few industries as opposed to other industries? What can be done to eradicate instances of child labor even in these industries?

III. Do you think Indian companies have extended responsibilities to prevent and prohibit instances of child labor not just through their direct operations but also in all their indirect operations – for instance, in their vendors, suppliers, customers, employees, etc.?

IV................

Exhibits

Exhibit I: Global Estimates of Various Forms of Children’s Work, 5-17 Years Old, 2008 and 2012

Exhibit II: Regional Estimates of Various Forms of Children’s Work, 5-14 Years Old, 2008 and 2012

Exhibit III: Children in Employment in India (2000 – 2010)

Exhibit IV: Child Labor Across Various Industries in India

Exhibit V: Laws Related to Child Labor

Exhibit VI: The Extent of Child Labor Abuse in India

Annexures

Annexure I: Products that Use Child Labor

Annexure II: State-wise Distribution of Working Children according to 1971–2001 Census in the age group 5-14 years

Annexure III: Government of India Initiatives in Eradicating Child Labor

Child Labor in India and Indian Companies: Is There a Case for Extended Responsibility?

Synopsis

This case study enables a discussion on the extended responsibilities of HR departments in the case of child labor. With Kailash Satyarthi winning the Nobel Peace Prize (for 2014) for his campaign against child labor, the simmering problem seems to have assumed a global dimension. The Government of India estimated, according to 2011 census, that there were around 4.5 million children working in the country, down from 13 million in 2001. But the International Confederation of Free Trade Unions and other NGOs assert that there were around 60 million – 115 million working children in the country in 2011. These figures include children working at their own homes (unaccounted child labor as they do not come under the purview of law) and in hazardous industries like mining, glass blowing, carpet weaving, artificial pollination (agriculture), etc. While many government and non-governmental organizations were working towards the eradication of this social malice, corruption among the enforcement authorities, illiteracy of the parents, poverty, adult unemployment, and many other factors kept the practice of child labor prevalent in the country. Can Indian companies and their HR departments play a proactive role to abate the prevalence and occurrence of child labor through their intent and involvement?

Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion

The participants were asked to read the following chapters to help them connect the concepts.

• •Gary Dessler and Biju Varkkey, “Chapter 2: Employment Law in India and the United States”, Human Resource Management, 12^th Edition (Indian Adaptation), Pearson Education, Inc., 2011 – To understand the fundamental rights, rights against exploitation and constitutional provisions in India under the labor/factory laws and acts and their applicability in the Indian manufacturing firms and how child labor are exploited with the non-compliance of laws
• •Gary Dressler and Biju Varkkey, “Chapter 14: Ethics, Justice and Fair Treatment in HR Management”, Human Resource Management, 12th Edition (Indian Adaptation), Pearson Education, Inc., 2011 – To understand the fundamental difference between being legally correct and being ethical; and understand the need for the companies to comply with both (law and ethics) in the case of employing child labor
• •Students were also asked to observe the instances of businesses employing child labor and the prevalent working conditions/exploitation of children at these business units

Positioning/Case Setting

This case study can be used for either of the following modules/topics in the Human Resource Management Course:

• • Labor Laws in India – To understand the Labor Laws (Factories Act, 1948, etc.) in India and how companies exploit workers by non-compliance of laws
• • Child Labor and Constitutional Provisions in India – To understand the provisions of the law related to child labor (prohibiting child labor and provision of programs for their education and development)
• • Ethics and Role of HR Departments in Companies – To understand the need for companies to behave ethically and prohibit using child labor anywhere in their supply chain and the extended role of HR departments in achieving the same

Assignment Questions

• I. What are the reasons for prevalence of child labor despite several laws, including provisions in the Indian constitution?
• II. Why do you think, child labor is prevalent in few industries as opposed to other industries? What can be done to eradicate instances of child labor even in these industries?
• III. Do you think Indian companies have extended responsibilities to prevent and prohibit instances of child labor not just through their direct operations but also in all their indirect operations – for instance, in their vendors, suppliers, customers, employees, etc.?
• IV. ....................

Suggested Orchestration

The classroom discussion was facilitated under three broad sections as explained in Exhibit (TN)-I. The classroom discussion and analysis for this case study could be summarized through the Board Plan [Exhibit (TN)-II]..............

Exhibits

Exhibit (TN)-I: Classroom Discussion – Suggested Plan

Exhibit (TN)-II: The Board Plan

Exhibit (TN)-III: Reasons for the Prevalence of Child Labor