The China Labour report that accused Dongguan Shinyang Electronics of child labor has cost the company a contract with Samsung Electronics.
Samsung said it has temporarily suspended business with Dongguan pending further investigations. The decision is taken in accordance with the company’s zero tolerance policy on child labor.
Samsung’s preliminary investigation established that its supplier had hired minors on June 29. The company said it routinely inspects suppliers in China, and conducted three previous audits that found no cases of child labour at Dongguan Shinyang Electronics since 2013, the latest ending on June 25 this year.
Samsung promised to strengthen its hiring process at its production facilities and those of suppliers to prevent such cases from recurring. The Chinese authorities are also looking into the matter.