Letter

Ethical compliance

Jayampathi Perera, President Sri Lanka UK Business Council

Another claim related to child labour appeared on our TV screens just a few days ago. This time, the culprit was GAP, the prestigious High Street chain store here in the UK. Last month it was the Chinese toy manufacturers and their so-called Western partners who were criticised by the media for turning a blind eye for their own financial benefit.

In a world where a majority of us are trying to live in peace and harmony, how does the exploitation of children happen? The simple reason for this is greed and the never ending pursuit of cheap products which can be made cheaply and be sold with huge profits here in the West.

Child labour in India is not new. It is a centuries old method of using very young to produce high value products for their masters who in return sell them with massive mark ups worldwide.

The saddest part is why are companies such as GAP attracted to such practices. Do they really not know the origins of what they sell? It is hard to believe.

Especially in this so-called orderless world where everyone knows each other. The answer is that they do not care so long as they source cheap products to maximise their profit margins and keep their shareholders happy.

China is a total different ball game altogether where using child labour is certainly an added attraction to Western buyers. No wonder we all can buy Chinese products at lower and lower prices. Of course today's technology certainly helps products to be produced cheaply, but how cheap? China does not only use child labour, but also other practices such as using conscripts, prisoners and people who have been paid well below what is regarded as a reasonable wage.

Frequently when stories of child labour, poor working conditions which are little better than slave labour and use of substandard and often dangerous materials in manufacture hit the media the retailers say they regularly inspect their suppliers and find no evidence.

Do these people not understand that their suppliers will almost certainly have been tipped off of the impending visit?

I am puzzled why all these so -called decent people with relatively high disposable income levels still purchase goods from suspicious sources and do not rebel against such companies. Are we all stakeholders in companies which use unethical practices? I do not think so, but we certainly are not bothered how things are been made as long as it's cheap.

However, there are exceptions that can be found elsewhere. In Sri Lanka where child labour is not tolerated and basic wages are being closely monitored by labour laws and active legislators.

Perhaps that is the reason why Sri Lanka has been granted GSP Plus status by the European Union a few years ago. Sadly this facility has not been properly utilised for recent reports indicate that the Government's lack of quality public relations manoeuvring is blighting efforts to make use of international concessions awarded to Sri Lanka such as that offered by the EU's GSP+ scheme.

At a recent press conference in Colombo Minister Prof. G.L. Pieris himself admitted that as a whole, Sri Lanka has utilised a mere 30 per cent of the total concession afforded under the scheme, which covers nearly 6,000 different items exported from Sri Lanka to the European Union.

Reports say this is a result of a majority of exporters being completely unaware of the existence of this hugely beneficial concession.

The forum also discussed the importance of the community as a whole mobilising in the effort to promote investments to Sri Lanka; the UK currently stands as the third biggest investor in Sri Lanka with just over $ 250 million in total, invested in operations that employ some 30,000 Sri Lankans around the country.

Ahead of the UK is Malaysia and the United States; two countries with Sri Lankan expatriate communities that are collectively far less affluent and mobile in terms of the investment activity that can be drummed up.

Fro more information and your thoughts, contact the Chairman of the UK Sri Lanka Business Council Jayampathi Perera - [email protected].