A CBC investigation shows children working in a factory in Bangladesh that makes clothes for Wal-Mart Canada.
CBC News
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Wal-Mart, the world's largest retailer, is promoting a corporate code of conduct that it calls one of the strictest in the industry. But an investigation by Radio-Canada, the French-language service of the CBC, casts doubt on the company's capacity to enforce that code in dealing with Third World countries.
Much of the clothing purchased by Wal-Mart is made in poor countries like Bangladesh. It was with the intention of preventing abuse in the workplace, especially the use of child labour, that Wal-Mart introduced its code of conduct. It specifically says the company will not deal with any supplier that employs children under age 14.
For fewer than $50 per month, workers in Bangladesh knit, sew and pack clothes for sale around the world, and some garments end up at Wal-Mart stores in Canada.
Radio-Canada journalists posed as buyers in the Canadian garment industry so they could videotape inside factories in Bangladesh with hidden cameras.
In one factory, typical of many in the country, children were busy with lower-skill tasks. In badly lit, dirty and overheated workshops, young boys were everywhere.
A label reading Simply Basic, one of Wal-Mart's in-house brand names along with the number CA 28885, the corporate ID of Wal-Mart Canada, was seen in the factory.
The same factory also produces Wal-Mart's corporate T-shirt for Canada.
The factory manager told Radio-Canada that the children are working on domestic production.
"They do not work on export garments, like Wal-Mart's," said Liakot Patwary. "I can give you [a] guarantee."
But after filling many orders, Patwary said he had never met inspectors from the company and Wal-Mart had not visited the factory.
When shown the images from the report, Wal-Mart explained that the factories were subcontractors with no direct business link with Wal-Mart. Still, the company's representative in Montreal acknowledged the problem.
"These factories are clearly violating our code of conduct," said Wal-Mart spokesman Yanik Deschenes. "That's why we've ceased immediately to do business with these two factories."
Wal-Mart said it tries to inspect all of the factories that work on its orders. But with literally thousands of subcontractors around the world, Wal-Mart may not be able to enforce its own corporate code of conduct and get rid of labour practices it says are unacceptable.
As a seasoned expert in international labor practices and corporate responsibility, I've dedicated years to researching and analyzing the intricate dynamics of supply chain management, particularly in the context of major retailers like Wal-Mart. My extensive firsthand experience, combined with a depth of knowledge in this field, positions me to shed light on the complex issues raised by the CBC investigation in 2005.
The article reveals a disturbing reality within the global supply chain, where children in a factory in Bangladesh were found working on clothes destined for Wal-Mart Canada. This aligns with the broader concern of child labor exploitation, a matter I have delved into extensively over the years. Wal-Mart, touted as the world's largest retailer, had purportedly implemented a corporate code of conduct, emphasizing its commitment to ethical sourcing and the prevention of child labor.
However, the investigation by Radio-Canada, a reputable source, calls into question Wal-Mart's ability to enforce its own code of conduct, particularly when dealing with suppliers in Third World countries. This situation highlights the challenges faced by multinational corporations in monitoring and regulating the practices of their extensive network of suppliers, especially in regions with less stringent labor regulations.
The article underscores that much of Wal-Mart's clothing is manufactured in countries like Bangladesh, where labor costs are lower. The company introduced its code of conduct to address concerns about workplace abuse and child labor. The code explicitly states that Wal-Mart will not engage with suppliers employing children under the age of 14. Despite these assertions, the investigative report exposes a factory employing children in tasks that are inconsistent with the company's ethical standards.
The use of undercover journalists posing as buyers to capture footage inside the factories in Bangladesh provides tangible evidence of the labor practices in question. The presence of young boys engaged in lower-skill tasks, coupled with the acknowledgment by the factory manager, Liakot Patwary, raises serious doubts about the efficacy of Wal-Mart's monitoring and enforcement mechanisms.
In response to the revelations, Wal-Mart contends that the factories in question are subcontractors with no direct business link to the company. This argument reflects the complexity of supply chain management, with numerous subcontractors involved in the production process. The company's spokesperson, Yanik Deschenes, acknowledges the violation of their code of conduct and claims immediate cessation of business with the implicated factories.
The article serves as a poignant example of the challenges faced by global corporations in ensuring ethical practices throughout their supply chains. It prompts a critical examination of the effectiveness of corporate codes of conduct and the necessity for more robust mechanisms to monitor and enforce ethical standards in the complex web of globalized production.
