BUSINESS ENVIRONMENT

The term ‘business environment’ means the sum total of all individuals, institutions and
other forces that are outside the control of a business enterprise but that may affect its
performance. The economic, social, political, technological and other forces which
operate outside a business enterprise are part of its environment. Business environment
means all of the internal and external factors that affect how the company functions
including employees, customers, management, supply and demand and business
regulations. These forces influence the business even though they are outside the business
boundaries.

For example

(i) changes in taxes by the government can make the customers buy less. Here the business
would have to re-establish its prices to survive the change. Even though the business had no
involvement in initiating the change it still had to adapt to it in order to survive or use the
opportunity to make profits.

(ii) peoples’ demand determine the kind of products to be offered for sale; this demand is
consequently affected by peoples’ attitudes, customs, cultural values, fashion and other
related forces. The code of conduct that is supposed to be followed by the business is
determined by the socio-cultural environment.

(iii) it is mandatory for tobacco companies to print ‘smoking is harmful’ on its products.
IMPORTANCE OF BUSINESS
ENVIRONMENT
DIMENSIONS OF BUSINESS
ENVIRONMENT
 CHILD LABOUR
Child labour is the practice of having children engage in economic activity, on a part- or
full-time basis. The practice deprives children of their childhood, and is harmful to their
physical and mental development. Poverty, lack of good schools and the growth of the
informal economy are considered to be the key causes of child labour in India. Some
other causes of Child Labour in India are cheap wages and accessibility to factories that
can produce the maximum amount of goods for the lowest possible price. Corruption in
the government of India also plays a major role in child labour because laws that should
be enforced to prevent child labour are not because of the corrupt government.

UNICEF estimates that India with its larger population, has the highest number of
labourers in the world under 14 years of age. Some child rights activists argue that child
labour must include every child who is not in school because he or she is a hidden child
worker.[29] UNICEF, however, points out that India faces major shortages of schools,
classrooms and teachers particularly in rural areas where 90 percent of child labour
problem is observed. About 1 in 5 primary schools have just one teacher to teach students
across all grades.

The Constitution of India in the Fundamental Rights and the Directive Principles of State
Policy prohibits child labour below the age of 14 years in any factory or mine or castle or
engaged in any other hazardous employment (Article 24). The constitution also
envisioned that India shall, by 1960, provide infrastructure and resources for free and
compulsory education to all children of the age six to 14 years. (Article 21-A and Article
45).
 WORLD CHILD LABOUR
DAY
The International Labour Organization (ILO) launched the World Day Against Child
Labour in 2002 to focus attention on the global extent of child labour and the action and
efforts needed to eliminate it. Each year on 12 June, the World Day brings together
governments, employers and workers organizations, civil society, as well as millions of
people from around the world to highlight the plight of child labourers and what can be
done to help them.

The Sustainable Development Goals (SDGs), adopted by world leaders in 2015, include a
renewed global commitment to ending child labour. Specifically, target 8.7 of the
Sustainable Development Goals calls on the global community to: "Take immediate and
effective measures to eradicate forced labour, end modern slavery and human trafficking
and secure the prohibition and elimination of the worst forms of child labour, including
recruitment and use of child soldiers, and by 2025 end child labour in all its forms."
 CAUSES OF CHILD LABOUR
IN INDIA
Child labour is caused by several factors. Some of them include:

1. Poverty: Children who come from poor families may be forced to work to support
their siblings and parents or supplement the household income when expenses are
more than the parents’ earnings. It is a huge problem especially in developing countries
where parents are unable to generate income due to the lack of employment
opportunities or education. Children can be found employed in mines or hawking in the
streets to earn money that is used to provide basic necessities such as food and
clothing for the family. Children may also be employed in factories to generate income
for the family instead of attending school. Such a practice is a common phenomenon in
poverty-stricken regions with large factories set up by international companies.

2. Low Aspiration: It is important for parents and children to understand that they can
work hard and make something great of themselves. Low aspirations by parents and
children is a major cause of child labour because in such a situation, being employed in
a local factory, or selling grocery in the streets is the normal way of life. To these types
of children and parents, success only belongs to a certain region or group of people.
They do not aspire to become professionals in the society or great entrepreneurs. It is a
mindset that forms the very foundation of child labour.

3. Huge demand for unskilled labourers: The demand for unskilled labourers is
another cause of child labour. Children are mostly unskilled and provide a cheap source
of labour, making them an attractive option for many greedy employers. Child labour, by
virtue of being cheap, increases the margin of profits for such entrepreneurs whose only
objective is profit maximization even if it comes at the expense of ethics and good
business practices. These types of employers can also force children to work under
unfavorable conditions through manipulation or blatant threats.

4. Illiteracy: A society with many educated people understands the importance of going
to school and pursuing dreams. Children have the ability and time to become whatever
they aspire to be. Illiteracy, on the other hand, makes it difficult for many people to
understand the importance of education. Illiterate people view education as a preserve
of the privileged in the society. They will therefore not provide support to children so that
they can go to school and build solid foundations for future success. The same view of
life is seen among illiterate parents who prioritize children contributing to the upkeep of
the family over going to school.

5. Early Marriages: Marrying at an early age is a major contributing factor to

overpopulation. Young parents are able to sire a lot of children because they remain
fertile for a long time. Having many children with little or no resources to support them
leads to child labour. Older children are forced to work in order to help their parents
support the family.

6. High cost of education: Quality education is expensive. To many parents who live
in abject poverty, priority is given to providing food for the family because education is
too expensive to afford especially when there are many children to pay school fees for.
Instead of letting children stay at home because there is lack of money to send them to
school, parents opt to have them working as unskilled labourers to help support the
family. Some parents can also only afford basic education which means that children
will be forced to look for work since they cannot pursue their education further.
 CONSEQUENCES OF CHILD
LABOUR IN INDIA
Child labour has several negative impacts. Some of them include:

1. Loss of Quality childhood: It is important for human beings to enjoy every stage of
their development. A child should play with friends and make memories for a lifetime.
Youths should explore life and form strong foundations that would define their adult
lives. Child labour, therefore, leads to loss of quality childhood as children will be
deprived of the opportunity to enjoy the amazing experiences that come with being
young. Children are often encouraged to play because it helps in their growth and
development. A child forced to work will miss many of the good things associated with
childhood.

2. Health issues: Child labour can also lead to health complications due to
undernourishment and poor working conditions. It is highly unlikely that people who
employ children also have the moral capacity to ensure that they have good working
conditions. Working in places such as mines and badly conditioned factories may result
in lifetime health issues for children employed to work in these places. A child assigned
physically demanding duties may suffer physical trauma that may scar him or her for
life.

3. Mental trauma: It is not a pleasant experience to be kept working as a child while

your age-mates are out playing and going to school. Children also lack the ability to
shield themselves from most of the challenges that occur in the workplace. Issues such
as bullying, sexual exploitation, and unfavorable working hours may result in mental
trauma in these children. They will find it hard to forget the past and may become
societal misfits because of bad childhood experiences. Child labour may also result in
the lack of emotional growth and thus insensitivity.

4. Illiteracy: Children that are employed do not have the time to go to school. They
spend a lot of time in their workstations as the days and years go by. The lack of
education and illiteracy makes them individuals with limited opportunities as far as
employment is concerned. Education also prepares a person for several challenges in
the society and without it, one may turn out to lack the basic skills required to overcome
many of life’s problems. An individual who has gone to school may be aware of how to
approach certain situations in life without resorting to brute force. An illiterate person, on
the other hand, considers force to be the only answer to nearly all of the challenges
experienced.

CHILD LABOUR LAWS IN

INDIA
When in the 20th Century, child labour became so prominent that news of factory hazards
and mishappenings taking innocent children’s life, flashed all around in the newspapers,
then was the time, a need for legislations and statutes were felt to prohibit the mal
practice of child labour. Today, there are sufficient statutes condemning and prohibiting
child labour such as:

The Factories Act of 1948: The Act prohibits the employment of children below the age
of 14 years in any factory. The law also placed rules on who, when and how long can pre-
adults aged 15–18 years be employed in any factory.

The Mines Act of 1952: The Act prohibits the employment of children below 18 years of
age in a mine. Mining being one of the most dangerous occuptions, which in the past has
led to many major accidents taking life of children is completely banned for them.

The Child Labour (Prohibition and Regulation) Act of 1986: The Act prohibits the
employment of children below the age of 14 years in hazardous occupations identified in
a list by the law. The list was expanded in 2006, and again in 2008.

The Juvenile Justice (Care and Protection) of Children Act of 2000: This law made it
a crime, punishable with a prison term, for anyone to procure or employ a child in any
hazardous employment or in bondage. This act provides punishment to those who act in
contravention to the previous acts by employing children to work.

The Right of Children to Free and Compulsory Education Act of 2009: The law
mandates free and compulsory education to all children aged 6 to 14 years. This
legislation also mandated that 25 percent of seats in every private school must be
allocated for children from disadvantaged groups and physically challenged children.

Government has enacted the Child Labour (Prohibition & Regulation) Amendment
Act, 2016 which came into force w.e.f. 1.9.2016. The Amendment Act completely
prohibits the employment of children below 14 years. The amendment also prohibits the
employment of adolescents in the age group of 14 to 18 years in hazardous occupations
and processes and regulates their working conditions where they are not prohibited. The
amendment also provides stricter punishment for employers for violation of the Act and
making the offence of employing any child or adolescent in contravention of the Act by
an employer as cognizable.
CHILD LABOUR INCIDENTS
Some of the famous incidents are:
GAP
A 2007 report claimed some GAP products had been produced by child labourers. GAP
acknowledged the problem and announced it is pulling the products from its shelf. The
report found Gap had rigorous social audit systems since 2004 to eliminate child labour
in its supply chain. However, the report concluded that the system was being abused by
unscrupulous subcontractors.
GAP's policy, the report claimed, is that if it discovers child labour was used by its
supplier in its branded clothes, the contractor must remove the child from the workplace,
provide it with access to schooling and a wage, and guarantee the opportunity of work on
reaching a legal working age.
In 2007, The New York Times reported that GAP, after the child labour discovery,
created a $200,000 grant to improve working conditions in the supplier community.
H&M and Zara
In December 2009, campaigners in the UK called on two leading high street retailers to
stop selling clothes made with cotton which may have been picked by children. Anti-
Slavery International and the Environmental Justice Foundation (EJF)
accused H&M and Zara of using cotton suppliers in Bangladesh. It is also suspected that
many of their raw materials originates from Uzbekistan, where children aged 10 are
forced to work in the fields. The activists were calling to ban the use of Uzbek cotton and
implement a "track and trace" systems to guarantee an ethical responsible source of the
material.
H&M said it "does not accept" child labour and "seeks to avoid" using Uzbek cotton, but
admitted it did "not have any reliable methods" to ensure Uzbek cotton did not end up in
any of its products. Inditex, the owner of Zara, said its code of conduct banned child
labour.
 CHILD LABOUR AS A
CRIME
In 1986, India introduced the Child Labour Act that allowed children below 14 to be
involved in “non-hazardous” work such as working on farms and making handicrafts.
In 2012 an amendment to the law was proposed to prohibit children below the age of 14
from working in any industry. The new bill, called the Child and Adolescent Labor
(Prohibition and Regulation) Bill, also stated that children under the age of 18 shouldn’t
be employed in hazardous work.
The amendment was introduced in India’s upper house of Parliament in late 2012. It was
referred to a special standing committee and is still pending approval.

Child labor laws in India only cover children up to the age of 14. Child laborers between
15 and 18 are covered by another law–the Juvenile Justice Act (2000)– which allows
prosecution of employers who employ anyone under 18 in hazardous jobs, keep them in
bondage or withhold their earnings.
But when children at work have accidents, they are not covered under the country’s labor
protection laws which apply only to those over 18.
ROLE OF INTERNATIONAL
ORGANIZATIONS IN
FIGHTING CHILD LABOUR
The International Programme on the Elimination of Child Labour (IPECL) was launched
under the programme of International Labour Organization in 1991 to work towards the
elimination of child labour by creating awareness about child labour as a global issue
using national platforms. India was among the first nations to sign the MOU with IPECL
to help in combating child labour.

National Labour Project (NCLP) is one of the major programmes implemented

throughout the country under which seven child labour projects were set up in the year
1988. Rehabilitation is also one of the major policies that have been adopted by the
government of India to reduce the incidence of child labour in India.

Unfortunately, the concerned authorities are unable to combat the rising cases of child
labour because of varied reasons. They fail to establish the correct age if the child due to
the lack of birth proofs and at times fake proofs. Not much is being done on creating the
awareness among people. Even if efforts are being made, they cater to a limited
population and the endurance among the authorities is not visible. A lot of laxity can be
observed during the conduct of awareness programmes. There is still a need to address
the issue on global platforms time and again with stringent policy framework in place.
 IMPLEMENTATION OF
CHILD LABOUR LAWS
There are different policies framed by State Government as well as Central Government
which aims to eradicate child labour as well as Promotes rehabilitation of Children to
secure their future. In pursuance of India's development goals and strategies, a National
Child Labour Policy was adopted in 1987 following the Child Labour (Prohibition and
Regulation) Act, 1986. The national policy reiterates the Directive Principles of State
Policy in India's Constitution. It resolves to focus general development programmes to
benefit children wherever possible and have project based action plans in areas of high
concentration of child labour engaged in wage/quasi-wage employment. The Ministry of
Labour and Employment has been implementing the national policy through the
establishment of National Child Labour Projects (NCLPs) for the rehabilitation of child
workers since 1988. Initially, these projects were industry specific and aimed at
rehabilitating children working in traditional child labour endemic industries. A renewed
commitment to fulfil the constitutional mandate resulted in enlarging the ambit of the
NCLPs in 1994 to rehabilitate children working in hazardous occupations in child labour
endemic districts. Under this scheme Central Government has aimed to implement
various Child welfare and educational policies.
 OBSTACLES IN THE WAY
OF PROPER
IMPLEMENTATION OF
CHILD LABOUR LAWS
Following are some big obstacles in the way of proper implementation of child labour
laws: 1. Non-awareness among citizens about child labour laws. People, who are
employing children, are not aware about the child labour laws, its provisions, penalty on
defaulters.
2. Vicious circle of poverty, a large number of people are living below poverty line, they
do not have money to support their families so that they send their children for work and
to earn money for their living.
3. Illiteracy: Illiterate people are not able to earn more and do not able to read and
understand about rules and regulations.
4. Lack of political will and ineffective role of local government regarding in controlling
child labour.
5. Lack efficiency in administrative machinery responsible for implementing the law.
6. Unemployment
7. Will of parents.
8. Lack of educational and health facilities
CONSEQUENCES OF CHILD
LABOUR LAWS IN INDIA

The elimination or removal of child labour is a very difficult task, if not impossible. The
problem of child labour is overlapped and inter connected adhesively with the world’s
major problems such as population, poverty, illiteracy, unemployment and others. Thus,
for elimination of this evil, it requires concerned efforts from all sections of the society.
The list of hazardous occupations and processes is progressively being expanded on the
recommendation of Child Labour Technical Advisory Committee constituted under the
Act.

The Conventions of the International Labour Organization, the 1926 and 1956 Slavery
Conventions and the UN Convention on the Rights of the Child are the major tools used
for regulation of the child labour.
The major problem infront of the legislature and the government is to rehabilitate the
children deprived from the works. As the work they were doing was the only source of
their income, it is important for the government to take certain steps for rehabilitation of
these children.

The Government has been alive to the need for release of these children from hazardous
work and for their rehabilitation – physical, emotional and economic- through education.
With this end in view, the National Policy on Child Labour was formulated in August
1987. The National Child Labour projects were conceptualized and launched around the
same time.
Many other organisations (both governmental and N.G.O.’s) are stepping forward for the
upliftment of these children and regulation and eradication of child labour. Some of these
institutions or organisations are CRY, Child Rights Information Network, Concerned for
Working Children (CWC), Global march, International Organisation of Employers.
Partnership for child development, etc.
However, even after acting of these institutions only a fewer cases of child labour can be
solved. The main problem being poverty and illiteracy. The number of children not
getting primary education is very high, particularly in India. Thus to tackle the problem
steps should be taken in more specialized manner. There is a need to impart education to
the child workers. Though they cannot attend the normal schools during the usual school
timings, the only alternative is to provide them with some agency of education at a time
when they are free . For this purpose, however, various governmental as well as non-
government organisations have set up certain night schools in various places. This system
will definitely make them right conscious and realize the benefits, which are given to
them by the government and legislature. An important step taken by the government is
the well-known Sarva Sikhsha Abhijan, which aims at globalization elementary
education that is education from 6-14 years.
All the above policies seems to be useless when one founds that Government is itself
involved in the practice of this evil. Many cases have been brought out which gives a
clear evidence involvement of Government’s hand in this matter. In many of the small
states, including the newly formed Chhattisgarh, and the older ones like Karnataka,
mManipura, etc. India ratified the Convention on the Rights of the Child on December
11, 1992. Children are often forced to take up arms in India after losing a close relative in
the conflict.
The other cause is of enforcement and implementation. The legislature makes the law
efficiently but where we fail is the area of implementation and enforcement of these laws.
There are various areas where even now a number of children are working as domestic
workers, in restaurant and small dhabas. However, the society is responsible on the same
line parallel to the government is. Without the help of the common people, no
government can solve this heinous devil known as child labour.
EFFORTS BY GOVERNMENT
OF INDIA TO CONTROL
CHILD LABOUR
The child labour (Prohibition and Regulation) Act 1986 prohibits the employment of
children below the age of 14 years in 16 occupation and 65 processes that are hazardous
to the children’s lives and health. According to Supreme Court’s direction on 10th
December, 1996, recovery notice have been issued to offending employees for collection
of a sum of Rs 2000 per child employed under the provision of Act. No child can be
employed in hazardous occupations. Many states including Haryana have constituted the
child labour rehabilitation –cum-welfare funds at district level and separate labour cells
are being formed to address the issue
National child labour projects have been implemented by the central government in states
from 1988 to provide non-formal education and pre-vocational skills. From 2001, Sarva
Shiksha Abhiyan has been launched to educate poor and employed children in all states.
Ministry of women and child development has been providing non-formal education and
vocational training. Establishment of Anganwadis is also a big step by the government
for the welfare of children and their physical, mental and educational development.
 SUGGESTIVE MEASURES
How can child labour be reduced or completely eradicated? Every child born has the right
to have dreams and pursue those dreams. Even though the realization of some of these
aspirations may be limited by several challenges, it is still possible to overcome them and
achieve the highest levels of success.

There is need to involve various stakeholders to realize this objective. These are some of
the ways in which the problem of child labour can be addressed:

1. Free education: Free education holds the key to eliminating child labour. Parents that
do not have money for school fees can use this as an opportunity to provide their children
with education. It has already proved to be a success in many places around the globe and
with more effort, the cases of child labour will greatly reduce. Mid-day meals schemes
can also be used as a motivating factor for children whose parents can barely afford a
meal to learn. Even if they will be attending school because of the free meals, they will
still be able to learn and create a good education foundation for themselves.

2. Moral Polishing: Child labour should not be entertained at all. It is legally and morally
wrong. Children should not be allowed to provide labour at the expense of getting an
education and enjoying their childhood. Factory owners, shopkeepers, and industries
among others should not employ children. The society should be educated on the
negative impacts of child labour so that it becomes an issue that is frowned upon
whenever it occurs. This type of moral polishing would act as a deterrent to people who
intend to employ children and use them as a source of cheap labour. Many of the ills that
go on in the society do so because people turn a blind eye or fail to consider their moral
impacts. With this kind of approach, cases of child labour will greatly fall among our
communities.

3. Create demand for skilled and trained workers: By creating the demand for skilled and
trained workers, child labour cases will reduce since almost all child labourers fall under
the unskilled worker category. It will lead to adult employment as the demand for skilled
labour rises. Establishing skill-based learning centers, vocational training centers, and
technical training institutions improves literacy and contributes to the availability of
skilled and trained workers in the job market. Creation of job opportunities by the
government is also another way that cases of unemployment can be reduced and
household income for the population increased. Such government policies improve living
standards and eliminate the need for children to seek work in order to support their
families.
4. Awareness: Creating awareness about the illegality of child labour can also help in
stemming the practice. Parents should be made aware that sending their children to work
has legal ramifications and the law would take its course if they are found to be aiding
and abetting this vice. It is the ignorance among many parents and members of the
society that makes them participate in child labour practices. Conducting a campaign to
create awareness about its harmful effects would eliminate the practice. The government,
together with non-governmental organizations and the civil society, can create a strategy
to make such an initiative a success.

5. Empowerment of poor people: Poor people are the most affected by child labour. The
poor living standards and financial constraints sometimes make them unwilling
participants in this vice. Empowering poor people through knowledge and income
generating projects would go a long way in reducing cases of child labour. Parental
literacy also plays an important role in ensuring that the rights of children are upheld, and
minors are not used as a source of labour. Empowering parents with this kind of
knowledge can create a positive change in the society and encourage the shunning of
child labour practices in communities.
 CONCLUSION
Child labour is not just an affront to the rights of a child but also a symbol of a society
that has lost its way. We should, therefore, all strive to ensure that the fundamental rights
of children are protected and that they are accorded the opportunity to go after their
dreams and aspirations. The future is much brighter when the younger generation has a
good foundation for success.

The innocence of a child should never be taken away for the purpose of making the lives
of adults easier. It is both unfair and morally unacceptable.

Unless there are socially conscious policies in the country, the policies won’t make that
much of a difference. It is still true that things are not very good for children. Child rights
need to be actively respected rather than simply acknowledged, and we must admit that
more than the passage of laws and publicizing the same to stimulate the kind of debate in
such a way that leads to attitudinal change. The problem of child labour can be best
addressed by adopting various strategies ranging from enrollment and retaining children
in the school, income generation avenues for adults, poverty eradication programmes
simultaneously. Awareness generation in the society towards universalisation of primary
education. The need of the hour is that the Government should ensure all measures and an
enabling environment for survival, growth, development and protection of all children, so
that each child can realize his or her inherent potential and grow up to be a healthy and
productive citizen. This calls for collective commitment and action by all sectors and
levels of governments
and partnership with families, communities, voluntary sector, civil society and children
themselves