Supply Chain Considerations
- The supply chain consists of all the suppliers involved in the manufacturing of a product/service
- Many MNCs have suppliers in different countries and increasingly they are held accountable for the working conditions of these suppliers
- Many MNCs are now taking action to reduce unethical labour practices as part of their Corporate Social Responsibility (CSR)
Issues with child labour and exploitation of labour in the supply chain
Child labour
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Exploitation of labour
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- Some MNCs have manufacturing facilities in countries where child labour is common
- Usually in areas where children are are working to generate income for the family
- MNCs using child labour in their supply chain face backlash which can damage their brand and affect sales
- E.g. There were protests outside the Primark Oxford Street store after a documentary revealed child labour working in their factories in Bangladesh
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- Exploitation of labour can take the form of low wages and poor working conditions
- E.g. working long hours and with poor ventilation
- MNCs are under increasing pressure from governments, customers and institutions such as the International Labour Organisation to take action to ensure their product/services do not involve exploited labour
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