Child Labor Global Economy

Child Labor and Chocolate Consumption
1
Labor practices in another country should be a relevant consideration in international trade if ethics matters at all. In the U.S., slavery was ended in the 19th century—but it is disconcerting to hear that in reality it hasn’t ended but has rather simply been relocated. Essentially today’s world consists of a globalized economy, which impacts all societies (Meyer, 2000). If slavery and child labor is deemed unethical in the West, it should not be allowed that Western companies can profit from these practices simply by outsourcing the work to regions of the world where slavery and child labor is routine. Fair Trade certification helps companies to be honest, but it is still a shame that so few companies care to be ethical about their products. Just because the slavery is not happening on domestic shores does not mean it is somehow okay: those people abroad are still being exploited and profits made by Westerners from their labor. People who consume those products also share some of the guilt: after all, if it weren’t for them, there would not be a market for such products. By only buying chocolate that is Fair Trade certified, consumers could really make an impact on the industry.
2
With regard to trade products like cocoa, the options available to governments, businesses and consumers for dealing with practices such as child labor or slave labor in other countries are to (a) for consumers to look for labels like the Fair Trade certification to make sure the companies producing the product are engaging in ethical practices; (b) for governments and businesses to use the International Labor Organization and the International Programme on the Elimination of Child Labour (IPEC) to end the practice of child labor in countries like Ghana and the Ivory Coast; and (c) for businesses to adopt Fair Trade practices, which can help to regulate the way people and nations go about the ethics of business (Renard, 2005).
The implications associated with these three options are that consumers will put pressure on businesses to ensure that their goods are produced ethically; businesses will put pressure on governments through the use of organizations like IPEC to make sure that states are cracking down on child labor and kidnapping; and governments will put pressure on domestic growers to make sure they are in compliance with regulations. Ultimately, the consumer has the power to effect change since it all starts with who buys the product.
3
International trade theorists would view the fair trade movement favorably. For example, De Pelsmacker, Driesen and Rayp (2005) point out that consumers do care about ethics and that they are more willing to pay for fair-trade coffee if it means putting a stop to child labor, kidnapping, slavery and profiteering in other parts of the world. People actually are willing to pay extra for products that are produced by ethically-minded companies. Companies that promote social responsibility and engage in sustainable practice develop their brand around the concept of keeping the world safe and looking out for the environment. Trade theorists recognize that there is a market for this type of concern. Intraindustry trade, for example, has political ramifications internationally, as Madeira (2018) points out. In the globalized economy, industries are closely linked and one industry can set off a chain reaction of change if players in that industry set a mind to reforming the industry.
References
De Pelsmacker, P., Driesen, L., & Rayp, G. (2005). Do consumers care about ethics?
Willingness to pay for fair?trade coffee. Journal of Consumer Affairs, 39(2), 363-385.
Madeira, M. A. (2018). Intra-Industry Trade: Cooperation and Conflict in the Global
Political Economy. By Cameron G. Thies and Timothy M. Peterson. Stanford: Stanford University Press, 2015. Perspectives on Politics, 16(1), 288-290.
Meyer, J. W. (2000). Globalization: Sources and effects on national states and
societies. International Sociology, 15(2), 233-248.
Renard, M. C. (2005). Quality certification, regulation and power in fair trade. Journal of
Rural Studies, 21(4), 419-431.