The issue of whether overseas manufacturers of U.S. products employ
child labor in their factories is of great importance to marketing
departments not only because the practice is abhorrent but because when
exposed, such practices reflect negatively on both the company's management
and its products.
While most consumers around the world agree that they do not want the
merchandise they purchase produced by child laborers who are underpaid and
working under harsh or otherwise unacceptable conditions, companies who
find that they have directly or indirectly used such child laborers can
find it a difficult problem to manage.
McDonald's found this out after charges that the give-away toys they
use to market their "Happy Meals" to children were created by child
laborers in China working under near-slavery conditions (AP, 2000).
McDonald's argued that they did not know child laborers were used. They had
contracted with a supplier by the name of "Simon Marketing, Ltd.," located
in Hong Kong. This company passed the tasks on to "Pleasure Tech Holdings,"
who gave the work to "City Toys, Ltd." in mainland China (AP, 2000).
When City Toys was located, underage workers explained how they got
false identification documents so they could lie about their age credibly.
When this information surfaced, McDonald's explained that they
followed a strict code regarding child labor and that they periodically
executed unannounced site inspections at the factories supplying them with
manufactured goods (AP, 2000). However, many did not find this a credible
explanation, because an inspection at neither Simon Marketing, Ltd. nor
Pleasure Tech Holdings would have shown any manufacturing, and reporters
visiting City Toys had no trouble ferreting out the problem.
Toy manufacture is not the only area where third world countries
sometimes employ child labor. The practice occurs in other industries
includin...