According to Webley and Le Jeune (2005), a code of conduct is simply a formal policy document which has been established by a corporation, with the aim of defining its responsibilities towards its key stakeholders and the nature of conduct which the organisation would expect of its work force. In other words, these are the set standards governing the behavior of stakeholders and employees within an organisation.
Codes of conduct have always proved to be essential in the modern business environment, where they are employed in guiding the behavior of key operational units within organisations (Kolk 2002). Effective implementation and enforcement of such codes is a crucial part of the global supply chain, since they contribute to efficient and effective performance and productivity of firms.
In this regard, global supply chain managers should always observe serious compliance of the codes, so as to create fair environmental and social conditions for their employees. Despite the dominance which these ethical standards tend to have on modern businesses, there is more than enough evidence that there is still low compliance of the codes by many global supply chain firms across the world. As it will be observed in the following case, the issue of child labour is among the many challenges that have continued to affect the management of modern global supply chains.
While it is the role of managers to oversee the enforcement of ethical requirements and standards in their respective organisations, there is ample evidence that these people are faced by endless ethical dilemmas in their leadership roles. Global supply chain managers constantly come across serious challenges in matters that would require them to deal ethically with their business stakeholders.
As it would be observed, child labour, commonly practiced in most industrialised countries, is arguably among the emerging issues that have continued to affect the management of the global supply chains today. Child labour is a practice whereby underaged children are engaged in economical activities, thus ending up being deprived of their childhood rights and privileges.
In most cases, 14 and below is the age level that specifies someone as a child or a minor in business codes. Many firms in industrialised countries have fully adopted the idea of child labour as a form of competitive advantage, considering the incessant pressures of heightening market competition and economical globalisation (Egels-Zanden 2007).
Even though the practice is likely to generate immense benefits to firms and the working families, it brings serious effects on children. One of the many implications associated with the practice is that it denies the kids an opportunity to attain important requirements of life, such as education.
Other possible effects of child labour is that, children are under the threat of getting exposed to bad working conditions, and this could sometimes result to unbearable psychological and emotional pressure. It is for these reasons why many countries across the world have come up with child protection programmes and initiatives that would help in keeping children free from serious potential harm posed by child labour.
There is arguably no doubt that the supplier of toy products in Thailand offers the most favourable business conditions that no firm would dare to reject. For instance, the products from the firm are offered at a fair price, and their quality is equivalent to that of any other highly regarded product in the market.
The most disturbing issue here however is that, the supplier lacks a real work production sector of its own and it relies on an organised external production, where child labour is highly applied in the assembling of the toy products. As it is evident from the episode where a group of six children, aged between 5 and 14, are observed to work cheerfully along their parents in assembling the products, there is no doubt that the same case also applies to minors in all the other homes where the exercise takes place.
The assurance by the sales manager that this was common practice in the region is a clear manifestation that child labour was at rife here, regardless of the existing labour laws intended to protect the children. This engagement is quite significant, since it enables the company to meet the heightening global demands of toy products. This way, it is very obvious that the firm is non-compliant to the labour laws advocating against child labour, which have been set by the government.
It has been observed that the idea of child labour is not only common in the industrialised countries, but also in some developing countries where low-cost suppliers have to deal with the unbearable pressure of selling their products at a low cost to the Western countries (Preuss 2009).
In that case, the low-cost suppliers are left with no other option, but to engage children in child labour, in order to meet the desired market price levels. It is estimated that there are more than 200 million underaged labourers around the world, and this is a clear indication that the practice is still a global phenomenon that needs to be eradicated.
It is time modern business organisations engaged in positive corporate initiatives and standards, as they are expressed through focused code of conducts that fully enforce the fundamentals of labour laws relevant to child labour (Hindman and Smith 1999). This appears to be the biggest problem that can be associated with the potential manufacturer of Thai.
The manufacturing process of the firm is well guaranteed, since there is an effective source of labour from both grown ups and children. This could be more satisfying to those people who’d be seeking fast delivery services. Moreover, doing business with the Thai supplier may also be a promising deal in terms of cost savings, among other long-term benefits.
Nonetheless, there is no decent global chain supplier manager who would like to be a perpetrator of child abuse in this manner, considering the many implications this would impose on the future generation. It would not be morally right for any decent firm to work with business partners who engage in child labour practices.
In this regard, managers should implement initiatives that are aimed at eradicating child labour practices, instead of encouraging them. The people in managerial positions should also condemn the practice by wishing to see other children grow and develop in the same way like their own children.
Among other key tasks, product managers are faced with the responsibility of ensuring that their firms do acquire high quality products at a reasonable cost (Sobczak 2003). However, they should not just see the quality of products or even the price at which the products are offered, but also the grounds under which the products are processed.
It is always wise for product managers to take a broader perspective on the issue of ethical codes as it is applied at the supplier level, and try being compliant to the fundamentals of the labour laws, as they are enforced by different countries.
It has been argued that, some industrialised and developing countries have constantly engaged in unrealistic forms of developments through the engagement of underage children in key economic sectors. As a result of the surging influence of the global market, children under the age of fourteen in developed and developing countries have massively been drawn to industrial economical activities, where they are expected to play a predominant role in various systems of production.
Presently, many countries are against the economics and practices of child labour, and have fully come out to condemn the practice by advocating for fundamental children rights, through effective labour laws. Even though it would be a good idea to actively involve children in innovative and creativity matters, this privilege should not be used to compromise their freedom in any way.
Currently, the practice of child labour is associated with many problems. For instance, there are serious concerns about the issue all over the globe, and this sends a warning signal to any organisation which continues to employ the unethical practice in its productivity missions. This unethical practice could pose serious legal problems to managers and their firms once discovered, and this could mean a tarnished business reputation for the involved organisations.
It is for these reasons why business organisations allover the world are constantly advised to consider adopting codes of conduct that would not only enable them achieve their business objectives in an effective way, but ones that would also protect their image and reputation among their external stakeholders (Radin 2004).
Those labour laws which have been effectively expressed through the codes of an organisation are certain to play a crucial role in guiding the firm through its business objectives. Children have the right to be protected from any form of activity that deprives them of their rights, and it is therefore every child’s right to acquire education as a compulsory requirement, among other basic requirements. Honestly, it would not be a good idea for the firm to get involved with business partners who are still practicing child labour.
Reference List
Egels-Zanden, N 2007, ‘Suppliers Compliance with MNCs Codes of Conduct: Behind the Scenes at Chinese Toy Suppliers’, Journal of Business Ethics, vol. 75 no. 10, pp. 45-62.
Hindman, H & Smith, C 1999, ‘Cross-Cultural Ethics and the Child Labor Problem’, Journal of Business Ethics, vol. 19 no 15, pp. 21-33.
Kolk, A 2002, ‘Child Labor and Multinational Conduct: A Comparison of International Business and Stakeholder Codes’, Journal of Business Ethics, vol. 36 no 7, pp. 291-301.
Preuss, L 2009, ‘Ethical Sourcing Codes of Large UK-Based Corporations: Prevalence, Content, Limitations’, Journal of Business Ethics, vol. 88 no. 10, pp. 735-747.
Radin, T 2004, ‘The effectiveness of global codes of conduct: Role models that make sense’, Business and Society Review, vol. 109 no. 4, pp. 415–447.
Sobczak, A 2003, ‘Codes of Conduct in Subcontracting Networks: A Labour Law Perspective’, Journal of Business Ethics, vol. 44 no. 7, pp. 225-234.
Webley, S & Le Jeune, M 2005, Company Use of Codes of Ethics, Institute of Business Ethics, London.