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Question: A company has subcontractors doing work for them overseas. The company was criticized when young children, as young as 10-12 years old, were found working in the subcontractor's facilities. The standard response by the subcontractors is they willinvestigate this. When confirmed, controls are put in place to prevent underage children from working. After researching this specific situation further, it was discovered these young children are being paid the prevailing wage for light office work and perhaps some very light assembly work. The prevailing wage is far less than what is paid for comparable work in the United States. Many of these children are ignored because they're likely the only financial provider for their family. If not for this work, they would likely be exposed to more severe child labor exploitation under difficult and unsafe working conditions for less pay.
Discuss whether the subcontractor's use of child labor is ethical, and the positive and negative aspects of hiring young workers?
Financial Statement Analysis and Preparation
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Computation of Free Cash Flow
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