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International Finance Corporation World Bank

June 2002, International Finance Corporation (IFC)

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According to International Labour Organization (ILO) statistics published in May 2002, there are an estimated 352 million children aged 5-17 engaged in some form of economic activity around the world. Of these 352 million, 246 million are either (i) below their country’s minimum age for employment; (ii) working in occupations that jeopardize the physical, mental or moral wellbeing of a child; or (iii) working as slaves, prostitutes or bonded laborers. Experience shows that the existence of harmful child labor across many industries in the developing world is often rooted in complex historical and livelihood practices which themselves hinge upon broader issues of poverty and society. Work that is hazardous to the health of a child or interferes with the child's education can have significant long-term effects on the development of both the child and ultimately of society by producing successive generations of adults who lack the basic skills needed to function in a modern economy. This downward cycle is often perpetuated by adults who, having worked as children themselves, submit their own children to the same life pattern.

While there are many actions a private sector company can take on its own to tackle the problem of child labor, there are also situations where a single actor needs to work in concert with others. Action against harmful child labor tends to be most effective when it involves a range of stakeholders from the public and private sectors as well as civil society. Government has a role to play in drafting and enforcing laws and providing educational opportunities. Civil society performs a valuable function by filling gaps in government services and by lending a voice to community concerns. Companies are increasingly working together with government and civil society to address complex issues such as child labor.

This Good Practice Note does not constitute policy or contain policy requirements; rather its purpose is to share learning and experiences with a private sector audience. The Note seeks to provide companies who are interested in the topic with a range of basic, good practice approaches that other businesses have successfully applied in addressing the issue of harmful child labor in their own workplaces and those of their vendors and suppliers.

This is a learning process for many. The Note seeks to provide companies who are interested in the topic with a range of basic, good practice approaches that other businesses have successfully applied in addressing the issue of harmful child labor in their own workplaces and those of their vendors and suppliers.Many companies are now targeting child labor in the context of promoting good workplace practices.This is a learning process for many companies which means that approaches are continually evolving and results are mixed. Many of the examples cited in this Note come from publicly available sources such as company websites. IFC has not verified the accuracy of such information nor the companies' practices, and in many cases it is simply too soon to judge whether implementation of various measures and programs has been successful.

Given the variations across countries and cultures, there is no “one size fits all” approach to tackling child labor issues. First and foremost, companies should adhere to national and local laws in the country of operation. How to do so, while addressing the various dimensions and complexities of the issue, is a challenge for which this Note tries to provide some guidance. Companies must exercise judgment in selecting which practices, or combination of practices, are best suited to eliminating harmful child labor in their particular context.

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