Marks & Spencer has successfully defended its reputation on child labour in the libel courts, but there is no let up in the need to manage sources of supply responsibly.
DEFENDING REPUTATION
On March 3, Marks and Spencer won its libel action against Granada Television when the makers of World in Action settled out of court, making an apology and paying both agreed damages to charity and costs, said to be £50,000 and £650,000 respectively. The programme, broadcast in 1996, showed child labour being used by subcontractors in Morocco and some garment mislabeling as ‘made in the UK’. The jury decided the programme would convey to viewers the impression that the retailer knowingly endorsed child labour and deliberately misled customers about the origin of garments. Granada Television denies this was the intention. Contact Brian Hudspith, Marks & Spencer, on 0171 935 4422
SAINSBURY’S PRINCIPLES
Sainsbury’s has drawn up a detailed Code of Practice setting out the principles of social responsibility which its suppliers should apply. Covering issues such as fair trading, protection of children, health and safety, equal opportunities and fair pay, it is being distributed to suppliers and applies to their subcontractors too. Drawn up in discussion with a group of leading NGOs, Oxfam’s director provides a foreword welcoming the principles. Sainsbury’s aims to gain the agreement of suppliers to implement fully the code by the year 2000 and will monitor performance through normal internal procedures. Contact Petrina Fridd, Sainsbury’s, on 0171 695 6000
SWEAT AND TOIL
A detailed report on the operation of nine American consumer labelling schemes in industries affected by child labour issues was issued by the US Department of Labor during March. By the Sweat and Toil of Children, the fourth in a series of studies commissioned by the US Congress, focuses on the carpet, footwear, soccer ball and tea industries and was based on site visits to eight countries, studying nearly 50 companies in detail, including Adidas, Nestl?, Nike and Reebok. It concludes that consumer labelling schemes can be highly effective, given independent monitoring and the inclusion of sub-contractors, and that they should be more widely adopted. Contact Sonia Rosen, DoL, on 00 1 202 219 4923 (www.dol.gov)
SETTING STANDARDS
The International Labour Organization has approved preparations for a new Declaration of Principles on fundamental rights at work, such as the abolition of child labour, equal pay and non-discrimination. The ILO’s governing body, meeting in Geneva on March 27, also agreed that “appropriate follow-up mechanisms”, such as an annual survey, be put in place, despite opposition from some developing countries which perceive higher enforceable standards as a protectionist move by industrialised nations. Only 35 of the ILO’s 174 member countries have so far adopted all seven of its core principles which also include the right of free association and to bargain collectively. Contact ILO on 0171 828 6401 (www.ilo.org)
CHILDREN AT WORK
Children in Britain as young as ten are illegally working long hours, often outside the permitted times, earn as little as 48p an hour, or work in prohibited industries. The Low Pay Unit estimates that of two million working children, three quarters are employed illegally and one in three has been involved in an accident at work. On March 13, the Unit published research into working children in North Tyneside, where one in three children between 10 and 15 years old had worked in the previous six months, two thirds illegally, averaging eight hours a week. Contact Low Pay Unit on 0171 713 7616
FEWER HOURS, MORE HOLIDAY
The government is to bring forward proposals to protect child workers in Britain, including a cut in the maximum working week, guaranteed holidays and powers for local councils to draw up lists of jobs permitted for 13 year olds. The announcement was made on February 13 during a Parliamentary debate on a private member’s bill, Employment of Children. Contact DSS Enquiries on 0171 210 5983
Comment
So Marks & Spencer won, and thereby struck a blow against the type of media reporting which never lets the facts get in the way of a good story. World in Action could not resist taking a pot shot against the company with consistently the best reputation as a `good business’.
If they had stuck to narrower and more secure ground, the outcome would have been different and damaging. In future, the media will ask more focused questions. Why is child labour being used anywhere on the supply chain, if the company’s values are so clearly against it? What is the worth of values if systems and procedures don’t ensure they are always applied? How can the customer trust the company if the company itself does not know what is going on?
This libel case is merely a skirmish in an on-going battle, a short breathing space while companies get on with the long and difficult process of auditing and upgrading supply chain systems. Involving not-for-profit organisations in dialogue gets useful input and buys time. Community affairs managers can help make the introductions for their sourcing colleagues. But be sure to involve NGOs which are firmly rooted in developing country culture and understand the needs. And let’s all avoid getting too self-congratulatory, given the prevalence of child labour at home.
Corporate Citizenship Briefing, issue no: 39 – April, 1998http://www.dol.gov)http://www.dol.gov”>http://www.dol.gov)>
COMMENT:
So Marks & Spencer won, and thereby struck a blow against the type of media reporting which never lets the facts get in the way of a good story. World in Action could not resist taking a pot shot against the company with consistently the best reputation as a `good business’.
If they had stuck to narrower and more secure ground, the outcome would have been different and damaging. In future, the media will ask more focused questions. Why is child labour being used anywhere on the supply chain, if the company’s values are so clearly against it? What is the worth of values if systems and procedures don’t ensure they are always applied? How can the customer trust the company if the company itself does not know what is going on?
This libel case is merely a skirmish in an on-going battle, a short breathing space while companies get on with the long and difficult process of auditing and upgrading supply chain systems. Involving not-for-profit organisations in dialogue gets useful input and buys time. Community affairs managers can help make the introductions for their sourcing colleagues. But be sure to involve NGOs which are firmly rooted in developing country culture and understand the needs. And let’s all avoid getting too self-congratulatory, given the prevalence of child labour at home.
COMMENTS