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Samsung May Cut Ties to Supplier Amid Child Labor Claims

Joe Mont | July 14, 2014

Another day, another cautionary tale of third-party due diligence. Tech giant Samsung has announced that it  suspended its dealings with a supplier pending an investigation into allegations it used child labor. The move follows a report by the non-profit watchdog China Labor Watch, its investigation of the Shinyang Electronics in Dongguan, China, and accusations of improper labor practices.

“The production orders of Samsung are seasonal, and suppliers like Shinyang will alter the strictness of hiring practices in order to adapt to Samsung's demands,” a statement from the group says. “During the busy season, and in urgent need of labor, Shinyang hires child labor and underage student workers. These minors will usually only work for a period of...

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