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Child labor - causes, effects and solutions

Supply Chain (CSDDD & LkSG) - Reading time: 16 Min

Kinderarbeit

In the context of the global sustainability movement and corporate social responsibility (CSR), the issue of child labor is becoming increasingly relevant. Companies are increasingly responsible for reviewing their supply chains and ensuring that they do not support child labor. This is not only an ethical obligation, but also a business necessity: sustainable and socially responsible business practice promotes customer trust and strengthens long-term business stability. In this context, initiatives such as the Supply Chain Due Diligence Act (LkSG) and comprehensive sustainability reporting (CSRD) are crucial to setting clear standards and effectively combating the exploitation of children. In the following article, we address the issue of child labor by analyzing the current challenges and legal frameworks related to combating child labor. We also look at how companies can monitor their supply chains to ensure they are free from exploitative practices.

The most important facts about child labor

Child labor refers to activities that deprive children of their childhood, harm their development or prevent them from attending school. It violates the UN Convention on the Rights of the Child.

Around 138 million children work worldwide, almost half of them in hazardous conditions.

Mainly in agriculture (approx. 61%), but also in mining, the textile industry and private households.

Poverty, lack of access to education, economic crises and weak social systems.

Damage to health, chronic exhaustion, educational deficits and long-term poverty.

In Germany, the employment of children under the age of 15 is generally prohibited.

Comply with due diligence obligations, check supply chains and give preference to products with recognized seals such as Fairtrade.

Yes, the World Day against Child Labor takes place annually on June 12.

Abstract - Child labor at a glance

Child labor is a complex global problem and in most cases it has very specific causes: Poverty and a lack of social security. If their parents' income is insufficient, children are often forced to help out and earn money. This happens particularly frequently in times of crisis, for example after natural disasters or during conflicts, when families lose their livelihoods.

Another key driver is education. Where schools are lacking, too far away or of poor quality, children get into work more quickly. Overcrowded classes, a lack of materials and too few qualified teachers further exacerbate the situation. Finally, social norms also play a role: in some contexts, child labour is considered "normal" or is consciously accepted as cheap labour, especially at the expense of children from marginalized groups and ethnic minorities.

Globally, one in thirteen children is affected by child labor, with the figures being even higher in the poorest regions such as sub-Saharan Africa. Crisis areas are particularly affected, where many children are forced to work under extreme conditions.

Laws such as the Youth Employment Protection Act (JArbSchG) in Germany aim to prohibit or regulate child labor. International agreements such as the UN Convention on the Rights of the Child and ILO conventions set global standards to protect children from exploitation and guarantee their right to education and a safe childhood. Convention No. 138 sets the minimum age for employment at 15 years, while No. 182 prohibits exploitative and hazardous child labor, including slavery, child prostitution, hazardous work environments and activities.

The LkSG and the EU CSDDD Directive oblige companies to exercise and report on human rights and environmental due diligence along their supply chains. Among other things, they aim to combat child labor through identification, prevention and complaints mechanisms.

Companies should implement robust due diligence programs, including risk assessments, grievance mechanisms and supplier codes of conduct. Collaboration with NGOs and transparent reporting are essential, as are training and awareness-raising measures.

Technology, such as software solutions for supply chain management and whistleblowing systems, enables better monitoring and early detection of abuses. Digital platforms improve access to education to tackle the root causes of child labor.

What is child labor?

Child labor does not refer to any form of assistance in everyday life, such as household work, but to activities that deprive children of their childhood, impair their development or prevent them from attending school. The decisive factor here is not only age, but above all the question of whether work prevents education, endangers health or exploits children. This is precisely where the international definition of the International Labor Organization (ILO) comes in: Child labor exists in particular when children are too young, have to work too long or perform activities that are dangerous for them.

This makes it clear that while light, age-appropriate tasks, for example within a limited framework and without disadvantages at school, can be legally tolerated in many countries, child labor begins where work becomes a duty and the child's rights to protection, education and safe development are violated.

What counts as "dangerous work"?

Hazardous child labor is particularly problematic. This refers to activities that overtax children physically or mentally and seriously endanger their health or expose them to a high risk of accidents, violence and abuse. This includes, for example, working on dangerous machinery, carrying heavy loads or working in places where they are exposed to dust, chemicals or pesticides, such as on plantations, in mines or in quarries.

However, hazardous work can also be caused by extreme working hours, for example night work, very long shifts or isolated activities where children have little protection or supervision. In many cases, hazardous child labor is also closely linked to exploitation: children are used because they are considered particularly "adaptable", rarely know their rights and are less able to defend themselves. This is precisely why hazardous child labor is particularly clearly addressed internationally and is the focus of standards, laws and due diligence obligations along global supply chains.

Causes of child labor

Child labor rarely arises from a single trigger. In most cases, economic pressure, lack of educational opportunities and socio-cultural factors intertwine and reinforce each other. When families live in insecurity, work is "normal" in everyday life and school seems unattainable or unaffordable, child labor quickly becomes a short-term survival strategy. It is precisely this dynamic that makes the issue so complex: child labor is not only a symptom of poverty, but also an expression of structural weaknesses in education systems, labor markets and social safety nets.

Economic factors: Poverty and lack of social security systems

Poverty is one of the main drivers of child labor. In many regions of the world, the income of adults is not sufficient to secure basic needs such as food, housing or medical care in the long term. If, at the same time, state support services are lacking or inadequate, families are under increasing pressure to find additional sources of income and therefore often have to rely on their children's income.

In times of crisis, the situation often worsens dramatically. When the economy collapses, natural disasters hit entire regions or conflicts break out, many families lose their livelihoods - and slide into poverty. We also saw this during the COVID-19 pandemic: Many households suddenly lost their income, while schools were closed or child protection services were restricted. In such situations, child labor is usually not the result of "free choice", but because families no longer see any other way to make ends meet.

In addition, children are seen as a particularly vulnerable workforce in many sectors. Employers can pay lower wages, circumvent controls and rely on the limited assertiveness of children. This is particularly true of informal employment relationships, where protection mechanisms such as employment contracts, occupational health and safety or grievance mechanisms hardly exist.

Climate change also acts as an additional amplifier. Especially in agricultural regions, droughts, floods and crop failures lead to a loss of income. Families have to migrate more frequently or "help out" in the short term to compensate for the loss. Where agricultural crises become the norm, this also increases the risk of children being forced into work permanently.

Education: Access and quality of educational institutions

Another decisive factor is access to education and, above all, the question of whether education is realistically achievable for families. It is estimated that many millions of children around the world do not attend school. The reasons for this are a lack of schools within easy reach, the cost of fees, uniforms or learning materials and the economic pressure to contribute to the household income. If education is not perceived as a secure prospect, work automatically becomes a priority.

However, even where schools exist in principle, the quality of education is often a problem. Overcrowded classrooms, inadequately trained teaching staff or a lack of equipment mean that schools are perceived as ineffective. At the same time, discrimination and violence, such as bullying against girls or minorities, further increase the barriers. For the children concerned, this means that education is not only difficult to access, but is often not a protected space either. In practice, this mixture often leads to children dropping out of school, and dropping out of school in turn increases the risk of children remaining in work in the long term.

Socio-cultural influences: Traditions and social norms

In addition to economic and education-related causes, socio-cultural factors also play a key role. In some communities, the involvement of children is considered "normal", for example in family businesses or agriculture. It becomes problematic where supportive assistance becomes a permanent substitute for education or where children are seen as cheap and easily controllable labor. Such norms can socially legitimize child labour and lead to exploitation not being recognized or reported as such.

Discrimination often makes the situation even worse. Children from marginalized groups, refugee families or ethnic minorities are particularly at risk because they often have less access to protection, school and reliable rights. In refugee or conflict situations, the risk increases even further: families are under extreme economic pressure and at the same time often lack the structures that should actually protect children.

Interplay of causes: A cycle that stabilizes child labour

The causes of child labor are generally not isolated. Poverty increases the risk of dropping out of school, a lack of education increases long-term poverty, and social norms can further stabilize the entire system.

This is precisely why it is not enough to simply combat the symptoms. Effective approaches must address several areas at the same time: income and social protection, accessible and good quality education and social protection mechanisms against exploitation. This multidimensionality becomes particularly relevant when looking at where child labor is particularly prevalent and in which supply chains risks are structurally increased.

Where does child labor take place?

Child labor is a global problem: around one in ten children worldwide is affected, an average of around ten percent. The risk is particularly high where poverty, weak social systems, low school coverage and crises come together. The rate is therefore significantly higher in the poorest regions of the world, where around one in four children is forced to work in some form. The situation is also particularly dramatic in war and crisis zones. Many children there work under extreme conditions because protective structures break down and families lose their livelihoods.

A central focus is on poor countries in sub-Saharan Africa, where child labor is the most widespread in the world. Conflicts, political instability, climatic stress and high economic vulnerability further increase the pressure on families. It is estimated that around 86.6 million children are affected by child labor in the region, which corresponds to around a quarter of the child population in many countries. Child labor often takes place in the informal sector, particularly in rural regions and where families are heavily dependent on agriculture or seasonal work.

However, it is important to note that child labor does not only affect one region of the world. Millions of children also work in other parts of the world, for example in North Africa and the Middle East. Conflicts, refugee movements and economic instability are exacerbating the situation there. According to estimates, there are around 12.2 million working children in this region (around 8.3 percent). At the same time, Asia and the Pacific as well as parts of Latin America are also affected, in some cases with lower rates than in Africa, but still to a large extent in absolute terms.

These differences show: Child labor is usually not linked to a few "hotspots", but to certain conditions. Where there are hardly any jobs for adults, school is difficult to access and crises are part of everyday life, the likelihood of children having to work increases. It is therefore worth looking next at the sectors and products in which child labor is particularly common and how risks along global supply chains often shift from one stage to the next.

Child labor in Germany

Child labor is clearly regulated by law in Germany: The employment of children under the age of 15 is generally prohibited(§ 5 Para. JArbSchG (Youth Employment Protection Act)). Exceptions only exist within narrow limits, for example in the case of school internships or light, child-friendly work from the age of 13, provided that the legal guardians agree. Such work must not endanger the safety, health and development of children and must not interfere with school attendance. The permitted working hours are strictly limited (generally up to two hours a day, in family farms up to three hours), and there are also time restrictions, for example activities before or during lessons and between 6 p.m. and 8 a.m. are not permitted. The minimum age for regular employment is 15 years.

Despite these clear rules, reports show that there are also problematic cases in Germany, particularly where work takes place in the informal sector or where exploitation occurs in connection with other offenses. The BKA Federal Situation Report on Human Trafficking and Exploitation 2022 shows a total of 171 cases involving underage victims in the reporting period. The focus here is on commercial sexual exploitation, although proceedings in the area of labor exploitation are also documented in isolated cases. These figures make it clear that serious forms of exploitation also exist in Germany - often in constellations where children are particularly vulnerable and control mechanisms are ineffective.

Another important point is the number of unreported cases. The Child Labor Report 2024 by Terre des Hommes comesto the conclusion that more children work under questionable conditions in Germany than is often assumed. Although trade supervisory authorities report a limited number of violations in child and youth labor protection every year, only a few cases of labor exploitation are recorded in the bright field, which indicates a clear gap between reality and documentation. It is also striking that young people are often unaware of their rights or do not perceive risky activities as a violation. Particularly in the case of part-time jobs, this can lead to prohibited work taking place without school, parents or authorities finding out about it.

It is also important to note that violations do not only occur in certain "problem milieus". Critical employment can occur in very different social strata, for example in family businesses where helping out is considered quite normal, or in industries where short-term temporary jobs are common. Working in the family can generally be a positive thing. However, it becomes problematic when children work too much, take on tasks that are not age-appropriate or when school and recreation suffer as a result.

In addition, more and more gray areas are coming into view that have so far only been partially covered by youth employment protection law. These include, for example, activities that do not look like a traditional job, such as "self-employed" work or when children are commercially involved in social media and the focus is suddenly on money, reach and advertising.

The topic of "young carers" also shows how complex work and stress can be: Many children regularly support parents who are chronically ill at home, sometimes even taking on care duties. This can strengthen family cohesion, but can also be very overwhelming. Especially if this happens on a permanent basis and there is no relief, it can have a significant impact on health, school and development.

The bottom line is that there are clear rules against child labor in Germany. Nevertheless, there are gaps in protection, a high number of unreported cases and new forms of exposure that are not always well recorded within the current framework. For children to be truly protected, it is not enough to have laws on paper. What is needed is more consistent implementation, more information about rights and a realistic view of forms of work that take place outside of traditional jobs.

Child labor by sector

Child labor is not a problem of individual industries. It is present in many global supply chains, often at the very beginning, where raw materials are mined, harvests are harvested or primary products are manufactured. It is not just the fashion industry that is affected. Many things that we use every day can also be linked to it: Coffee, cocoa, tea or juices, but also hazelnuts and chilies. Cosmetics, electronics, smartphones, computers and parts for the automotive industry are also included. Because child labor often occurs in these early stages, it remains invisible to consumers and often also to companies for a long time.

Child labor often starts at the beginning of the supply chain: raw materials and agriculture

Child labor is particularly common where raw materials are mined or cultivated, i.e. in areas where a lot of manual labor is required, work is seasonal and much of it is informal. A typical risk material is mica. This mineral is found in many everyday products, for example in cosmetics, electronic devices and also in parts for the automotive industry. In some mining areas, children work under dangerous conditions. This endangers their health, keeps them out of school and deprives them of the chance of a better future in the long term.

The dynamics in agriculture are similar: in cotton fields, for example, children are directly involved in the harvest in some regions. The cotton is then processed globally and ends up in the products of major brands. For the children concerned, this often means long working days, physical strain and a childhood that increasingly revolves around work rather than education.

Food and luxury foods: child labor "bought" in everyday life

The risk is also higher for very common agricultural commodities such as cocoa, coffee and oranges. The work is physically demanding, time-critical and heavily dependent on seasonal harvests. These are factors that encourage child labor when families are under financial pressure. In many cases, children do not work in formal employment, but within the family: they help with the harvest, carry heavy loads, sort or resell products, often to an extent that is incompatible with school attendance and child-friendly development.

Informal work: when exploitation is barely visible statistically

A significant proportion of child labor takes place in the informal sector, i.e. outside of clear employment contracts, controls and protection mechanisms. Many girls and boys work alongside their parents, organize activities themselves or take on tasks that are crucial to the family's income. These include tending livestock, working in the fields, fetching water, selling small goods at street markets or looking after younger siblings. These activities often appear to the outside world as "helping out", but can quickly become a permanent burden, especially if they are regular, time-consuming or dangerous and take the place of education.

Child labor by economic sector: where it occurs most frequently

Child labor is not evenly distributed across all sectors. According to ILO estimates

  • Around 61% of the children affected work in agriculture, forestry and fishing,
  • around 27 % in the service sector (e.g. informal trade, household activities),
  • and around 13 % in industry (e.g. processing, construction, production).

This distribution makes it clear why child labor so often occurs "at the beginning" of global supply chains: Where raw materials and agricultural products are extracted and the work is difficult to control, the risk is particularly high. This is a crucial point for companies: if you want to combat child labor effectively, you need to look not only at the final production, but above all at the early stages of the supply chain, i.e. raw materials, preliminary products and informal supplier structures.

Effects of child labor

Child labor is much more than "helping out a little too early". It affects children directly, both physically and mentally, and their entire future. Especially in quarries, mines or on plantations, they are often exposed to dangerous conditions: dust, pesticides, extreme heat or hard physical labor. This can lead to respiratory diseases, poisoning, chronic pain or permanent postural damage.

Added to this is the constant overload. Long working days, hardly any breaks and chronic fatigue make it difficult to concentrate, stay healthy and develop normally. According to the International Labor Organization (ILO), around 22,000 children die every year as a result of accidents at work.

In addition to the physical risks, the psychological and emotional consequences are often just as serious. Many affected children experience violence, abuse, exploitation or constant fear, whether at work or on the way there. Hunger, humiliation or sexual assault can leave deep traumas and destroy their self-esteem in the long term. Child labor therefore not only deprives children of time, but often also of security and stability, which are key foundations for healthy development.

One particularly serious effect is the impact on education. Those who work are often unable to go to school regularly or drop out altogether. In many cases, there is not only a lack of time, but also a lack of energy: exhaustion, a lack of learning materials or long journeys prevent children from having any real chance of an education. This is crucial because education is the most important way out of poverty. Without a school-leaving certificate, career prospects diminish in the long term and child labor becomes the start of a cycle that continues for generations.

Child labor not only harms the children concerned, as it also has major consequences for society and the economy. It keeps informal and illegal structures alive, depresses wages and prevents the development of a well-trained workforce in the long term. Countries lose important opportunities as a result: children who have to work today often do not complete their education and have few prospects later on.

This is particularly evident in supply chains where raw materials are extracted under very precarious conditions, for example in the case of conflict-ridden minerals such as coltan, which is used for many electronic devices. Where armed groups, corruption or illegal markets set the tone, child labor is not only more likely, it is often deliberately exploited.

For real change to happen, it is not enough to simply condemn child labor. Consistent protection, good and accessible education and real alternatives are needed so that families are not dependent on their children's income. Every child has a right to a safe childhood, health and school. And this is precisely what shows whether states, companies and we as a society are actually combating child labor effectively.

Legal framework: Every child has the right to a childhood

International agreements and conventions

Legally, child labor is actually unambiguous: it is prohibited in most countries. The International Labor Organization (ILO) defines this as work that is dangerous for children, involves too many hours or is carried out by children who are simply too young. The issue also plays a role in Germany via the Supply Chain Act (LkSG). At EU level, the CSDDD goes even further: it focuses not only on child labor, but also on other children's rights, such as health, education, decent living conditions and protection from exploitation, sexual abuse, abduction and child trafficking.

The UN Convention on the Rights of the Child (CRC) was adopted by the UN General Assembly on November 20, 1989 and entered into force on September 2, 1990, thirty days after ratification by the twentieth member state. The Convention on the Rights of the Child has been ratified by 196 states, making it the most widely signed UN convention. The signatory states include not only all UN member states, with the exception of the USA, but also non-UN members such as the Cook Islands, Niue, Palestine and the Vatican City State. It defines child labor as any employment of persons under the age of 18 that is harmful to their health or interferes with their access to school (Article 32: Protection against economic exploitation).

The most important children's rights include

  • Right to equality: All children have the same rights, regardless of their place of residence, origin, skin color, religion, language, gender, disability or economic status (Art. 2).
  • Right to parental care: Children may not be separated against the will of their parents unless a judicially reviewable decision by the competent authorities establishes that such separation is necessary in the best interests of the child. States should support parents, for example by providing childcare (Art. 9 & 18).
  • Right to freedom of expression & participation: Children may express their views on matters affecting them, which should be taken into account according to their age and maturity (Art. 13).
  • Right to a non-violent upbringing: Children have the right to protection from all forms of violence (Art. 19).
  • Right to special care and support for children with disabilities: Children with disabilities have the right to special care and support. All other children's rights also apply to them without restriction (Art. 23).
  • Right to health: Children have an indisputable right to the best possible health and adequate medical care. States are obliged to ensure, among other things, the provision of sufficient, high-quality food and access to clean drinking water. In doing so, they must take into account the potential dangers and risks of environmental pollution. Furthermore, states have a responsibility to provide adequate support and care to mothers both before and after childbirth (Art. 24).
  • Right to education: Children have a right to education. Elementary school should be free and secondary education institutions should be accessible according to ability (Art. 28).
  • Right to play and leisure: Children have the right to rest, leisure, play, age-appropriate recreation and cultural and artistic participation (Art. 31).
  • Right to protection from economic & sexual exploitation: Children have the right to protection from all forms of exploitation (Art. 32, 34, 35 & 36).
  • Right to protection in war & on the run: Children have the right to protection in war and refugee children are entitled to special protection and assistance (Art. 22, 38).

International standards for the protection of children are already enshrined in the core labor standards of the International Labor Organization (ILO). In particular, ILO Convention No. 138 from 1973 and ILO Convention No. 182 from 1999 set out clear regulations aimed at protecting children from exploitative work and guaranteeing their right to education.

The Minimum Age Convention No. 138, which has been ratified by 176 countries, defines a permissible starting age for employment as 15 years. However, under certain circumstances, it also allows children to engage in non-hazardous work outside of school in order to pass on knowledge over generations and contribute to food security.

ILO Convention No. 182 defines exploitative child labor as the prohibition of slavery, forced labor, child prostitution and child pornography. Hazardous work that could affect the health or safety of children is also precisely defined. Particularly critical forms such as child soldiers or hazardous work under extreme conditions are also named.

The worst forms of exploitative child labor, as defined in Article 3 of ILO Convention No. 182, include:

  1. Slavery and practices similar to slavery: These include the sale of children, child trafficking, debt bondage and serfdom as well as forced or compulsory labor. In particular, the use of children as soldiers falls into this category.
  2. Child prostitution and pornography: These practices are not only illegal, but also extremely harmful to the physical and mental health of the children concerned.
  3. Illegal activities: These include drug trafficking, for example, in which children are often used as middlemen or in dangerous positions.
  4. Endangering health and safety: Any type of work that endangers the health, safety or moral well-being of children is classified as exploitative child labor and should be urgently combated.

Work that endangers the health, safety or morals of a child is clearly defined in Article 3 of ILO Recommendation 190. This definition includes the following aspects:

a) Physical, psychological or sexual abuse: Any form of work that exposes children to such risks.

b) Work in extreme environments: This includes activities underground, under water, at dangerous heights or in confined spaces.

c) Use of dangerous machinery: Work with the potential for risk, whether through the use of dangerous machinery, equipment or tools and the carrying of heavy loads.

d) Working conditions that are hazardous to health: Activities that expose children to hazardous substances, high temperatures, excessive noise or vibrations.

e) Particularly difficult working conditions: These include long working hours, night work or isolated activities where the child is unjustifiably forced to remain on the employer's premises.

As part of the 2030 Agenda(Sustainable Development Goals, SDGS), the global community has committed to eliminating all forms of child labor by 2025 (Goal 8.7); however, this challenge remains and has increased in some regions.

Against child labor with LkSG, CSDDD and FLR

In recent years, the regulatory framework against human rights violations in supply chains has become much stricter. Three sets of regulations are particularly relevant for companies: the Supply Chain Due Diligence Act (LkSG ) in Germany, the EU CSDDD Directive and the Forced Labour Regulation (FLR) Regulation (EU) 2024/3015. Together, they increase the pressure not only to identify child labour along the supply chain, but also to effectively prevent it and respond consistently to suspected cases.

The LkSG (since January 1, 2023) obliges companies to implement structured risk management: identify risks, implement preventive and remedial measures, enable complaint channels and report transparently. The CSDDD follows the same basic idea at EU level and aims to harmonize due diligence obligations more strongly and anchor them more broadly. In addition, the EU Forced Labor Regulation addresses the market: products associated with forced labor are to be kept off the EU market - and thus also constellations in which children work under exploitative forced labor conditions.

The bottom line is that companies must systematically manage child labor as a supply chain risk - with clear responsibilities, robust processes and effective remedies, rather than mere "paper compliance".

What does this mean in concrete terms for companies?

  • Set risk focus: Prioritize country/ commodity group risks and particularly critical raw materials at an early stage.
  • Understand the supply chain more deeply: Mapping beyond direct suppliers (where possible) and addressing risk points at early stages.
  • Establish clear requirements: Combine supplier code of conduct, contractual clauses, verification obligations and training.
  • Enable complaints: Create low-threshold reporting channels (also for those affected locally) and treat reports seriously.
  • Remedy instead of relocation: Initiate structured remediation in the event of suspicion (protect the child, address the causes) instead of simply shifting problems to less transparent areas.

Significance of the LkSG in combating child labor

Risk management is a central component of the LkSG. Companies must identify and assess potential risks of child labor within their supply chains (§ 2 para. 2 no. 2 LkSG). This is done through regular risk analyses and assessments, with child labor being considered one of the main human rights violations.

Based on the risk assessments, companies are obliged to take appropriate measures to reduce the likelihood and impact of child labor. This includes the development and implementation of prevention programs, the training of suppliers and the introduction of control mechanisms.

The LkSG also requires companies to set up complaints channels. Affected people, including children or their representatives, should be able to report violations without having to fear any disadvantages. This is the only way to make child labor visible and demand concrete remedial action.

Best practices for companies

A report by Save the Children shows why child labor in supply chains often remains undetected for a long time despite audits and codes of conduct. Companies often find out about incidents too late or not at all - partly because suppliers can deliberately prepare inspections and conceal problems. At the same time, complaint mechanisms are often ineffective in practice: affected children are often dependent on income, are afraid of consequences or see no safe way to report grievances. Even if there are indications following inspections, the response is often too slow or too superficial.

Another risk is short-term "reputation solutions": If companies want to act quickly, the pressure along the chain is often only shifted - to even more non-transparent stages, instead of addressing the causes. Sustainable improvements also often fail due to a lack of resources and the fact that remedial action is not consistently child rights-oriented.

This is precisely why child labor is not only a moral issue for companies, but also a clear compliance issue. If you really want to manage your supply chain responsibly, you need solid risk analyses, functioning reporting channels and measures that not only sound good, but actually protect children and improve the situation on the ground.

Implementation of a robust due diligence program

An effective due diligence program is a key lever in the fight against child labor. It is crucial that companies not only document risks, but also consistently manage them and enable remedial action. Key measures include

  • Risk assessment: systematically analyse supply chains and prioritize high-risk areas, e.g. using indicators such as poverty and enrolment rates as well as commodity group and country risks.
  • Reliable remedial processes: Establish clear mechanisms that take effect quickly in suspected cases and enable local solutions - with a focus on protection, school access and sustainable improvements.
  • Addressing risks instead of shifting them: Where supply chains cannot be changed in the short term, targeted measures are needed to reduce risks instead of shifting them to less transparent areas.
  • Fair purchasing practices: Supporting living wages and fair prices, shortening payment terms and reducing financial bottlenecks for producers - because poverty is a key driver of child labor.
  • Supplier management & partnerships: Establish clear contractual requirements for the employment of minors and promote long-term relationships so that suppliers can invest in prevention (e.g. mentoring, school programs, training).

Partnerships and cooperations

Cooperation with relevant partners is essential. Companies should actively cooperate with NGOs, government agencies and other organizations to combat child labour:

  1. Multi-stakeholder initiatives: Participation in initiatives that bring together different stakeholders to develop strategies to end child labor.
  2. Community programs: Invest in programs to strengthen the economic resilience of communities and improve educational opportunities for children.

Transparent reporting and audits

Regular and transparent reporting is essential:

  1. Regular audits: Independent audits of the entire supply chain to ensure compliance with child labor regulations.
  2. Sustainability reports: Documentation and public provision of progress and challenges in the fight against child labor.

Training and sensitization

Raising the awareness of all those involved can raise awareness of the problem of child labor:

  1. Employee training: Regular information events for employees and management on the topic of child labor.
  2. Supplier training: Programs for suppliers to strengthen their awareness and commitment against child labor.

Child labor can only be effectively combated if companies take a holistic approach to the issue: with clear due diligence obligations, cooperation with suitable partners, transparent reporting and regular training. This not only strengthens social responsibility, but also makes the supply chain more stable and resilient in the long term. Responsible action pays off twice over: It protects human rights and creates trust and credibility, which are crucial for long-term success.

The role of technology in the fight against child labor

Technology can significantly change the way companies keep an eye on their supply chains and identify risks. Digital tools create more transparency and make it easier to track where raw materials and products come from. This is particularly important in the fight against child labor, as it makes grievances visible more quickly and allows companies to react sooner.

Supply chain management software helps companies to understand where materials come from and how they are processed. This provides insights into individual stages of the supply chain that would otherwise often remain hidden. When data is automatically evaluated and reported in real time, risks can be identified earlier and measures can be initiated before a problem becomes more serious. Such tools also help companies to implement requirements from regulations such as the Supply Chain Duty of Care Act and to better safeguard human rights and environmental standards.

Whistleblower systems are another important building block for identifying grievances at an early stage - both internally and externally. Employees can use platforms such as the Hintbox to anonymously report violations of labor rights, including child labor. This strengthens an open corporate culture and creates trust because whistleblowers are protected and do not have to fear reprisals. The easier and safer it is to report, the sooner information comes to light and companies can react more quickly and take preventative action.

Technology not only helps to uncover abuses, it can also tackle the causes of child labor, for example the lack of access to education. Digital learning opportunities and educational platforms can make it easier for children in remote or disadvantaged regions to access education. E-learning and online courses also give children a chance to learn who would otherwise have little access to school or lessons. In the long term, this can reduce child labor because education creates real alternatives and opens up new prospects for the future.

Technology can help combat child labor on several levels. With software for more transparency in the supply chain and good whistleblowing systems, companies can identify risks earlier and act more quickly. At the same time, digital education can help to ensure that more children have access to learning and thus to a real alternative to work.

Conclusion

Child labor is not an isolated problem. It is part of many global supply chains, especially where raw materials are mined and agricultural products are grown. Poverty, a lack of social security, poor educational opportunities and discrimination are often intertwined and keep the system running.

For companies, this is no longer just a question of attitude, but also a clear compliance task. With the LkSG, CSDDD and the Forced Labor Regulation, expectations are rising: Risks must be identified, effectively reduced and suspected cases properly investigated. It is crucial that these measures are not just on paper, especially in the early stages of the supply chain.

Companies that work transparently, buy fairly, work with suppliers over the long term and take remedial action seriously protect children's rights. At the same time, they strengthen their own supply chain and trust in the company.

FAQ

Everything you need to know about child labor

Child labor is a complex problem caused by economic, educational and socio-cultural factors. The main causes include poverty and a lack of social security systems, a lack of access to education and educational facilities as well as social norms and traditions.

Poverty forces families to rely on their children's income, as adults often have insufficient income and no access to social security systems. In crisis situations, such as during the COVID-19 pandemic or after natural disasters, this emergency situation is exacerbated.

Lack of access to education and poor quality of education increase the likelihood of child labor. In many regions, there is a lack of financial resources for school fees and learning materials. Class sizes are often overcrowded and teaching staff are inadequately trained.

Traditions and social norms can push children to work, especially in cultures where children are seen as cheap labor. Discrimination makes access to education and basic rights more difficult, which increases child labor.

Child labor occurs worldwide. Poor regions and crisis areas, such as sub-Saharan Africa and parts of the Middle East, are particularly affected. The rate is also high in unstable states and among refugees.

In Germany, the employment of children is comprehensively regulated and largely prohibited under the Youth Employment Protection Act. However, there are worrying individual cases of exploitative work, particularly in the context of human trafficking and illegal employment conditions.

Agriculture, forestry and fishing are the sectors most affected. However, the fashion industry, the extraction of raw materials such as mica and the production of consumer goods such as coffee and cocoa are also affected.

Child labor endangers the health and safety of the children concerned, impairs their education and perpetuates the cycle of poverty. It also harms the economic development of countries, as it restricts qualified future workers in education and development.

The UN Convention on the Rights of the Child and the conventions of the International Labor Organization (ILO) represent international standards that regulate the protection of children and the prohibition of exploitative labor. They are crucial in the fight against child labor.

The Minimum Age Convention No. 138, ratified by 176 countries, stipulates that the minimum permissible age for employment is 15 years. Under certain conditions, however, it allows children to carry out non-hazardous work outside school hours in order to pass on knowledge and secure food supplies.

ILO Convention No. 182 prohibits exploitative child labor, including slavery, forced labor, child prostitution, child pornography and hazardous work that endangers the health or safety of children.

Hazardous working conditions include activities involving physical, mental or sexual abuse, work in extreme environments, the use of dangerous machinery, working conditions that are harmful to health and difficult working conditions such as long working hours or night work.

As part of the 2030 Agenda, the global community committed to eliminating all forms of child labor by 2025. The 2030 Agenda is a global action plan for sustainable development.

Since January 1, 2023, the LkSG has required companies in Germany to comply with human rights and environmental due diligence obligations along their entire supply chain. This includes identifying and minimizing human rights and environmental risks, including child labor.

The CSDDD is an EU-wide directive that obliges companies to introduce a uniform due diligence system to uphold human rights and environmental standards. It came into force on July 25, 2024.

Grievance mechanisms give affected persons, including children, the opportunity to report violations and demand remedial action. This plays a crucial role in combating child labor.

Companies should conduct risk assessments, implement reliable mechanisms, offer fair wages and enter into partnerships to combat child labor. They should also consider transparent reporting and supplier training.

Technologies provide transparency in the supply chain, enable the detection of abuses through whistleblower systems and promote access to education for children in disadvantaged regions through digital platforms.

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