Child labour and supply chain : profitability or (mis)management

Purpose – The purpose of this paper is to provide a realistic assessment, with an historical perspective, of the current practises and progress made by organisations towards elimination of child labour in global supply chains.

Design/methodology/approach – Literature review in the area of use of child labour within the global supply chain was combined with additional information obtained from the company searches of the GRI database, company ranking tables, and other sources.

Findings – Child labour is one of a number of areas of concern in global supply chains. Continued exploitation of child labour indicates an imbalanced state and consequently forces can be unleashed through standardization, collaboration and communication amongst all stakeholders to ensure protection of the vulnerable. This paper is part of the broader analysis informing incremental changes to supply chain management to preserve the rights and welfare of children in the present and future generations. Research/limitations/implications – The analysis is based on secondary data sources and further research is thus needed to verify the individual weightings of the criteria used in the primary ranking of the companies.

Practical implications – The findings provide encouragement for policy and decision makers to implement incremental changes to global supply chains in order to protect the rights and welfare of children, according to the standards of Social Accountability (SA) 8000, the International Labour Organisation (ILO), and other world trade stakeholders.

Originality/value – This paper questions the view that child labour incidences have diminished proportional to economic development. A swinging fulcrum with hidden traps for developed and developing nations in light of cross border transactions through supply chains has been proposed.

Female labour force participation, fertility and infant mortality in Australia : some empirical evidence from Granger causality tests

This study applies Granger causality tests within a multivariate error correction framework to examine the relationship between female participation rates, infant mortality rates and fertility rates for Australia using annual data from 1960 to 2000. Decomposition of variance and impulse response functions are also considered. The main findings are twofold. First, in the short run there is unidirectional Granger causality running from the fertility rate to female labour force participation and from the infant mortality rate to female labour force participation while there is neutrality between the fertility rate and infant mortality rate. Second, in the long run both the fertility rate and infant mortality rate Granger cause female labour participation.

Effect of labour market reform on women in the Australian banking industry

[No Abstract]

Labour productivity trends in Australian manufacturing : some time series properties

Labour productivity plays a significant role in economic growth, labour demand and employment situation of a particular economy. In this light, the presence of a structural break in productivity, and its unit root property, has important consequences for the overall economy and in major sectors such as manufacturing. In this article, using some recently developed unit root tests, we examine: (i) the null hypothesis of a unit root in the log-level of labour productivity for 38 manufacturing subdivisions against the alternative of trend stationarity over a three-decade period; and (ii) the presence of a structural break in the series, and whether the break has had a permanent or a transitory effect on manufacturing labour productivity. Our main finding is that shocks to labour productivity have had a transitory effect, implying that policies are likely to have only short-term effects.

Assessing the validity of impact pathways for child labour and well-being in social life cycle assessment

Background, aim and scope: Assuming that the goal of social life cycle assessment (SLCA) is to assess damage and benefits on its ‘area of protection’ (AoP) as accurately as possible, it follows that the impact pathways, describing the cause effect relationship between indicator and the AoP, should have a consistent theoretical foundation so the inventory results can be associated with a predictable damage or benefit to the AoP. This article uses two concrete examples from the work on SLCA to analyse to what extent this is the case in current practice. One considers whether indicators included in SLCA approaches can validly assess impacts on the well-being of the stakeholder, whereas the other example addresses whether the ‘incidence of child labour’ is a valid measure for impacts on the AoPs.

Materials and methods: The theoretical basis for the impact pathway between the relevant indicators and the AoPs is analysed drawing on research from relevant scientific fields.

Results:   The examples show a lack of valid impact pathways in both examples. The first example shows that depending on the definition of ‘well-being’, the assessment of impacts on well-being of the stakeholder cannot be performed exclusively with the type of indicators which are presently used in SLCA approaches. The second example shows that the mere fact that a child is working tells little about how this may damage or benefit the AoPs, implying that the normally used indicator; ‘incidence of child labour’ lacks validity in relation to predicting damage or benefit on the AoPs of SLCA.

Discussion: New indicators are proposed to mitigate the problem of invalid impact pathways. However, several problems arise relating to difficulties in getting data, the usability of the new indicators in management situations, and, in relation to example one, boundary setting issues.

Conclusions: The article shows that it is possible to assess the validity of the impact pathways in SLCA. It thereby point to the possibility of utilising the same framework that underpins the environmental LCA in this regard. It also shows that in relation to both of the specific examples investigated, the validity of the impact pathways may be improved by adopting other indicators, which does, however, come with a considerable ‘price’.

Recommendations and perspectives: It is argued that there is a need for analysing impact pathways of other impact categories often included in SLCA in order to establish indicators that better reflect actual damage or benefit to the AoPs.