Children have an important place in our society. Investing financial resources is crucial for ensuring that children can reach their potential.

Childhood is a unique stage in our development. The quality of food, water, affection and education that children receive can impact on their subsequent lives and their potential to become engaged and productive citizens. This time presents a unique opportunity for governments and organisations to ‘level the playing field’ for children from poorer backgrounds through investments.

Many businesses across the Caribbean recognise this, and create opportunities to benefit millions of children across the region. Most recently, The Sandals Foundation — the non-profit arm of Sandals Resorts International — announced a new collaboration with School Specialty Inc for the Pack for a Purpose programme. This partnership will further assist those travellers to Sandals Resorts and Beaches Resorts who wish to bring along much-needed supplies for schools supported by the company all across the Caribbean.

Unfortunately, children can be robbed of their childhood when they are forced into child labour. The ILO has defined child labour as a form of abuse, and according to the ILO Minimum Age Convention of 1973, child labour also refers to any work done by children which is mentally, physically, socially or morally dangerous and harmful to them and interferes with their education.

Child labour also involves putting to work those children who are under the minimum working age set by national legislation or international standards. The ILO estimates that children make up nearly 30 per cent of the world’s estimated 50 to 100 million domestic workers.

Children often lack a public voice; they cannot vote or form trade unions; they cannot influence companies through the purchase of stocks and shares, and by attending shareholder meetings. As such, businesses have a responsibility to consider the impact they have on children’s rights.

Children around the world remain vulnerable. They continue to be exploited. According to UNICEF, an estimated 150 million children worldwide are engaged in child labour. In 2012, statistics from the International Labour Organisation (ILO) show that in the Caribbean and Latin America, there are some 17,843 children in employment: 12,505 are victims of child labour, and 9,638 are engaged in hazardous work.

Globally, it is estimated that there are 168 million child labourers, 85 million of whom are involved in hazardous work. With so many children undergoing this kind of abuse, there’s still a long way to go to eradicate it from Caribbean society.

Some of the causes of child labour are poverty, poor education, and socio-economic marginalisation.

Perhaps the most infamous cases of child labour exploitation are linked to the retail industry, clothing in particular. Retailers sourcing goods and raw materials from around the world face numerous challenges in relation to children’s rights, especially as production is often based in developing economies where there is a high risk that child labour will be involved at one or more points in the supply chain. Other sectors at risk of child labour include agriculture and the services sector, including hotel work, manufacturing and restaurants, motor vehicle repair and maintenance.

The financial services sector is also not immune to the impacts of child labour – not through the direct employment of children, but for its financing of businesses and activities that could be involved in child labour or the abuse of underage workers. Financial institutions can find themselves under pressure to perform proper due diligence on potential investments. This is perhaps an effect of globalisation, where supply chains lengthen and control and oversight lessens.

Finance directors and their accounting teams need to be aware of this important issue, because it is of direct relevance to them. It has repercussions for corporate risk, corporate governance and corporate reporting. Demands for audit, measurement and transparency will only increase when it comes to child rights.

The boardroom is instrumental in defining a company’s policy and its direction. Board members should remember that implementing policies that respect the rights of children can bring many advantages, especially at a time when leading companies are looking to enhance their business models by integrating long-term planning into their core business strategy. It is fundamental for company boards to look deep into their supply chains and implement immediate solutions where the rights of children are violated.

Corporate social responsibility is based on the idea that a better society has more conditions to supply organisations’ profit. Actions connected with the well-being of the society will improve the organisations’ public image, avoid the necessity of government regulations, and above all, are ethically desirable. Corporate social responsibility can improve the business’s brand image socially.

Even where companies have instituted policies and procedures designed to minimise the risk of being involved in child labour, cases can and will continue to arise. Legal action, negative media coverage, reputational damage, loss of business and reduced investor support are just some of the consequences.

Businesses have increasing opportunities to work with NGOs and charitable organisations, and to join forces with other corporate entities in sector-wide initiatives. The accounting profession needs to be aware and be prepared, especially as globalisation extends supply chains and operations across borders. This expansion increases the risk of a business being associated with potential violations of children’s rights.

Protecting children’s rights is fundamental to good business. The reality is that if business and finance leaders fail to take account of children’s rights, they run ethical, reputational and legal risks that can affect the bottom line.

Diedre Codner Campbell, FCCA, is a technical specialist at the Tax Administration Jamaica.