STAKEHOLDER

GENERAL EVALUATION

PSYCHOLOGICAL EVALUATION

Unfavourable (costs)

Favourable (benefits)

Children

Deprives opportunities for education

Following footsteps of parents leading towards socialisation and personal development

Lack of education inhibits psychological maturity

Health Problems (e.g. breathing problems, chest pains, skin infections, bone deformation)

CL as best among given alternatives (see prostitution) since lack of options

Escape family violence

Little or no payment

Contributions of children’s earnings to household income (pride)

Physical/psychological/sexual abuse

Some employers provide meals and accommodation

Hazardous working environment (e.g. materials such as pesticides)

Malnutrition

Long working hours or slave-like employment

Families

Child labour deprives children (and families) of the opportunity for education thus prevents opportunities for higher long-term income

CL provides livelihood

Pity and fear for children, don’t want them to be treated badly or in danger

Investors

Lower long-term profits

higher short-term profits

Reputation Dilemma (negative image might reduce sharholder value)

Customers

CL enables consumers to buy goods cheaply (low price products)

Ethical Dilemma (support CL through buying cheap products)

Governments (of country where CL takes place)

Child labour discourages FDI resulting in lower tax revenues

Low labour costs attracting FDI leading to higher tax revenues

Reputation Dilemma

Increase in adult unemployment rate due to rock-bottom wages of children

Companies

Decline in revenue resulting from boycott of child labour products

Cutting costs by outsourcing and capitalising on CL

Ethical Dilemma

Inexperience of children may bear losses

Low resistance, given that children have weak voice rights and no unions