ANNEX A
Examples of "dilemmas" might be:
(a) CDC strives for the highest standards
on health and safety and the environment (HSE). From time to time,
CDC is presented with proposals for investing in an existing company
where the standards are inadequate. Through its involvement, CDC
might be in a position to press for appropriate standards to be
put in place. If CDC pulled out of the deal on the grounds that
HSE standards did not meet CDC's requirements, then CDC would
have missed an opportunity to influence the company's behaviour.
On the other hand, by investing CDC could be accused of endorsing
a company whose performance falls below CDC's stated benchmarks.
In this case, the appropriate course of action will depend on
a number of factors specific to the business concerned. How low
are current standards? What measures will be required to bring
them to a reasonable level? What timetable can be envisaged? what
influence with CDC actually have? Do CDC's co-investors have a
serious intention of meeting CDC's requirements in this area?
What will CDC's options be if the timetable is not met?
(b) CDC considers the unregulated or partly
regulated practice of child labour to be an infringement of human
rights. We could therefore refuse to accept the practice in any
form. However, while exploitative child labour can never be acceptable,
we may be faced with practical situations where the employment
of minors may be a preferred option in specific circumstances.
For example, parents may feel more comfortable if a minor accompanies
them when they are involved with seasonal picking in the school
holidays: this raises issues for CDC which may have to be resolved
on an individual basis. Should CDC allow children to work alongside
their parents provided they are not missing school? Should CDC
pay the child at the same rate as the adults for work done? Should
CDC allow the child to be present and potentially do work, but
not pay him/her (what kind of policing logistics should be implemented)?
Should CDC accept responsibility for the safety of the child as
if he/she were employed? The reasons for allowing a form of child
labour would have to be made crystal clear in any individual case
so that flexibility on this issue is used for the right reasons
(in the interests of the children concerned) and not for the wrong
reasons (in the interests of commercial returns).
Commonwealth Development Corporation
23 June 1998
