Hyundai has announced that it will be ending its partnership with a parts factory in Alabama following a child labor scandal. The factory, owned by Dongwon Industries, was found to have used child labor in the production of components for Hyundai's vehicles.
Hyundai stated that it has a "zero-tolerance policy" towards child labor and that it is committed to ensuring that its supply chain is free from unethical practices. The company said that it has conducted its own investigation into the matter and found that Dongwon Industries had violated its code of conduct.
As a result, Hyundai has decided to terminate its contract with the factory, which supplies parts for the company's Alabama assembly plant. The termination will take effect immediately, and Hyundai has stated that it will be seeking alternative suppliers to meet its needs.
The child labor scandal at Dongwon Industries came to light after an investigation by the Guardian newspaper in the UK. The investigation found that children as young as 14 were being used to work long hours in hazardous conditions, with little pay and no access to education or healthcare.
Hyundai has stated that it was not aware of the use of child labor at the factory and that it had been assured by Dongwon Industries that it was complying with all labor laws and regulations. However, the company has acknowledged that it bears responsibility for ensuring that its suppliers adhere to ethical standards.
The use of child labor in supply chains is a major concern for many companies, particularly in the automotive industry where there are complex and far-reaching supply chains. In recent years, there have been several high-profile cases of child labor in the industry, and many companies have taken steps to ensure that their supply chains are free from such practices.
Hyundai's decision to terminate its partnership with Dongwon Industries is a positive step towards ensuring that its supply chain is free from unethical practices. The company has stated that it will continue to work towards improving labor conditions in its supply chain and that it will not tolerate any violations of its code of conduct.Hyundai's decision to terminate its partnership with a parts factory in Alabama following a child labor scandal is a reminder of the importance of ethical supply chains. While the use of child labor in supply chains remains a major concern for many companies, it is encouraging to see that companies such as Hyundai are taking steps to ensure that their supply chains are free from such practices.
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