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Firms usually adopt ethical code of conduct to meet their ethical objectives such as reducing pollution, increase recycling, disposal of waste environmentally friendly manner, offering staff a proper working condition and fairer conditions of trade. This article

An Indian boy yawns as he washes plates at a roadside resturant in Allahabad. A new study has identified India among the worst child labour hot spots. Photograph: Diptendu Dutta/AFP

mentions that there are many emerging economies that use child labor, especially in the agriculture sector and textile industry.

According to the Child Labor Index 2011, the abuse in child labor is so extreme that it has reached global concern.  This warns the large multinational companies to be aware of the sources of their raw materials to prevent the support of unethical business behaviors. Firms adopting ethical behaviors will improve corporate image, increase customer loyalty, improve staff motivation, loyalty and efficiency.

When firms are socially responsible by providing a proper pay and working conditions to their workers, labor turnover rate will reduce. This will reduce the cost incurred in recruitment.

Although firms often stress the importance of CSR, there are different views and attitudes upon the role of being ethical. Some businesses may adopt ethical behavior altruistically while some adopt the strategy of being socially responsible only if it will help the business in making more money.

http://www.guardian.co.uk/business/2010/dec/02/child-labour-hotspots