case study on child labour

• IKEA Case: One Company’s Fight to End Child Labor
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IKEA Case: One Company’s Fight to End Child Labor

A business ethics case study.

In this business ethics case study, Swedish multinational company IKEA faced accusations relating to child labor abuses in the rug industry in Pakistan which posed a serious challenge for the company and its supply chain management goals.

Empty garage with a highlighted walking path in front of an IKEA.

Photo credit: mastrminda/Pixabay

Yuvraj Rao '23 , a 2022-23 Hackworth Fellow at the Markkula Center for Applied Ethics graduated with a marketing major and entrepreneurship minor from Santa Clara University.

Introduction

IKEA is a Swedish multinational company that was founded in 1943 by Ingvar Kamprad. [1] The company mainly provides simple, affordable home furniture and furnishings, and it pioneered DIY, or do it yourself, furniture. Kamprad originally sold binders, fountain pens, and cigarette lighters, but eventually expanded to furniture in 1948. According to the Journal of International Management, in 1953, Kamprad offered products that came as “a self assembled furniture” for the lowest price, which ultimately became a key part of IKEA’s value proposition going forward. In 1961, IKEA started to contact furniture factories in Poland to order chairs from a factory in Radomsko. [2] Outsourcing to Poland was mainly due to other Swedish furniture stores pressuring Swedish manufacturers to stop selling to IKEA. In the mid 1960’s, IKEA continued its supplier expansion into Norway, largely because IKEA didn’t want to “own their own line of production,” [3] and Germany due to its ideal location (downtown, suburban area) to place an IKEA store. Given IKEA’s suppliers were now not just in Sweden, it led to an increased importance on developing strong relationships with its suppliers.

In the following decades, IKEA continued its expansion and solidified its identity as a major retail outlet with parts being manufactured around the world. By the mid 90’s, IKEA was the “world’s largest specialized furniture retailer with their GDP reaching $4.5 billion in August of 1994.” [4] It also worked with 2,300 suppliers in 70 different countries, who supplied 11,200 products and had 24 “trading offices in nineteen countries that monitored production, tested product ideas, negotiated products, and checked quality.” [5] IKEA’s dependence on its suppliers ultimately led to problems in the mid 1990’s. At this time, IKEA was the largest furniture retailer in the world, and had nearly “100 stores in 17 countries.” [6] Also during this time, a Swedish documentary was released that highlighted the use of child labor in the rug industry in Pakistan, which impacted IKEA given it had production there. The rug industry in particular is extremely labor intensive and is one of the largest “export earners for India, Pakistan, Nepal and Morocco.” Here, children are forced to work long hours for very little pay (if there is any pay at all). In some cases, their wages are only enough to pay for food and lodging. In cases where children are not paid, the wages are used by the loom owner to pay the parents and agents who brought the children to the factories. Additionally, the work the children must do comes with a lot of risk. More specifically, children face risks of diminishing eyesight and damaged lungs from “the dust and fluff from the wool used in the carpets.” [7] As a result of these working conditions, many of these children are very sick when they grow up. Despite these terrible conditions, it isn’t that simple for families not to send children to work at these factories. A lot of the parents can’t afford food, water, education, or healthcare, so they are often left with no choice but to send their children to work for an additional source of income. [8]

 IKEA and Child Labor Accusations

The accusations of child labor in the rug industry in Pakistan posed a serious challenge for IKEA and its supply chain management goals. It would need to address the serious issues of alleged injustice for the sake of its reputation and brand image. Additionally, as IKEA also had suppliers in India, it would need to be in compliance with India’s “landmark legislation act against child labor, the Child Labor (Prohibition and Regulation) Act of 1986.” [9]

As a result of these accusations, IKEA ultimately ended its contracts with Pakistani rug manufacturers, but the problem of child labor in its supply chain still persisted in other countries that were supplying IKEA. Marianne Barner, the business area manager for rugs for IKEA at the time, stated that the film was a “real eye-opener…I myself had spent a couple of months in India for some supply chain training, but child labor was never mentioned.” [10] She also added that a key issue was that IKEA’s “buyers met suppliers at offices in the cities and rarely visited the actual production sites.” [11] The lack of visits to the actual production sites made it difficult for IKEA to identify the issue of child labor in these countries.

To make matters worse, in 1995, a German film “showed pictures of children working at an Indian rug supplier... ‘There was no doubt that they were rugs for IKEA,’ says business area manager for textiles at the time, Göran Ydstrand.” [12] In response to these accusations, Barner and her team went to talk to suppliers in Nepal, Bangladesh, and India. They also conducted surprise raids on rug factories and confirmed that there was child labor in these factories. The issue of child labor, along with the accusations of having formaldehyde (a harmful chemical) in IKEA’s best selling BILLY bookcases and the discovery of unsafe working conditions for adults (such as dipping hands in petrol without gloves), led to increased costs and a significantly damaged reputation for the company.

It was later discovered that the German film released in 1995 was fake, and the renowned German journalist who was responsible for this film was involved in “several fake reports about different subjects and companies.” [13] IKEA was now left with three options. First, some members of IKEA management wanted to permanently shut down production of their rugs in South Asia. Another option was to do nothing and proceed with its existing practices now that it was announced that the film was fake. The third option was that the company could attempt to tackle the issue of child labor that was clearly evident in its supply chain, regardless of whether the film was fake or not. IKEA ultimately decided to opt for the third option, and its recent discoveries would eventually help guide the policies the company implemented to address these issues, particularly child labor in India.

Steps Taken to Address Child Labor in the Supply Chain

IKEA took multiple steps to deal with its damaged reputation and issues of child labor in its supply chain. One way in which it did this was through institutional partnerships. One such partnership was with Save the Children, which began in 1994. According to Save the Children’s website, one of the main goals of their partnership is to realize children's “rights to a healthy and secure childhood, which includes a quality education. By listening to and learning from children, we develop long-term projects that empower communities to create a better everyday life for children.” [14] Furthermore, the partnership is intended to “drive sustainable business operations across the entire value chain.” [15] Together, IKEA and Save the Children are focused on addressing the main causes of child labor in India’s cotton-growing areas. [16] Save the Children also advised IKEA to bring in an independent consultant to ensure that suppliers were in compliance with their agreements, which further improved IKEA’s practices in its supply chain. IKEA also partnered with UNICEF to combat child labor in its supply chain. According to the IKEA Foundation, in 2014, IKEA provided UNICEF with six new grants totaling €24.9 million with a focus “on reaching the most marginalized and disadvantaged children living in poor communities and in strengthening UNICEF’s response in emergency and conflict situations.” Additionally, five of the six grants were given to help programs in “Afghanistan, China, India, Pakistan, and Rwanda,” with a “focus on early childhood development, child protection, education, and helping adolescents to improve their lives and strengthen their communities.” [17]

Next, IKEA and Save the Children worked together to develop IWAY, which was launched in 2000. [18] IWAY is the IKEA code of conduct for suppliers. According to the IKEA website, “IWAY is the IKEA way of responsibly sourcing products, services, materials and components. It sets clear expectations and ways of working for environmental, social and working conditions, as well as animal welfare, and is mandatory for all suppliers and service providers that work with IKEA.” [19] In addition, IWAY is meant to have an impact in the following four areas: “promoting positive impacts on the environment,” “securing decent and meaningful work for workers,” “respecting children’s rights”, and “improving the welfare of animals in the IKEA value chain.” [20] IWAY is used as a foundation to collaborate with IKEA’s suppliers and sub-contractors to ensure supply chain transparency.

As mentioned previously, one of the main goals of IKEA’s partnership with Save the Children was to address child labor in India’s cotton-growing areas. To do this, IKEA and Save the Children developed a program that would ultimately help more than 1,800 villages between 2009 and 2014. More specifically, the program moved nearly 150,000 children out of child labor and into classrooms. Also, as a result of this program, more than 10,000 migrant children “moved back into their home communities.” [21] Last but not least, the program trained almost 2,000 teachers and 1,866 Anganwadi workers (whose duties include teaching students and educating villagers on healthcare [22] ) in order to provide each village with a community leader. This was to ensure that the community had a skilled leader to assist in educating the villagers. In 2012, the IKEA Foundation and Save the Children announced that they would expand with new programs in Punjab, Haryana, and Rajasthan. This joint program illustrates IKEA’s commitment to improving communities in addition to helping children go to school.

Conclusion & Looking Ahead

IKEA has taken numerous steps to ensure that suppliers abide by the IWAY Code of Conduct. Companies around the world can learn from the policies IKEA has put in place to ensure that each company has control and complete oversight over their supply chains, which can lead to a more transparent and ethical supply chain. According to The IKEA WAY on Purchasing Products, Materials and Services, one way in which IKEA does this is by requiring all suppliers to share the content of the code to all co-workers and sub-suppliers, thus leading to more accountability among the company's suppliers. IKEA also believes in the importance of long term relationships with its suppliers. Therefore, if for some reason, a supplier is not meeting the standards set forth by the code, IKEA will continue to work with the supplier if the supplier shows a willingness to improve its practices with actionable steps to complete before a specified period of time. [23]

Additionally, during the IWAY implementation process, IKEA monitors its suppliers and service providers. To do this, IKEA has a team of auditors who conduct audits (both announced and unannounced) at supplier facilities. The auditors are also in charge of following up on action plans if suppliers are failing to meet the agreed upon standards specified by IWAY. Along with this, “IKEA…has the Compliance and Monitoring Group, an internal independent group that is responsible for independent verification of implementation and compliance activities related to IWAY and Sustainability.” [24] IKEA also has independent third party teams who conduct inspections on behalf of IKEA. [25] By conducting audits and putting together teams to ensure cooperation from suppliers throughout the supply chain, companies can be better equipped to prevent unethical practices in the production of goods and services. In Ximeng Han’s Analysis and Reflection of IKEA’s Supply Chain Management, Han highlights IWAY’s importance in maintaining links with IKEA’s suppliers. [26] Therefore, IWAY plays a crucial role in ensuring supply chain transparency and in building a more ethical and sustainable supply chain.

In addition to all of the policies IKEA has put in place to address issues in its supply chain, the company has also donated a lot of money to combat child labor in India. More specifically, according to an IKEA Foundation article written in 2013, “Since 2000, the IKEA Foundation has committed €60 million to help fight child labour in India and Pakistan, aiming to prevent children from working in the cotton, metalware and carpet industries.” [27] Furthermore, in 2009, the company announced that it would donate $48 million to UNICEF to “help poor children in India.” [28]

IKEA’s goal to completely eliminate child labor from its supply chain is an ongoing battle, and it is still committed to ensuring that this is ultimately the case. More specifically, it is extremely difficult to completely eliminate child labor from a company’s supply chain because of the various aspects involved. According to a report published in 2018 by the International Labour Organization, these aspects include a legal commitment, building and “extending” social protection systems (including helping people find jobs), “expanding access to free, quality public education,” addressing supply chain issues, and providing more protection for children in general. [29] Furthermore, Han points out the potential downsides that could arise as a result of having a global supply chain like IKEA does. Given IKEA is an international retailer, the company “has to spend a lot of time, money and manpower to enter new markets due to the different cultures, laws and competitive markets in different regions, and there is also a significant risk of zero return.” [30] Han also argues that the COVID-19 pandemic showed IKEA’s and many other companies’ inability to respond to “fluctuations in supply and demand,” primarily due to inflexible supply chains. [31] This information points out the various aspects that need to align in order to completely end the issue of child labor throughout the world, as well as the difficulties of having a global supply chain, which is why child labor is so difficult to completely eliminate.

Specific to IKEA’s actions, in 2021, IKEA announced three key focus areas for its action pledge: “Further integrating children’s rights into the existing IKEA due diligence system (by reviewing IWAY from a child rights’ perspective in order to strengthen the code),” “accelerating the work to promote decent work for young workers,” and partnering “up to increase and scale efforts.” [32] IKEA’s fight to end child labor in India highlights the importance of supply chain transparency and putting policies in place that ensures cooperation from suppliers and all parties involved. Additionally, in a Forbes article written in 2021, “According to the data from the OpenText survey…When asked whether purchasing ethically sourced and/or produced products matters, 81 percent of respondents said yes.” [33] Steve Banker, who covers logistics and supply chain management, also adds, “What is interesting is that nearly 20 percent of these survey respondents said that it has only mattered to them within the last year, which indicates that the Covid pandemic, and some of the product shortages we have faced, has made consumers re-evaluate their stance on ethical sourcing.” [34] These results confirm that customers are now considering how a product was sourced in their purchasing decisions, which makes it even more important for IKEA to be transparent about its efforts to eliminate child labor from its supply chain. Furthermore, the company’s open commitment to eliminating child labor and helping communities in India is beneficial in maintaining a positive relationship with its stakeholders.

The increase in globalization has made it even more essential for companies to monitor their supply chains and have complete oversight over business practices. IKEA is one of the companies leading the way in building a more ethical and sustainable supply chain, but more companies need to follow suit and implement policies similar to IWAY that holds all parties in the supply chain accountable for their actions. Through supply chain transparency and accountability, companies will likely be better equipped to handle issues that arise throughout their respective supply chains. Furthermore, by implementing new policies, conducting audits, and maintaining close communication with suppliers, companies can work to eliminate child labor in their supply chains and put children where they belong: in school.

Reflection Questions:

• What does this case teach you about supply chain ethics?
• What are some of the ways in which management/leaders can ensure compliance of the standards set forth by a company in terms of supplier behavior and ethical sourcing?
• Who is primarily responsible for ensuring ethical behavior throughout the supply chain? Is it the company? The suppliers? Both?
• How can companies utilize the various platforms and technologies that exist today to better understand and oversee their supply chains? 
• IKEA has taken numerous steps to address child labor in its supply chain. Do you think every business working in a context that may involve child labor has a duty to act in a similar way? Why or why not?

Works Cited 

“ About Ikea – Our Heritage .” IKEA.

“Anganwadi Workers.” Journals Of India , 16 June 2020. 

Banker, Steve. “ Do Consumers Care about Ethical Sourcing? ” Forbes , 9 Nov. 2022.

Bharadwaj , Prashant, et al. Perverse Consequences of Well-Intentioned Regulation ... - World Bank Group .

“ Child Labor in the Carpet Industry Rugmark: Carpets: Rugs: Pakistan .” Child Labor in the Carpet Industry RugMark |Carpets | Rugs | Pakistan .

“ Creating a Sustainable IKEA Value Chain with Iway. ” Sustainability Is Key in Our Supplier Code of Conduct .

“ Ending Child Labour by 2025 - International Labour Organization .” International Labour Organization .

“ Film on Child Labour Is Eye-Opener for IKEA .” IKEA Museum , 31 Mar. 2022.

Foundation , ECLT. “ Why Does Child Labour Happen? Here Are Some of the Root Causes. ” ECLT Foundation , 17 May 2023.

Han, Ximeng. “ Analysis and Reflection of IKEA’s Supply Chain Management. ” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

“ Human Rights and Global Sourcing: IKEA in India. ” Journal of International Management , 13 May 2011.

“ IKEA and IKEA Foundation .” Save the Children International .

“ IKEA Foundation Contributes €24.9 Million to UNICEF to Help Advance Children’s Rights. ” IKEA Foundation , 26 May 2020.

“ IKEA Foundation Helps Fight the Roots Causes of Child Labour in Pakistan .” IKEA Foundation , 18 Feb. 2013.

“ Ikea Gives $48 Million to Fight India Child Labor .” NBC News , 23 Feb. 2009.

“ IKEA Supports 2021 as the UN International Year for the Elimination of Child Labour. ” About IKEA.

The Ikea Way on Purchasing Products , Materials and Services .

Jasińska, Joanna, et al. “ Flat-Pack Success: IKEA Turns to Poland for Its Furniture. ” – The First News .

Thomas , Susan. “ IKEA Foundation Tackles Child Labor in India’s Cotton Communities .” Boston College Center for Corporate Citizenship , 15 July 2014.

[1] “About Ikea – Our Heritage.” IKEA .

[2] Jasińska, Joanna, et al. “Flat-Pack Success: IKEA Turns to Poland for Its Furniture.” – The First News .

[3] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[4] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[5] “Human Rights and Global Sourcing: IKEA in India.” Journal of International Management , 13 May 2011.

[6] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[7] “Child Labor in the Carpet Industry Rugmark: Carpets: Rugs: Pakistan.” Child Labor in the Carpet Industry RugMark |Carpets | Rugs | Pakistan .

[8] Foundation , ECLT. “Why Does Child Labour Happen? Here Are Some of the Root Causes.” ECLT Foundation , 17 May 2023.

[9] Bharadwaj , Prashant, et al. Perverse Consequences of Well-Intentioned Regulation ... - World Bank Group .

[10] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[11] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[12] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[13] “Film on Child Labour Is Eye-Opener for IKEA.” IKEA Museum , 31 Mar. 2022.

[14] “IKEA and IKEA Foundation.” Save the Children International .

[15] “IKEA and IKEA Foundation.” Save the Children International .

[16] “IKEA and IKEA Foundation.” Save the Children International .

[17] “IKEA Foundation Contributes €24.9 Million to UNICEF to Help Advance Children’s Rights.” IKEA Foundation , 26 May 2020.

[18] “IKEA and IKEA Foundation.” Save the Children International .

[19] “Creating a Sustainable IKEA Value Chain with Iway.” Sustainability Is Key in Our Supplier Code of Conduct .

[20] “Creating a Sustainable IKEA Value Chain with Iway.” Sustainability Is Key in Our Supplier Code of Conduct .

[21] Thomas, Susan. “IKEA Foundation Tackles Child Labor in India’s Cotton Communities.” Boston College Center for Corporate Citizenship , 15 July 2014.

[22] “Anganwadi Workers.” Journals Of India , 16 June 2020.

[23] The Ikea Way on Purchasing Products, Materials and Services .

[24] The Ikea Way on Purchasing Products, Materials and Services .

[25] The Ikea Way on Purchasing Products, Materials and Services .

[26] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[27] “IKEA Foundation Helps Fight the Roots Causes of Child Labour in Pakistan.” IKEA Foundation , 18 Feb. 2013.

[28] “Ikea Gives $48 Million to Fight India Child Labor.” NBC News , 23 Feb. 2009.

[29] “Ending Child Labour by 2025 - International Labour Organization.” International Labour Organization .

[30] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[31] Han, Ximeng. “Analysis and Reflection of IKEA’s Supply Chain Management.” Analysis and Reflection of IKEA’s Supply Chain Management | Atlantis Press , 27 Dec. 2022.

[32] “IKEA Supports 2021 as the UN International Year for the Elimination of Child Labour.” About IKEA .

[33] Banker, Steve. “Do Consumers Care about Ethical Sourcing?” Forbes , 9 Nov. 2022.

[34] Banker, Steve. “Do Consumers Care about Ethical Sourcing?” Forbes , 9 Nov. 2022.

Inter-Agency Toolkit | Child Labour Case Studies

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Why Companies Are Blind to Child Labor

• Danny Zane,
• Julie Irwin,
• Rebecca Walker Reczek

It’s not because their supply chains are too complicated.

Many companies claim to adhere to strict policies about child labor. For example, Apple says that whenever it finds an underage worker in its supply chain, it sends the child home safely, continues paying his or her wages, and even finances the child’s education and offers employment once doing so is legal. Samsung has said that its contracts with any supplier found to use child labor will be terminated immediately.

• DZ Danny Zane is a third year doctoral student in marketing at Ohio State University.
• Julie Irwin is a professor at the University of Texas at Austin’s McCombs School of Business. drj208
• Rebecca Walker Reczek is an aAssociate professor of marketing at the Ohio State University Fisher College of Business.

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Factors Fuelling the Persistence of Child Labour: Evidence from Pakistan

• Published: 16 May 2024

Cite this article

• Shahla Akram   ORCID: orcid.org/0000-0002-3857-3950 1 ,
• Mehboob Ul Hassan   ORCID: orcid.org/0000-0002-3453-695X 2 &
• Muhammad Farrukh Shahzad   ORCID: orcid.org/0000-0002-6578-4139 3  

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The persistence of child labour globally can be attributed to a complex interplay of multifaceted factors. This study examines the relationship between these diverse factors of child labour, such as economic activities, working hours, hazardous conditions and overall prevalence. Logistic regression analysis was conducted using data from Pakistan’s Multiple Indicator Cluster Survey (MICS sixth wave). According to the data, poor quality education worsens child labour, while parental education and wealth protect against it. Gender differences, child disabilities, regional differences and non-violent behaviour all have significant impacts on labour force participation. This study highlights the complex interactions between socioeconomic and regional factors in determining child labour. It fills gaps in the existing literature by focusing on previously overlooked elements such as nonviolent behaviour and comprehensive disability interactions, as well as conducting a comprehensive examination of socioeconomic determinants. Understanding these dynamics is critical to targeted initiatives to eliminate child labour and ensure the well-being of children.

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• Moses Kwadzo, James Kofi Annan. Effects of Child Labor on Academic Outcomes: A Case Study of Child Labor among Junior High School Students in the Fishing Community of Elmina in the Central Region of Ghana. Journal of Business and Management Sciences . Vol. 10, No. 3, 2022, pp 124-130. https://pubs.sciepub.com/jbms/10/3/3 ">Normal Style
• Kwadzo, Moses, and James Kofi Annan. 'Effects of Child Labor on Academic Outcomes: A Case Study of Child Labor among Junior High School Students in the Fishing Community of Elmina in the Central Region of Ghana.' Journal of Business and Management Sciences 10.3 (2022): 124-130. ">MLA Style
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• Kwadzo, Moses, and James Kofi Annan. 'Effects of Child Labor on Academic Outcomes: A Case Study of Child Labor among Junior High School Students in the Fishing Community of Elmina in the Central Region of Ghana.' Journal of Business and Management Sciences 10, no. 3 (2022): 124-130. ">Chicago Style

Effects of Child Labor on Academic Outcomes: A Case Study of Child Labor among Junior High School Students in the Fishing Community of Elmina in the Central Region of Ghana

Several concerns have been raised about child labor use in the fishery sector of Ghana. While some have argued that child labor should be abolished because it endangers the lives of children, others maintain that the use of children in agricultural work promotes their socioeconomic development. This study sought to assess the nature of child labor in Ghana and examine its effects on the academic outcomes of students in junior high schools in the Elmina community in the Central Region in Ghana. A total of 242 students from two junior high schools in the Elmina fishing community completed questionnaires for the study. The questionnaire results were analyzed using descriptive statistics and independent-sample t -tests. The findings revealed that 104 of the 242 students were involved in various fishery activities, including sorting, selling, dressing, and smoking of fish. The students were found to be working 12.3 hours per week and 3.3 days per week on average. Contrary to expectations, the independent-sample t -tests showed no statistically significant difference in aggregate examination mean scores for students involved in and students not involved in fishery activities. This observation could be attributed to the fact that the majority of the students involved in fishery activities engaged mainly in fishery activities that can be described as child work rather than child labor. This study recommends that households engaged in fishing consider limiting their children to light and regular fishing activities if the need arises to engage them, to avoid distraction from their education.

1. Introduction

Child labor is a complex phenomenon in developing countries. While some have argued that the use of children in agricultural work is part of their socioeconomic development, others are of the view that child labor cannot be a substitute for child work 1 , 2 . The UNICEF 3 convention tolerates child work but it does not promote child labor of all forms. The kind of child labor children engage in differs depending on the culture of a country or community and the socioeconomic conditions 4 . According to the International Labor Organization (ILO), child labor is work that deprives children of their childhood potential and dignity and that is harmful to their physical and mental development 5 . The ILO 6 reported that in 2016, ten percent of children (152 million) aged 5 to 17 around the world were involved in some form of labor and that 73 million were engaged in hazardous child labor. Approximately 70.9% worked in agriculture, 17.2% worked in services, and 11.9% worked in industry. For children aged 5-14 years involved in some form of labor, 32.0% did not attend school, and the other 68% divided their time between working and studying. Buonomo 7 and the ILO 5 observed that the agriculture, fishing, and artisanal mining sectors are the largest employers of child labor. Adeborna and Johnson 8 observed that child labor is most prevalent in the informal small- and medium-scale operations of capture fisheries, aquaculture and post-harvest fish activities. Small-scale fisheries provide over 90 percent of the 120 million livelihoods derived from fisheries and support more than 500 million people. In the fishery sector, children are engaged in activities such as harvesting and farming of fish in capture fishing and aquaculture 8 .

Ghana is one of the countries with the world’s largest proportions of working children. In Ghana, 21.8% of children 5-17 years old are engaged in child labor, and more than 14.2% are involved in hazardous forms of child labor 9 . Child labor in Ghana is deep-rooted in the fishing industry, with the majority of child labor carried out in family enterprises and mostly within the family home, in the form of housework or as non-remunerated work 8 . Child labor has been found to compromise the health and personal development of children. Several studies have showed that children who engage in child labor do not perform well in school. Le and Homel 10 noted that children who engage in child labor do not perform well in school because it affects their concentration in class. It also leaves them with less time for schooling and for engaging in leisure activities 11 .

In contrast, Afenyadu 4 and Heady 12 contended that not all child work is dangerous to children’s mental well-being. Many families within the coastal fishing communities along the coast of Ghana encourage their children’s involvement in their family fishery businesses as a sociocultural practice to preserve family business for the future and to ensure the survival of family members. Elmina is a major coastal fishing community in the Central Region of Ghana. The Elmina fishing harbor is the third largest fish landing site in Ghana and contributes approximately 15% of the country's total fish output 13 . Approximately 75% of the population of Elmina, including children, is involved in fishing and related fishing activities, such as processing and trading of fish, for their livelihood 13 . Although UNICEF’s convention allows the use of child work, it discourages the use of child labor of all forms. While children within the Elmina fishing community engage in fishery activities, this kind of child labor can adversely affect the educational development of the children in Elmina. The authors raise the question: what is the nature of the fishery activities in which these children are engaged? This study sought to identity the nature of the child labor in Elmina and examine its effects on the academic outcomes for children in the junior high schools in the Elmina community in the Central Region of Ghana. It was hypothesized that there was no significant difference in academic outcomes between students who were involved and those who were not involved in fishery activities.

2. Literature Review

Child labor is a complex phenomenon that requires examination from social, economic, and cultural perspectives. The current study considered the theoretical orientation of child labor from an ecological systems perspective, which views the environment as being made of systems or factors (economic, social, and culture) that are interactive and interwoven in nature Psycholo gist, 32 (7), 513-531." class="coltj"> 14 , Aggression and Violent Behavior, 26 , 35-45." class="coltj"> 15 . Economic factors are related to resources such as family income and the jobs and education of parents. Social factors are related to structural characteristics such family size and the availability of educational resources. Cultural factors are related to social values and norms regarding child labor.

From an economic perspective, variables that relate to child labor supply are household poverty status, family low income, parental unemployment, and other family economic shocks. According to Basu and Van 16 , family poverty may be the primary reason for why children engage in labor. While there are laws prohibiting child labor, many children are compelled to work to help their families survive. Parental stress and a lack of parental social support may force children to work to support households in the absence of social assistance schemes 17 . A child’s labor contribution could be used as an asset for smooth consumption for the family. Child labor serves as a shock absorber to ease the impact of possible parental job loss, failed harvests, and other shocks to the family's income stream.

Social factors that may provoke child participation in the labor market include illiteracy and ignorance of poor parents, household size, family type, and culture norms that emphasize the tradition of making children learn the family’s entrepreneurial skills Introductory rural sociology: a synopsis of concepts and principles . New York: Wiley Eastern Limited." class="coltj"> 18 , 19 . The educational status of the parents is an important social factor related to child labor. The more education parents (particularly the household’s head) have, the less likely they are to let their children work. In general, single-parent families seems to be closely linked with a high prevalence of child labor. Some studies have also demonstrated a relationship between household size and the prevalence of child labor among poor families in developing countries. A culture of any society is shared and preserved from one generation to the next through a process of teaching and learning the various elements of the culture Introductory rural sociology: a synopsis of concepts and principles . New York: Wiley Eastern Limited." class="coltj"> 18 , 19 . To preserve their culture and endeavor to overcome endemic poverty, fishing entrepreneurs often insist that at least one of their children familiarize themselves with the practice and management of their fishing business to be able to inherit their parents’ assets and thereby take over and sustain the family business in future 8 . In doing so, child labor in fishing and fish processing become the sociocultural machinery by which the fishing culture is transferred from one generation to the next. In the Central Region of Ghana, many families within the coastal fishing communities of Gomoa-Fetteh, Nyanyano, Moree, Elmina, Apam, Winneba and Senya-Beraku are noted to encourage their children’s involvement in their family business 8 .

The ILO 5 (2014) reported that child labor is unfavorable and unsafe to children's health and denies them of a proper education. Studies show that children who do not work cope better in school than children who do. Children who combine work and school can experience negative psychosocial effects on their educational progress and performance Journal of Public Health, 41 , (1), 18-26." class="coltj"> 20 , Children and Youth Services Review 93 , 248-254." class="coltj"> 21 , In L. Holt (Ed.). Geographies of children, youth and families. An international perspective . London: Routledge." class="coltj"> 22 . Abdalla et al. 20 affirmed in various studies that child labor adversely affects the health of children, leading to severe health complications that adversely affect their education. A study conducted by Anumaka 23 involving 2,307 pupils who sat for the primary leaving examination in the Nebbi District of North-East Uganda found that many of the children who did not perform well were those who had engaged in labor activities. Rahman and Khanam 24 found that child work had a negative effect on learning attainment in the areas of arithmetic and reading in Ghana. In a study conducted by Al-Gamal et al. 25 in Jordan, children who were not engaged in any form of work were found to perform better in school than those who are engaged in work. Afenyadu 4 contended that not all work is dangerous to children’s mental development and that work improves their basic knowledge and skills. He noted that the damage that child labor may do depends on the intensity and nature of the work. Holgado et al. 26 argued that there is no simple linear association between child labor and academic performance and that multiple factors, including labor conditions, morning work schedules, and the number of hours worked per week, can negatively affect the academic performance of child laborers. Nevertheless, a study by Heady 12 on the effect of child labor on learning outcomes showed that in Ghana, child work, especially that carried out in the home, had a fairly small effect on children’s school performance.

3. Methodology

This study employed a cross-sectional survey design and was conducted in Elmina (5°5ʹ0ʺN 1°21ʹ0ʺW), a major coastal fishing community in the Komenda–Edina–Eguafo–Abrem (KEEA) district in the Central Region of Ghana. Elmina, with a population of 32,819, serves as a center for several fishing-related and commercial activities. The Elmina fishing harbor is the third largest fish landing site in Ghana and contributes approximately 15% of the country's total fish output The Elmina 2015 Strategy: Building on the Past to Create a Better Future; A document prepared by the Komenda-Edina-Eguafo-Abrem (KEEA) District Assembly for the Elmina cultural heritage and management Program. Elmina . Ghana: KEEA District Assembly." class="coltj"> 13 , 27 . The harbor provides a landing site for all types of canoes and small semi-industrial boats that engage in traditional fisheries. A study by Amador et al. 28 indicated that there were 2,632 fishermen, 231 canoes, and some semi-industrial vessels involved in fishing operations in Elmina. Another study by KEEA The Elmina 2015 Strategy: Building on the Past to Create a Better Future; A document prepared by the Komenda-Edina-Eguafo-Abrem (KEEA) District Assembly for the Elmina cultural heritage and management Program. Elmina . Ghana: KEEA District Assembly." class="coltj"> 13 , 27 reported that approximately 75% of the population of Elmina is involved in fishing and fishing-related activities, such as processing and trading of fish. The landing harbor is reported to be always full of large crowds, including fishing crews, workers, and child laborers The Elmina 2015 Strategy: Building on the Past to Create a Better Future; A document prepared by the Komenda-Edina-Eguafo-Abrem (KEEA) District Assembly for the Elmina cultural heritage and management Program. Elmina . Ghana: KEEA District Assembly." class="coltj"> 13 , 27 .

Elmina was chosen for the study because of its economic importance in the fishery sector of the Central Region of Ghana, as well as the involvement of children in Elmina in fishery activities. The population of this study included all junior high school students in Elmina. Multi-stage sampling was used to select the sample for the study. First, simple random sampling was used to select two junior high schools out of six in the Elmina community. In the second stage, all students of the two schools were included in the study, based on the school’s enrollment registers.

The study questionnaire covered information on household demographics (the household head’s education, employment/economic status, marital status, household size) and personal data of the students (age, sex, class, nature of child labor involvement, health conditions, and academic performance). The questionnaire was administered to students in the two junior high schools selected for the study, with the help of the teachers there. Data were collected from 242 students between July and August 2021. Data on the students’ last term examination results were also extracted from the school’s records. The data were analyzed using descriptive statistics and independent-sample t -tests.

Table 1 shows the descriptive statistics for students involved in and not involved in fishing activities and for the total of 242 students who participated in the study, 104 (43.0%) of whom were involved in fishery activities and 138 (57.0%) of whom were not. The mean ages of the working and non-working students were 7.79 and 6.64 years, respectively. Of the 242 students, 130 (53.70%) were males and 112 (46.30%) were females. With regard to statistics on the heads of the family, 59 (0.57%) of the 104 of the family heads of the students involved in fishery activities and 71 (0.51%) of the family heads of students not involved in fishery activities were found to be married. Approximately 57% of the family heads of the students involved in fishery activities and 62% of the family heads of students not involved in fishery activities were found to have a basic education (junior and senior high school). The majority (61%) of the families of the students involved in fishery worked within the traditional fishery sector and 34% did not. The household sizes of the students involved in and not involved in fishery activities are 7.79 and 6.54 members, respectively.

Table 1. Profile of Surveyed Students

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We examined the nature and types of the students’ fishery activities. Table 2 shows the characteristics of fishery activities undertaken by children in the Elmina fishery community. Sixty-one (59.2%) of the students undertake fishery activities in family owned-enterprises, while the rest of the students work outside the family enterprise. Seventy (68%) of these students receive wages or token remuneration from their fishery work, and the rest, 33 (32%), receive no form of remuneration. On average, a working student was paid GHS 97 (19.4 US dollars) per month. Most of the students worked two day per week and four hours per week. However, the students’ average working hours and days per week were 12.3 hours and 3.3 days, respectively.

Table 2. Nature of Students’ Fishery Activities

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Table 3 shows the different types of fishery activities undertaken by children in the Elmina fishery community. We categorized the students’ fishery activities as light, regular, or harmful work. Light and regular work are by their very nature safer and less stressful. Harmful work is work that by its nature or circumstances is likely to harm children’s health or safety. As shown in Table 3 , light work dominated the fishery activities in which children were engaged. Fifty percent of the working students were found to be engaged in light work, followed by 40.4% engaged in regular work. Only 9.6% of the students were engaged in harmful work.

Table 3. Cross Tabulation of Types of Fishery Activities Engaged in by Children in Elmina

Age plays important role in determining the nature of the work in which children should be engaged. Under the ILO’s conventions on child labor, light work is work that should be carried out by children between the ages of 13 and 14, regular work is work that should be carried out by children between the ages of 15 and 17, and harmful work is work that should be carried out by children aged 18 years or more. As shown in Table 4 , 10 students that were involved in fishing in the lagoon or on the sea did not meet the age requirement, being less than 18 years old. In addition, one of those involved in the mending of nets was 12 years rather than the minimum of 13 years old as required for this type of regular work for children.

Table 4. Cross Tabulation of Types of Fishery Activities by Age

The respondents were also asked to indicate their perceptions regarding specific effects of child labor on their health and welfare, with response options ranging from strongly disagree (1) to strongly agree (5). As seen in Table 4 , the mean score for work relating to students’ tiredness was 2.78, implying that students were not sure if their engagement in fishing work makes them tired. The mean scores for having access to money for school and always having access to food were 3.67 and 3.28, respectively. These scores indicate that the working students agree that their fishery work helps to provide them with money and food.

It is hypothesized that there was no significant difference in academic outcomes between students involved in and those not involved in fishery activities. The aggregate mean examination scores for the students involved in and students not involved in fishery activities were 54.71 and 50.90 respectively. The results actually show a slightly higher aggregate mean examination score for the students involved in the fishery business. An independent-sample t -test was conducted to compare the aggregate examination mean examinations scores for students involved in and not involved in the fishery activities in the Elmina community. The results revealed no statistically significant difference in aggregate mean examination scores for students involved in fishery activities (M = 54.71, SD = 15.73) and students not involved in fishery activities (M = 50.90, SD = 15.07; t (240) = 1.915, p = 0.06, two-tailed). The magnitude of the differences in the means (mean difference = 3.82, 95% CI: -0.1104 to 7.75) was very small (eta squared = 0.007).

Table 5. Students’ Perceptions of Effects of Working on Their Health and Welfare

Table 6. Statistical Test Results for Mean Examination Scores of Students Involved and Not Involved in Fishery Activities

Table 7. Statistical Test Results for Mean Examination Scores for Girls and Boys Involved in Fishery Activities

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The second null hypothesis was that there was no significant difference in academic outcomes between boys and girls involved in fishery activities. An independent sample t -test was conducted to compare the aggregate examination mean scores for boys and girls involved in the fishery activities in the Elmina community ( Table 7 ). The result show no statistically significant difference in scores for boys who were involved in fishery activities (M = 55.96, SD = 15.90) and girls involved in fishery activities (M = 53.08, SD = 15.53; t (102) = 0.877, p = 0.38, two-tailed). The magnitude of the differences in the means (mean difference = 2.75, 95% CI: -3.48 to 8.98) was very small (eta squared = 0.008).

5. Discussion

The problem of child labor in the agricultural sector in developing countries has received considerable attention in the economics literature. A particular concern is Ghana, which is one of the countries with the world’s largest proportion of working children. Child labor in Ghana is common in the fishing industry, with the majority of children engaged in fishery activities being involved in family businesses. While researchers maintain that child labor should be abolished because it endangers children’s lives and deprives them of their rights, others hold the view that child labor should be deliberated within the context in which it occurs, because some child work enables children to acquires basic resources, knowledge, and skills that can prove beneficial in later life 1 , the FAO Workshop On Child Labour in Fisheries and Aquaculture , Italy, Rome." class="coltj"> 4 . The United Nations Children and Education Fund (UNICEF)’s conventions propose that child work and not child labor be used in agricultural work, as it assists in the social development of children 3 . These diverging views can pose a problem for policy enforcement with respect to child labor, and it is therefore necessary to reexamine children’s work engagement and its effects on children. Many families in the coastal fishing communities in Ghana promote their children’s participation in their family’s fishery enterprises to preserve their business culture and the survival of family members. Although less attention is sometimes paid to this type of child labor, it can adversely affect the social and educational development of the child 1 , the FAO Workshop On Child Labour in Fisheries and Aquaculture , Italy, Rome." class="coltj"> 4 .

This study was conducted to examine the nature of child labor and its effects on children’s academic outcomes in junior high schools in the Elmina community of the Central Region of Ghana. It was hypothesized that there was no significant difference in academic outcomes between students involved in and those not involved in fishery activities. A cross-sectional survey design was conducted, and a total of 242 students completed questionnaires containing information about their demographic characteristics, education, child labor activities, and their effects. The result of the study revealed that 104 of the 242 students were involved in various fishery. These students engaged in fishery activities for many reasons. The majority, 104 (43%), of the surveyed students were found to be involved in fishery work within the traditional fishery sector, with 61(59.2%) engaged in family business. The household sizes of the families of students involved in and students not involved in fishery activities were 7.79 and 6.54 members, respectively. As noted by Adeborna and Johnson 8 , people living along the coast regard fishing as an integral aspect of their cultural identity and therefore ensure that their children learn fishing and fish processing. Children work to ensure the survival of their families and themselves. In addition, children in large families with low income are forced to engaged in work to help support their families.

It was hypothesized that there was no significant difference in academic outcome between students involved in and those not involved in fishery activities. The results of an independent-sample t -test showed no statistically significant difference in aggregate examination scores for students involved in fishery activities (M = 54.71, SD = 15.73) and students not involved in fishery activities (M = 50.90, SD = 15.07; t (240) = 1.915, p = 0.06, two-tailed). The magnitude of the effect of differences in the means (mean difference = 3.82, 95% CI: -0.1104 to 7.75) was very small (eta squared = 0.007) ( Table 5 ). This observation could be attributed to a number of factors, including the type and nature of their fishery work and its effects on their health and welfare. The analysis revealed that 104 of the 242 students were involved in various fishery activities, including sorting, selling, dressing, and smoking fish. On average, students were engaged in these activities 12.3 hours and 3.3 days per week. However, the majority of them worked 4 hours and 2 days per week. This confirms findings by Holgado et al. 26 that children working 1 or 2 hours per day may not interfere with schooling, may not make the child too tired to perform, and may even generate sufficient resources to enable the household to afford to send the child to school. According to ILO, “child labor” does not include all economic activity undertaken by children 3 . In the legal framework for child labor in the Children’s Act (Act. 560, 1998) of Ghana, the minimum age for engaging a child in “light work” is 13 years, and that for regular work is 15 years. The minimum age for children engaged in harmful work is 18 years. Light work is work that is not likely to be harmful to children’s health, development, and/or educational activities, while harmful work is work that poses a danger to the health and safety of children 8 . The respondents were also asked to indicate their perceptions regarding specific effects of child labor on their health and welfare. Generally, the students’ perceptions regarding the effects of child labor on their health indicate that students were not sure (2.78 on a five-point Likert scale) whether their engagement in fishing work made them tired. With regard to their welfare, working students reportedly agreed (3.67 and 3.28 on five-point Likert scales) that their fishery work helped to provide them with money for school and food, respectively. These reflections could be attributed to half of the working students engaging in light fishing activities, such as sorting and selling of fish. Forty percent of the working students were involved in regular fishing activities, including mending nets and dressing and smoking of fish, which are light and regular fishing activities and therefore can be described as child work rather that child labor.

6. Conclusion

While several studies have shown that children who engage in work face challenges with respect to their academic performance, our study found no statistically significant difference in aggregate examination scores for students involved in and those not involved in fishery activities. Multiple factors, such as students’ engagement in light work and working just a few hours and days per week, did not negatively affect their academic performance. Given that the students involvement in fishery activities in the Elmina community does not have any major negative impact on their academic performance, the authors recommend that fishing extension officers educate households in the fishing community to consider engaging their children in light and regular fishing activities if the need arises, to avoid disrupting their educational endeavors. Although this study provides a great insight into the effects of child labor on students’ academic performance in a fishing community, it has a limitation that should be addressed in future research. The findings and conclusion of this study was based on data gathered on individual students’ academic performance. Data on schools’ performance were not collected and compared. Future studies should include comparison of schools’ performance to gain a greater understanding of the effects of child labor on academic outcomes.

Acknowledgements

No grants were received to support this research and publication.

Published with license by Science and Education Publishing, Copyright © 2022 Moses Kwadzo and James Kofi Annan

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In September 2015, the Fair Labor Association (FLA) published a report on child labour in Nestlé’s cocoa supply chains. During an audit conducted in September—December 2014, the FLA found 25 workers less than 15 years of age working on 17 out of the 260 farms visited in Côte d’Ivoire. (This is a violation of the FLA Workplace Code of Conduct , although the legal minimum working age in Côte d’Ivoire is 14 years old.)

To address structural problems in its cocoa supply chain, Nestlé — a multinational food and drink company — joined efforts with the International Cocoa Initiative (ICI) to implement the Child Labor Monitoring and Remediation System (CLMRS) and committed to publicly reporting on its results in Tackling Child Labour reports. The CLMRS in Côte d’Ivoire was later replicated in Ghana.

The CLMRS is a 6-step process that starts with home visits by Community Liaison People (CLP) to raise awareness of child labour (Step 1) and conduct surveys to identify children at risk of doing hazardous work (Step 2). Identified child labour cases are then entered into a database (Step 3) and the situation is discussed between the family and the CLP, who explains what children are not allowed to do and why (Step 4). Help is then provided to the child, family or community as appropriate and regular visits are undertaken to the family to confirm that the child has stopped doing hazardous work (Step 5). Finally, the overall effectiveness of the interventions is measured using quantitative metrics (Step 6), i.e. how many children have been prevented from entering child labour or have stopped doing hazardous work.

As part of the 2018-2019 due diligence cycle, the FLA and Nestlé conducted a detailed evaluation of the impact of Nestlé’s CLMRS. The FLA concluded that there have been significant improvements in the knowledge gap around legal requirements on light work and hazardous work among farmers; more children had been attending schools and fewer children had been involved in cocoa production activities. Nestlé reported that more than 18,000 children doing hazardous work have been identified since the launch of CMLRS. Over 50% of these children were successfully removed from hazardous employment during follow-up visits and assisted in getting access to quality education.

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