Even the bugaboo of child labor is more complicated than it seems. Honduran adolescents are legally allowed to work at 14 with parental permission, and most are desperate to help their families. The frenzy sparked by the Gifford spectacle has led to the dismissal of hundreds of legally hired adolescents. Rather than returning to school, which is not an option for most families who cannot afford to feed and clothe their children, adolescents buy documents to work at even lower pay or in some cases peddle their bodies. Although many clothing companies, such as Nike, KMart, JC Penney, and Reebok, have rushed to pass sourcing codes, few make the effort to examine the complexity of these issues.
Reforms can reduce litigation expenses, lighten regulatory pressures, and improve company morale.
Frequently they can result in considerable savings in their own right. Selling necessary products with an eye to a broader definition of stakeholder responsibilities is not politically sexy, but it can promote positive social change. According to Starbucks, its code has had no effect on the way it does business in Guatemala or dozens of other countries. It's a dangerous trend that companies promote Thoreau-like mission statements without organizational commitments to implement those ideals. Character demonstrated by actions, not by intentions, is the only reliable measure of corporate ethics.