A report by the Center for Child Rights &

Corporate Social Responsibility (CCR CSR)

Best Response: Auditors’ Insights on Child Labor in Asia

June 2016
Research: Canaria Gaffar, Ines Kaempfer
Editor & Design: CCR CSR
Artwork: Enosh Jinan Kurz, 11 years old

“Best Response: Auditors’ Insights on Child Labor in Asia” is a report

carried out by the Center for Child Rights & Corporate Social
Responsibility (CCR CSR) in 2016.

The launch of this report was supported by Samsung Electronics.

Samsung Electronics did not participate in the production of this report
and assumes no responsibility for its content.
 This report is divided into the following Page 1
sections:

• EXECUTIVE SUMMARY
• INTRODUCTION
• CHILD LABOR RISKS
• CHILD LABOR IDENTIFICATION EXECUTIVE SUMMARY
• BOTTLENECKS IN CHILD LABOR
PREVENTION Page 2
• GAPS IN IMMEDIATE RESPONSE
• GAPS IN CHILD LABOR REMEDIATION
• HOW TO HANDLE CHILD LABOR CASES
BETTER
• CONCLUSION
• APPENDIX 1, 2, 3, 4 INTRODUCTION

2 P 4-5 3 P 5-10 4 P 11-13

CHILD LABOR RISKS CHILD LABOR BOTTLENECKS IN CHILD

IDENTIFICATION LABOR PREVENTION

5 P 14-15 6 P 16-18 7 P 18-21

GAPS IN REMEDIATION GAPS IN CHILD LABOR HOW TO HANDLE CHILD

RESPONSE REMEDIATION LABOR CASES BETTER

Page 22-23 Page 24-30

CONCLUSION APPENDICES

Best Response: Auditors’ Insights on Child Labor in Asia

EXECUTIVE SUMMARY

This report analyzes the findings from an auditor survey

with 557 auditors from nine countries in Asia together
with the qualitative results from interviews with 40
selected auditors who participated in the survey.

The report draws a picture of the child labor situation in

Asia seen through the eyes of auditors. It aims to identify
the gaps and challenges in preventing and responding
to child labor with actual experiences and stories
from the first respondents – auditors. We will also try to
distinguish characteristics of different countries with
examples from China, India, Bangladesh and Vietnam,
where most respondents come from.

In summary, the report answers the following questions

related to child labor:

• How do the identified cases usually occur? What are the common causes/violations?
• What is the usual profile of the identified cases?
• What is the usual procedure/action taken during the first few hours?
• What aspects are most likely to go wrong?
• What are the challenges in ensuring a child’s safety and the solutions commonly
adopted?
• What are the challenges to securing factory/family cooperation?
• To what extent are financial guarantees (from brand/supplier) necessary to take
immediate action?
• What support and resources would be needed from the brand/third-party to enable a
more effective and immediate remediation process?
• What context/third-party factors outside of factory/brand control need to be taken
into further consideration?

1 Best Response: Auditors’ Insights on Child Labor in Asia

1 INTRODUCTION
Survey Context

Many companies have an escalation labor from the experiences of the first
procedure to address child labor. respondents (auditors), and improve the
However, there are no guidelines in systems in place to address child labor.
place to ensure the immediate best
interest of the child and to prevent the In early 2016, CCR CSR conducted
child from ‘disappearing’ before the an online survey with a large number
remediation processes kick in. CCR of auditors from Asia. Close to 30
CSR’s experience in the field shows that professional bodies and international
there is no systematic compilation of companies with supply chains in Asia
auditors’ knowledge and experience supported the process by distributing
that goes beyond collecting auditing the survey to their affiliated auditors
data. (please refer to appendix 4 for the list
of contributors). By mid February 2016,
A knowledge product that captures CCR CSR collected 557 valid responses
the collective experience of a wide from auditors from more than nine
network of auditors will help brands and countries in the region, mostly from
associates have a clearer picture of China, India, Bangladesh and Vietnam.
the child labor situation in the region, Many of these auditors expressed
identify the gaps and challenges in their willingness to be interviewed by
preventing and responding to child CCR CSR and to talk more about their
experiences with child labor.

Best Response: Auditors’ Insights on Child Labor in Asia 2

1 INTRODUCTION
Survey Design and Sample

The survey consisted of 46 questions, auditors, with only a few exceptions such as
mostly multiple-choice, in order to capture freelancers (Figure 2). Almost all auditors are
quantitative data about the auditors’ currently auditing for brands, while nearly
experiences. We received a total of 557 half are also auditing for associations and
valid responses. 58% of surveyed auditors professional bodies. It is also worth noting
were male and the other 42% were female that the data reflects the views of auditors
(Figure 1). The vast majority of responses in the manufacturing sector that covers
came from China, India, Bangladesh and such industries as textiles, garments, shoes,
Vietnam. For the purposes of this report, electronics, toys, furniture and more. Very
only those four countries will be separately few (less than 1%) auditors who participated
mentioned in the country-by-country in the survey have audited in agricultural
comparison, given that their sample sizes sector.
are above 30.
Figure 2: Auditor’s age and employer
Figure 1: Auditors’ gender and country
1 80%
70% 61%
Female 60% Percentage of Age

Male 50%
40%
42%
30%
58%
21%
20% 15%
10% 3%
0%
Under 30 30-39 40-49 50 and above
Freelancer
400 385 1%
Brand
350
Countries Covered Audit Company or association
300 21%
Freelancer
250 1%
Brand
200
150 78% Audit Company or association
21%
100
42 37 34
50 20 18 12 5 4
0 78%
ina

sia
h
ia

ia

ar
rs

nd
es

he
tna
Ind

es

In addition to the survey, over 200 auditors

lay
Ch

ila
lad

on

an
Ot
Vie

Ma
ng

Ind

My
Th

left their contact information to accept

Ba

interviews by CCR CSR. In the months

82% of the auditors are younger than 40 following the survey, CCR CSR conducted
years old and the large majority (61%) are short interview sessions (phone interviews)
in their 30s (Figure 2). In terms of auditing with 30 auditors from China, and 10 in-depth
experience, the time ranges from less than (hour long) interviews with auditors from
a year to 30, with seven years being the China and other countries. The interviews
average. complemented the survey results by
obtaining more detailed information on
Almost four out of five auditors are currently the complexity of the challenges and the
employed by an audit company or possible solutions.
an association. The rest work as brand
1. “Country” does not necessarily refer to the auditors’
nationality or residence but refers to the country the
3 Best Response: Auditors’ Insights on Child Labor in Asia auditors are most familiar with in terms of auditing and
the country they feel most knowledgeable about in
terms of child labor.
2 CHILD LABOR RISKS
Key Findings

• 64% of all auditors and 71% from China encountered suspected child
labor cases in the past 2 years
• 82% of all those (85% in China) reported confirmed cases

According to ILO, the Asia and the Pacific various countries may or may not reflect the
region experienced a remarkable decline actual situation in the manufacturing sector
in child labor in recent years. However, because the difference could be caused
it still has the largest number of working by the variance in sample sizes (China
children – almost 78 million or 9.3% of the accounts for up to 70% of the total sample),
2
child population by 2012 . Although most the auditors’ employers and the brands and
child labor incidents are found in the sectors they were auditing for in the past two
agricultural and service sectors, with only years. Furthermore, a point of consideration
3
7% in industry , the result of the auditor is that China has the highest minimum legal
survey confirms that child labor risks still exist working age (16 years old) out of all of the
in the first tier supply chains of international countries covered in this report. When we
brands, and probably to a greater extent look at the age groups of discovered child
than what some may have expected. It labor cases, we can see that more than 4
may come as a surprise that the auditors out of 5 cases (82%) in China are 15 and
from China encountered more child labor above, while this number is less (73%) for
on average than their counterparts in the other countries. Note that in other countries
region. In the past two years, an auditor 15 is not considered child labor by law but
from China confirmed close to two child some companies have set the minimum
labor cases on average. It is fair to mention working age in their supply chains higher
that the difference in child labor cases in than the legal minimum age. That being
said, the results do indicate that it might still
Figure 3: be too early to assume that child labor is no
No. of child cases auditors discovered in the
longer a risk factor in China’s manufacturing
past 2 years industry.
3.0 2.8

2.5

2.0 1.9
1.7
1.6
1.5
1.5 1.4 1.4
1.2

1.0
0.7
0.6
0.5

0.0
China Vietnam Bangladesh India Others 2. http://www.ilo.org/global/topics/child-labour/lang-
-en/index.htm
Suspected cases Confirmed cases 3. “Global child labor trends 2008 to 2012”, ILO, 2013

Best Response: Auditors’ Insights on Child Labor in Asia 4

2 CHILD LABOR RISKS
Key Findings

There is a slight divergence between China and other countries when comparing
the locations with the highest likelihood of discovering child labor, with fewer cases
discovered in canteens in China than in other countries. However, what they all have
in common is that factories with simple production processes such as finishing and
packaging have the highest likelihood of employing child laborers, while heavy ones
usually have the lowest likelihood (Figure 4).

Figure 4:

100
Bangladesh
80 India
Vietnam
60
China
40

20
0
Canteen Dormitory Heavy workload
Simple production
production process,
process such as
such as pressing
finishing and packing
and auxiliary process

3 CHILD LABOR IDENTIFICATION

Key Findings

There are no major differences in the these differences in depth in the “Difference
typical procedures used to identify child Between Auditors” section below.
labor in different countries. While the vast
majority of the auditors identify child labor An experienced auditor from Vietnam
by interviewing the child, less than half of who preferred to stay anonymous stresses
the auditors (even fewer in China) interview the importance of being able to adapt
other workers about suspected child labor one’s communication style to the child’s
cases. age. She thinks it is a must-have skill for an
auditor. “Children shouldn’t be asked direct
Since interviewing the child is the number questions [about their age] as this may scare
one means of verifying their age, the them off”. She is also one of the few auditors
auditors’ interviewing/communications skills who interviews other workers to determine
might naturally play an important role in whether or not this was an isolated case (for
the successful identification of child labor. full story, please refer to appendix 3).
Such an internal factor might explain why
we saw clear disparities when looking at
the number of child labor cases between
auditors of different gender, experience
and, in some cases, training. We will explore

5 Best Response: Auditors’ Insights on Child Labor in Asia

3 CHILD LABOR IDENTIFICATION
Key Findings

Figure 5:
How is child labor usually identified?
100
All

80 Bangladesh
100
All
India
60
80 Bangladesh
Vietnam
40 India
60 China

20 80% 77% 68% 55% 40% Vietnam

40
China
0
Interview
20 with On site ID check Examining Interview with
the child inspection staff records other workers

0
Interview with On site ID check Examining Interview with
the child inspection staff records other workers
• 30% of the suspected child labor cases encountered in the past 2 years were
not corroborated

In general, absence of identification It is possible that this is caused by brands

documents to verify the age is the main having little leverage/business impact (i.e.
reason for failing to corroborate suspected small percentage of factory order) over
child labor cases (Figure 6). When the factories in China. In fact, when we look
factories do not keep copies of the age at common challenges in securing factory
verification documents in their personnel cooperation in child labor remediation in
files, the situation can get section 5, we will see that lack
complicated, even for a of business impact on factories
an experienced auditor. “ is a much more prominent
Although auditors most likely “It is also difficult for us reason in China than in
ascertain the real ages of to get the real age of the other countries (Figure 18
suspected child laborers child from child himself/ on page 18). From both a
herself, as most children
through nuanced interviews, it compliance and capacity
don’t know their date of
may not always work. birth exactly.”- An auditor building perspective, this
from India suggests that brands with
More than half of the overlapping supply chains
auditors identify child labor might need to form stronger
by examining staff records. collaborations in order to
In some cases, if the factory hides the be able to hold factories more accountable
records of the suspected child laborer for child labor prevention and remediation.
and refuses to provide further information,
auditors fail to corroborate the case. It
is interesting to see how lack of factory
cooperation is a much bigger reason for
such failure in China than in other countries.

Best Response: Auditors’ Insights on Child Labor in Asia 6

3 CHILD LABOR IDENTIFICATION
Differences Between Auditors: Gender and Experience

Figure 6: into. When we asked some auditors for the

possible differences in audit style between
Most common reasons behind male and female auditors, some said female
failing to corroborate suspected auditors are typically more “detail oriented”
100
child labor cases All

80 Bangladesh
and “spend more time on each audits than
India their male counterparts”. Current data,
however, is not sufficient to prove such an
60
Vietnam

40
China assumption.
20 17%
70% 57% 46% 45%
0
Figure 7:
No ID Factory did Could not Child/work Could not
available not coop- verify if the er disap- verify if the
to verify erate ID was real peared doctor’s
the age statement
was reliable 2.0
2.5
2.5 2.0 1.9

Auditor Factors
2.0
1.5 1.4
1.5

While the diverse incidences of child labor

1.5
1.1 1.0

that auditors encountered in different 1.0 0.9 0.7

countries may mostly be explained by

0.5
0.5

their geographic location, we did also 0.0

Male Female
0.0
Trained Untrained

look at the differences between auditors Average CL Cases for China Average CL Cases for Other Countries

themselves to see if internal factors might

explain the divergence.
Auditors’ Experience
Auditors’ Gender

• Years of experience in auditing

• Female auditors in China is positively correlated with the
discovered significantly more number of child labor cases
child labor than the males auditors discovered in the past
two years
We discovered that in general, auditors’
gender is associated with the number of
child labor cases they discovered in the When controlling for age, the auditors’
past two years. Figure 7 shows that female work experience had a significant positive
auditors generally discovered more child correlation with the number of child labor
labor cases even when controlling for cases they discovered in the past two
age and experience. When we looked years (Figure 8). The more experienced
at this difference by country though, we the auditors are, the more likely they are to
found that this result is only significant for discover child labor. When we hold the years
China. We don’t have enough information of experience constant, auditors’ age did
to determine what might be the reasons not seem to be associated with the number
behind such a disparity, but it is certainly of child labor cases they discovered.
an interesting phenomenon to look further

7 Best Response: Auditors’ Insights on Child Labor in Asia

3 CHILD LABOR IDENTIFICATION
Differences Between Auditors: Auditors’ Training

Figure 8:

20
Confirmed child labor cases in the past 2 years

15

10

0
0 5 10 15 20
Years of experience

Auditors’ Training

• 55% from China and 42% from other countries attended child labor
training

In the aggregate, significantly more male training on the increased discovery of child
auditors received child labor training labor incidents. If such connection were true,
compared to females (55% vs. 45%). would it also imply that the kind of training
However, when we compared China to auditors received in China was not effective
other countries, we found that only in China in helping auditors identify child labor? Or
did male auditors receive significantly would it mean that internal factors, such as
more child labor training than their female knowledge and awareness, play little role
counterparts (61% vs. 47%). in the number of discovered child labor
cases in China? Given that, how would we
It is interesting to note that for all countries explain the role of gender and experience,
except China, there was a significant which were significantly associated with
positive correlation between the number the number of child labor cases? While the
of child labor cases auditors discovered available data cannot fully answer these
and whether they received child labor questions, the significant difference between
training. The strong association between China and other countries in terms of who
the number of child labor cases and the provided the child labor training to these
auditors’ training in other countries makes auditors might have interesting implications.
us reflect upon the role of child labor As indicated in Figure 9, three quarters of

Best Response: Auditors’ Insights on Child Labor in Asia 8

3 CHILD LABOR IDENTIFICATION
Auditors’ Training and Stance Towards Child Labor

auditors in China received their child labor training internally, as compared to less than
a third in other countries. This huge difference is reversed if we look at the numbers of
auditors who received training from audit companies or other third-party associations.
Overwhelmingly more auditors from other countries than China received training from
third-party associations. While the data does not allow a final conclusion, it could be
an indicator that targeted child labor training offered by a third-party might be more
effective than most internal training.

Figure 9:
80%
75%
Child labor training by providers
70%
64%

60%

50%

40%

30% 28%
23%
20% 18%
14% 14%
9% 8%
10% 6% 7%
5%

0%
Internal Client/Brand SA8000 BSCI ICTI Other Audit
Internal Client/Brand SA8000 BSCI ICTI Other audit
companies/
association
companies/
China Other Countries organizations

• 95% of auditors believe that child labor is an issue of zero tolerance

in the audit instrument/system where they conduct audits

Figure 10: Why should child labor be prohibited?

89% 87%
It deprives The workplace
activities can
children of the
be dangerous
right to
and harmful to
education
children

59% 86%
It ruins the It violates the
reputation of law
the company
/brand

9 Best Response: Auditors’ Insights on Child Labor in Asia

3 CHILD LABOR IDENTIFICATION
Auditors’ Stance Towards Child Labor

Under the assumption that the auditors’

awareness on child labor could be • 84% auditors from China believe a
associated with their effective identification worker under the age 16 (but over
and/or handling of child labor cases, we 15) is not acceptable under any
looked at why they think child labor should circumstances
be prohibited. It is interesting to see that
the top two reasons for preventing child association between their personal position
labor are from a child rights perspective: “it on child labor and the number of child labor
deprives children of the right to education” cases they discovered. If it were against
and “the workplace activities their principles, only the
can be dangerous and auditors outside of China
harmful to children”.
Combining these two “ tended to discover more
suspected child labor
options with “it pushed “If the child laborer is from cases. However, this result
children and their family poor family and the family is
was not the same for
to a downward spiral of desperately in need of his/her
income, suggestions of removing confirmed cases.
poverty”, we created the child from factory and sending The minimum legal
a new variable called them home will only worsen their working age in China is
“child rights awareness”, family’s economic situation and 16. Even though the vast
and found that it had a drive the child to less regulated
majority of auditors have
significant correlation with factories with worse working
conditions”- An auditor from zero tolerance for child
the number of child labor China. labor even when the child
cases auditors encountered is older than 15, they have
and confirmed. Based conflicted feelings about
on the available data, the impact on children if
we obviously cannot establish a causal they are merely removed from work.
relationship that the auditors with higher
It is not surprising that this is the view held by
• 37% auditors think child labor should many auditors we interviewed in China. We
be prohibited because it is against tried to understand the ethical dilemma the
their principles auditors face by asking them if they believe
their discovery of child labor might have a
positive or negative impact on the children’s
child rights awareness are more prone lives. Out of the 30 auditors we interviewed,
to discovering child labor cases or vice only seven or 23% believed their work would
versa. However, this is still an interesting bring positive impact on the child’s life.
connection and worth considering in future 13% stated quite pessimistically that their
trainings for auditors. discovery of child labor would mostly affect
children in a negative way, and 64% thought
Significantly more auditors from China than it could be both positive and negative
other countries (42% vs. 25%) regarded depending on the situation.
child labor as being against their principles
and, thus, should be prohibited. However,
we haven’t found a strong enough

Best Response: Auditors’ Insights on Child Labor in Asia 10

4 BOTTLENECKS IN CHILD LABOR PREVENTION
Reasons for Children to Work at a Factory

• 59% of auditors think the top reason for a child to work at a factory is
poverty

We are aware that preventing child labor is an extremely complicated and difficult task
for all parties involved, even though we expect most prevention work to take place at the
factory level. Understanding the diverse root causes of child labor in different countries/
communities will help us develop more targeted initiatives to address the issue. Therefore,
we tried to look at the reasons for a child to work at a factory
from auditors’ point of view.
“
As shown in Figure 11, auditor’s views on the top reasons for “Some child laborers were
a child to work at a factory differ significantly between China only a few months short
and other countries in the region. The majority of auditors of 16 and have completed
in China believe children end up working at the factories compulsory education.
They decided not to further
because they are unwilling to continue high school after the
pursue education and
9-year compulsory education. Auditors in other countries, preferred to work.”- An
however, think that poverty and the family’s dependence on auditor from China.
the child’s income are the dominant reasons for child labor.

Figure 11:

Top reasons for a child to work at a factory

80
Others
70 63%
66%
62% China
60

50 56%
36%
40 32%
27%
30

20

10 11%

0
Child didn’t Poverty There was Family needed
want to continue nothing else to the child’s income
schooling do at home

11 Best Response: Auditors’ Insights on Child Labor in Asia

4 BOTTLENECKS IN CHILD LABOR PREVENTION
How Child Labor Violations Usually Occur

• 59% of auditors believe child labor occurs because factories “over-

look” the issue due to excessive demand for labor

From the auditors’ perspective, we also looked at the top reasons for why factories fail to
prevent child labor, and we clearly saw some divergence between countries in the region
(Figure 12), especially between East & Southeast Asian countries (China and Vietnam)
and South Asian countries (India and Bangladesh). Apart from the systemic challenges
that factories have limited control over (e.g. “forged/borrowed ID cards” and “most
workers don’t have identity documents”), there are reasons that are directly related to
factories’ actions, such as “overlooked because of excessive demand for labor” and “no
age verification was done”. While the absence of age verification seems to be a higher
risk factor for India and Bangladesh, intentional recruitment of child laborers to satisfy
labor demand seems to be the bigger issue in China and Vietnam.

Figure 12:

How do the identified child100

labor violations usually occur?

100 80 Bangladesh B
100
India
80 In
80 Vietnam
60
V
60
60 China
C
40
40 40
20
20
20

0
0
Forged/ “Overlooked” No age Most workers Age Age
borrowed because of verification Forged
don’t have ID verification
“Overlooked” No age Most verification
workers Age Age
ID cards excessive was done /borrowed because was
cards, which of verification
done by don’t washave
doneverification
by verification
demand for ID cards
makes age excessivelabor
wasbrokers
done IDdoctors
cards, was done was done
demand which makes by labor by doctors
labor verification or schools
for labor age broker or
difficult verification schools.
difficult

Best Response: Auditors’ Insights on Child Labor in Asia 12

4 BOTTLENECKS IN CHILD LABOR PREVENTION
Capacity Gaps

• 74% of auditors consider hiring procedures to be the common

capacity gap in factory HR procedures in terms of child labor

According to an experienced auditor from to improve the factory procedures to

China, while child labor occurs in about prevent accidental recruitment of child
half of the factories due to shortcomings laborers. According to an auditor from
in their hiring procedures, the other half China, many factories that accidentally
deliberately use child labor to reduce recruited child laborers are in fact grateful
labor costs and find ways to cover it up that the auditors helped them identify
(for the full story, please refer to appendix shortcomings in their hiring procedures.
1). It is difficult for us to verify the extent to This indicates that many factories are
which factories are “well intended” but willing to improve their practices if more
have limited capacity to prevent child support and guidance is given, instead of a
labor, or “carelessly” hire child labor due negative audit report only. Closely following
to lack of commitment. However, Figure “hiring procedures”, especially in the case
13 shows that the “hiring procedure” is the of China, “capacity and means of age
number one capacity gap at the factory verification” and “child labor awareness”
level in terms of child labor. This indicates a are also major gaps in factories’ HR
huge potential for improved prevention by capacity, which could also be improved
assessing risks in factories’ hiring procedures with more training and support.
and providing clear guidelines and training

Figure 13:

Common capacity gaps at the factory HR level in

terms of child labor
100
All

80 Bangladesh

India
60
Vietnam
40
China

20
74% 65% 63% 50% 49% 31%
0
Hiring Capacity Child labor Insufficient Coordination Identifying
procedure and means awareness communication with ethical
of age /whistle- production hiring agents/
Verification blowing system department vocational
schools

13 Best Response: Auditors’ Insights on Child Labor in Asia

5 GAPS IN REMEDIATION RESPONSE
Immediate Actions after Discovering Child Labor

When the bottlenecks mentioned in Looking at the usual procedures/actions

the previous section lead to child labor taken by the auditors during the first 12
prevention failure, immediate response very hours of discovering a child labor case, it
much falls into the hands of auditors – the is interesting to see that for the top three
first responders who uncover child labor. actions, there are quite a few similarities
The actions they take in the first 12 hours between China and other countries, which
of discovering a child labor case is usually also seems to be the standard procedures.
determined by the instructions they receive However, significantly more auditors from
China secure the records of child labor
from their employers and/or clients, but it is
also influenced by their training. violation and stop the child from work than
other countries. The least common actions
are even less typical for China than other
• Auditors who received child labor countries. The least common actions taken
training tend to collect more at the earliest stage of discovering child
information and take more action labor could be the gaps in an effective
when discovering child labor immediate response that ensures the
child’s safety before the remediation
process begins. For example, third-party
The survey found that there is a significant organizations are involved in only a few
positive correlation between the child cases after discovering child labor. This
labor training, the depth of information may be explained due to the lack of social
auditors collect and the actions they take workers and organizations that have the
after discovering child labor. Even when experience and competence to work
controlling for age, experience and gender, on child labor and provide guidance for
the auditors who received child labor auditors and factories on what to do in the
training tended to collect more information case of child labor.
about the child in the first few hours
after discovering a case. There is also a
significant positive correlation between the
child labor training and the extent of usual
procedures/actions taken during the first 12
hours. The auditors who received training
on child labor tend to take more actions
immediately after discovering a case (even
when controlling for the age, experience
and gender).

Best Response: Auditors’ Insights on Child Labor in Asia 14

5 GAPS IN REMEDIATION RESPONSE
Immediate Actions after Discovering Child Labor

We were surprised to see Figure 14:

that the top two things that
could go wrong before What things are most likely to go wrong before
the remediation starts 100 remediation starts?
(“factory sends the child 84%80

back to family/hometown 70
82% Others

80 China
without follow-up” and 60

“child disappears”) are 50

significantly more common 60 40 52%

69% 47% 43%
in China than in other 30

countries (Figure 14). Yet,

20
55%
40 10 53%
when we compare them 0
Factory 41%
47%
with the least common Child prefers to
earn more by
Child
has no
Child’s
family doesn’t
Lack of
professional
actions taken as immediate 20 working than interest unwilling follow up CLR
participating going to implementation
response (Figure 15), the in the
remediation
back to
school
cooperate and
monitoring
reason becomes clearer. If 0 program service
providers
3rd party organizations were Factory sends Child Factory Factory Child runs
the child back disappears removes/ loses off to work
available to follow up with to family/hometown hides the child contact with in a
the case and the auditors without follow-up child’s family different factory
knew whom to contact
when discovering a child labor case, both of these problems could be avoided. However,
according to Figure 15, only 9% (compared to 19% in other countries) of the auditors in
China reported that 3rd party organizations were contacted when they discovered a
child labor case.

Figure 15:
Procedures/actions taken taken during the first 12
hours of a child labor case

100
85% 83% 79%
80 57%
80
Others
60 70

60
36% China

40 50 28% 34%
40 16% 19%
20 30
87% 81% 81%
20
75% 49% 34% 25% 9% 9%
0
Meet Interview Con-
10 Secure Stop the Contact Remove Arrange Contact
with the child tact 0 the records child la- child’s the child separate third-party
factory/
Meet with factory brand
Interview
management
Childor
the child
prefers
Contact the
to
of brand
child
Secure
Child
bor
or notify
records from
supervisor
of
Stop
child
Child’s
the family
iflabor
brand
child
violation
labor
internal
Contact
from
Factory
from
auditor
child’s
work family
Remove
Lack of
the the
accom-
child
Arrange
from theorganizations
separate
factory
Contact
accommodation
and ensure
third-party
his/her
for
organizations
safety
the child
and security
earn more by has no family doesn’t professional
man- notify su- labor work factory moda-
working than interest unwilling follow up CLR
age- pervisor violationgoing
participating to and tion for
implementation
ment if brandin the back to cooperate ensure the
and child
internalremediation school his/her monitoring
program service
auditor safety providers

15 Best Response: Auditors’ Insights on Child Labor in Asia

 6 GAPS IN CHILD LABOR REMEDIATION
Challenges to a Successful Remediation

Remediation is a complicated process If we look at the reasons why the child or the
involving many different parties with family refuses to cooperate in remediation,
possible conflicting interests and, in many we can see that it is not a problem that
cases, broken families and insufficient can be solved by simple persuasion. The
social systems to support the child. From the amount of money that the child receives
auditors’ perspectives, the most common from the remediation varies depending on
obstacles for successful remediation come the brand and the factory. As far as we
from the child and his/her family, such as know, in many cases, the remediation does
“child prefers to earn more by working than not pay the full wage until he/she reaches
participating in the remediation program” the minimum age; thus, the child and/or
(Figure 16). This challenge seems to be the family refuses to follow through with
much more prominent in China than in the remediation plan. When auditors were
other countries (19% difference). It is also asked how they would react under such
interesting to see that the systemic “lack circumstances, 57% of them said they would
of professional child labor remediation recommend alternative options such as
implementation and monitoring service vocational school. In theory, it seems to be
providers” is comparatively bigger for the best solution for young people who have
China, while quite negligible for other no interest or are not in the best position to
countries. continue high school. However, in practice, it
is not without its challenges.

• If the child’s full wage is not paid,

it can become a major hurdle to a “
successful remediation process “The factory will only finance
child laborer’s tuition until he/
she turns 16. However, most
study programs in vocational
schools are 2-3 years, which the
Figure 16: child laborer‘s family would not
want or cannot afford to continue
Top challenges to a successful paying. So sometimes, the child
80 remediation laborer disappears after a factory
pays a certain period.” - An
Others
70 67% auditor from China.
Others China
60 49%
50 41% China
33%
40 48% 32%
50%
30 38% 38%
20

10 8%
0 Childprefers
prefers to Child has Child’s Factory Lack of pro-
Child Child Child’s Factory Lack of
to earn more no interest family doesn’t fessional CLR
earn more by has no family doesn’t
to of follow up professional
ers to Child by working Factory unwilling
Child’s going back Lack implementa-
working than tointerest unwilling follow up tionCLR
e by has nothan partici-
family school doesn’t cooperate
professional and mon-
participating
pating in the going to implementation
itoring service
han interestremediation
unwilling follow up CLR providers
in the back to cooperate and
ting goingprogram to implementation
remediation school monitoring
back to cooperate andBest Response: Auditors’ 16
ion school program monitoring service Insights on Child Labor in Asia
m service providers
providers
6 GAPS IN CHILD LABOR REMEDIATION
Challenges Associated with Families

Apart from the complications of placing the child back in

school, the family’s unwillingness to cooperate is another
major challenge for successful remediation. The significant
differences between China and other countries in terms of
families’ involvement indicate not only the different situations
auditors and factories/brands deal with, but it can also shed
light on the root causes of child labor in different countries.
Most of the auditors from China that we talked to know that
many of the children come from dysfunctional families. In
such cases, children receive very little support from their
parents, which makes communicating with the families
much more difficult. As shown in Figure 17, while facilitating
the communication with the child’s family is the most significant challenge for securing
remediation in China, the financial obstacles seems to be a more important issue in other
countries, where poverty is more likely to be the root cause of child labor.

Figure 17:

Common challenges to securing family cooperation in child labor

remediation
80
80 Others
70 75% 75% Others
70 China
60 China
60
50
50 38%
40 45%
40
30 38%
30
20
20 65% 63% 57% 56% 37%
10
10
0
0 Factory fails to No contact Family cannot Family Remediation
facilitate
Factory failsthe
to information
No contact afford cannot
Family to send needs child’s
Family program pays
Remediation
communication
facilitate the information the child
afford to back income
send needs child’s less than
program pays
with
communication thetochild
school
back income child’s wages
less than
thewith
child’s to school child’s wages
family
the child’s
family

17 Best Response: Auditors’ Insights on Child Labor in Asia

 6 GAPS IN CHILD LABOR REMEDIATION
Challenges Associated with Factories

• 81% of auditors think the factory management’s lack of awareness or

commitment is the main challenge for securing factory cooperation
during child labor remediation

As seen in Figure 16, nearly 1 in 3 auditors The vast majority of auditors in all countries
think that factories’ failure in following up believe that the factory management’s lack
is a common challenge associated with of awareness or commitment is the main
child labor remediation. Our interviews with challenge for securing factory cooperation
auditors from various countries also confirm during child labor remediation (Figure 18).
this result: Particularly in China, auditors think that
the brands’ leverage within the factories is
limited, with 67% of auditors in China saying
“ that brands only have limited business
“Our whole industry lacks a impact on the factory.
follow-up procedure. I think it
is due to the fact that once the
factory regains cooperation with
the brands, it is over for them.
To us, if the factory has paid all
related expenses, it is a closed
case and we will not follow up to
see whether the child has gone to
another factory.”- An auditor from
China.

Figure 18:
Common challenges to securing factory
cooperation in child labor remediation
100%

81% Others
80%
China
60%
56%
60%
39%

40%
30%
81%
67% 50% 47% 81%
20%

0%
Factory fails toLack of
Noaware-
contact Brand has little
Family cannot Lack of Family
interest NoRemediation
budget in Not enough
Brand has little No
to budget
facilitate the ness/commitment
Lack of
information afford to sendas Lack
awareness/ leverage/business no
needs of interest
benefit for
child’s place
program bearpays
the Not enough
pressure from the
by the factory
commitment leverage/business
by the impact over the as no benefit
factory in placecosts
remediation to brand pressure
communication management the child back
impact income less than
factory management factory for factory bear the from the brand
with over to
theschool
factory child’s wages
remediation costs
the child’s
family
Best Response: Auditors’ Insights on Child Labor in Asia 18
China Others
7 HOW TO HANDLE CHILD LABOR CASES BETTER
Financial Guarantees

Clearly the foremost goal should be to prevent child labor, but as has been shown above
there are great gaps in how child labor cases have been dealt with and there are surely
better ways to handle it. From an auditor’s perspective,
we looked at what was needed in terms of costs
and support from brands (or buyers)and third-party “
organizations.
“The factory is supposed to
As implied in the Figure 18, if there is no budget in support child’s education until
place for factories to take immediate action, it can he/she reaches 15 years of
lead to the possible failure of child labor remediation. age. It includes school fees and
living expenses, but no amount
Therefore, in order to start the remediation process is specified, and it depends on
without delays and to prevent the child from the policy of the brand and the
disappearing, there needs to be a specific budget factory”- an auditor from Vietnam.
to move the process forward. The majority of auditors
(more so in other countries than in China) believe such
a budget should include school fees and the child’s
wages until he/she is of legal working age (Figure 19).
According to the auditors from China, transportation costs for sending the child home
and third-party follow-up are much more needed than in other countries.

Figure 19:
Financial guarantees needed to take immediate action for a
successful child labor remediation

80%
80
75%
71% 68% Others
70 64%
52% China
60
42% 46%
50

40 33% 35%

30

20

10

0
Transportation School fees Child’s wages Costs of Costs for
costs to send until he/she is third-party temporary
the child home of legal follow-up accommodation
working age outside the factory

19 Best Response: Auditors’ Insights on Child Labor in Asia

 7 HOW TO HANDLE CHILD LABOR CASES BETTER
Financial Guarantees and Support from Buyers and Brands

When looking at the support needed from brands to enable a more effective and
immediate child labor remediation, we see very similar trends for China and other
countries. For the overwhelming majority, “specific guideline/protocols for factories to
follow immediately after the discovery of a child labor
case” is the most needed support from brands. Our
interviews with auditors from different countries also “
revealed that the lack of an immediate response
protocol gets in the way of effective remediation. “Having a very detailed procedure
in place and customizing the
remediation plan to each individual
case is another key for successful
• 63% of auditors think that if brands allocate child labor remediation… A tailored
a special budget for child labor remediation, plan could for example include
the process will be more effective. psychological support to those
from broken homes who don’t want
to go back to school.”- An auditor
from China.

“
While all auditors seem to agree that the factories
“I think the factory should not
be the only finance source. The should shoulder some of the remediation costs to
brands should also financially discourage them from hiring child labor in the
support the factory so that the future, the majority (65% in China and 59% in other
child labor remediation can go on countries) think that the immediate response would
successfully. Previously, I haven’t
be more effective if brands had a special budget
met any brand that finances a child
labor remediation plan; all of them in place for immediate access (Figure 20). Some
ask the factory to pay.”- An auditor auditors we interviewed believe that brands should
from China. even share part of the costs to make remediation more
successful.

Others
While more research and direct discussions with brands
are needed to identify the best involvement of brands, the collected data can certainly
China
help us reflect on the ways brands can take a proactive and strong role in child labor
remediation.
100 87% 84%
.
Figure 20:
80 65% 59%
Support and resources
needed from the brands 60
to enable a more effective 35%
and immediate child labor 40
remediation
20 90% 82% 65% 65% 37%

Specific guide- Ensure the An agreement A special bud- Partnership with

0 line/protocols factory manage- in place with
Specific guideline/protocols
An
Ensure
agreement
for
thefactories
Others factory
in place
management
to follow
with the immediately
factory
and HR forare
after
reimbursement
Atrained
special
the discovery
on budget
thetoguideline/protocols
ensure
of
in aplace
get CLplace
in factory
case
for immediate
pays for initial
accesscosts i
local service
for factories to ment and HR are the factory for for immediate providers
follow immedi- trained on the reimbursement Partnership
access with local service prov
China ately after the guideline/pro- to ensure factory
discovery of a tocols pays for initial
costs immediately
CL case

Best Response: Auditors’ Insights on Child Labor in Asia 20

7 HOW TO HANDLE CHILD LABOR CASES BETTER
Support from Third Parties

In regard to support and resources needed from third parties, the results are very similar
between China and other countries (Figure 21). Although a vast majority of auditors
from all countries seem to agree that designing a remediation program that best fits the
child’s interests is the number one support needed from the third party, this number is 11%
higher for China than other countries. This is in line with the results of the top challenges
to a successful remediation program, where 32% of auditors in China thought lack of
professional child labor remediation implementation and monitoring service providers are
common challenges, as compared to only 8% in other countries (Figure 16).

Figure 21:

Support and resources needed from third parties to enable a more effective
and immediate child labor remediation

100
78% Others
74%
80 China
58% 56%
60

40

20 89% 79% 55%

56%

0
Designing a Coordinating Interviewing the Immediately
remediation with the child and removing the child
program that child’s family documenting from the factory
best fits the the information and providing
child’s interest safe accommodation

21 Best Response: Auditors’ Insights on Child Labor in Asia

CONCLUSION

The following points are the summary of our findings through analyzing the quantitative
survey data as well as the qualitative results from interviewing 40 selected auditors who
participated in the survey. They reflect the views of 557 auditors working in different
countries in Asia. We hope that their collective wisdom will help brands and associates
gain a clearer picture of the of the child labor situation in the region, identify the gaps
and challenges in preventing and responding to child labor from the experiences of the
first respondents –auditors, and improve the systems in place to address child labor.

1 Child labor is still an issue in the Almost a third of the suspected 2

supply chains that shouldn’t be child labor cases were not
overlooked. 64% of auditors corroborated in the past two
encountered suspected child labor years. Factories’ cooperation is crucial
cases in the past two years and 82% of in corroborating a case, but sometimes
those cases were confirmed. brands don’t have enough leverage
to hold factories accountable, which
suggests brands with overlapping
supply chains would benefit from
forming collaborations.

3 Identifying child labor might be significantly affected by internal factors

associated with the auditors, such as gender, years of experience and child
labor training. For example, female auditors in China discovered significantly
more child labor cases than their male counterparts. Auditors in countries outside
China discovered significantly more child labor when they received child labor
training, which coincides with the fact that considerably more of them received their
child labor training from a third party as compared to auditors in China. Therefore,
there is a need to take a closer look at the role or gender and child labor training on
child labor identification.

Child labor occurs oftentimes because factories “overlook” the issue due 4
to an excessive demand for labor; and hiring procedures is a top capacity
gap in factories’ HR proecudures in terms of child labor. More support and
guidance to identify and correct shortcomings in factories’ hiring procedures will
possibly be more effective in preventing child labor than simply providing negative
audit reports.

Best Response: Auditors’ Insights on Child Labor in Asia 22

CONCLUSION

5 Lack of follow-up and the child Impact of removing the child 6

“disappearing” are the most laborer from factories could
common things to go wrong be both positive and negative
before remediation starts, which could depending on the situation, and
be avoided with effective involvement therefore customized remediation
of third party organizations. Yet, plans for each case are key to a
in practice, contacting third party successful child labor remediation.
organizations when discovering child
labor seems to be the biggest gap in
immediate response, especially for
China.

7 If remediation does not cover Factory management’s lack of 8

the child’s full wages, it can awareness or commitment is
be a major challenge to a the main challenge for securing
successful remediation, especially for factory cooperation during a child
impoverished families. labor remediation process. Brand’s
limited leverage within the factories
can be a significant challenge as well,
especially in the case of China.

9 The number one support Designing a remediation 10

needed from brands is specific program that best fits the
guidelines/protocols for child’s interests is the main
factories to follow immediately after the support needed from the third party
discovery of a child labor case, and organizations.
having a special budget in place for
child labor remediation will make the
process more effective.

22

23 Best Response: Auditors’ Insights on Child Labor in Asia

 Insights from an Auditor in India: Child Labor
APPENDIX 1 is Most Prominent Among Subcontractors

Disclaimer: The following story is based on an in-depth interview CCR CSR conducted
with a senior auditor based in India. In order to protect his identity, an alias was used
throughout the story. The views presented in this article are based on the interview
transcripts and do not necessarily reflect the views of CCR CSR.

“We have been auditing in main is outsourced through local subcontractors

manufactory units, where we have never and therefore often fails to come under the
come across child labor. It is in the supply radar of brands and auditors.
chain outside the main factories where we
found instances of child labor.” Mr. Ganesh As far as child laborers go, the ones who
has over 15 years of auditing experience in have time to study and work are arguably
industries covering apparels, sports goods, the fortunate ones. There are plenty of
agricultural products, jewelry and home children in India who forsake schooling
goods and has conducted assessments altogether to work. As Mr. Ganesh explains,
and verification of reports indicating child many schools across India are not well
labor. established. Often they are located far
from the children’s homes and many suffer
As part of his role, Mr. Ganesh has travelled from high teacher absenteeism rates.
to provinces far and wide across India What’s more, many parents don’t see their
to conduct audits. This has given him an children’s education as an investment but
in-depth insight into the reasons for child as a potential threat to the family unit. Some
labor and also into how it takes shape. of the parents who have been involved
with such work, expressed reservations
“Last year, we did a pilot research study about sending their children to school and
initiated by a social compliance initiative preferred to involve them with the tradition
for some European brands on home of work being done so they could carry on
workers and child labor in the footwear with the family business.
supply chain, in which we witnessed
children working from home in some “Parents are scared that if the children go
villages in South India. There are some to school , they are exposed and learn too
communities, in which women usually work much, they will find a job in the city and
from home due to cultural reasons and leave them alone at home in the villages,”
preferred to work at home during their Mr. Ganesh tells us.
spare time after house chores (attaching
uppers to shoe soles). We noticed that One can therefore argue that in many
some shoes were hand stitched at home cases, the seeds of child labor have been
by children to help their parents after sewn in the family home, where parents’
school.” lack of awareness of the importance and
value in education translates into children
Mr. Ganesh’s discovery suggests that shunning the classroom in favor of work.
routine factory audits do not always Further adding to the complexity of the
represent the full picture when it comes to situation, Mr. Ganesh does not believe that
child labor. Most of the children who work simply removing the child laborers from the
from home are not directly hired but work workplace is the best solution:
along with elders at home, to whom work

Best Response: Auditors’ Insights on Child Labor in Asia 24

 Insights from an Auditor in India: Child Labor
APPENDIX 1 is Most Prominent Among Subcontractors

“I don’t think stopping child laborers from verifying a worker’s age while hiring and it
working is the solution. What would the is more predominant in factories located
child do after schooling hours? Risk of away from cities and closer to/in villages.
getting involved in anti social activities Mr. Ganesh recounts one instance in which
cannot be ruled out. So maybe involving he tried and failed to verify the age of a
them with work at home helps with the suspected child laborer during an audit:
child learning the family work tradition and “It is often not easy for us to get the real
also diverts them from getting involved with age of the child from child himself/herself,
antisocial activities. As the saying goes: as most children don’t know their date of
“An empty mind is a devil’s workshop”. birth exactly.” This underscores the immense
Alternative engagement needs to be challenges HR personnel are confronted
provided. We should make sure a child with. They have to rely on an age certificate
is not deprived of their right to basic issued by a doctor in absence of any other
education, and also the State, private document reflecting the age
sector, or organizations (which are funded
by the government or private companies), According to Mr. Ganesh’s experiences, how
could possibly set up a learning center for do brands react to the child labor situation in
skill development, computer classes, art India?
class, etc. so that the children can come
here after school to learn something which There are some brands working on
would help them in the future. But again, prevention of child labor in their supply chain
the parents may have concerns that after but I am not sure how much is achieved
the children learn to use a computer or in controlling/prevention of child labor
learn to do something new, they will find within their supply chain. There are multiple
a job in the city and leave the parents questions that need to be taken into
behind, so they prefer their children not to consideration including: how many suppliers
be sent there.” are working in this area? How much business
is done with this supplier?, Is it only one
But if removing the children from the supplier or multiple suppliers involved in the
workplace isn’t the answer, as Mr. Ganesh products made by the village?. Investment
believes, it’s difficult to find an alternative in setting up learning centers would be
that would be accepted by all. While related with business/revenue. Continuity of
asking the factory to hire skilled workers business with supplier(s) is not guaranteed as
from the areas where such learning it depends on the market demands/costing
centers are based may help the parents etc.,” he suggests. Brands could possibly
accept such centers more, Mr. Ganesh define how much the supply chain requires
is all too aware that from the factory’s to be monitored and what is practically
perspective, such initiatives may drive up possible. This would involve the tracing
their production costs thus making them of the complete supply chain and each
less competitive and at greater risk of losing production process involved.
business
While a handful of brands have started to
In the manufacturing facilities, the HR staff look into the whole supply chain, Mr. Ganesh
often face challenges when it comes to points out that it may not be easy for the

25 Best Response: Auditors’ Insights on Child Labor in Asia

 Insights from an Auditor in India: Child Labor
APPENDIX 1 is Most Prominent Among Subcontractors

brands to track down each component

of a product that has been ordered to
a supplier. The main suppliers tend to
use multiple subcontractors to save on
labor costs and increase profit margins.
Transparency on sharing factual information
is a concern because information provided
often does not get digested well and
suppliers fear the risk of losing business if
they share complete information.

But the interview does end on a slightly

more hopeful note. Mr. Ganesh stresses
that brands do send a very clear message
to factories about their zero-tolerance
stance towards child labor. And it’s also a
positive sign that more and more brands
want to understand their supply chain, and
when approached under this perspective,
manufacturers may be more willing to get
into a dialogue with brands.

25 Best Response: Auditors’ Insights on Child Labor in Asia 26

 Auditors’ Insights from China: Shortcomings in
APPENDIX 2 Recruitment Practices

Disclaimer: The following story is based on in-depth interviews CCR CSR conducted with
three auditors in China. In order to protect their identity, aliases were used throughout the
story. The views presented in this article are based on the interview transcripts and do not
necessarily reflect the views of CCR CSR.

After conducting in-depth interviews “They are afraid the auditor can discover
with three auditors in China about their the child, so they normally ask the child
experiences with child labor, some clear laborer to leave before the auditor arrives
patterns have emerged. Each auditor cited and they will not provide any record of
shortcomings in recruitment procedures attendance related to the child. They may
or factory management systems as a also tell the child laborer to not show their ID
key cause of child labor in factories. and not to tell the auditor their age.”
What’s more, none of them had follow-up
procedures to check on the status of the A lack of awareness among the children’s
child following a child labor remediation caregivers further exacerbates the situation:
procedure. “They don’t care so much about the issue,
as he/she is not their child and some of them
According to Mr. Zhang, an auditor from even think that by leading the kids to the
Shenzhen with nine years of auditing factory, they are solving problems for them. “
experience, child labor in Chinese factories
exists for three reasons: Ms. Tang (alias) a third-party auditor from
Shanghai, confirms this: “Their parents don’t
1. Labour shortages in coastal areas and have the awareness that their children
urgent orders from clients shouldn’t work at this early age and they will
2. Regulation shortcomings in remote ask the children’s wish whether they want
factories: normally the factory will hire to continue studying in school or work in
local workers, who bring their children the factory. If they choose the factory, the
to the factories to work during school parents will allow them.”
vacations
3. Factory management shortcomings: Suggestions for improvement
Child laborer use fake IDs, but the
factory has no way of checking the When it comes to supervising the child labor
authenticity of the IDs, and don’t want remediation process, Mr. Zhang feels a lot
to increase their HR expenses can be improved:

Lack of awareness and effective systems to “We still need to improve the follow-up
prevent and remediate child labor procedure. We have the procedure to ask
the factory to provide the payment receipts
While about half of the factories Mr. Zhang for tuition and travel expenses to his/her
has worked with are grateful that the guardians, but we will not follow up on the
auditors helped them identify shortcomings remediation plan.”
in their hiring procedures, the other half
deliberately use child labor to reduce labor This means that there is no way of knowing
costs and find ways to cover it up: whether the remediation case has been

27 Best Response: Auditors’ Insights on Child Labor in Asia 26

 Auditors’ Insights from China: Shortcomings in
APPENDIX 2 Recruitment Practices

successful over the long-term, or whether child labor remediation (CLR) can go on
the child simply switched to another factory successfully. Previously, I haven’t met any
or workplace. brand that finances a CLR plan; all of them
ask the factory to pay,” says Mr. Zhang.
Ms. Bai, also an auditor from China, echoes
these sentiments: “Due to the limitation of Ms. Bai thinks the entire factory
auditing reports, I can only see whether the management system is flawed and needs
child labor cases have been closed, but an overhaul. For example, many factories
not how it was closed. This is not reflected in are tolerant of children working during the
the auditing report. “ summer vacations because they know they
are only temporary and the management
Ms. Tang, who has discovered 20 cases of team doesn’t factor in the risks to the brands
child labor with her auditing company to and often only focus on the costs. Ms. Bai
date, agrees: “Our whole industry lacks believes that a close collaboration between
a follow-up procedure. I think it is due to brands and factories can help improve the
the fact that once the factory regains remediation process:
cooperation with the brands, it is over
for them. To us, if the factory has paid all “The factory management must be willing
related expenses, it is a closed case and to implement child labor remediation
we will not follow up to see whether the to the end and if the brands provide
children have gone to other factories.” certain support (e.g. volume of orders and
unit price), that could leverage factory
Having a very detailed procedure in place management’s decision on CLR, the factory
and customizing the remediation plan to could have a greater possibility to complete
each individual case is another key for a the CLR.”
successful child labor remediation case,
Mr. Zhang stresses. He thinks a tailored plan In short, according to all three auditors’
could for example include psychological experiences in China, the current system in
support to those from broken homes place for child labor remediation is a short-
who don’t want to go back to school. term solution that is essentially designed to
According to CCR CSR’s own experience allow factories to continue cooperation with
with child labor remediation, the majority brands once the child has been removed
of child workers do indeed come from from the workplace. For most factories, the
troubled backgrounds. Many are left- completion of a report signals closure of
behind children who have received little to the case. A lack of follow-up procedures
no support and encouragement to stay in means there is no way of knowing whether
school. the remediation has had a positive impact
on the child’s life or whether he/she simply
Another important factor in ensuring a switched employers. What’s more, lax
successful remediation is the budget. hiring procedures and a lack of awareness
among factory management on the risks of
“I think the factory should not be the only child labor means that these children are
finance source. The brands should also likely to find employment elsewhere, thus
financially support the factory so that the perpetuating the vicious cycle.

27 Best Response: Auditors’ Insights on Child Labor in Asia 28

 Auditors’ Insights from Vietnam: A Run-Down
APPENDIX 3 of a Typical Remediation

Disclaimer: The following story is based on an in-depth interview CCR CSR conducted with
a senior auditor in Vietnam. In order to protect her identity, an alias was used throughout
the story. The views presented in this article are based on the interview transcripts and do
not necessarily reflect the views of CCR CSR.

Just recently, Ms. Ngo (pseudonym), laborer’s parents and ask what is the
a female senior auditor from Vietnam, expectation of the child laborer. If the
discovered a child laborer in a factory child laborer says he/she wants to go back
west of Ho Chi Minh. The child looked to school, they will send him/her back to
suspiciously young so Ms. Ngo asked to see school to continue their education. If the
his personnel file, which he couldn’t provide child laborer wants to learn something in the
because he was under the age of 18. In factory to lay foundation for their future, they
order to verify his age, Ms. Ngo asked him will send the child laborer to vocation school
whether any other family member works and calculate the cost. However, I think
at the factory. As it turned out, his mother if the factory pays the tuition to the child
was also employed there. From that piece laborer’s parents directly, they will spend
of information, Ms. Ngo was able to access the money. The money should be paid to
the mother’s personnel file and household the vocational school directly. The factory
registration book, which stated the child’s should pay all costs of the remediation,
age. Upon confirming the presence of the otherwise, the factory will continue to violate
child laborer, the client’s standard child the policy and hire children.”
labor response procedure kicked in:
Unlike some other auditors whom we
“I filed the child labor report, immediately interviewed, Ms. Ngo actually follows up on
stopped the auditing procedure and the remediation case. “When I do follow
started reviewing 100% of the personnel files up on an audit, firstly I will complete the
(or 50% depending on the staff number) to standard procedure, then I will interview
see whether they have historical child labor the parents and ask what happened after
alerts.” the discovery. They will tell me about the
remediation plan and I will interview the
As part of the procedure, Ms. Ngo had to team leader of the child laborer,” she tells us.
interview the mother to find out the reasons
for bringing the child along to the factory, But despite the access to parents for
as well as workers to determine whether or interviews, she often encounters obstacles
not this was an isolated case. when it comes to learning the truth.

A remediation process followed but Ms. “Sometimes, the factory will teach the
Ngo was not involved. The client sent parents what to tell us. Therefore I need to
someone to the factory to verify Ms. Ngo’s verify the information from different sources,
claims and to carry out the remediation. such as from the frontline workers, team
Ms. Ngo can only rely on hearsay to tell us leaders, coworkers and surrounding people,
how she thinks the remediation process was to see whether the factory has kept hiring
carried out: child laborers.”

“I heard they will interview the child

29 Best Response: Auditors’ Insights on Child Labor in Asia 28

 Auditors’ Insights from Vietnam: A Run-Down
APPENDIX 3 of a Typical Remediation

Ms. Ngo recounts another instance where “Female auditors are more into details,
she found child laborers and was not spending more time on auditing and
given the contact details of the client to the male [auditors] are not too detail-
send the report to. Instead, the factory oriented. Some auditors don’t look cross the
removed the child laborers, hired another production line or at the faces and bodies
audit company and passed the inspection. of the workers, so they can not find the child
Because the factory was her client and not laborer.”
the brand, she had to keep her findings
confidential. Being able to adapt your communication
style is another must-have skill for an auditor,
In addition to the challenges above, Ms. Ms. Ngo stresses. Children shouldn’t be asked
Ngo also feels that a lack of awareness direct questions as this may scare them off.
about child labor by factory management
contributes to capacity gaps at the HR “When we talk to the children, we change
level: our voice and we use different ways to
address them (brother, sister, etc.), like we
“For the initial audit, before the brand talk to the children and family members.”
signs the agreement with the factory, the
factory management is not aware what When it comes to improving the
the definition of child labor is and they performance of auditors, Ms. Ngo feels
are not aware that they cannot hire child that more training is the way to go. “Brands
laborers. It is very common in Vietnam in should pay more attention to monitoring
the factory’s first social compliance audit and making sure the auditors are providing
and when the factories are far from Ho Chi the true information. The brands should also
Minh City. The parents of the child laborers provide auditing trainings,” she adds.
in these areas are often taking their
children with them to factories because
they want to control their children. There
are two reasons for the factories to hire
child laborers: 1) lack of employees; 2)
cheap labor (the salary of child laborers
is only 50% of normal workers),” Ms. Ngo
explains.

With so many challenges thrown in an

auditor’s path, it goes without saying
that auditors themselves need to be well
trained and tactful. According to the
results of CCR CSR’s online auditor survey,
58% of auditors interviewed were male and
interestingly, Ms. Ngo believes there are
some differences:

29 Best Response: Auditors’ Insights on Child Labor in Asia 30

APPENDIX 4 Partner List

This report was made possible due the support of about 30 companies and auditing
associations. The launch of this report was also supported by Samsung Electronics. CCR
CSR would like to extent a heartfelt thank you to all those who supported this initiative.

Companies with Supply Chains in Asia Audit Companies/Associations

1. Apple Inc 1. BSCI

2. C & J Clark International Ltd 2. CNTAC
3. C&A 3. Elevate
4. Clas Ohlson 4. Fair Labor Association
5. Colosseum 5. Gekko
6. Disney 6. ICTI CARE
7. Flex 7. OpenView
8. Fossil 8. SGS
9. H&M 9. TUV Global
10. HASBRO 10. Verité
11. ICA
12. Kingfisher
13. Li & Fung
14. Lindex Lindex
15. Mircosoft
16. MQ AB MQ AB
17. Primark Primark
18. Samsung Electronics Samsung Electronics
19. TopToy SAP
TopToy

31 Best Response: Auditors’ Insights on Child Labor in Asia 30

 www.ccrcsr.com

#childrights

Report by: Center for Child Rights &

Corporate Social Responsibility (CCR CSR)

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