children’s rights and business principles...implementation of the convention on the rights of the...

RUSSIA

INDIA

KAZAKHSTAN

MONGOLIA

PAKISTAN

MYANMAR

THAILAND

JAPAN

LAOS

VIET NAM

NEPAL

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

TAIWAN

SRI LANKA

PHILIPPINES

Beijing

WuhanLhasa

Urumqi

Harbin

Lanzhou

Shenyang

Shanghai

Guangzhou

P A C I F I CO C E A N

I N D I A N O C E A N

P h i l i p p i n e S e a

A r a b i a nS e a

S o u t hC h i n a

S e a

B a y o fB e n g a l

Children’s Rights and Business Principles Report on China – Prepared for Rosy BlueQ2 – 2012 June 01

Children’s Rights – China

© Maplecroft 2012 | Country Risk Report by Maplecroft | http://www.maplecroft.com | 1940i

Q2 June 2012

Contents

Maps

Map 1: Child labour .................................................. 6

Map 2: Sex ratio at birth ......................................... 12

Map 3: Under 5 mortality rate ............................... 13

Map 4: Trafficking .................................................. 20

Map 5: Human development index ......................... 27

Map 6: HIV / AIDS ................................................. 33

Map 7: Access to health facilities ........................... 34

Map 8: Gross enrolment rate ratios ......................... 40

Map 9: Administrative areas ................................... 45

Map 10: Infrastructure ............................................ 46

Executive summary ........................ 4

Child Rights Integration ................. 7Principle 1 ...................................................7Human rights of children - Overview ....................... 7

Principle 1 - Recommendations ............................. 11

Principles for action in the Workplace .............................. 14Principle 2 .................................................14Child labour - Overview ......................................... 14

Principle 2 - Recommendations ............................. 19

Principle 3 .................................................21Working conditions of young workers - Overview . 21

Principle 3 - Recommendations .............................. 25

Principle 4 ..................................................28Health and safety of children - Overview ............... 28

Principle 4 - Recommendations .............................. 32

Principles for action in the community ............................. 35Principle 10 ................................................35Community and government efforts - Overview .... 35

Principle 10 - Recommendations ............................ 39

Maplecroft’s quarterly monitors provide succinct analysis of significant recent events, as well as country scores and risk trends for all countries. These can be produced bi-annually, quarterly or monthly, whilst same day analysis is available on request

For further information on country reports please contact your client manager or phone Maplecroft on: +44 (0)1225 420 000.

Conclusion ................................... 41Risks and opportunities .......................................... 41

Operational recommendations ................................ 42

Children’s Rights and Business Principles Recommendations .................................. 43

Appendix ...................................... 45

Endnotes ....................................... 47

© Maplecroft 2012 | Country Risk Report by Maplecroft | http://www.maplecroft.com | 1940 1

Q2 June 2012Children’s Rights – China

Country overview

Capital city (population) Beijing (19,000,000) (2011)

Total population 1,336,718,015 (July 2011 est.)

Demographic structure 0-14 years (17.6%) 15-64 years (73.6%) 65 years and over (8.9%) (2011 est.)

Economy Mix between a centrally planned economy and market economy

Economic structure (GDP composition by sector)

Agriculture (10.1%) industry (46.8%) services (43.1%) (2011)

GDP per capita (PPP) US$8,400 (2011 est.)

GDP growth (real growth) 9.2% (2011)

Human Development Index (2011) ‘Medium’ (101 out of 187 countries where 1 is the highest)

Labour overviewHead of state President Hu Jintao (since 15 March 2003)Head of government Premier Wen Jiabao (since 16 March 2003)Government (party/coalition) Communist Party of ChinaLabour ministry The Ministry of Human Resources and Social Security (national level), The Department of Human

Resources and Social Security (provincial level), The Bureau of Human Resources and Social Security (town and city level)

Minister of labour Yin Weimin (Minister of Human Resources and Social Security)Main trade unions All labour unions are controlled by the All-China Federation of Trade Unions (ACFTU)

Executive summary

Sources: All-China Federation of Trade Unions, Chinese Government Portal, CIA World Factbook, UNICEF, World Bank Data.

Key labour statisticsUnemployment 6.5% (2011 est.)Labour force participation rate (male\female)

74% (80%/68%) (2010)

Labour force by sector Agriculture (38.1%) industry (27.8%) services (34.1%) (2008 est.)Minimum wage Varies by regionAverage wage CNY23,979 per annum (US$3,784) (per capita income of urban residents) (2011 est.)Maximum statutory working hours

Eight hours a day and 44 hours a week (on average)

Minimum age of employment 16 yearsNumber of workplace deaths (annual)

79,552 (2010)

Percentage of 5-14 year olds in work

No data (no national monitoring)


© Maplecroft 2012 | Country Risk Report by Maplecroft | http://www.maplecroft.com | 19402

Q2 June 2012

Overview of child protection legislationConstitution of the People’s Republic of China (adopted 4 December 1982)

Forced Labour ■ Establishes that the personal freedom of all citizens of the country is ‘inviolable’ and prohibits the

restriction of this freedom by detention or other means » No ratification of ILO Conventions on Forced Labour (No. 29) or Abolition of Forced Labour (No. 105)

Education ■ Universal, compulsory and free education

Children’s rights ■ State guarantees that children have a healthy development both psychologically and physically ■ State obligation to protect children

Labour Law (No. 28 of 1994) Child Labour ■ Prohibits the employment of children less than 16 years of age ■ Defines workers between the ages of 16 and 18 as ‘juvenile workers’ and stipulates protections ■ specific to these » Exception for employment in ‘arts, sports and certain special arts and crafts’ no definition of fields,

nor provision of the minimum age for such special circumstancesForced Labour

■ Reaffirms the prohibition against forced labourDiscrimination

■ Prohibits workplace discrimination on the grounds of ethnicity, race, sex, or religious belief

Regulations Prohibiting the Use of Child Labour (1991)

Child Labour ■ Establishes that the companies found to employ children under 16 shall be subject to administrative

reviews, fines and potentially the suspension of their business license ■ Specifies that companies found to encroach on the labour rights of women or children shall

compensate the victim

Criminal Law (No. 27 of 1997) Forced Labour ■ Reaffirms the prohibition against forced labour ■ Prohibits the abduction and/or trafficking of women or children » No ratification of ILO Conventions on Forced Labour (No. 29) or Abolition of Forced Labour (No. 105)

Employment Promotion Law(No. 70 of 2007)

Discrimination ■ Reaffirms the prohibition of employment discrimination ■ Mandates that employers shall avoid discriminatory practices and provide workers with equal

opportunities and conditions of employment ■ Safeguards the equality of men and women in employment ■ Safeguards the labour rights of people living with disabilities ■ Provides tax incentives for companies hiring unemployed people ■ Prohibits employment discrimination against people carrying an infectious disease ■ Prohibits employers hiring workers who carry an infectious pathogen which could breach health

and safety regulations

Regulations concerning theLabour Protection of Female Staffand Workers (1988)

Discrimination ■ Entitles women to 90 days maternity leave, including 15 days of antenatal leave ■ Guarantees that women’s salaries should not be reduced or contracts cancelled while they are on

maternity leave

Executive summary


Q2 June 2012Children’s Rights – ChinaExecutive summary

Ratifi cation of international human rights instruments

UN Convention on the Right of the Child and Optional Protocols

Ratifi ed 1992 – Reservation Article 6 Right to life– must accord with Article 25 of the Constitution of the People's Republic of China on family planning.

Convention on the Elimination of All Forms of Discrimination against Women

Ratifi ed 1980

ILO Minimum Age Convention (No. 138)Ratifi ed 1999 – minimum age specifi ed: 16 years

ILO Worst Forms of Child Labour Convention (No. 182) Ratifi ed 2002

ILO Forced Labour (No. 29) No ratifi cation

ILO Abolition of Forced Labour (No. 105) No ratifi cation

ILO Equal Remuneration (No.100) Ratifi ed 1990

ILO Discrimination (Employment and Occupation) (No. 111) Ratifi ed 2006

ILO Freedom of Association and Protection of the Right to Organise (No. 87) No ratifi cation

ILO Right to Organise and Collective Bargaining (No. 98) No ratifi cation

ILO Occupational Health and Safety Convention (No. 155) Ratifi ed 2007

Child labour minimum ages

ILO minimum age at which children

can start work

ILO possible exceptions for

developing countries

China minimum age at which children

can start workHazardous workAny work which is likely to jeopardize children’s physical, mental or moral health, safety or morals should not be done by anyone under the age of 18

18 (16 under strict

conditions)

18 (16 under strict

conditions)

18(major loopholes exist)

Basic Minimum AgeThe minimum age for work should not be below the age for fi nishing compulsory schooling, which is generally 15.

15 14 16(major loopholes exist)

Light workChildren between the ages of 13 and 15 years old may do light work, as long as it does not threaten their health and safety, or hinder their education or vocational orientation and training.

13-15 12-14 16(major loopholes exist)



Q2 June 2012

Despite economic growth disparities have increasedAlthough China has experienced unrivalled economic expansion, wealth inequality has risen, increasing the risk of human rights violations. As a result of economic liberalisation and sustained growth, the country’s GDP per capita increased from US$946 in 2000 to US$4,283 in 2010. This is expected to continue to increase to US$7,258 in 2015. However, as incomes have risen, the gap between rich and poor has widened. China’s Gini coefficient – a recognised measure of inequality of wealth – has risen to 0.47 from 0.4 in 2000 (where 0 represents the most equal and 1 represents the least equal).

Despite such inequalities, high levels of annual GDP growth have allowed China to make huge improvements to social and economic development. China’s Human Development Index (HDI) has almost doubled since 1980 from 0.368 to 0.687 in 2011 (where 0 is the least developed and 1 is the most developed).1 Furthermore, the proportion of people living on less than US$1 a day has fallen from 46% in 1990 to 10.4% in 2005. (See human development index map, page 27).

However, violations of human rights, children’s rights and labour standards remain widespread and businesses risk complicity and reputational damage due to the country’s inadequate protection. Furthermore, human rights violations are exacerbated by the entrenched corruption within government bodies.

Indeed, violations of children’s rights and labour rights continue with impunity due to the lack of effective enforcement of legislation by state authorities. These inadequacies, or implementation deficits, make the attempts by the state – enacting legislation geared towards promoting labour rights – largely redundant. Consequently, businesses face a risk of potential complicity in the actions of local business partners and along the local supply chain.

Children’s rights violations remain widespread The Constitution does not effectively protect human rights as it is not per se enforceable in courts. The implementation of constitutional provisions is limited as clauses enshrining human rights cannot be invoked unless there is subsequent legislation implementing these rights.2 Consequently, the Constitution is not enforceable in court and does not effectively protect the human rights it enshrines.3

Although China ratified the Convention on the Rights of the Child in 1992, concerns regarding its implementation remain. The convention requires the rights of the child to be implemented free from discrimination. However, the realisation of children’s rights has been identified as being ‘contingent on geographic location, ethnicity, sex, or hukou status’ (residence status), thus failing to provide equal protection of children’s rights.4

Executive summary

Source: http://www.flickr.com/photos/joanetvila/4011344291/



Children’s rights are further hampered by the lack of a comprehensive law to implement the rights of the child.This undermines the realisation of children’s rights and the implementation of the Convention on the Rights of the Child.

The most vulnerable children are those living in poor and rural areas. The World Bank estimates that 36.3% of the population live below the international poverty line of less than US$2 a day. The under-five mortality rates in western rural areas are significantly higher than those in the more developed eastern regions of the country. (See map on under-five mortality rates, page 13.)

Inequalities rooted in discriminationChildren migrating to cities are discriminated by the hukou system, refusing them access to education and social services. UNICEF estimates that 27m children having migrated to cities suffer from lack of residence status (hukou status) and access to social services.5 Consequently, children are denied their rights to access schools, frustrating their development and wellbeing.

Furthermore, China’s one-child family planning policy has contributed to a skewed gender ratio in society and entrenched gender discrimination. Selective abortion and female infanticide remain as consequences of the policy, perpetuating traditional preferences for male heirs.

Exceptionally weak protection of labour rights violates international standardsChina’s regulatory framework for the protection of labour rights remains exceptionally poor, representing extreme operational and reputational risks for businesses. The legal and regulatory environment for the protection of labour rights is complex and suffers from the ineffective enforcement of laws and regulations at the local level. The exceptionally weak enforcement of labour rights renders many legal protections effectively obsolete.

A combination of poverty, lack of legal enforcement and the inefficiency of the educational system fuels the prevalence of child labour. The lack of government reporting on the issue further exacerbates the problem.

Consequently, key areas of concern relate to child labour; excessive working hours; low remuneration; health and safety risks in the workplace; and limitations on the freedom to association in independent trade unions.

As a result, companies operating in, or sourcing from, China face significant risks of association with children’s rights violations. Association with business partners that are deemed responsible for violations of children’s rights, hampering the survival, development and protection of children, pose extreme risks of complicity. Consequently, failure to act with due diligence within a company’s supply chain may significantly tarnish its reputation.

Children’s rights and business opportunitiesThrough their commercial activities, companies can play a crucial role in contributing to the realisation of children’s rights. Through the creation of safe and decent employment opportunities, and supporting education and skills-development, companies are able to contribute to the reduction of child labour and provide decent work for young workers and their parents.

Companies seeking to build their reputation and maximise their positive impact on children’s rights need to ensure their efforts are aligned with international children’s rights principles. The Children’s Rights and Business Principles, developed by UNICEF, the UN Global Compact and Save the Children, provide a comprehensive framework of reference for companies to actively monitor and address their role and responsibilities with respect to the promotion of the human rights of children.

International instruments such as the Convention on the Rights of the Child and the ILO’s child labour conventions, together with the UN ‘Protect, Respect, Remedy’ Framework for Business and Human Rights, can help companies meet their responsibility to respect children’s rights, and address any adverse impacts resulting from their commercial activities. (See Conclusion for more guidance, page 41).

Executive summary



Q2 June 2012

Executive summary

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Map 1: Child labour



Principle 1 ‘Meet their responsibility to respect children’s rights and commit to supporting the human rights of children.’

Child Rights Integration

Human rights of children - Overview

Although China ratified the Convention on the Rights of the Child in 1992, reservations to core clauses undermine its application. Furthermore, fractured laws and regulations frustrate a comprehensive and efficient protection of children’s rights.

Although progress has reportedly been made in reducing poverty and improving the survival, development and protection of children, children living in poor and rural areas remain among the most vulnerable and disadvantaged.

The country’s one-child family planning policy has contributed to the entrenchment of gender discrimination. Consequently, sex-selective abortion is having a significant effect on the survival and wellbeing of the girl child.

Children’s rights are further undermined by economic disparities between the more affluent east and rural west. Consequently, health, gender ratios, access to education, sanitation and the general development of the child are hampered by such regional inequities.

Companies operating through their supply chain in China are at high risk of child rights violations in relation to child labour, migrant and gender discrimination, child trafficking, and sexual and labour exploitation. These pervasive issues pose serious reputational risks and risks of business complicity.

Source: http://www.flickr.com/photos/thepocket/50534951/



Q2 June 2012

Regulatory and legislative framework - failing to protect children’s rights

Although China recognises international children’s rights, reservations remain as a result of domestic family planning legislation. China ratified the Convention on the Rights of the Child in 1992,6 however, a reservation to the child’s inherent right to life (Article 6) remains. Thus, the prerequisite for ratification was that this right should not undermine the Constitution’s provision on family planning (Article 25). This provision proclaims a statutory obligation to use birth control. The law has been criticised by the US Congressional-Executive Commission on China as a violation of international human rights standards.7

Although China was recommended by the Committee on the Rights of the Child to withdraw all its reservations to the Convention on the Rights of the Child, it has failed to do so. A reservation to the right of the child to be protected from economic exploitation and performing work which may interfere with the child’s education and development (Article 32) remains applicable to the two special administrative regions (SARs) – Hong Kong and Macau.

Constitutional and national legislation protects children’s rights, however, comprehensive legal enforcement remains a problem. The Constitution of the People’s Republic of China guarantees the protection of children and prohibits any maltreatment (Article 49). The Law on the Protection of Minors (1992) was revised with assistance from Save the Children, and came into force in 2007. It enshrines rights such as right to life, education, participation and development (Article 3). However, the Committee on the Rights of the Child has expressed its concern over matters of lack of uniform implementation of children’s rights legislation.8

A National Plan of Action for Children (2011-2020) has been developed to further implement the Convention on the Rights of the Child. Although it is too early to assess its effectiveness, it does indicate a strengthened political commitment to children’s rights. However, the implementation of the former National Children’s Development Programme (2001-2010) has been seen to lack coordination and comprehensive application.

Moreover, fractured laws and regulations frustrate the uniform implementation of human rights law. Due to the various kinds of Chinese human rights legislation, such as constitutional law, administrative regulations and local laws, uniform application is reportedly a problem and laws and regulations are at times in conflict.9

Despite improvements – severe disparities remain

Even though the country faces challenges in achieving sustainable development, UNICEF reports that progress has been made in reducing poverty and ‘improving the survival, development and protection of children.’10 China’s 309m children represent 23% of the population.11 The country’s infant mortality rate has been reduced to 16 deaths per 1,000 in 2010 from 38 deaths per 1,000 births in 1990.12 Furthermore, life expectancy at birth has increased to 73.5 years in 2011 from 71 years in 2000.13

However, children living in poor and rural areas are among the most vulnerable and disadvantaged. The World Bank estimates that 36.3% of the population lives below the international poverty line of less than US$2 a day.14 Moreover, 15.9% of the population is estimated to live in extreme poverty, having to survive on less than US$1.25 a day.15 UNICEF estimates that over 100m children are poor.16 The high mortality rates in western rural areas, in comparison to the more developed eastern areas, highlight such vulnerability. (See map on under-five mortality rate page 13).

Consequently, the economic disparities between west and east, urban and rural, have a detrimental impact on health, gender ratios, access to education, sanitation and the general survival and development of the child.

Rapid and uneven economic growth has led to widening inequalities between urban and rural areas.17 Rural life expectancy is significantly lower (64-67 years) compared to that in the eastern regions (74-75 years). In response, the government has developed the 12th Five-Year Plan for National Economic and Social Development (2011–2015). This plan seeks to develop social security and protection systems and increase the incomes of poorer families who have suffered from the increase in food prices due to national inflation rates in 2010.18 Effective implementation of this plan is yet to be effectively measured. (Such regional disparities can be seen in the human development index map, page 27).

Despite being the second largest economy in the world, children continue to suffer from chronic malnutrition. According to UNICEF, an estimated 9.9% of children have stunted growth due to chronic nutritional deficiency during infancy.19 The prevalence of stunting is significantly higher in rural areas where the rate is 12.1% as compared to in cities 3.4%. Such figures are indicative of the effect rural poverty is having on children’s development, increasing their vulnerabilities and widening their disadvantages.




Significant progress has been made to address the country’s high maternal mortality and infant and child mortality ratios.The UN estimates that China’s maternal mortality ratio declined from 95 to 45 per 100,000 live births from 1990 to 2005. Similarly UNICEF estimate that the infant mortality rate has fallen from 38 to 23 per 1,000 births and the under-five mortality rate has fallen from 49 to 27 per 1,000 live births during the period 1990-2005.

However, progress has slowed over the past few years and there are still regional disparities between more affluent coastal areas and poorer western and inland regions. Furthermore, maternal and child mortality remains comparatively high among migrants in urban areas.

One-child policy - hampering developmentThe enforcement of China’s one-child policy may be constraining long term development. Introduced in 1979 as a response to concerns over population growth and its effects on the economy, the one-child policy has unbalanced the country’s population structure.

Only 26% of the population is aged between 35 and 49 years; the national medium age is 35.3 years, and 14% of the population is over 60 years.20 If the current fertility rate of 1.8 births per woman does not increase, the situation may become unmanageable.21

In addition, the family planning policy may be contributing to a significant number of coercive abortions, although this may decline with possible relaxation of legislation. The one-child policy is enforced unevenly throughout the country by local officials. Enforcement takes place through a system where incentives are given for compliance and fines, including dismissals from work, for non-compliance.22 Although the use of physical coercion to compel persons to submit to abortion or sterilisation is illegal, instances of these practices occur as a result of pressure on local officials to meet birth limitation targets under the one-child policy. The government issued a statement in early 2011 claiming that it will consider a two-child policy that will be rolled out by 2015.


Source: http://www.flickr.com/photos/24975813@N00/4510932632/



Q2 June 2012

Gender discrimination remains deeply entrenched in societyCompanies are at risk of complicity in girls’ and women’s rights violations through their business activities in China due to the pervasive gender discrimination. Such practices affect the education, employment, health and overall development, wellbeing and survival of the girl child.

The Constitution proclaims that ‘women enjoy equal rights with men in all spheres of life.’ However, authorities fail to enforce law protecting women’s rights, thus representing increased complicity risks in women’s and girl’s rights violations. The Law on the Protection of Women’s Rights and Interests provides for equality in ownership of property, inheritance rights, and access to education. However, Amnesty International (AI) reports that women in China suffer discrimination in employment, access to healthcare and education.23

Poverty continues to disproportionately affect women hampering their overall human development. Although 70% of women participate in paid work – a figure well above the global average - literacy rates remain lower in the female adult population than for males. Females account for 70% of illiterate adults in China.

The one-child policy may have skewed gender ratios and entrenched gender discrimination. China is facing an increasingly troublesome gender disparity and the government is openly concerned about the consequences for the social stability and security of a disproportionally large number of males. The gender imbalance is in part a consequence of the one-child policy and traditional preferences for male heirs. The policy has thus allowed for social attitudes to entrench gender discrimination to the extent of skewing the gender balance in society.

Consequently, sex-selective abortion is having a significant effect on the survival and wellbeing of the girl child. Discrimination against the girl child can be seen in the subnational disparities in sex ratio at birth (see map on sex ratio at birth, page 12). In rural areas where the family planning policy is reportedly not enforced as stringently, the ratio is between 100 to 109 boys for every 100 female births. In the eastern areas, such as Shanghai and Guangdong the ratio lies between 115 to119 boys for every 100 female births and areas such as Shaanxi and Anhui the ratio is as high as 130-139 boys for every 100 female births.24

As a result, China will have increasingly more men than women over the next 20 years. Indeed, the latest census of 2010 estimates that there are currently 34m more men than women, highlighting the imbalance of the gender composition in society.25 Although the Chinese Population and Family Planning Commission reported in 2010 that the widening of the gender gap was decreasing, research published in the British Medical Journal claims that nothing can be done to prevent the future imbalance.26

Furthermore, planning policies, together with the traditional preference for a male child, may contribute to the trafficking of women and children. The skewed gender ratios have reportedly caused a shortage of women of marriageable age, consequently increasing the trafficking of women for marriage.27 (See trafficking map, page 20).

In fact, over 24,000 kidnapped and trafficked women and children were rescued by the police in 2011, highlighting the pervasiveness of the issue. According to news reports 3,200 human trafficking gangs were identified and disbanded during the year.28 Due to the underreporting of the issue, real numbers are likely to be much higher than the above estimates.

Case StudyHousehold registration system discriminates against migrant workers’ children

A 2012 China country report by the UN Special Rapporteur on the Right to Food reveals that the country’s household registration system (hukou) discriminates against rural-to-urban migrant workers and severely curtails their children’s rights. Depending on the place of registration, people and their relatives have different entitlements to basic services. As such, migrant workers are frequently forced to leave their children behind in order to ensure they attain the services they need.

The problem escalated in February 2012, when hundreds of migrant workers protested in front of the Chinese Ministry of Education, demanding equal education rights for their children. As migrant children are often denied registration in their new place of residence, they are unable to take university entrance exams in that location. Instead they are asked to return to their hometowns – a long and costly endeavour.

Source: http://www.srfood.org/images/stories/pdf/officialreports/20120306_china_en.pdf




Develop policies that enshrine the company responsibility The core principles in the Convention on the Rights of the Child will guide companies in their efforts to ensure the dignity and development of children. These principles include devotion to the best interests of the child, non-discrimination, child participation, and survival and development.

Companies should ensure that they develop internal policies that are aligned with these principles so as to guarantee the corporate responsibility to respect and support the rights and interests of children throughout their business operations and supply chain.29

Such efforts require investigation into the diamond industry’s supply chain as children’s rights violations take place in diamond mining, cutting and polishing and in industries that surround these activities.

When implementing the policy, the company should take into account the best interests of the child in the local context. Due to the country’s large and diverse population, it is essential to recognise that the needs and vulnerabilities of children may be regional, sector and culture-specific, and there may be no single countrywide solution to the pervasive issues concerning child rights.

The company Code of Conduct will assist in implementing the policy. The Code of Conduct outlines expectations on impact assessments, auditing, and the monitoring of effectiveness and remediation if children’s rights violations are found to have taken place.

Furthermore, a human rights due diligence process should be part of the corporate responsibility to respect children’s rights. This should be an ongoing process which will assist in identifying local violations and vulnerabilities and continuously assessing any actual and potential human rights impact of the business. (See Conclusion for further operational recommendations, page 42).

Any remediation of violations should respect and support the right of children to participate through, for example, consultation procedures. Allowing for dialogue and mutual respect is one of the core principles of the Convention on the Rights of the Child. Potential reputational and financial damage can be minimised by these efforts.

By supporting local efforts the company can assist in developing capacities relevant to surrounding realities. Through collaboration and partnerships with local NGOs, regional experts, local governmental agencies and national institutions, the company can support social and cultural values that respect the rights of children and promote their wellbeing and development.

Principle 1 - Recommendations ‘Meet their responsibility to respect children’s rights and commit to supporting the human rights of children.’


Notes



Q2 June 2012


Sex ratio at birth

RUSSIA

INDIA

MONGOLIA

KAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

INDONESIA

LAOS

VIET NAM

NEPAL

M A L A Y S I A

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

Xi'An

WuhanLhasa

Kashi

Urumqi

Harbin

Haikou

Lanzhou

KunmingGuiyang

Chengdu Shanghai

Changsha

Changchun

ShijiazhuangTianjin

Nanning

Chenyang

Hong KongGuangzhou

Chongqing\

Male births per 100 female births, 2005

!\ National capital

\ Other major cities and towns

Administrative boundary0 500 1,000250

kmData sources Maplecroft, 2012; UNICEF, 2012

maplecroft™

© Maplecroft, 2012

100.00 - 109.99

110.00 - 114.99

115.00 - 119.99

120.00 - 129.99

130.00 - 139.99

The pervasive discrimination against the girl child can be seen in thesubnational disparities in sex ratio at birth. The one-child policy may haveskewed gender ratios and entrenched gender discrimination to the extent offuelling the trafficking of women.

There are 34 million more men than women in the current population andcontinued imbalances have been predicted.

Map 2: Sex ratio at birth




Under 5 mortality rate

RUSSIA

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

INDONESIA

LAOS

VIET NAM

NEPAL

M A L A Y S I A

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

WuhanLhasa

Urumqi

Harbin

Lanzhou

Shanghai

Guangzhou

XIZANG(TIBET)

XINJIANG UYGUR

QINGHAI

SICHUAN

SHAANXI

GUIZHOU

Deaths per 1,000 live births

!\ National capital




maplecroft™

© Maplecroft, 2012

3.00 - 6.99

7.00 - 9.99

10.00 - 14.99

15.00 - 19.99

20.00 - 34.99

No data

Children living in poor and rural areas are among the most vulnerable anddisadvantaged. The under-five mortality rates in western rural areas aresignificantly higher to those in the more developed eastern areas.

Map 3: Under 5 mortality rate



Q2 June 2012

Principle 2 ‘Contribute to the elimination of child labour, including in all business activities and business relationships.’

Principles for action in the Workplace

Child labour - Overview

Child labour is a pervasive and serious problem posing an extreme risk to businesses operating in, or sourcing from, China. Children are trafficked for labour and are often found working informally, thus existing at the margins of society.

Despite national legislation being aligned to international standards, prohibiting those less than 16 years old to work, the law lacks effective enforcement.

Although national, provincial and local governments are responsible for the interpretation and enforcement of these laws, a deficiency in funding frustrates any efforts of effective implementation. The lack of national monitoring further exacerbates the prevalence of child labour.

Furthermore, work study programmes, and employment in ‘sports and arts’, create serious loopholes in national legislation allowing for child exploitation. In fact, work study programmes, despite being established by schools, may result in child labour and even in forced child labour.

Inadequate enforcement and auditing of child labour may pose an increased risk to business. In the absence of effective enforcement by state authorities to prevent child labour, as well as insufficiently rigorous social auditing and monitoring mechanisms throughout supply chains, businesses face risks of complicity in the use of child labour.

Source: http://www.flickr.com/photos/24975813@N00/4510932632/



Regulatory and legislative framework - lacks effective enforcement

While China has ratified ILO Convention No. 138, the Minimum Age Convention, and Convention No. 182 on the Worst Forms of Child Labour, lack of political will to monitor and address child labour presents a significant problem.

Although national labour legislation adheres to international standards on child labour, enforcement is weak. The Labour Law of 1994 prohibits the employment of children less than 16 years of age (Article 15). Children between the ages of 16 and 18 may be employed as ‘juvenile workers’, subject to specific protections. For example, they may not be employed in mines or other hazardous work. Nevertheless, violations of minimum age standards do occur.30 (See minimum age table, page 3).

However, children may be employed in special circumstances, thus allowing a legal loophole for child exploitation. Vocational training programmes, and employment in sports and arts, allows for child labour, thus creating a loophole in national legislation which prohibits child labour under the age of 16. No age restrictions exist for vocational training programmes. Indeed, such programmes have been used to exploit children and in some instances even caused forced child labour.

Moreover, ILO Conventions No. 29 on Forced Labour and No. 105 on the Abolition of Forced Labour have not been ratified indicating a lack of willingness to adhere to international standards.

Coercive law enforcement measures are in place to tackle the problem of child labour, however, their effectiveness is doubtful. The Regulations Prohibiting the Use of Child Labour state that businesses found to contravene the age limitation of 16 years will be subject to an administrative review, fine, or a revocation of their business license. Any business found to subject its workers to hazardous conditions in violation of regulations may be prosecuted under the Criminal Law (Article 93 of the Labour Law). However, due to a lack of monitoring and inspections such legislation has limited strength.

Furthermore, the laws and regulations prohibiting child labour are not effectively implemented. National, provincial and local governments are responsible for the interpretation and enforcement of these laws, although these responsibilities are taken on mainly by local labour ministries. Despite the fact that legal enforcement has somewhat curtailed the issue of child labour, funding is limited thus minimising the scope of inspections and consequently legal enforcement.


2012 2011 Regional average1.12 (extreme) 0.02 (extreme) 5.500 = highest risk, 10 = lowest risk

China – Rank 36 (of 197 countries, where 1 is worst)

Risk comparisons – Relative position of China compared with selected countries

Rank Diamond cutting and polishing countries Top diamond producers34 Moldova 27 India 94 Armenia 5 DR Congo 61 Angola35 Iran 36 China 118 Thailand 5 Zimbabwe 68 Russia36 China 61 Sri Lanka 140 UAE 37 Sierra Leone 80 South Africa37 Viet Nam 68 Russia 158 Belgium 53 Zambia 82 Botswana37 Sierra Leone 80 South Africa 168 Israel 60 Namibia 185 AustraliaRed indicates higher risk, green indicates lower risk

Child LabourThe Child Labour Index measures the prevalence and type of child labour as well as government efforts to combat child labour.



Q2 June 2012

When inspections do take place, corruption and collusion undermine efforts in tackling child labour. Anecdotal evidence suggests that employers often pay labour inspectors not to report or sanction workplaces for employing children or adolescents, despite being in violation of international standards and national law. Furthermore, the government’s coercive approach may be counterproductive.

Employers reportedly collude with child labourers in order to conceal any such employment.31 Consequently, there is a lack of effective implementation of laws and regulations concerning child labour.

Although policy measures aimed at limiting the supply of child labour are in place, financial constraints have limited any effective change. Policies seeking to reduce the financial hardship of poor rural families, encouraging school attendance through various measures such as waiving text book fees and strengthening the educational system, have been developed in an attempt to reduce the availability of child labour. However, these have not been effective due to the lack of funding in local government.

The issue is further exacerbated by the lack of government monitoring. A lack of official data on the actual number of child labourers poses a significant risk to business, as it signals a state failure to audit workplaces and a distinct lack of enforcement of statutory standards. Although the Chinese government has acknowledged the problem, it maintains that it is not widespread and that most children work to supplement family incomes, particularly within impoverished rural areas.

Furthermore, officials have in the past denied that child labour is a major issue, further questioning the political commitment to eradicate its prevalence.32 Indeed, it is unclear whether monitoring and documentation of the issue is taking place and it has been reported that the government has neglected the problem of child labour in the past.33

Inadequate enforcement and auditing may pose an increased risk to business. In the absence of effective enforcement by state authorities to prevent child labour, as well as insufficiently rigorous social auditing and monitoring mechanisms throughout supply chains, businesses face risks of complicity in the use of child labour. Allegations of complicity in such violations serve to undermine the reputation of a company and could potentially have significant legal and financial ramifications.

Case studyChild labour continues to be a serious problem

Latest scandals seem to confirm the Chinese Labour Bulletin’s (CLB) statement that ‘child labour remains a widespread and serious problem’ in the country.

In a 2007 report, the CLB provided evidence that most child labourers were from a poor, rural background. Children of migrant workers are at particular risk, as they are often left behind by their parents with guardians unable or unwilling to ensure their safety. Child labour is particularly common in economically developed regions, including Guangdong, Zhejiang, and Fujian. Sectors most frequently affected comprise low-level service positions as well as labour-intensive industries, such as textiles, clothing, shoe, or luggage and toy manufacturing.

Working conditions of child labourers are considerably worse than for their adult counterparts, with working hours longer and wages reported to be substantially lower. Relevant regulations lack clear definitions and provisions, creating loopholes for perpetrators.

Source: http://www.clb.org.hk/en/files/share/File/general/Child_labour_report_1.pdf




Child labour - exacerbating vulnerabilitiesFuelled by rural poverty, child labour remains a serious problem. The NGO China Labour Watch estimates that there are between 10m and 20m child labourers in China.34 Most child labourers reportedly originate from poor rural areas where families are dependent on the income generated by such labour. Poverty is a main component exacerbating the prevalence.

Poverty is the main cause of child labour, denying children the ability to attend school. Working children have been identified as among the most vulnerable and disadvantaged.35 The International Trade Union Confederation (ITUC) reports that children in rural areas under the age of 16 are forced to work due to their parents’ inability to afford to send them to school. Consequently, poverty can be correlated with low school enrolment ratios and lower human development ranking, where the eastern, more affluent areas demonstrate higher numbers of school enrolment and development in comparison to inland and poorer western rural regions. (See map on human development page 27, school enrolment ratios page 40).

The demand for child labour is due to the low cost of such labour and the lack of regulation allows for the practice to continue.36 Although illegal, it may often be cheaper to employ children, as employers can avoid paying social security. Child labour is cheap, with children reportedly earning between 300 to 600 yuan per month (US$48-$95 per month). Children are typically employed in smaller factories and workshops, which are often overlooked by labour inspectors, according to a report by the NGO China Labour Watch. These workplaces are harder to monitor and as a result are often unregulated, leaving workers unable to exercise their rights fully or to access redress for labour rights violations.37

Child labourers predominantly originate from the poorer rural areas and may be victims of trafficking to diamond polishing areas such as Guangdong. Child labour is more common in developed areas such as Guangdong and Zhejiang. Children from rural underdeveloped western and central areas migrate, or are trafficked, to work in the eastern part of the country. Labourers are thus mostly rural children and not the urban poor.38 (See trafficking map, page 20)

Furthermore, trafficking and child labour are inherently connected, representing an increased risk to the diamond business in Guangdong, Shandong and Shanghai. The US Department of State’s 2011 Trafficking in Persons Report portrays the nexus between trafficking and child labour as trafficked children are susceptible to forced prostitution, and various forms of involuntary labour, including begging, stealing, selling flowers, and working in brick kilns and factories.39 The report indicates that child labourers in these categories are typically in the 13 to 15 age range, but some are as young as ten years old.40

Diamond processing provinces – severe risk of child labourLack of employer regulation of staff allows for child labour. In 2008 over 1,000 child labourers were found to be working at factories in Dongguan, Guangdong, a known diamond processing province. Physical and sexual abuse was reportedly also taking place. Although the government initiated investigations such efforts are continuously frustrated by the hiring of temporary workers without registering them or verifying their ages.41

Furthermore, children from poorer provinces, such as Sichuan, are trafficked to Guangdong for work by child labour rings. Children reportedly work 13-14 hours per day, and a minimum of 300 hours per month. Poverty stricken families are reportedly forced to send their children to the more affluent eastern areas in order to generate income.42

In addition, Guangdong has reported cases of forced child labour. Children from Sichuan were reportedly sold for work and found labouring in factories in the Guangdong province.43

Other diamond polishing provinces posing an extreme risk to businesses due to child labour, and at times forced labour, are Shandong and Shanghai.44

Work study programmes - promoting child labour Work study programmes, although developed to provide vocational training, have been used to exploit children. Despite being a school initiative, work study programmes have reportedly been abused, providing factories in the east with child labour. For example, students, aged 11-15 years, on such programmes have reportedly been found working longer hours than other employees in order to earn money to pay for the following year’s tuition fees. In some cases younger children labour in local businesses and their wages are appropriated by the schools.45




Case studyFictitious Work and Study Programmes increase the prevalence of child labour

‘Work and Study’ programmes are designed to give students work experience and vocational training. The International Trade Union Confederation (ITUC) reports that they are inadequately regulated as they fall under the responsibility of the Ministry of Education and not the Ministry of Labour and Social Security. They note that there are few public rules on working hours, job descriptions or age limitations.46

The use of ‘fictitious’ Work and Study programmes has become common as companies try to circumvent the legal prohibition on child labour. On 15 February 2011, Apple terminated business with a contractor factory after discovering that it had employed 42 underage workers. Whilst Apple retained contracts with other factories found to be employing underage workers, they decided that the factory in question did not adhere to Apple’s supplier responsibility policies.47 The underage workers were sourced from a vocational school where students’ identity documents were falsified and the factory had threatened students against revealing their true ages in the audit.

Source: http://survey.ituc-csi.org/China.html#tabs-3 and http://business-ethics.com/2011/02/15/1030-apple-inc-expands-supplier-responsibilityprogram/

The risk to business of exposure to allegations of complicity in child labour varies by region but remains high. Companies found to employ child labour directly can expect to be fined and risk losing their business license to operate in China. Association with child labour, whether directly or indirectly through supply chain partners, can also undermine the reputation of a company, alienate investors, and lead to consumer boycotts and subsequent financial losses.

Furthermore, companies providing ‘work and study’ schemes, although sanctioned by the government, may contravene international standards on the employment of children and young people. Companies should therefore seek to be aware of business partners’ involvement in these schemes and ensure that they adhere to all laws on juvenile employment.

Companies sourcing from or with a supply chain based in China face severe risks of being implicated in the use of child labour. This is reflected in China’s ranking as an ‘extreme risk’ country on Maplecroft’s Child Labour Index 2012. China represents an extreme risk as the country is ranked in 36th place out of 197 countries, with a score of 1.12 where 0 is the highest risk. Along with other diamond-processing countries, Sri Lanka also represents an extreme risk at 61st place. In comparison, South Africa and Thailand both represent a high risk at 80th and 118th place. (See risk comparison and child labour map pages 15 and 6).

Stakeholder viewILO CEACR – June 2011

In its 2011 Individual Observation concerning the Worst Forms of Child Labour Convention (No. 182), the Committee of Experts on the Application of Conventions and Recommendations (CEACR) raised concerns over the prevalence of re-education through labour camps (Laodong, an administrative punishment usually for minor crimes, similar to Laogai institutions) and the number of juveniles engaged in this system.

The CEACR highlighted that many of these minors are imprisoned with adults and subjected to hard labour, which is tantamount to forced labour, violating China’s obligations under the Worst Forms of Child Labour Convention (No. 182).

The CEACR urged the government to amend section 244 of the Criminal Law, to provide a sufficiently dissuasive fine for engaging minors (under the age of 18) in forced labour. It also requested that the government provide statistics on the number of persons under the age of 18, on whom penal sanctions have been imposed.

Source: http://www.ilo.org/ilolex/gbe/ceacr.htm




Working towards eliminating child labour The company is advised to develop and implement policies and procedures that will help mitigate the risks of using child labourers in operations and supply chains. These policies can serve as a tool to ensure that managers and suppliers take a socially responsible approach to the elimination of child labour.

Policies should reflect industry commitments that comply with international labour standards on child labour. The company should establish mechanisms to identify incidents of child labour, establish the means to ensure that children receive the support they need, and put in place grievance mechanisms to ensure the detection of children within their supply chain.

To ensure compliance, the company should implement robust age-verification mechanisms during recruitment, both in their own operations and, if possible, in their supply chain. These mechanisms can help companies identify the presence of children in the workplace, and will give them the opportunity to remove them and take measures to ensure they receive the protection they need.

As labour authorities cannot be relied upon to thoroughly inspect and report on the use of child labour, companies should ensure that they have adequate measures in place to monitor the employment practices of supply chain partners. Where violations are found to have been committed the environment facilitating it should be rectified. For example, the company may wish to have independent auditors ensuring adherence to child labour legislation.

Preventing harm to young workers and protecting themTraining constitutes an important ingredient to preventing child labour in the workplace. In order to prevent harm to children, managers and suppliers can benefit from ongoing training that will help them understand companies’ policies on child labour and health and safety procedures for young workers.

Due to the high incidence of child labour through work and study programmes, the company may wish to avoid taking on young workers through such schemes.

Working in partnerships to promote sustainable solutions To eliminate the root causes of child labour, companies may wish to consider developing multi-stakeholder partnerships within the communities in which they operate. In light of legal and regulatory enforcement gaps, collaborative efforts with stakeholders can offer promising opportunities to achieve meaningful change. Investors may wish to adopt a partnership approach to address the social and economic factors that lead to child labour. In order to do so, they can benefit from gathering data to understand the labour market situation, gender issues and education levels in the local communities in which they operate. This may help them identify risks and opportunities to develop community programmes that promote long-term solutions for communities and the sustainability of their operations.

Principle 2 - Recommendations ‘Contribute to the elimination of child labour, including in all business activities and business relationships.’




Q2 June 2012


Trafficking

RUSSIA

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

INDONESIA

LAOS

VIET NAM

NEPAL

M A L A Y S I A

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

WuhanLhasa

Urumqi

Harbin

Lanzhou

Shanghai

Guangzhou

SICHUAN

YUNNAN

SHAANXIHENAN

GUANGXI

SHANXI

GUIZHOUFUJIAN

GUANGDONG

JIANGSU

Source and destination provincesfor trafficking, 2007

!\ National capital




maplecroft™

© Maplecroft, 2012

Source province

Destination province

Both source and destination province

No data

Trafficking and child labour are inherently connected. Child labourers areoriginally from the poorer rural areas and may be victims of trafficking todiamond polishing areas.

Map 4: Trafficking



Principle 3 ‘Provide decent work for young workers, parents and caregivers.’

Working conditions of young workers - Overview

Although economic prosperity has been achieved with rapid development, this has not improved the regulation of labour standards by state authorities, and as a result, labour violations remain rife. Indeed, violations of labour rights continue with impunity due to the lack of effective enforcement of labour standards by state authorities.

China has not ratified the International Labour Organisation (ILO) Conventions No. 87 on Freedom of Association and Protection of the Right to Organise or ILO Convention No. 98 on the Right to Organise and Collective Bargaining, indicating a lack of political will to adhere to the fundamental labour standards.

Furthermore, corruption and weak legal enforcement of labour rights legislation hamper the establishment of decent working conditions.

Due to their vulnerabilities young workers often suffer from worse working conditions than adults. Furthermore, the risks of child exploitation are heightened due to informal labour conditions where workers lack contracts, time cards and identification. Consequently, companies risk association with exploitative working conditions.

In order to ensure decent working conditions of young workers, and adherence to international standards, companies need to act with caution and diligence. By promoting the rights of young workers they can avoid any implication in what may be considered exploitation of young workers.


Source: http://www.flickr.com/photos/phalgunpix/7300199078/



Q2 June 2012

Legislative efforts remain inadequate and fall below international standardsExtensive labour legislation addressing working conditions exists at a national, provincial and local level; however, local legislation is routinely ignored by both companies and state officials. This has contributed to the ‘extreme risk’ of violations of working conditions in China.

Furthermore, fundamental ILO Conventions have not been ratified, thus failing to meet international labour standards and posing risk to business. China has neither ratified ILO Convention No. 87 on Freedom of Association and Protection of the Right to Organise nor ILO Convention No. 98 on the Right to Organise and Collective Bargaining. Moreover, while China ratified the International Covenant on Economic, Social and Cultural Rights in 2001, it entered a reservation on the implementation of Article 8, which guarantees trade union rights.

Despite efforts to improve working conditions, corruption and weak legal enforcement continue to hamper decent working conditions. The ILO Committee of Experts on the Application of Conventions and Recommendations noted the government efforts to increase inspections at work.48 However, concerns with regards to the high level of corruption, which propagate the collusions between labour inspectors and private businesses, remain.

Lack of transparency and accurate data frustrates legal enforcement and policy development. The ILO emphasised that transparency and up-to-date data is required in order for effective policies to be established by the government. There are also reports of employers purposely misleading labour inspectors.

Young workers are not supplied with contracts, time cards, or factory identification, making them ‘invisible’ to inspectors, exacerbating the risk of child exploitation. Advance notice of inspections also gives employers time to train their workers in how to respond to questions asked by inspectors. Workers are paid for giving the ‘right’ answer, while money is deducted from the salaries of those who answer with their own opinions.

A reservation to the right of the child to be protected from exploitation and hazardous work applies in Hong Kong indicating reluctance to adhere to international standards. In 1997 China made a reservation on Article 32 (2)(b) of the Convention on the Rights of the Child for the Hong Kong Special Administrative Region. Hong Kong thus has the right not to apply the article concerning the regulation of hours of employment in non-industrial work when regulating those aged 15 and above.





Rank Diamond cutting and polishing countries Top diamond producers4 Sudan 6 China 70 Thailand 1 DR Congo 72 Zambia5 Somalia 16 India 97 South Africa 9 Zimbabwe 97 South Africa6 China 37 Russia 104 Armenia 37 Russia 105 Namibia7 Pakistan 46 Sri Lanka 141 Israel 41 Angola 111 Botswana8 Iran 60 UAE 173 Belgium 44 Sierra Leone 182 AustraliaRed indicates higher risk, green indicates lower risk

Labour Rights and ProtectionThe Labour Rights and Protection Index measures the risk of association with, and involvement in, violations of labour rights within a given country. Comprised of six indices (child labour; forced labour; trafficking; freedom of association and collective bargaining; discrimination and working conditions).



Decent work for young workers remains a distant goal

Regionally set minimum wages suffer from lack of adequate enforcement. There is no national statutory minimum wage. Instead, the minimum wage is determined and enforced by governments provincial and autonomous regions of municipalities (Article 48 of the Labour Law), and children are often paid below the local rate.

Furthermore, contrary to the Labour Law which demands monthly payments, some factories pay children’s wages only annually. Overtime is reportedly ‘grossly excessive’ and is not paid at a premium rate as recommended by international standards.49

Provincial governments suffer from high levels of corruption, which result in resource constraints. This translates into limits on manpower and finances to enforce child labour and minimum wage provisions, which perpetuates violations.Businesses with supply chains in China should be aware of widespread reports that factory owners pay workers excessively low wages. Therefore, in order to earn a living, employees frequently work overtime to compensate for this.

Child labourers suffer worse working conditions than adult workers. A report by the NGO China Labour Bulletin states that their working hours are often longer, their work repetitive and their wages low.50 Consequently the effects of working conditions have detrimental impacts on their health and wellbeing. Children are often unaware that their treatment is exploitative and thus accept the meagre wages and hazardous activities they are allocated. Living conditions provided to child labourers are reportedly crowded and violent, causing physical and psychological damage.51

Freedom of association and collective bargaining are severely limited, increasing the risk of exploitation of workers. The All-China Federation of Trade Unions (ACFTU) is the only legally recognised union in China. Independent trade unions are not permitted and dissent or strikes are discouraged by the ACFTU. According to the International Labor Rights Forum, the ACFTU often acts as nothing more than government bureaucracy. They claim that local union officials ‘too often side with capital and management’.52

China’s violation of labour rights and lack of worker protection represent an extreme risk to business. Maplecroft’s Labour Rights and Protection Index 2012 measures the risk business is exposed to through its operations or those of its business partners. Violations include child labour, forced labour, trafficking, discrimination in the workplace, working conditions, freedom of association and collective bargaining. China is ranked as ‘extreme risk’ scoring 0.66/10 and ranking 6th out of 197 countries, where 1 is the worst. India, although still representing an ‘extreme risk’, ranks higher in 16th place with a score of 1.30. Scoring much better but still representing a high risk are Sri Lanka scoring 2.64 and ranking 46th and Thailand with a score of 3.18 ranking 70th. The risk comparison table on page 22 provides a comparison of labour rights and protection between top diamond cutting and polishing countries and diamond producing countries.

Case StudyChildren trafficked to Pearl River Delta for forced labour

In March 2011, the Chinese media group Southern Metropolis Daily revealed a trafficking case of 21 adolescents from Liangshan who had been sold to an electronics factory, producing Bluetooth material in Shenzhen. The minors were traded in a complex process between the factory, a labour supply company, and a labour contractor. Working 16 hour shifts during the weekend and getting only Saturday and Sunday evenings off, they were paid only CNY1,500 (US$237) a month.

Even though local police pledged that the children would be sent home, the systemic problem illustrated by this case has not been resolved. Due to low teaching quality and extremely high school fees in poor rural areas of the country, parents and children often see no other alternative than to migrate to cities for work. In their desperate situation they easily become victims to trafficking rings seemingly willing to help them.

Source: http://www.clb.org.hk/en/node/101016




Q2 June 2012

Women’s and girls’ rights - curtailedDespite legislative efforts, pervasive gender discrimination remains a serious issue, posing a risk of business complicity risks in women’s rights violations. The Law on the Protection of Rights and Interests of Women prohibits the discrimination and maltreatment on the basis of gender (Article 2) and proclaims equal pay for equal work between men and women (Article 23). It also prohibits dismissal on grounds of marriage, pregnancy, maternity leave or baby nursing (Article 26). Nevertheless, lack of enforcement prevents any effective protection. 53

Women and girls face issues of discrimination in the workplace, sexual harassment, unfair dismissal, demotion, and wage discrepancies. The International Trade Union Confederation reports that women ‘frequently suffer from discrimination in remuneration and in access to employment, education and public services.’54 It notes that women earn only 65% of the salary of men, with the number being even lower in rural areas.55 Furthermore, there is a high concentration of women labourers in the informal sector where protection against labour violations is weak. 56

Furthermore, women tend to be dismissed before men, forcing mothers to look for alternative ways of supporting their children. Reports also suggest that women were particularly impacted by the economic downturn, frequently suffering first from necessary dismissals.57 Such pervasive and entrenched gender discrimination may have severe impacts on the life and wellbeing of children as mothers may be forced to look for alternative solutions to generate family income.

In addition, Chinese employers tend to prefer hiring men to avoid costs associated with maternity leave and childcare.58 The All-China Women’s Federation (ACWF) reports that 21% of rural women working in cities were fired after becoming pregnant or giving birth and that some women delayed motherhood for fear of losing job and promotion opportunities.

Female migrant workers are perpetually discriminated against and receive at least 20% less income than men.59 Some employers lowered the effective retirement age for their female staff, in some cases to 40 years. The official retirement age is unequal, at 60 for men and 55 for women, reducing women’s lifetime earning potential and pension savings.

Restricting the income of women may counteract efforts to eradicate child labour and improve the survival and development of the country’s children. Poorer families may be forced to send children to labour if they are not able to provide sufficiently for the wellbeing and survival of their families.

Migrant workers – discriminated and exploitedChild labour is fuelled by institutionalised discrimination against migrant workers. Migrant workers are generally low-skilled labourers who come from China’s interior provinces to the coastal cities. According to the government, there were approximately 150m-230m migrant workers from rural areas in urban areas at the end of 2008. Numbers may, however, be higher as many migrant workers work informally without contracts or benefits. These workers face severe institutionalised discrimination and, as they lack official residence in cities, they often struggle to gain full access to social services, including access to education.

Consequently young migrant workers and children are denied access to education, thus fuelling the pervasiveness of child labour. In addition, it is worth noting that rights of minorities also lack adequate safeguarding. Discriminatory treatment is both pervasive and entrenched. Violations of minority rights occur frequently and with impunity due to substandard enforcement and lack of legal recognition of such rights.

Businesses are at risk of being associated with discriminatory employment practices in China. These risks include high staff turnover rates and decreasing productivity, as well as deteriorating relations with local communities and key business partners.




Principle 3 - Recommendations‘Provide decent work for young workers, parents and caregivers.’

Providing decent work and adequate working conditions for young workers, parents and caregivers In light of absent or weak legal protection, companies need to actively ensure young workers enjoy adequate working conditions, both in their own operations and along their supply chain. Companies may need to adopt and mainstream internal policies and procedures that help ensure that the rights and interests of young workers are protected throughout their operations. Such internal procedures need to go beyond domestic legal requirements in order to ensure young workers enjoy working conditions that are not considered exploitative by international standards.

In order to mitigate reputational risks, the company is advised to monitor and audit its supply chain to ensure that business partners adhere to the same level of workplace protection. Subsequent monitoring should also identify any violations of workers’ freedom of association and ensure that they are free to unionise should they wish to do so.

As state authorities are unable or unwilling to effectively guarantee equality in the workplace, it is prudent for companies to employ measures that can ensure their business partners adhere to principles of equality and non-discrimination. This may require investors to include non-discrimination guarantees in supply chain contracts to mitigate the risk of association with controversial business practices that can tarnish their reputation.

Source: http://www.flickr.com/photos/mikex/61773350/




Q2 June 2012

Companies will also need to ensure that they provide migrant workers with living and working conditions that are not considered exploitative by stakeholders.

Reviews of corporate non-discrimination policies (including those of suppliers and subcontractors) may enable businesses to minimise risks associated with discriminatory employment practices in China. These risks include high staff turnover rates and decreasing productivity, as well as deteriorating relations with local communities and key business partners.

Being responsive to the vulnerability of young workersAs a preventive measure, companies may wish to contractually require their business partners to adopt policies to protect young workers.

The auditing and monitoring of supply chains can help companies identify high risk areas for the exploitation of young workers in the operations of their business partners. Employee surveys can help employers understand areas where young workers are most at risk, such as in relation to violence and abuse.

In order to address young workers’ vulnerabilities, companies need to identify and monitor areas within their operations and supply chains where they are most at risk. Since young workers are likely to suffer disproportionally from substandard working conditions, identifying such risks is imperative for the development of remedial strategies. For example, this can be the case in relation to the physical harm of hazardous work.

Effective grievance mechanisms which are accessible to young workers should be established.

Support workers in their roles as parents or caregiversSince the practice of child labour derives in no small part from the plight of parents, companies should seek to provide conditions that will help ease such situations. Introducing specific company policies, such as flexible working hours, guaranteeing parental leave or providing education to dependants, can help ensure that the rights of children are better protected.

Employers may also consider providing counsel to migrant workers who live apart from their families.

In the absence of effective universal access to education and social security, companies should also ensure that employment benefits include benefits to workers’ children, such as in relation to access to healthcare, childcare and education.

Furthermore, businesses are able to assist in combating the necessity of child labour by providing living wages for their workers that are ‘sufficient to meet the basic living needs of an average-sized family in a particular economy’.60


Notes




Human development index

RUSSIA

SICHUAN

JIANGSU

LIAONING

JILIN

YUNNAN

GANSU

QINGHAI

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

INDONESIA

LAOS

VIET NAM

NEPAL

M A L A Y S I A

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

Xi'An

WuhanLhasa

Kashi

Urumqi

Harbin

Haikou

Lanzhou

KunmingGuiyang

Chengdu Shanghai

Changsha

Changchun

ShijiazhuangTianjin

Nanning

Chenyang

Hong KongGuangzhou

Chongqing

XIZANG (TIBET)\

Human development index 2008

!\ National capital



kmData sources Maplecroft, 2012; China Human Development Report, 2009 / 2010

< 0.64

0.64 - 0.72

0.72 - 0.79

0.79 - 0.84

0.84 - 0.91

maplecroft™

© Maplecroft, 2012

The Human Development Index (HDI) measures development by combiningindicators of life expectancy, educational attainment and income. It servesas an indicator for both social and economic development. China’s HDI hasalmost doubled since 1980 from 0.368 to 0.687 in 2011 (where 0 is the leastdeveloped and 1 is the most developed).

Map 5: Human development index



Q2 June 2012

Principle 4‘Ensure the protection and safety of children in all business activities and facilities.’

Health and safety of children - Overview

Due to the lack of effective health and safety standards, businesses face the risk of exposing young workers to hazardous working environments which endanger children’s health, development, wellbeing and survival.

Development disparities between the rural west and more developed east remain obstacles to the health, development and wellbeing of children.

Infectious diseases still account for most diseases in children, especially those in poorer regions. Youth, in particular, are at an increased risk due to HIV/AIDS prevalence, which in some areas is a serious epidemic.

Companies may be exposed to significant reputational damage due to the weak legal enforcement of health and safety standards. Supply chains should be monitored and audited to ensure business partners comply with all domestic child labour and health and safety requirements, and strive to meet international standards.


Source: http://www.flickr.com/photos/art_es_anna/415400769/



Health and safety legislation lacks legal enforcement, falling below international standardsAlthough China has ratified ILO Convention No. 155 on Occupational Safety and Health, insufficient enforcement of health and safety legislation undermines international standards.

Weak enforcement of health and safety legislation exacerbates children’s vulnerabilities in the workplace. The Labour Law outlines the general duties of employers in relation to occupational health and safety. The Production Safety Law stipulates that employers hold the primary duty to protect the health of their employees in the workplace. However, legislation is not effectively enforced, thus representing an increased risk to vulnerable young workers.

Labour authorities suffer from lack of resources thus contributing to the country’s exceptionally poor occupational health and safety record. The deficiency of resources allocated to labour authorities prevents them from effectively monitoring and inspecting enterprises. Health and safety legislation thus lacks enforcement and accidents are often covered up.61

Despite legal rights relevant to health and safety standards, the non-reporting of accidents further frustrates any effective protection. Workers have the right to ‘criticise, expose or institute legal proceedings’ on the grounds of health or safety hazards in the workplace. They also have the right to remove themselves from the workplace if imminent dangers to their personal safety are present (Article 47). However, the non-reporting of workplace accidents remains a widespread problem.

Although new regulations seeking to prevent the non-reporting of workplace accidents were adopted in 2011, efficient implementation is yet to be seen. These require employers to immediately submit accident reports to the relevant authorities. Failure to comply with these new rules could lead to companies having their operations suspended. However, it remains unclear whether the new rules will improve the situation, as much will depend on effective implementation.





Rank Diamond cutting and polishing countries Top diamond producers14 Iran 17 China 76 Armenia 3 DR Congo 93 Namibia14 Uzbekistan 23 India 107 Sri Lanka 18 Zimbabwe 119 Sierra Leone17 China 30 Russia 120 South Africa 30 Russia 120 South Africa18 Zimbabwe 38 UAE 143 Israel 37 Angola 130 Botswana18 Viet Nam 72 Thailand 188 Belgium 79 Zambia 191 AustraliaRed indicates higher risk, green indicates lower risk

Working ConditionsThe Working Conditions Index measures the prevalence and gravity of sub-standard working conditions, particularly in relation to the minimum wage, working hours and health and safety in the workplace.



Q2 June 2012

Due to the lack of a functioning institutional framework, and consequent poor enforcement of health and safety laws and regulations, children are at risk in the workplace. In 2010, the rate of occupational deaths reportedly dropped to 79,552, which represents a 4.4% decrease compared to the previous year.62 However, actual numbers are likely to be much higher due to many occupational deaths and accidents being unreported. Consequently, companies with supply chains in China risk association with child labour exploitation in the form of poor occupational health and safety standards.

The enforcement of health and safety standards is particularly poor in the informal sector. Child labourers are often informally employed, increasing their vulnerability to injuries, illnesses, exploitation and harassment. The precarious working conditions in China are highlighted in Maplecroft’s Working Conditions Index 2012. The index quantifies the risks businesses face through exposure to violations of workplace standards at the country level. By considering occupational health and safety risks, together with working hours and compensation, China is classified as an ‘extreme risk’ country, with a score of 1.62 /10 (where lower scores indicate higher risks). This score, however, signals a slight improvement with regards to working conditions in comparison to the country’s score in 2011 (1.02).

Given the pervasive human rights violations in relation to working conditions and high levels of impunity, few countries present a higher risk from working conditions than China. The country is currently ranked 17th out of 197 countries. Other diamond cutting and polishing countries present a lower level of risk of association with such violations, including India (ranked 23rd), Thailand (ranked 72nd), Armenia (ranked 76th) and Sri Lanka (ranked 107th). (See risk comparison table, page 29).

On a national level, the vast majority of reported labour rights violations occur around the country’s economic processing zones on the east coast of the country, owing to the concentration of businesses in this region. The violations occur in Heilongjiang, Jilin, Liaoning, Shanxi, Sichuan and Guangdong.

The health and wellbeing of children – threatened by poverty and child labourLack of health and safety enforcement causes widespread occurrence of workplace fatalities and injuries representing an increased risk to the health and wellbeing of young workers. Furthermore, anecdotal evidence suggests that there are 18,128 workers suffering from occupational diseases. However, other data suggest that there are over 690,858 cases.63

Children are more vulnerable to occupational hazards and may increase the risks of health and safety violations. Children’s lack of social power may cause them to take unnecessary risks.64 Child labourers and young workers, if not properly trained, may be unaware of health and safety precautions which consequently may increase work place injuries.

Highlight Lead poisoning most common paediatric health problem

A 2011 Human Rights Watch (HRW) report outlines the plight of children from lead poisoning in the four provinces of Henan, Hunan, Shaanxi, and Yunnan. While no comprehensive statistics are available, HRW describes lead poisoning as the most common paediatric health problem in the country.

Lead poisoning is caused through elevated exposure to lead, and is common in industrial areas close to heavy metal facilities and battery factories. Its symptoms include reduced IQ and attention span, reading and learning disabilities, behavioural problems, hearing loss, and visual and motor functioning disruption. Also, it can lead to anaemia and - sometimes deadly - damage to organs, including the brain, liver, and stomach.

HRW reports numerous instances, in which local governments have arbitrarily prevented children’s access to testing practices, restricted public information on the health risks associated with lead exposure, and constrained parents from providing their children with medical treatment.

Source: http://www.hrw.org/sites/default/files/reports/china0611WebInside_0.pdf




Health disparities – increasing risk

Overpopulated and rural areas suffer from lack of access to health facilities, increasing disparities in health outcomes. The country is facing challenges in terms of providing social security, medical and health care equally to all regions. (See access to health facilities map, page 34).

The government has implemented national mechanisms to control the outbreak of infectious diseases; however, poorer rural children are still the most at risk. Infectious diseases still account for most diseases in children, especially in poorer regions. Poor and remote populations and ethnic minorities remain high risk categories.

Although the country shows political commitment to the HIV/AIDS response, policy implementation is fragmented and antiretroviral treatment insufficient. There is a relatively low national incidence of HIV/AIDs, approximately 740,000 people living with HIV/AIDs or 0.057% of the population.65 However, certain geographical areas and social groups are experiencing a serious epidemic which the government has reportedly failed to control. Youth are at an increased risk of infection.66

Furthermore, women are increasingly representing a larger proportion of people living with HIV/AIDS, having risen from 15% in 1998 to 30% in 2009.67 China is implementing measures under its Five-Year Action Plan to Control HIV/AIDS (2011-2015), and similar policies have reportedly had a major positive impact.68 However, gaps allegedly remain in policy implementation.69 (See HIV prevalence map, page 33).

There has been an increase in HIV resulting from women migrating for marriage purposes, causing spousal transmission and mother-to-child transmission in diamond polishing and cutting areas such as Shandong.70 Coverage of programmes for preventing mother to child transmission of HIV is reportedly not sufficient.71 In addition, stigma and discrimination represent major barriers to accessing HIV/AIDS services, increasing the risk of exposure of the virus to children and young people.72

The impact of Tuberculosis (TB) and Hepatitis B is high, especially in less developed areas, representing a risk for businesses with factories in the country. China is listed among 22 high-burden countries for TB and is one of 27 high-burden countries for drug resistant strains according to a 2010 Millennium Development Goals report. China also has the second highest number of new TB cases according to World Health Organisation estimates. Hepatitis B virus (HBV) is also prevalent in China and infection rates are very high in infants and continue through to early childhood.

Sanitation – a possible children’s rights investmentLack of access to proper sanitation and clean water increases health problems, particularly for poor children. Health problems emanating from the use of unsafe water, a lack of sanitation, under-nutrition, vitamin and mineral deficiencies and indoor pollution are prominent in underdeveloped areas of rural China. UNDP figures show that around 45% of the population are without access to proper sanitation and 11% do not have access to an improved water supply.

Consequently, companies may wish to promote the survival and wellbeing of children by providing safe water and hygiene and sanitation training. With an estimated 350m people moving into urban areas over the next 20 years, demand for social services, energy and housing infrastructure will increase.

Vulnerabilities exacerbated by gender, race and ethnic origin Gender, race, ethnic origin or economic background may exacerbate children’s vulnerability to violence, exploitation and abuse.73 Such treatment affects the physical and mental wellbeing of a child and may also have an effect in later life.

Due to socio-economic vulnerabilities children are forced to work in unsafe and exploitative working environments. Trafficking for purposes of child labour is reportedly prevalent. Such children are highly vulnerable not just to the hazardous risks posed by their occupation, but also to sexual exploitation. (See trafficking map, page 20).




Q2 June 2012

Addressing safety and protection risksIn order to avoid allegations of endangering workers within their supply chains, companies should monitor and audit them. This will ensure business partners comply with all domestic child labour and health and safety requirements, as well as strive to meet international standards.

The company may wish to develop health and safety training and preventative strategies in order to raise awareness and reduce health and safety risks. Such training should also provide parents with information on occupational risks which may affect their children.74

The company should implement adequate health and safety precautions, which should include protective equipment and training specifically adapted to younger workers who are legally allowed to work. This may help decrease workplace injuries and diseases. In addition, the business may wish to conduct training sessions during regular working hours as this may improve efficiency and attendance.

The company may wish to implement occupational health and safety audits, with a focus on young workers who are more vulnerable to accidents and diseases. Audits can also help ensure that no young workers above the national legal minimum age for work are performing hazardous activities. Audit findings should result in changes to the workplace environment, thereby continuously improving health and safety conditions.

Providing medical examinations and treatment at work free of charge may assist in reducing occupational diseases and injuries. In so doing, the business would simultaneously promote the fundamental right of the legally labouring child to health and access to healthcare.

Furthermore, young workers should be presented with the opportunity to be rehabilitated by being provided alternative work tasks, thereby reducing their fear of dismissal due to illness or injury and any long-term health implications.

Businesses should adopt a zero-tolerance policy against all forms of violence, exploitation and abuse towards legally labouring children and young workers.75 Such a policy should include any similar acts towards children in the vicinity of business operations. Appropriate action should be taken if such instances are identified in order to promote deterrence.

Ensuring a working environment that supports the best interests of the childProviding health education to young workers and parents may increase awareness of health, hygiene and sanitation issues, thereby promoting behavioural change, which may benefit families even outside of the business. Such health education could include HIV/AIDS education to prevent risks of discrimination and stigma in the work place and promote overall awareness and behavioural change.

The company should develop and implement a child protection code of conduct which reflects and tackles the health and safety issues identified in this chapter. It is recommended that this be done in a situation-specific manner and with awareness training. This is due to the fact that issues may not be identical at all business locations

Principle 4 - Recommendations‘Ensure the protection and safety of children in all business activities and facilities.’




HIV / AIDS

RUSSIA

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

INDONESIA

LAOS

VIET NAM

NEPAL

M A L A Y S I A

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

WuhanLhasa

Urumqi

Harbin

Lanzhou

Shanghai

Guangzhou

YUNNAN

Estimated number of peopleliving with HIV, 2007

!\ National capital




maplecroft™

© Maplecroft, 2012

< 10,000

10,000 - 39,900

40,000 - 49,999

50,000 - 79,999

80,000 - 110,000

No data

Youth are at an increased risk due to the HIV/AIDS prevalence which insome areas is a serious epidemic. Although the country shows politicalcommitment to the HIV/AIDS response, policy implementation is fragmentedand antiretroviral treatment insufficient.

Map 6: HIV / AIDS




Q2 June 2012

Access to health facilities

RUSSIA

SICHUAN

JIANGSU

LIAONING

JILIN

XINJIANG UYGUR

HEILONGJIANG

QINGHAI

NEI MONGOL

XIZANG

SHANDONG

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

JAPAN

LAOS

UZBEKISTAN

NEPAL

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

Xi'An

WuhanLhasa

Kashi

Urumqi

Harbin

Haikou

Lanzhou

KunmingGuiyang

Chengdu Shanghai

Changsha

Changchun

ShijiazhuangTianjin

Nanning

Chenyang

Hong KongGuangzhou

Chongqing\

!\ National capital


Administrative boundary

0 500 1,000250km

Data sources Maplecroft, 2012;China Human Development Report 2009 / 2010

< 25

25 - 30

30 - 35

35 - 40

> 40

Access to health facilities 2008 *

* Health centres and hospitals per 10,000 people

maplecroft™

© Maplecroft, 2012

China’s total expenditure on health care lags behind other developedcountries at 4.6% of GDP compared to 15.3% in the US, 8.1% in Japan,7.5% in Brazil and 5.3% in Russia according to a 2009 WHO report.

Map 7: Access to health facilities




Principle 10‘Reinforce community and government efforts to protect and fulfil children’s rights’

Principles for action in the community

Community and government efforts - Overview

National legislation guarantees the right of free and equal access to quality education for a compulsory duration of nine years. However, many schools continue to charge fees indicating a failure to enforce of such legislation.

Consequently, poverty is one of the main causes for drop-outs, hampering the schooling of many children in poor rural areas and migrant children in cities.

Excessive school fees, and the government’s chronic underinvestment in rural education, together with the low value attributed to education by many rural parents, have thus all contributed to high drop-out rates in education. The shortcomings of the educational system exacerbate the risks and prevalence of child labour and may be the root of the problem.

Furthermore, loopholes in national legislation allow children to take part in hazardous and even forced labour in order to pay school fees.

Disparities in access to education are exacerbated by wider issues such as gender, ethnicity, poverty and country location, causing further marginalisation.

Companies should investigate local government and NGO efforts in their areas of operation to ensure they sustainably support the realisation of children’s rights.

Source: http://www.flickr.com/photos/kafka4prez/198501151/



Q2 June 2012

Access to education – denied for many

Although China seeks to establish free and universal access to education, regional disparities continue to frustrate such efforts. The Compulsory Education Law was revised in 2006 seeking to provide equal access and quality of education for all children. The cost of the nine years of compulsory free education, for those aged 6-14 years, is to be covered by local and central governments.76 However, Amnesty International reports that many children have no access to education due to school fees, indicating a failure in comprehensive free education.77

Despite such legislation and due to government underfunding, poverty continues to be a barrier to accessing education. Due to lack of government funding schools reportedly continue to charge tuition fees, regardless of the legislation prohibiting them to do so. Consequently, fees and other costs incurred from school attendance deny the poorest children, including migrant workers, ability to attend, thus frustrating the universal access intended.78 (See regional enrolment rates map, page 40).

Furthermore, loopholes in national law expose children to hazardous and, at times, forced labour, to pay for school fees. Some schools set up schemes by which children are employed in factories under the pretence of vocational training. In rural and poor areas, these programmes can result in children being forced to work in dangerous industries, such as agriculture, construction and manufacturing.79 Human Rights Watch has reported that through these programmes, ‘the government actively violates its own prohibitions’ on child labour by ‘exploiting loopholes in domestic labour laws’.80

The two year gap between the end of school age and the legal working age may increase the risk of exploitation of young workers. Although the end of school age is 14 years, it is illegal to work until 16 years of age. Such a gap may force young people to work informally, thus increasing the risk of exploitation.

Economic disparities deny access to school and fuel child labour Children migrating to cities are discriminated against by the hukou system, refusing them access to education and social services. UNICEF estimates that 27m children having migrated to cities suffer from lack of residence status (hukou status) and access to social services.81 Consequently, children are denied their rights to access schools, thus frustrating their development and wellbeing.

Systematic discrimination against migrants exacerbates the challenges in accessing schooling. The legal entitlement to education is held with Chinese citizenship but is regardless of race or ethnicity.82 However, institutional and systematic discrimination against migrant workers undermines their children’s right to access education.83

Consequently, illegal private schools have appeared which may not be providing quality education. Human Rights Watch reports that 24 illegal schools in Beijing were closed by the government, forcing migrant children to search for alternative affordable schooling or be separated from their families and return to their rural hometowns.84

Underinvestment in education impedes legislative efforts on access to education, especially for the rural poor. Despite being the second largest economy in the world, an increase in economic disparity between rich and poor, urban and rural, contributes to the denial of access to education. There is reportedly a ‘chronic underinvestment in rural education’ causing compulsory education to be prohibitively expensive and thus fuelling the prevalence of child labour.

Furthermore, rural provinces suffer from lower enrolment ratios. The provincial differences in enrolment ratio for primary and secondary education can be seen on the net enrolment ratios (see map, page 40). These maps highlight the lack of western and rural enrolment ratios in comparison to the figures from more developed eastern coastal areas.

Child labour is thus reportedly the result of a denial in access to schools, the poor implementation of laws and lack of provincial funding for such establishments in rural areas.85 Poverty, excessive school fees, the government’s chronic underinvestment in rural education, and the low value attributed to education by many rural parents, have all contributed to high drop-out rates in secondary education, and inadvertently to the child labour problem. (See enrolment ratio maps, page 40).




HighlightThe Outline for the Development of Chinese Children (2011-2020)

On 9 August 2011, the State Council issued the ‘Outline for the Development of Chinese Children (2011-2020)’, a set of government targets concerning children’s development in the country for the next ten years. The outline is comprised of official government objectives, strategies and measures planned to be taken by the administration in the fields of health, education, welfare, social environment, and legal protection.

Children’s health emerges as a particular concern, with key objectives including a decline in birth defects and congenital disability, keeping mortality rates of infants and those younger than 5 years below 10% and 13% respectively. Another objective is to reach vaccination coverage of 95% for all townships. With regards to education, the Chinese government foresees 70% of the country’s children to go to kindergartens, and 95% of children to attend primary and high schools by the end of the decade.

Sources: http://www.chinahumanrights.org/Messages/feature/104/t20110811_780684.htm

Entrenched gender discrimination

Although the Law on the Protection of Rights and Interests of Women enshrines the principles of gender equality and equal protection, pervasive gender discrimination remains a serious issue. This poses business complicity risks in girls and women’s rights violations. The law guarantees equal rights to education (Article 14). However, weak enforcement of legislation allows gender discrimination to persist as a widespread problem. Moreover, women are three times more likely to be illiterate. UNESCO estimates China has 71m illiterate adults.86

Although there has been a significant decrease of 20% in adult literacy between 1985–1994 and 2000–2007, women are three times more likely to be illiterate.87

Consequently, gender disparities in school attendance remain an issue, highlighting entrenched gender discrimination. The UNDP reports that although the literacy gap between urban and rural has evened out, the gender gap in rural areas is still wide, with 61% of boys attending education beyond lower middle school compared to only 43% girls aged 15-17 years.88 (See enrolment ratio maps, page 40).


Source: http://www.flickr.com/photos/jadis1958/4970381629/



Q2 June 2012




Rank Diamond cutting and polishing countries Top diamond producers28 North Korea 29 China 75 India 5 DR Congo 69 Angola29 Eritrea 37 UAE 77 Thailand 31 Sierra Leone 90 South Africa29 China 43 Armenia 90 South Africa 44 Zambia 102 Botswana31 Sierra Leone 53 Sri Lanka 132 Israel 47 Zimbabwe 123 Namibia32 Bahrain 65 Russia 190 Belgium 65 Russia 174 AustraliaRed indicates higher risk, green indicates lower risk

Women’s and Girls’ RightsThe Women’s and Girls’ Rights Index measures the severity and prevalence of violations against females, with particular attention paid to discrimination in the workplace.

Social attitudes may serve as a barrier to girls’ access to education. Access to education in China is dependent on factors such as economic burden and gender. A study has found that in poor rural areas parents select boys over girls to attend school.89 Such social attitudes may be reflected in the low number of women who have a secondary education, 54.8% compared to men 70.4% (UNDP).90 Furthermore, gender discrimination is reportedly pervasive in the labour market.91 Further highlighting issues of gender inequality is the fact that less than half of the girls who graduate from primary school go on to complete secondary education.92

There appears to be a correlation between poverty and lack of career progression within the young rural labour force. Due to the lack of education and the unskilled nature of rural workers, career progression is hampered. Education levels may thus have a direct impact on employment status, indicating a need to further improve rural education enrolment rates to assist in furthering the human development of the country.93

This is corroborated by a correlation between education and development. In provinces where human development is low, enrolment rates for both primary and secondary school are equally low. (See human development index map page and school enrolment ratio map on pages 27 and 40 ).

Gender discrimination is reflected in the score afforded to the country in Maplecroft’s Women’s and Girls’ Rights Index 2012 where China is ranked as extreme risk. The index quantifies the risk business is exposed to through possible association with violations of women’s and girls’ rights. China scores 1.12 (‘extreme risk’, ranked 29th out of 197 countries). The scoring indicates an increase in risk in comparison to the 2011 score of 2.02. In comparison, Sri Lanka represents a lesser, albeit still extreme, risk in 53rd place with a score of 1.82, as does India in 75th place with a score of 2.43. Thailand is in 77th place with a score of 2.47, and represents the least risk out of the four countries, even though it is still ranked ‘extreme risk’.




Not undermining government efforts Through collaboration in efforts which promote children’s rights, such as the right to education, companies can assist in strengthening programmes and initiatives. By identifying local government programmes and existing NGO efforts, companies can ensure that they do not duplicate or counteract any initiatives to protect and fulfil children’s rights that are already in place. However, companies should be aware of the country’s endemic corruption when engaging with government bodies.

Supporting government efforts Collaborative strategies to decrease family dependence on income from child labour may increase school attendance. When removing children from the labour environment, businesses should bear in mind the consequential financial burden this may have on families. Thus, attempts at finding solutions which ensure that children are not required to return to labouring are advised.

Local NGOs and government schemes can be used to establish functioning partnerships, thus strengthening children’s societal safety net. By supporting and integrating government schemes into business operations, robust structures supporting education and collaboration can be developed.

Educational training may help counter societal attitudes that undermine children’s rights, especially girls’ access to education. Companies may be able to increase school attendance by providing educational training at work, and by highlighting the importance of education to parents, caregivers and young workers. Furthermore, the company can assist in empowering those children out of school by providing training and developing skills.

By displaying a robust policy in support of children’s school attendance and providing workers with living wages, social attitudes may be positively influenced.

Considering undertaking strategic social investment programmes By providing child allowances that enable parents to send their children to school, companies can assist to reduce families’ dependence on child labour.

Companies may also wish to invest in local schools or NGO programmes that seek to improve the development of children in neighbourhoods surrounding business operations. Engaging in dialogue with stakeholders may assist in identifying specific local issues which the company can assist in tackling through social investment programmes.

Interaction with children, enabling them to participate and share their opinions and experiences, may assist in identifying the specific efforts needed to promote the best interests of the child.

By investing in adolescents through providing education and training, companies can assist in the overall development of such workers and their families, which may also curb the necessity of child labour.

Principle 10 - Recommendations‘Reinforce community and government efforts to protect and fulfil children’s rights’




Q2 June 2012


Gross enrolment rate ratios

RUSSIA

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

LAOS

NEPAL

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

WuhanLhasa

UrumqiHarbin

Lanzhou

Shanghai

Guangzhou

Net enrolment ratioin primary education2008 (%)

!\ National capital



Data sources Maplecroft, 2012; UNICEF, 2010

maplecroft™

© Maplecroft, 2012

96.00 - 96.99

97.00 - 97.99

98.00 - 98.99

99.00 - 99.49

> 99.49

No data

INDIA

MONGOLIAKAZAKHSTAN

PAKISTAN

MYANMAR

THAILAND

LAOS

NEPAL

CAMBODIA

NORTH KOREA

BANGLADESH

SOUTH KOREA

PHILIPPINES

BHUTAN

TAIWAN

Beijing

WuhanLhasa

UrumqiHarbin

Lanzhou

Shanghai

Guangzhou

< 60.00

60.00 - 69.99

70.00 - 79.99

80.00 - 89.99

> 89.99

No data

Net enrolment ratio insecondary education2008 (%)

Low enrolment ratios can be correlated with poverty and consequently a lower humandevelopment ranking. Eastern more affluent areas tend to demonstrate higher numbers ofschool enrolment and development in comparison to inland and poorer western rural regions.

Map 8: Gross enrolment rate ratios



Conclusion

Risks and opportunities Although progress has been made in reducing poverty and improving the survival, development and protection of children, children living in poor and rural areas and those affected by migration remain among the most vulnerable to violations. Despite the lack of government monitoring of child labour, it is prevalent and should be considered an extreme risk to companies and their supply chain.

For business to operate effectively and responsibly, social problems, and local risks and violations of children’s rights, should be assessed. This way the company is able to develop targeted action plans and operational efforts that successfully respect and support the survival and development of children.Therefore, serious issues such as migrant and gender discrimination should be recognised and efforts to combat such issues embedded in operational guidance systems.

Child labour not in compliance with international standards on children’s rights should be eradicated from workplace in a responsible manner. Efforts to reintegrate children into the educational systems should take place.

Company efforts focusing on the respect and support of children’s rights should go beyond philanthropy to considering the needs of children and families as stakeholders.94 Furthermore, companies should develop a dynamic interaction with communities and families in order to empower both children and families.

Businesses should take a holistic approach through strategies which aim to reduce child labour and also seek to enhance community awareness and collective action for the respect and support of children’s rights.

Source: http://www.flickr.com/photos/jonnykeelty/462671004/



Q2 June 2012

Operational recommendationsSpecific recommendations have been provided under each of the Children’s Rights and Business Principles of this report. These should be embedded in company operations through the following processes, based on the Guiding Principles on Business and Human Rights, which implement the UN ‘Protect, Respect, Remedy’ Framework. 95

■ The company should adopt a robust policy commitment that outlines how it seeks to meet its corporate responsibility to respect the human rights of children. This ethos should be based on the core international principles underpinning children’s rights, as set out by relevant international documents such as the Convention on the Rights of the Child and the Children’s Rights and Business Principles. The policy should be made available to the public and be promoted among business partners and entities which feed into the supply chain.

■ Management systems should be developed to support and embed the company policy in business operations. These should include the responsibilities of employees and accountability procedures. The monitoring of children’s rights should be documented and any reported violations dealt with effectively.

■ As part of the business management system, the company should develop a code of conduct for its employees and business partners to ensure compliance with their policy commitment throughout their commercial activities and relations. This will assist in ensuring child labour does not take place in the supply chain. In addition, the company may wish to engage in training and capacity-building both among their workers and suppliers. This can be in relation to child labour but should also address the situation of young workers and their parents.

■ The company should implement human rights due diligence processes. Such processes will help identify and assess the company’s actual and potential human rights impacts on children in the local context. By identifying violations and vulnerabilities, the company can develop situation-specific mitigation strategies to promote the best interests of the child in his or her local environment. Third party audits may be useful in companies where corruption is endemic.

■ The company should publicly disclose its supply chain due diligence and any findings and actions taken to respect and mitigate human rights risks. This will improve company transparency, sustainability and corporate social responsibility.

■ The company should collaborate with local NGOs, regional experts, local governmental agencies and national institutions so as to support social and cultural values that respect the rights of children and promote their wellbeing and development in the local context. NGOs can provide local expertise which is culturally sensitive, thus ensuring that efforts are targeted and appropriate. This could be, for example, in relation to the situation of women, as their wellbeing is instrumental to the development of children. Guiding documents useful for avoiding, mitigating and combating the risks of child labour:

■ ILO-IOE, Eliminating Child Labour: Guides for Employers.96

■ ILO-IPEC, Resource Kit on Child Labour Monitoring.97

■ ILO-IPEC, Combating Child Labour: A Handbook for labour inspectors.98

■ ILO, Guidelines for Developing Child Labour Monitoring Processes.99

■ International Organization for Standardization - ISO 26000.100

Conclusion



Principle 1■ The core principles in the Convention on the Rights of the

Child should guide the company in their efforts to ensure the survival and development of children.

■ Investigation into the diamond industry’s supply chain is required as children’s rights violations take place in diamond mining, cutting and polishing and in industries that surround these activities.

■ When implementing the company policy the best interests of the child in the local context should be considered.

■ Any remediation of violations should respect and support the right of children to participate through, for example, consultation procedures.

■ By supporting local efforts the company can assist in developing capacities relevant to surrounding realities.

Principle 2 ■ The company should develop and implement procedures that

help mitigate the risks of using child labourers in operations and supply chains.

■ To ensure compliance, the company should implement robust age-verification mechanisms during recruitment, both in their own operations and in their supply chain.

■ As labour authorities cannot be relied upon to thoroughly inspect and report on the use of child labour, companies should ensure that they have adequate measures in place to monitor the employment practices of supply chain partners and to rectify the situation where violations are found to have been committed.

■ The company should provide training to prevent harm to children and young workers and ensure career development.

■ Due to the high incidence of child labour through work and study programmes, the company may wish to avoid taking on young workers through such schemes.

■ To eliminate the root causes of child labour, companies may wish to consider developing multi-stakeholder partnerships within the communities in which they operate.

Principle 3■ In light of absent or weak legal protection, companies need

to actively ensure young workers enjoy adequate working conditions, both in their own operations and along their supply chain.

■ As state authorities are unable or unwilling to effectively guarantee equality in the workplace, it is prudent for companies to employ measures that can ensure their business partners adhere to principles of equality and non-discrimination.

■ Companies will also need to ensure that they provide migrant workers with living and working conditions that are not considered exploitative by stakeholders.

■ Reviews of corporate non-discrimination policies (including those of suppliers and subcontractors) may enable businesses to minimise risks associated with discriminatory employment practices in China.

■ In order to address young workers’ vulnerabilities, companies may need to identify and monitor areas within their operations and supply chains where they are most at risk.

■ Since the practice of child labour derives in no small part from the plight of their parents, companies should seek to provide the conditions that will help ease such situations.

■ In the absence of effective universal access to education and social security, companies should ensure that employment benefits include benefits to workers’ children, such as in relation to access to healthcare, childcare and education.

■ Businesses are able to assist in combating the necessity of child labour by providing living wages for their workers that are ‘sufficient to meet the basic living needs of an average-sized family in a particular economy’.

Conclusion

Children’s Rights and Business Principles Recommendations



Q2 June 2012

Conclusion

Principle 4 ■ The company should develop health and safety training and

preventative strategies in order to raise awareness and reduce health and safety risks.

■ The company should implement adequate health and safety precautions, which should include protective equipment and training specifically adapted to younger workers who are legally allowed to work.

■ The company should implement occupational health and safety audits, with a focus on young workers who are more vulnerable to accidents and diseases.

■ The company may wish to provide medical examinations and treatment at work to assist in reducing occupational diseases and injuries.

■ The company should adopt a zero-tolerance policy against all forms of discrimination, violence, exploitation and abuse of young workers.

■ The company may wish to provide health education to young workers and parents as this may increase awareness on health, hygiene and sanitation issues, thereby promoting behavioural change.

■ The company should develop and implement a child protection code of conduct which reflects and tackles the health and safety issues.

Principle 10 ■ Through collaboration in efforts which promote children’s

rights, such as the right to education, companies can assist in strengthening programmes and initiatives.

■ The company may wish to develop collaborative strategies to decrease family dependence on income from child labour and promote school attendance.

■ The company may wish to develop educational training which may help counter societal attitudes that undermine children’s rights, especially girls’ access to education.

■ The company can assist in empowering those children out of school by providing training and developing skills.

■ By displaying a robust policy in support of children’s school attendance and providing workers with living wages, social attitudes may be positively influenced.

■ The company way wish to provide child allowances that enable parents to send their children to school thus assisting to reduce families’ dependence on child labour.

■ The company may also wish to invest in local schools or NGO programmes that seek to improve the development of children in the neighbourhoods surrounding business operations.

■ Interaction with children, enabling them to participate and share their opinions and experiences, may assist in identifying the specific efforts needed to promote the best interests of the child.

Notes



MALAYSIA

28

31

15

20

5

32

12

24

4

87

3

9

30

6

19

26

13

29

23

18

21

1617

10

2

11

22

2725

14

1

RUSSIA

INDIA

MONGOLIA

KAZAKHSTAN

MYANMAR

THAILAND

LAOS

PAKISTAN

VIET NAM

JAPAN

NEPAL

CAMBODIA

NORTHKOREA

BANGLADESH

SOUTHKOREA

PHILIPPINES

KYRGYZSTAN

BHUTAN

TAIWAN

SINGAPORE

P h i l i p p i n e S e a

J a p a nS e a

S o u t hC h i n a

S e a

Y e l l o wS e a

E a s t e r n C h i n a

S e a

1. Paracel Islands2. Hainan3. Guangdong4. Guangxi5. Yunnan6. Fujian7. Guizhou8. Hunan9. Jiangxi10. Zhejiang11. Chongqing12. Sichuan13. Hubei14. Shanghai15. Xizang (Tibet)16. Anhui17. Jiangsu18. Henan19. Shaanxi

20. Qinghai21. Shandong22. Ningxia Hui23. Shanxi24. Gansu25. Tianjin26. Hebei27. Beijing28. Xinjiang Uygur29. Liaoning30. Jilin31. Nei Mongol (Inner Mongolia)32. Heilongjiang

0 1,000 2,000500km

Administrative areas

Data source: Maplecroft, 2012. © Maplecroft, 2012

maplecroft™

Map 9: Administrative areas

Appendix



Q2 June 2012

Beijing

Xi'An

WuhanLhasa

Kashi

Urumqi

Harbin

Haikou

Nanning

Lanzhou

KunmingGuiyang

Chengdu Shanghai

Changsha

Hong Kong

Chongqing

Changchun

ShijiazhuangTianjin

Chenyang

Guangzhou

RUSSIA

INDIA

MONGOLIA

MYANMAR

THAILAND

LAOS

VIET NAM

NEPAL

CAMBODIA

NORTHKOREA

BANGLADESH

SOUTHKOREA

o

o

oo

o

o

oo o

oo

o

o

o

oo

oo

o

oo

n|

n|n|

n|n|

n|

n|

n|n|

n|

KAZAKHSTAN

PAKISTAN

KYRGYZSTAN

JAPAN

PHILIPPINES

BHUTAN

TAIWAN

Infrastructure

0 1,000 2,000500km

o

Airport

n| Major port

Railway

Primary road

Secondary road

Urban area

Data source: Maplecroft, 2012; VMAP0 (NIMA), 2000; RWDBII (CIA), 1995; CC BY-NC-SA, 2011

!\ National capital



maplecroft™

© Maplecroft, 2012

Map 10: Infrastructure

Appendix



Endnotes

1 UNDP, 2010, Human Development Report 2010. Available at: http://hdr.undp.org/en/media/HDR_2010_EN_Complete_reprint.pdf [Accessed 23 April 2012].

2 Sanzhuan Guo, Chinese Journal of International Law, 2009, Implementation of Human Rights Treaties by Chinese Court: Problems and Prospects. Available at: http://chinesejil.oxfordjournals.org/content/8/1/161.full [Accessed 11 May 2012].

3 International Commission of Jurists, 2010, Access to Justice: Human Rights Abuses Involving Corporations – China. Available at: http://www.icj.org/default.asp?nodeID=349&sessID=&langage=1&myPage=Legal_Documentation&id=23104 [Accessed 11 May 2012].

4 Implementation of the Convention on the Rights of the Child in the People’s Republic of China, 2005. A parallel NGO report by human rights in China, Available at: http://hrichina.org/sites/default/files/oldsite/PDFs/Submissions/HRIC_CRC-2005.pdf [Accessed 11 May 2012].

5 UNICEF, 2011. UNICEF Annual Report for China 2010. Available at: http://www.unicef.org/about/annualreport/files/China_COAR_2010.pdf [Accessed 14 May 2012].

6 China has also ratified two Optional Protocols on the Sale of Children, Child Prostitution and Child Pornography, and on the Involvement of Children in Armed Conflict, indicating a commitment to align national legislation to international standards in 2002 and 2008 respectively.

7 Congressional-Executive Commission China, 2011. Annual Report 2011. Available at: http://www.cecc.gov/pages/annualRpt/annualRpt11/AR2011final.pdf [Accessed 16 April].

8 Committee on the Rights of the Child, 2005. Concluding observations: China, 2005. Available at: http://www.unhchr.ch/tbs/doc.nsf/(Symbol)/CRC.C.CHN.CO.2.En?Opendocument [Accessed 26 April 2012].

9 S. Guo, 2009. Implementation of Human Rights Treaties by Chinese Courts: Problems and Prospects. Available at: http://chinesejil.oxfordjournals.org/content/8/1/161.full [Accessed 27 April 2012].

10 UNICEF, 2010. Annual Report for China. Available at: http://www.unicef.org/about/annualreport/files/China_COAR_2010.pdf [Accessed 26 April 2012].

11 UNICEF, 2010. Children in China: An Atlas of Social Indicators. Available at: http://www.unicef.cn/en/index.php?m=content&c=index&a=lists&catid=60 [Accessed 26 April 2012].

12 UNICEF. China statistics. Available at: http://www.unicef.org/infobycountry/china_statistics.html [Accessed 26 April 2012].

13 UNDP, 2011. Human Development Report 2011. Available at: http://hdr.undp.org/en/reports/global/hdr2011/ [Accessed on 26 April 2012].

14 World Bank, 2011. World Development Indicators. Available at: http://data.worldbank.org/data-catalog/world-development-indicators/wdi-2011 [Accessed 26 April 2012].

15 World Bank, 2011. World Development Indicators. Available at: http://data.worldbank.org/data-catalog/world-development-indicators/wdi-2011 [Accessed 26 April 2012].


17 UNICEF, 2010. Annual Report for China. Available at: http://www.unicef.org/about/annualreport/files/China_COAR_2010.pdf [Accessed 26 April 2012] and World Bank Data. World Development Indicators. Available at: http://data.worldbank.org/country/china [Accessed 26 April 2012].


19 UNICEF, 2012. Lifelong effects of infant malnutrition. Available at: http://www.unicef.cn/en/index.php?m=content&c=index&a=show&catid=53&id=784 [Accessed 1 May 2012].

20 UNICEF, 2010. Children in China: An Atlas of Social Indicators. Available at: http://www.unicef.cn/en/index.php?m=content&c=index&a=show&catid=196&id=772 [Accessed 26 April 2012] and Population Reference Bureau, 2010. China’s Rapidly Aging Population. Available at: http://www.prb.org/pdf10/TodaysResearchAging20.pdf [Accessed 23 April 2012].

21 WHO, 2008. WHO-China Country Cooperation Strategy 2008-2013. Available at: http://www.wpro.who.int/NR/rdonlyres/BB787F03-A760-4F01-908E D17D8DB75178/0/CCS_EN.pdf [Accessed 23 April 2012].

22 T. Hesketh et al. 2005. The Effect of China’s One-Child Family Policy after 25 Years. Available at: http://www.nejm.org/doi/full/10.1056/NEJMhpr051833 [Accessed 25 April 2012].

23 Amnesty International, 2008, Amnesty International Report 2008: Human Rights in the People’s Republic of China. Available at: http://www.amnesty.org/en/region/china/report-2008 [Accessed 16 May 2012].

24 UNICEF China, 2012. Atlas on Children in China. Available at: http://www.unicef.cn/en/index.php?m=content&c=index&a=lists&catid=60 [Accessed 15 May 2012].

25 National Bureau of Statistics of the People’s Republic of China, 2011. Summary of the 2010 Census. Available at: http://www.chinapop.gov.cn/xwzx/rkxw/201104/t20110428_356999.html [Accessed 15 May 2012].

26 British Medical Journal, 2009. China’s excess males, sex selective abortion, and one child policy: analysis of data from 2005 national intercensus survey. Available at: http://www.bmj.com/content/338/bmj.b1211.abstract [Accessed 23 May 2012].

27 Humantrafficking.org: A source for combatting human trafficking. Available at: http://www.humantrafficking.org/countries/china [Accessed 14 May 2012].

28 China Digital Times, 2012. 24,000 Abducted Women, Children Rescued in 11. Available at: http://chinadigitaltimes.net/2012/03/24000-abducted-women-children-rescued-in-11/ [Accessed 24 May 2012].

29 UNICEF, UN Global Compact, Save the Children, March 2012. Children’s Rights and Business Principles. Available at: http://www.unglobalcompact.org/Issues/human_rights/childrens_principles.html [Accessed 2 April 2012].

30 US Department of Labor. Bureau of International Labor Affairs: China. Available at: http://www.dol.gov/ilab/media/reports/iclp/sweat/china.htm#10 [Accessed 16 May 2012].



Q2 June 2012

31 China Labour Bulletin, 2007. Small Hands: A survey report on child labour in China. Available at: http://www.clb.org.hk/en/files/share/File/general/Child_labour_report_1.pdf [Accessed 27 April 2012].

32 United Nations Human Rights Council, 3 March 2009, Universal Periodic Review: Report of the Working Group on the Universal Periodic Review – China. Available at: http://lib.ohchr.org/HRBodies/UPR/Documents/Session4/CN/A_HRC_11_25_CHN_E.pdf [Accessed 27 April 2012].


34 China Labor Watch, 2011. Child Laborers in Chinese Supplier Factories for American Companies. Available at: http://www.chinalaborwatch.org/pro/proshow-151.html [Accessed 27 April 2012].

35 UNICEF, 2010. Annual Report for China. Available at: http://www.unicef.org/about/annualreport/files/China_COAR_2010.pdf [Accessed 26 April 2012]


37 International Trade Union Confederation, 2011. Annual Survey of Violations of Trade Union Rights: China. Available at: http://survey.ituc-csi.org/China.html [Accessed 27 April 2012].


39 US Department of State, 2011. Trafficking in Persons Report 2011 – China. Available at: http://www.state.gov/documents/organization/164453.pdf [Accessed 27 April 2012].

40 US Department of State, 2011. Trafficking in Persons Report 2011 – China. Available at: http://www.state.gov/documents/organization/164453.pdf [Accessed 27 April 2012].

41 China Daily, 2008. Guangdong cracks down on child labour in factories. Available at: http://www.chinadaily.com.cn/china/2008-05/03/content_6658027.htm [Accessed 24 May 2012].

42 The Jamestown Foundation, 2008. Child Labour Ring Exposed in Guangdong. Available at: http://www.jamestown.org/single/?no_cache=1&tx_ttnews%5Btt_news%5D=4913 [Accessed 24 May 2012].

43 China Digital Times, 2008. Chinese Police Find Child Slaves. Available at: http://chinadigitaltimes.net/2008/04/chinese-police-find-child-slaves/ [Accessed 24 May 2012].

44 M. Marron, 2009. Child Slave Labour in Shanghai. Available at: http://ihscslnews.org/view_article.php?id=331 and The New York Times, 2008. Child Labor Rings Reach China’s Distant Villages. Available at: http://www.nytimes.com/2008/05/10/world/asia/10CHINA.html?pagewanted=all [Accessed 24 May 2012].


46 ITUC, 2011. Annual Survey of Violations of Trade Union Rights. Available at: http://survey.ituc-csi.org/China.html#tabs-3 [Accessed 27 April 2012].

47 James Hyatt, Business Ethics, 15 February 2011, ‘Apple Expands Suppler Responsibility Program’. Available at http://business-ethics.com/2011/02/15/1030-apple-inc-expands-supplier-responsibilityprogram/ [Accessed 19 October 2011].

48 ILO CEACR, 2011, Report of the Committee of Experts on the Application of Conventions and Recommendations: Individual Observation Concerning Minimum Age Convention, 1973 (No. 138) China (ratification: 1999) Published: 2011. Available at: http://www.ilo.org/ilolex/gbe/ceacr.htm [Accessed 15 May 2012].




52 International Labor Rights Forum and the National Labor College Washington D.C., 2008. Wal-Mart Workers in China. Available at: http://www.laborrights.org/sites/default/files/publications-and-resources/Wal-Mart%20Workers%20in%20China.pdf [Accessed 23 May 2012].

53 Amnesty International, 2008. Amnesty International Report 2008: Human Rights in the People’s Republic of China. Available at: http://www.amnesty.org/en/region/china/report-2008 [Accessed 30 April 2012].

54 International Trade Union Confederation 2011. Report for the WTO General Council Review of the Trade Policies of the People’s Republic of China. Available at: http://www.ituc-csi.org/IMG/pdf/Chinal_Final-2.pdf [Accessed 30 April 2012].


56 United Nations Convention on the Elimination of All forms of Discrimination Against Women, 2006. Concluding comments of the Committee on the Elimination of Discrimination against Women: China. Available at: http://www.unhchr.ch/tbs/doc.nsf/898586b1dc7b4043c1256a450044f331/e7f5855127a0abb9c125723300594600/$FILE/N0647860.pdf [Accessed 30 April 2012].


58 US Department of State, 2011. 2010 Human Rights Report:China (includes Tibet, Hong Kong and Macau). Available at:http://www.state.gov/g/drl/rls/hrrpt/2010/eap/154382.htm [Accessed 30 April 2012].

59 ACWF cited by Maplecroft and UN Global Compact, undated, Human Rights and Business Dilemmas Forum: Gender Equality. Available at: http://human-rights.unglobalcompact.org/dilemmas/Gender/ [Accessed 30 April 2012].

60 ILO, 2005. ILO Thesaurus 2005, INFORM – Bureau of Library and Information Services. Available at: http://www.ilo.org/public/libdoc/ILO-Thesaurus/ english/tr4634.htm [Accessed 17 April 2012].

Endnotes



61 International Trade Union Confederation, 2011. Annual Survey of Violations of Trade Union Rights: China. Available at: http://survey.ituc-csi.org/China.html [Accessed 1 May 2012].

62 China Bureau of Statistics, 2011. Statistical Communiqué of the People’s Republic of China on the 2010 National Economic and Social Development. Available at: http://www.stats.gov.cn/english/newsandcomingevents/t20110228_402705764.htm [Accessed 1 May 2012].

63 ILO Committee of Experts on the Application of Conventions and Recommendations, 2011, CEACR: Individual Observation Concerning Occupational Safety and Health Convention, 1981 (No. 155) China. Available at: http://www.ilo.org/ilolex/cgi lex/pdconv.pl?host=status01&textbase=iloilc&document=680&chapter=3&query=China%40ref%2BObservation%40ref%2B%23YEAR%3D2011&highlight=&querytype=bool&context=0 [Accessed 1 May 2012].

64 WHO, 2009. Training for the Health Sector: Occupational Risks and Children’s Health. Available at: http://www.who.int/ceh/capacity/occupational.pdf [Accessed 10 April 2012].

65 UNGASS, 2010. Country Progress Report. Available at: http://www.unaids.org/en/dataanalysis/monitoringcountryprogress/progressreports/2010countries/china_2010_country_progress_report_en.pdf [Accessed 30 April 2012].



68 Xinhua Sun et al., 2010. Evolution of information-driven HIV/AIDS policies in China. Available at: http://ije.oxfordjournals.org/content/39/suppl_2/ii4.full [Accessed 30 April 2012].





73 UNICEF, undated. Child protection from violence, exploitation and abuse. Available at: http://www.unicef.org/protection/57929_57972.html [Accessed 12 April 2010].

74 WHO, 2009, Training for the Health Sector: Occupational Risks and Children’s Health. Available at: http://www.who.int/ceh/capacity/occupational.pdf [Accessed 10 April 2012].

75 UNICEF, UN Global Compact, Save the Children, March 2012. Children’s Rights and Business Principles. Available at: http://www.unglobalcompact.org/Issues/human_rights/childrens_principles.html [Accessed 2 April 2012].

76 Xinhua News Agency, 2006. China Adopts Amendment to Compulsory Education Law. Available at: http://www.china.org.cn/english/MATERIAL/173281.htm [Accessed 26 April 2012].

77 Amnesty International, 2011. Annual Report 2011: China. Available at: http://www.amnesty.org/en/region/china/report-2011 [Accessed 26 April 2012].

78 US Department of State. 2011. Human Rights Report: China (Includes Tibet, Hong Kong and Macau) 2010. Available at: http://www.state.gov/g/drl/rls/hrrpt/2010/eap/154382.htm [Accessed 27April 2012].

79 US Department of State. 2011. Human Rights Report: China (Includes Tibet, Hong Kong and Macau) 2010. Available at: http://www.state.gov/g/drl/rls/hrrpt/2010/eap/154382.htm [Accessed 27April 2012].

80 Human Rights Watch, 2007. End Child Labour in State Schools. Available at http://www.hrw.org/news/2007/12/02/china-endchild- labor-state-schools [Accessed 27 April 2012].

81 UNICEF, 2011. UNICEF Annual Report for China 2010. Available at: http://www.unicef.org/about/annualreport/files/China_COAR_2010.pdf [Accessed 14 May 2012].

82 Congressional-Executive Commission China, 2011. Annual Report 2011. Available at: http://www.cecc.gov/pages/annualRpt/annualRpt11/AR2011final.pdf [Accessed 16 April].

83 HRW, 2012. World Report 2012: China. Available at: http://www.hrw.org/world-report-2012/world-report-2012-china [Accessed 1 May 2012].



86 UNESCO, 2010. Regional Overview: East Asia and the Pacific. Available at: http://unesdoc.unesco.org/images/0018/001866/186631e.pdf [Accessed 1 May 2012].

87 UNESCO, 2010. Regional Overview: East Asia and the Pacific. Available at: http://unesdoc.unesco.org/images/0018/001866/ 186631e.pdf [Accessed 1 May 2012].

88 US Department of State. 2011. Human Rights Report: China (Includes Tibet, Hong Kong and Macau) 2010. Available at: http://www.state.gov/g/drl/rls/hrrpt/2010/eap/154382.htm [Accessed 27 April 2012].

89 Danke Li et al., 2003. Household Decisions and Gender Inequality in Education in Rural China. Available at: http://muse.jhu.edu/login?auth=0&type=summary&url=/journals/china/v001/1.2li.html [Accessed 1 May 2012].

90 UNDP, 2011, Gender Inequality Index. Available at: http://hdr.undp.org/en/media/HDR_2011_EN_Table4.pdf [Accessed on 9 April 2012].


Endnotes



Q2 June 2012

92 UNGEI. Information by country: China. Available at: http://www.ungei.org/infobycountry/china.html [Accessed 16 May 2012].

93 Xiaofei Li et al., 2010. The challenges facing young workers during rural labor transition. Available at: http://www.emeraldinsight.com/journals.htm?articleid=1858931&show=html [Accessed 1 May 2012].

94 UNICEF, 2012. UNICEF’s corporate partnerships: Newsline. Available at: http://www.unicef.org/infobycountry/index_61969.html [Accessed on 16 April 2012].

95 HRC, 2011. Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework. Available at: http://www.ohchr.org/Documents/Issues/Business/A-HRC-17-31_AEV.pdf [Accessed on 17 April 2012]. All company recommendations are based on this framework’s guidance and terminology.

96 ILO-IOE, 2009. Eliminating Child Labour: Guides for Employers. Available at: http://www.ilo.org/public/english/dialogue/actemp/whatwedo/projects/cl/guides.htm [Accessed 1 April 2012].

97 ILO-IPEC, 2005. Resource Kit on Child Labour Monitoring. Available at: http://www.ilo.org/ipec/Action/Childlabourmonitoring/Trainingmaterials/lang--en/index.htm [Accessed 1 April 2012].

98 ILO-IPEC, 2002. Combating Child Labour: A handbook for labour inspectors. Available at: http://www.ilo.org/safework/info/instr/WCMS_110148/lang--en/index.htm [Accessed 1 April 2012].

99 ILO, 2005. Guidelines for Developing Child Labour Monitoring. Available at: http://www.ilo.org/ipecinfo/product/viewProduct.do;?productId=1500 [Accessed 24 May 2012].

100 International Organization for Standardization, International Standards for Business, Government and Society. ISO 26000. Available at: http://www.iso.org/iso/iso_catalogue/management_and_leadership_standards/social_responsibility/sr_iso26000_overview.htm [Accessed 24 May 2012].

Endnotes

Notes



Notes

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