Business Ethics and Child Labour: A case of Nestle Food Company
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Executive Summary
Child labour continues to exist in society despite the global efforts to eradicate this malpractice, especially in the supply chain of multinational companies. Child labour is legally, morally, and ethically incorrect and negatively impacts business ethics. The utilitarians assess the morality of forced child labour from its consequences, basing their evaluation on end justifies the means. At the same time, the deontological perspective considers forced child labour from its ability to deprive children of autonomy, justice, and veracity. Evaluating Nestle Food company shows that forced child labour in a company supply chain negatively impacts its reputation and results in lawsuits. Additionally, forced child labour affects a company’s business ethics and influences business ethics various principles. However, companies can adopt measures such as conducting due diligence on the supply chain, creating awareness, and providing alternatives to work for children caught up in forced labour in the supply chain to curb forced child labour.
Introduction
Nelson Mandela said, “There can be no keener revelation of a society’s soul than how it treats its children.” Child labour remains one of the deep-rooted problems in society. The International Labour Organisation (ILO) estimates that over 200 million children are victims of child labour globally, with developing countries leading in incidences of child labour. According to ILO, child labour refers to work that deprives children of dignity and childhood and poses potential harm to children’s mental and physical development. Despite international organizations and countries’ strict laws and regulations to reduce and eliminate child labour, child labour is still present in society, particularly by the supply chain of multinational companies in developing countries. Child labour is morally, ethically, and legally unacceptable. Therefore, there is a need for a standardised framework to reduce and eliminate child labour in society.
Child Labour Ethical Assessment
Child labour is a serious ethical issue that businesses grapple with daily. Aside from being illegal globally, child labour is morally unacceptable and negatively impacts business ethics. By definition, business ethics are the moral standards and principles that define what is wrong and right in how organisations conduct their businesses and operations (Crane et al., 2019). Business ethics is significant in how consumers view organisational products. Therefore, companies working with children may find it challenging to market and sell their products. Additionally, child labour taints the image and the company’s brand.
Scholars evaluate child labour from a different ethical perspective. The Utilitarian’s view assesses the morality of child labour from its consequence; the end justifies the means (Crane et al., 2019). According to the Utilitarianists context, child labour is accepted if children are the sole providers to families, and without their income, the families will not survive. Also, Utilitarian approve of child labour if it is voluntary. According to this morality perspective, the ethical correctness of action depends primarily on the actual outcome of the action.
On the other hand, the deontological perspective assesses the morality of child labour not from its consequences but by principles such as autonomy, justice, and integrity (Crane et al., 2019). Forced Child labour is unethical as it deprives children of their independence. Parents manipulate the consent of working children; for children to give consent, they should volunteer to work and understand the consequences and situation. However, children of a young age are not competent enough to assent to an action that requires thoughtful decision-making. Secondly, children in forced labour experience organisational injustice; they fall victim to unfair work conditions such as low pay and lack the power to stand up against mistreatments. The maleficence of child labour has a long-term impact on children’s physical, physiological, and behavioural (Thomas, 2019). Although children lack the competence needed to make an informed decision, they are still individuals whose autonomy should be respected and safeguarded.
Overview of Nestle Food Company
Nestle food is a publicly-traded Swiss multinational food and drinks company that operates under the Good Food, Good Life tagline. The company was founded in 1866, and its headquarters is in Vevey, Switzerland. The company’s products include coffee, bottled water, dairy products, tea, baby foods, snack, ice cream, breakfast cereals, frozen foods, confectionery, and pet foods (Nestle n.d). Nestle is the largest food company globally in terms of revenue, market value, profits, and assets. The company has over 8000 brands, with 29 registering over a billion United States dollars sales annually. The company operates over 447 factories in 187 countries globally, with over 291 000 people (Nestle n.d ). The company is among the best employers in Europe with six Leadership in Energy and Environmental Design certifications and sponsor several activities and sustainable projects globally (Wijesinghe, 2018).
Despite its numerous accolades, various individuals have accused the Swiss Multinational company of numerous business malpractices over the years. Nestle has hit news headlines for several morally wrong reasons, from the days of Ethiopian Debt to the viral baby milk campaign (Wijesinghe, 2018). The company has made news for price-fixing, notably in Canada, pollution notably in its Shanghai Limited bottled water manufacturing plant in China. More gravely, it’s the lawsuit the company faced regarding child labour, abuse, and trafficking.
Nestle Food Company and Child Labour
Nestle company faces the moral challenge of child labour in its cocoa production processes. Different parties have repeatedly accused the multinational company of tolerating child labour in other cocoa-producing farms, majorly in Ivory Coast. In 2005 the International Labour Rights Fund sued Nestle Food company on behalf of six Malian nationals, former child slaves forced to harvest cocoa under poor working conditions in Ivory Coast. Additionally, in 2010 a documentary titled the “Dark Child of Chocolate” brought to public attention the cocoa plantations in Ivory Coast that use child labour, employing children between 12 to 15 years old primarily trafficked from neighbouring countries (Wijesinghe, 2018). Nestle purchases its cocoa from plantations in Ivory Coast; thus, society directly associates it with the child labour in this plantation. This presents a major ethical issue that affects the reputation of the company and Nestle brand globally.
The moral issue affecting Nestle Food Company’s business ethics revolves around child labour. Child labour affects children emotionally, physically, and physiologically and infringes on children’s rights (Nogler et al., 2016). Nestle food company’s code of conduct prohibits child labour. However, it emerges that the company embraces child labour malpractices impacting its business ethics.
Nestle food company’s tolerance of child labour impacts the deontological perspective of ethics. Forced child labour deprives these children of their freedom, human life, justice, and care. Some children working in these plantations are victims of human trafficking. Thus, they do not consent to work in the plantations (Wijesinghe, 2018). Additionally, these plantations force children to work under challenging conditions. In the International Labour Rights Fund submission, the victims document that the plantations cause them to work more than fourteen hours in the plantations six days a week in hazardous conditions, starved and beaten. This shows little regard to human life and lack of justice, and Nestle food company is doing very little to curb this practice.
Stakeholder Analysis
Government and policymakers play a huge role in child protection. Society task these institutions to protect children’s rights and ensure that they do not become victims of child labour, making them significant stakeholders in forced child labour. Also, it is their responsibility to enact and enforce laws that set work standards such as legal work age, prohibit child labor, and encourage child education (Thomas, 2019). Therefore, governments in various countries where Nestle company engages in the production, especially cocoa production, should enact laws that compel the company to live up to their policy prohibiting child labour.
Secondly, consumers should not be driven by product prices; instead, consider the social impacts of their purchase. Consumers should be mindful of how companies produce the products they consume (Thomas, 2019). They should pay attention to the use of child labour in the global supply chain and boycott products from companies that tolerate child labour in their production. Nestle being a company that deals in consumables, consumers can push the company to sort the problem of child labour in its various supply chain.
Additionally, society is vital in solving the issue of child labour. It is the duty of every individual in the community to protect a child and make society child labour free. Every member of the organization must stop child exploitation and ensure the prosecution of offenders (Nogler et al., 2016). Increased societal support for education and support for families at risk of engaging in child labour is essential in eliminating this historic challenge. Nestle is a global brand whose products exist in almost all households’. Individuals in society should evaluate how the impacts of their purchases on the company’s child labour malpractices.
Furthermore, unions and institutions concerned with protecting human rights and upholding children’s welfare are crucial in the fight against child labour. The efforts by organisations such as the United Nations International Children’s Emergency Fund, International Initiative of End Child Labour, International Labour Organization, among others, in promoting a global campaign against child labour and encouraging children education will accelerate the pace of the progress of actions aimed towards eliminating child labour in the society (Nogler et al., 2016). International organisations and unions should double their efforts in compelling Nestle food company to stop embracing child labour in its various supply chain.
Importance of Child Labour to Business Ethics
Child labour is among the severe ethic issues that businesses have to handle in their daily operations. The act is morally, ethically, and legally unacceptable in countries globally. Business ethics outline the responsibility of a business is consider the needs of customers and obey laws and regulations governing the business process (Crane et al., 2019). Business ethics operates under citizenship, responsibility, trustworthiness, fairness, respect, and caring (Crane et al., 2019). Adherence to laws prohibiting child labour highlights a company’s ability to live up to the principles of business ethics. It shows a business taking responsibility for ensuring children’s rights are protected, showing the society that it can be trusted to care and be fair in its operations. Incidences of child labour in an organisation raise questions of the business’s conduct and procedures; thus, for society to consider a business brand and its operations ethical, it is paramount that the organisation speak against and eliminate any incidence of child labour in its supply chain. Unlike the other malpractices, the issue of child labour in Nestle food supply chain hit the headlines. It commanded serious conversations, implying the importance that society attaches to child protection.
Recommendations
Nestle Food can implement the following measures to curb the constant accuses of child labour surrounding the organization’s supply chain. The company can conduct due diligence on its supply chain, raise awareness, provide children with an alternative to work.
Nestle should conduct due diligence before engaging in business with any supply chain. Conducting risks assessment and impact help the company understands how the supply chain works (Nogler et al., 2016). It helps the company answers question such as; are there cases of child labour? What are employees’ working conditions? And what is the possibility of the supply chain engaging in forced child labour? On two different occasions, five years apart, 2005 and 2010, Nest food company has found itself in the middle of child labour problem from the same supply chain, cocoa plantations; this reflects a company that has not done sufficient due diligence. Therefore, to avoid such challenges in the future, the company should thoroughly evaluate the companies in their supply chain to fully and sufficiently understand their operations.
Secondly, Nestle food company should raise awareness about different aspects of child labour to individuals, communities, and families especially, those in its supply chain. The main reason child labour is prevalent in developing countries is the knowledge gap on the impacts of child labour on children, laws governing child labour, and the consequences of child labour (Thomas, 2019). Businesses taking it upon themselves stop educate various stakeholders on the issue is essential in eliminating the vise. For instance, Nestle food company should educate individuals in Ivory Coast on different aspects of child labour to create awareness and influence forced child labour practices in its cocoa production process.
Nestle can also provide children caught in forced labour in its supply chain with alternatives to work like paying for their education and improving their well-being. Getting involved in rectifying a situation speaks highly of a company and helps build a company’s reputation (Wijesinghe, 2018). For instance, Nestle can help enhance the well-being of children undergoing forced labour in various cocoa plantations in the Ivory Coast. Education plays a vital role in eliminating forced child labour.
Conclusion
How a company conducts business, and its process plays a significant role in how consumers and society perceive its operations. Child labour is among malpractices that impact business ethics. Different ethical perspectives exist on how scholars forced child labour. Child labour is prevalent in multinational companies, especially in its supply chain, and involves various stakeholders. Therefore international companies should create awareness, offer alternatives to children, and do due diligence to avoid being caught up in the force child labour problem.
Bibliography
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA.
Nestle Food Company. Company profile. Nestlé. (n.d.). Retrieved November 16, 2021, from https://www.nestle-esar.com/aboutus/company-profile.
Nogler, L., Pertile, M. and Nesi, G., 2016. Child labour in a globalized world: a legal analysis of ILO action. Routledge.
Thomas, C., 2019. Freedom from child labour: A fundamental right. In Research Handbook on Labour, Business and Human Rights Law. Edward Elgar Publishing.
Wijesinghe, P., 2018. Human rights violations by multinational corporations: Nestle as the culprit. Available at SSRN 3136321.
