Introduction

The report highlights the persistent issue of child labour, which affects 160 million children worldwide. Businesses are urged to recognise their potential impact and implement ethical practices. The guide provides UK businesses with actionable strategies to transform aspirations into concrete actions, drawing on key initiatives from the UN Global Compact Networks UK and USA.

Child labour: Definitions and figures

Child labour is defined as work that interferes with a child’s education or harms their development. Globally, 160 million children aged 5 to 17 are involved in child labour, with half engaged in hazardous work. The agricultural sector is the most affected, involving 112 million children, representing 70% of all child labour. Other sectors include services (20%) and industry (10%).

The business case for tackling child labour

Addressing child labour enhances a company’s reputation as a responsible business. Statistics show that 82% of millennials prefer to work for companies committed to ethical practices, and 92% prefer to buy from such companies. Effective action against child labour can also attract socially responsible investors and mitigate reputational risks associated with human rights abuses.

Understanding child labour interventions

Businesses should assume that child labour exists in their supply chains and take proactive steps to prevent, mitigate, and remediate it. The report recommends raising awareness in communities where cultural resistance to eliminating child labour may exist. Utilising established frameworks, collaborating with stakeholders, and addressing gender dynamics are crucial for effective intervention.

Legislation and other frameworks to end child labour

Recent legislation in the EU and other regions has increased the obligations on businesses to address child labour. Key frameworks include:

• Corporate Sustainability Reporting Directive (CSRD): Mandates companies to report on their sustainability practices, including measures to prevent child labour.
• Corporate Sustainability Due Diligence Directive (CS3D): Requires companies to implement due diligence processes to identify and address adverse human rights impacts, such as child labour.
• UK Modern Slavery Act 2015: Obligates companies to publish an annual statement detailing steps taken to ensure child labour and modern slavery are not present in their operations and supply chains.
• EU Forced Labour Regulation: Aims to ban products made with forced and child labour from entering the European market.
• Canada’s Fighting Against Forced Labour and Child Labour in Supply Chains Act: Requires companies to disclose violations, promoting transparency and accountability.

These frameworks underscore the importance of integrating child labour considerations into corporate governance, risk management, and reporting.

Concrete actions

• Entrench policy commitment: Businesses should adopt policies to respect and support children’s rights.
• Identify risks to children: Mapping supply chains to identify and mitigate risks is essential.
• Strengthen supplier codes of conduct: Policies should include decent work, living wages, and family-friendly practices.
• Review purchasing practices: Buyers should ensure fair pricing and delivery timelines to avoid conditions that encourage child labour.
• Remediate cases of child labour: Effective remediation involves addressing the root causes, not just removing children from work environments.