Three Fallacies Businesses Are Hiding Behind

Businesses are neglecting their children’s rights responsibilities, by hiding behind three fallacies

Fallacy one: It’s too complicated

Some businesses might claim that in a modern global operation, taking children’s rights into account is just too complicated.

Companies may also cite:

• Limited control over long supply chains and varying definitions of child labour across countries.
• Child labour entrenched in local economies.
• Children’s rights diverting resources from competing CSR priorities.

But the biggest companies in the world are good at solving complex problems!

Companies can address social challenges in business locations, by introducing community initiatives underpinned by a results-based management framework.

Fallacy two: No impact on children

Many companies wrongly believe there is no overlap between their operations and the lives of children.

• Our benchmark 2023 report shows that out of 795 companies, 131 score 0 in identifying child rights impacts as material or salient to their business.
• Companies might claim that their 0 scores are not due to a lack of policies – but because they are not reporting publicly.
• This underscores the importance of reporting legislation.

Fallacy three: It won’t harm business returns

Companies may suggest that neglecting children’s rights won’t harm their returns, but businesses face heightened scrutiny when children are involved.

Failing to address children’s rights risks can lead to:

• Legal and regulatory penalties.
• Operational disruption.
• Supply chain vulnerabilities.
• Increased costs.
• Damage to reputation.