Case 5: Is your Chocolate the Result of Unfair Exploitation of Child Labor? Mariam Aslam, Hiba Khan, Aman Memon, Manasi Shinde, Amina Syed, Tooba Zaki

Introduction http://www.worldatlas.com/webimage/countrys/africa/ci.htm http://theartofsimple.net/chocolate/ http://thecnnfreedomproject.blogs.cnn.com/2012/01/19/chi ld-slavery-and-chocolate-all-too-easy-to-find

Social Inhumane working conditions in Ghana and the Ivory Coast Children are surrounded by intense poverty Some children are sent by families as a source of income, others are kidnapped and sold Once they are sent to cocoa farms, children may not be able to see their families for years, if ever.

Working Conditions Ages of working children range from 5-16 years old Usually work around 12 hours a day They work in unsanitary conditions, and with dangerous equipment (chainsaws, machetes, toxins) They are made to carry heavy weights and are regularly beaten They sleep on wooden planks in open buildings and are provided with cheap food (corn paste and bananas).

Cultural Cultural variable is identified with this situation Child labor in Africa is considered to be common Families send away their children to learn skills, as a substitute for expensive education. Families currently fail to realize the hazardous working conditions their children are in

Political Overall issues in the Ivory Coast Positive lobbying Main issue: Lobbying Positive lobbying Nestle USA Inc. Negative lobbying Hershey’s

Economics According to a World Bank study, countries whose GDP’s are lower have a higher volume of children in the work force.1 “Increases in per capita incomes explain nearly all of the reductions in worldwide child labor since 1950” -World Bank1 61% of the world’s 250 million child workers are in Asia, while 32% are in Africa and 7% in Latin America. 2 1 Tabatabai, Hamid. 2006. Eliminating Child Labor: The Promise of Conditional Cash Transfers. Switzerland: International Labour Organization. 2 Bachman, S. (2000). The Political Economy of Child Labor and Its Impacts on International Business. Business Economics, 30-39.

Economics 3 http://www.forbes.com/forbes/2008/0225/072.html

Economics GDP isn’t the only factor, but it is the most influential. America, Australia and most of Europe have almost virtually no children in the workplace due to strict laws. Why can’t law like this be implemented in countries with high child labor rates?

Economics Consequences of Outlawing Child Labor on Developing Economies: Economy and family will lose the income generated by the child. 4 Labor supply would decrease considerably. 4 Labor supply decreasing would cause an increase in wages and in turn, less jobs. 4 “Excluding the children from the formal sector does not preclude them from working – even in harmful conditions. Nor does excluding children from the formal sector automatically make them go to school instead of to work.” ~S.L Bachman 4 Basu, Kaushik and Pham Hoang Van. 1998. The Economics of Child Labor. The American Economic Review 88 (3): 412-427.

Economics Benefits of Children Leaving the Workplace on the World Economy: The consequences are just a short term loss which will in turn reap long term benefits not only for the children and families affected, but for the world economy as well. The world economy would experience large gains due to child labor being economically inefficient. 5 Company inefficiency would be reduced therefore providing more revenue. 6 Child free workforce = Pareto efficient equilibrium. 4 5 International Programme on the Elimination of Child Labor (IPEC). 2003. Investing in Every Child: An Economic Study of the Costs and Benefits of Eliminating Child Labour. International Labour Office, Geneva. 6 Marshall, Ray. 1990. Trade-Linked Labor Standards. Proceedings of the Academy of Political Science 37 (4): 67-78.

Conclusion Analyzed the economic, social, cultural and political factors. Solution: Chocolate industry: Address the problem of child labor and take action! Consumers of chocolate: Spread awareness Facebook Page: https://www.facebook.com/chocolateandchildlabor

References "Advocacy Expenditures Report." Hershey's. The Hershey Company Mar 2014. Web. 9 Oct. 2014. Bachman, S. (2000). The Political Economy of Child Labor and Its Impacts on International Business. Business Economics, 30-39. Basu, Kaushik and Pham Hoang Van. 1998. The Economics of Child Labor. The American Economic Review 88 (3): 412-427. Chanthavong, Samlanchith. "Chocolate and Slavery: Child Labor in Cote D'Ivoire." American. 1 Jan. 2002. Web. 17 Oct. 2014. "Child Labor and Slavery in the Chocolate Industry." Food Empowerment Project. Web. 16 Oct. 2014. "I. Identification." Chocolate and Slavery. Web. 16 Oct. 2014. “International Programme on the Elimination of Child Labor (IPEC).” 2003. Investing in Every Child: An Economic Study of the Costs and Benefits of Eliminating Child Labour. International Labour Office, Geneva. Marshall, Ray. 1990. Trade-Linked Labor Standards. Proceedings of the Academy of Political Science 37 (4): 67-78. "Nestlé Sets out Actions to Address Child Labour." Nestlé Cocoa Plan. Nestle. Web. 10 Oct. 2014. Nieburg, Oliver. "Hershey Child Labor Lawsuit Faces Meltdown." ConfectioneryNews.com. William Reed Business Media SAS, 2 Sept. 2013. Web. 10 Oct. 2014. Ramonas, Andrew. "Nestlé USA Lobby Effort to Focus on Child Labor." LegalTimes. ALM Media Properties, LLC, 18 Apr. 2014. Web. 9 Oct. 2014. Tabatabai, Hamid. 2006. Eliminating Child Labor: The Promise of Conditional Cash Transfers. Switzerland: International Labour Organization.