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Labu 2051 - John Chen Case Study

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LABU 2051 (T29)                                 Class 1, Mini-Case Study

  • Question 1: What is John Chen’s objective / goal?
  • Maximising the profit of the company but stop employing the child labour
  • Also note that the country may allow children to work, but it’s just that the company’s rule is against employment of children
  • To ensure the value is implemented
  • To make profit

  • Question 2: What is the problem?
  • Child labour working in the republic of Niger
  • Against the company’s core value – not to employ children

  • Question 3: What is the cause of the problem?
  • The republic of Niger is highly impoverished
  • Large size of families  children also need to work
  • Question 4: If there are job-cuts, who would be the losers and who would be the winners?
  • Losers: the children / people working for the company  unemployed  no income
  • Winners: the company  stopped employing children  earn a better reputation of the company (to build an image that it is caring about the world, no child abuse)
  • Question 5: Is it ethical to impose a first-world value system on another culture or nation?
  • First-world value system: children should be protected and sent to school and acquire knowledge (developed countries)
  • C.f. In some developing countries  child labour can be legal, child labour =/= child abuse
  • Unethical: Because of the background of the country, everyone is poor  children actually have to work to earn money for the family to make a living
  • Question 6: Come up with a solution for the case.
  • Long-Term Solution
  • Cash Transfer Scheme – both unconditional and conditional
  • Minor – Unconditional
  • To ease household budget constraints RIGHT NOW
  • Major– conditional
  • To alleviate current income poverty (by cash benefits)
  • To reduce extent of future poverty (by behavioural conditions)
  • This will also lower the incentive of the parents to send the children to work (NOT eliminating the problem, but to alleviate the problem)
  • Short-Term Solution
  • Getting Help from the developed countries – Cash Donation
  • To alleviate the current poverty of the impoverished countries
  • Public works programme
  • Provide people with income transfer in exchange for participation in labour intensive work projects
  • To provide source of income to poor workers
  • To construct essential public infrastructure
  • As a kind of employment insurance
  • Include on-job training, reintegrating low-skilled workers into the country labour force



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