Child Labor Issue Hits Victoria’s Secret (LTD)

The West African nation of Burkina Faso sold 100% of this year’s organic cotton crop to factories in India and Sri Lanka where it was made into garments for retailer Victoria’s Secret, a division of Limited Brands Inc. (NYSE: LTD). Bloomberg News is reporting that some of the workers on the Burkina Faso cotton fields are children who are forced to work in the fields and whipped when they don’t work fast enough.

Bloomberg’s report notes that Fair Trade certification carried on Victoria’s Secret’s garments is supposed to mean that such practices do not occur. But that’s not always the case:

In Burkina Faso, where child labor is endemic to the production of its chief crop export, paying lucrative premiums for organic and fair-trade cotton has — perversely — created fresh incentives for exploitation. The program has attracted subsistence farmers who say they don’t have the resources to grow fair-trade cotton without violating a central principle of the movement: forcing other people’s children into their fields.

A spokeswoman for the company told Bloomberg:

[The child labor allegations in Burkina Faso] describe behavior contrary to our company’s values and the code of labor and sourcing standards we require all of our suppliers to meet. Our standards specifically prohibit child labor. We are vigorously engaging with stakeholders to fully investigate this matter.

Victoria’s Secret is the largest unit of Limited Brands.