Seb, is a new shareholder and junior manager of FeedBack Ltd. (FB), a retail company in Perth that manufactures and sells clothing apparel for young people. FB's main target market is adolescent boys. FB employs 10 permanent staff in Perth and also employs international students on a casual basis. The reason that FB employs international students is that it is able to pay the students below the minimum wage, as the students are often desperate for work.

Recently, Seb received news that one of its suppliers in Cambodia was the centre of an SBS investigation into child labour exploitation in South-East Asia. Seb's fellow business owners are very concerned about this and other possible news reports that may link the Cambodian supplier to FB. The supplier is one of FB's largest and most favoured partners, as it is able to produce FB's apparel at very low costs. Cathy, the major shareholder of FB tells Seb that there is no way they can afford to cut ties with the supplier. She tells Seb to contact the supplier immediately and order them to not mention FB under any circumstances. Seb is very uncomfortable with this approach, but being the youngest and newest manager, he decides it would be best to just do as he's told.

Imagine that you work for Global Compact Network Australia, and are presenting to small to medium size businesses in Perth (including FB). Drawing on your experience and understanding of the Ten Principles of the UN Global Compact, how would you advise about Seb's situation.

Please cite specific principles and related international conventions in your advice.

200-300

Please use Use IRAC (Issue, Rules and law, Application, and Conclusion) format