Ethical Sourcing of Mica : The Dark Side of The Glittering Beauty

Arin Ariani, Nisrina Nadhifa, and Voni Sri Wijayanti

International Relations, Faculty of Humanities, President University, Jln. Ki Hajar Dewantara RT.2 / RW.4,
Mekarmukti, Cikarang Utara, Bekasi, Jawa Barat 17550

arinariani5@gmail.com, nadhifalianisrina@gmail.com, vonisw@gmail.com

Abstract
India is considered as one of the world’s top mica producer. The country produces most of the mica used in the
world industry and the industry itself is the major contributor of profit to India’s mining industry. As a mineral,
mica is used as color additive in cosmetic products. Most mineral makeup, and if not all makeup uses mica as
their colorants. This makes mica very essential to the cosmetics industry, and India as one of the largest
producer of mica has become the supplier of the world’s cosmetics industry. Yet, in recent years an issue
regarding the use of child labor within India’s mica mining industry is exposed to the public strikes a great hit to
some of the world’s global beauty companies who is consider to be alleged to this issue. Due, to this issue those
companies become much more serious in sorting out their mica supplier to revive their company’s appeal. In
this matter, for quite sometimes beauty companies have been alerted about the risk of child labor in their mica
suppliers. Some did try to sort out their mica suppliers, yet, only after this issue became publicly known that
those companies became much more serious in cleaning up their mica supply chain. Hence, what cause this
sudden change of behavior ? Here, this writing is aimed to further explore the issue of child labor in India’s
mica industry as well as its connection to the concept of corporate accountability and corporate social
responsibility practice.

Keywords : mica, beauty companies, ethical sourcing, corporate accountability, corporate social responsibility

Abstrak
India adalah salah satu produsen utama mika di dunia. Negara ini memproduksi sebagian besar mika yang
digunakan pada industri dunia, dan industri itu sendiri merupakan penyumbang utama keuntungan bagi industri
pertambangan India. Sebagai mineral, mika digunakan sebagai zat warna aditif pada produk kosmetik.
Kebanyakan makeup mineral, atau bahkan hampir semua produk makeup mengandung mika. Hal ini membuat
mika sangat penting bagi industri kosmetik, dan India sebagai salah satu penghasil mika terbesar telah menjadi
pemasok bagi industri kosmetik dunia. Namun, dalam beberapa tahun terakhir ini, sebuah isu mengenai
penggunaan pekerja anak-anak di industri pertambangan mika di India terpapar pada publik dan member
perhatian besar pada beberapa perusahaan kecantikan global yang dianggap memiliki hubungan dengan isu ini.
Karenanya, disini perusahaan-perusahaan tersebut menjadi lebih serius dalam memilah pemasok mika mereka
dalam upaya mengembalikan citra perusahaan mereka. Dalam hal ini, untuk waktu yang lama perusahaan
kecantikan telah diberitahu tentang risiko adanya pengunaan pekerja anak-anak di pemasok mika mereka.
Beberapa memang telah mencoba untuk memilah pemasok mika mereka, namun, baru setelah masalah ini
diketahui publik perusahaan-perusahaan tersebut menjadi lebih serius dalam membersihkan rantai pasokan mika
mereka. Dalam hal ini, apa yang menyebabkan perubahan perilaku mendadak ini? Tulisan ini bertujuan untuk
lebih mengeksplorasi isu pekerja anak di industri mika India serta hubungannya dengan konsep akuntabilitas
perusahaan dan tanggung jawab sosial perusahaan.

Kata kunci : mika, perushaan kosmetik, sumber suplai etis, akuntabilitas perusahaan, tanggung jawab sosial
perusahaan.

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 1. Introduction

1.1 Background

The issue of child labor use in industry has long become the main concern of not only to
governments but also to consumers. As consumers of a product we want the things that we
consume or use to come from a responsible and accounted source. Just imagine, can you
enjoy drinking a luxury overpriced wine knowing that the grape used for that wine come from
a plantation which use children as its workers? or can you enjoyed wearing a beautiful
diamond ring while knowing that the diamond used on that ring was obtained by children who
are forced to work as slaves in diamond mines ? Although we do realize that each people have
their own sense and judgment in this matter, yet, generally most of us would be morally
displeased to wear or use anything whose materials are produced or obtained by the use of
child labor. Realizing this matter are companies demanded to be more responsible in terms of
obtaining their supplies. They are expected to obtain their material supplies from responsible
and accounted sources. The growing demand for this type of ethical sourcing is pushed by the
development and significant presence of corporate accountability ( CA ) and corporate social
responsibility ( CSR ) within companies or corporate business performance. Over the years
this two concept are becoming more and more attached with company business performance
due to the rise of public awareness toward the impact that both corporate accountably and
corporate social responsibility have to a company’s performance. One important aspect would
be that both corporate accountability and corporate social responsibility can push companies
to behave in a more responsible manner. Seeing the impact from some of the irresponsible
actions that companies or corporation have done to the environment and the surrounding
community are the main motor why corporate accountability and corporate social
responsibility are being further implemented to companies and other type of business
practices. Furthermore, the application of those concepts would also allowed companies or
corporation to be held accounted for their misbehavior.

Relating to this matter, here, the recent exposed news regarding the use of child labor in mica
mining and its allegation to some of the world’s global beauty companies are an example of
how the concept of corporate accountability and corporate social responsibility have their
impact toward the beauty company’s business practice. Thus, as a way to further understand
the concept of both corporate accountability and corporate social responsibility, in this writing,
we would like to take this issue as an example in explaining both concept and its effect toward
company or corporate business practices.

1.2 Formulation of problem

In the issue of the use of child labor within India’s mica mining industry, for quite some
times beauty companies have been alerted regarding this issue. Several actions did conducted
by some of the beauty companies to resolve this issue, however, those actions still lacks any
serious measures from the alleged beauty companies. Only after the issue become publicly
exposed and acknowledge that beauty companies become much more serious to clean up their
mica sources from allegation to child labor. Thus, what becomes the main motor behind this

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action ? Is it the interest of reviving the company’s good image and consumer’s trust ? Or is it
the influence of both corporate accountability and corporate social responsibility to the
company’s wellbeing ? Those are the two main ideas that we wish to explore and answer
within this writing.

1.3 Purpose and objectives

The purpose and objective of this writing is mainly to explore the effect that the concept of
corporate accountability ( CA ) and corporate social responsibility ( CSR ) have toward a
company’s wellbeing. On the other hand this paper is also aiming to highlight the issue of the
use of child labor in India’s mica mining and allegation to some of the world’s well known
global beauty companies. The idea here is that to push the readers to be more aware toward
the everyday products that they use, to push them toward becoming responsible customer, and
to encourage them to ensure companies and corporation would behave in a more socially
responsible and accounted manner.

1.4 Usefulness of research

The idea presented in this writing as well as the case example which is taken for this
writing is hope to be able to provide its readers with further understanding regarding the effect
that corporate accountability ( CA ) and corporate social responsibility ( CSR ) have to a
companies or corporate business practice.

1.5 Definition of terms

 Accountability : “the obligation of an individual or organization to account for its

activities, accept responsibility for them, and disclose the results in a transparent
manner” (Anon., n.d.).
 Initial Public Offering ( IPO ) : “very first sale of stock issued by a company to the
public” (Hayes, n.d.).
 Luster : “a property that describes how light is reflected on the surface of a mineral”
(Gracia, n.d.).
 Pegmatite : “a very coarse-grained igneous rock, with a grain size of 20 mm or more,
usually composed of quartz, feldspar, and mica” (Anon., n.d.).
 Phyllosilicate : “sheet silicates”.
 Shareholder : “any person, company or other institution that owns at least one share
of a company’s stock” (Anon., n.d.).
 Stakeholders : “a party that has an interest in a company, and can either affect or be
affected by the business” (Anon., n.d.).

2. Research Methods

In this writing we are using the qualitative methodology in explaining the flow of the
information and evaluation of the child labor uses in India’s mica mining industry, and its
relation to the concept of corporate accountability ( CA ) and corporate social responsibility
( CSR ). In this writing the data and information that we use as the research material in
forming this writing are gained from secondary data from various news articles that are
3
relevance to the case that we highlight in this writing. The article itself can come from both
website and newspapers. Not only that information upon the course of India’s child labor
issue and the mica mining industry are also gain through books and e-books that we use as
part of the material composition that will form the fundamental structure of this writing, and it
will also become the reference to my analysis of the chosen case.

3. Mica and India’s Mica Mining Issue

3.1 What is mica ?

Mica is a name of a cluster of minerals in which physically and chemically alike. It
belongs to the monoclinic crystal system and a cluster of hydrous potassium, aluminum
silicate minerals, where it is a type of phyllosilicate with a two-dimensional sheet silicate or
layers. As a cluster of minerals, micas are practically light and relatively soft, with flexible
sheets and flakes. Furthermore, mica itself is heat-resistant and does not conduct electricity.
Within the world “there are 37 different mica minerals, with color varying from purple, rosy,
silver, gray ( lepidolite ), dark green, brown, black ( biotite ), yellowish-brown, green white
( phlogopite ), colorless, and transparent ( muscovite ) with pearly to vitreous luster” (Anon.,
n.d.). However, from all of those 37 known species, there are exactly only 6 on the common
rock forming, as explained by R.V. Deltrich on his article about mica :
Muscovite, which is the common light-colored mica, and biotite, which is typically
black or nearly so are the most abundant. Phlogopite, is typically brown, and
paragonite, which is macroscopically indistinguishable from muscovite are also
fairly common. Lepidolite, which is generally pinkish to lilac in color, occurs in
lithium bearing pegamatites. Glauconite, which is green species, does not have the
same general macroscopic characteristic as the other micas, it occurs sporadically in
many marine sedimentary sequences. All of these micas except glauconite easily
exhibit observable perfect cleavage into flexible sheets. Glaucoite, which most often
occurs as pellet-like grains, has no apparent cleavage (Dletrich, 2013).
Additionally, “among the principal rock-forming minerals, micas are found within all three
primary rock varieties in which are igneous sedimentary, and metamorphic” (Dletrich, 2013).
In terms of mining, mica industry can generally be divided into two distinct, yet,
interdependence industries which are ; 1) “Those which produce sheet micas”, and 2) “Those
which produces flake micas”. Each of those industry, even though are somewhat dependent
on one another, are producing different end products (Anon., n.d.).
For sheet mica, it obtained by either sinking a shaft along the strike and dip of a pegmatite, or
by conducting open-pit surface mining of semi-hard pegmatite ore. However, in either case,
“it is an exceedingly economically risky process due to the costs which are involved in
locating the vein, and also the unpredictability of both quality and quantity of the obtained
micas once the vein is located and worked” (Anon., n.d.). Likewise, within underground
mining, the main shaft is driven from the pegmatite at appropriate angles to the dip and strike
by using air drills, hoists, and even explosives. Next, crosscuts and raises are developed to
follow the promising exposures of micas. When a pocket of mica is discovered, cautious care
is exercised in the removal process in order to minimize any damage of the crystal. From
there, “small charges of explosive of 40 percent to 60 percent strength are carefully placed
over the pocket and care is exercised within the drilling procedure in order to avoid
penetrating the micas” (Anon., n.d.). The charge is “just sufficient to shake the micas free
from their host rock, and after blasting the micas are hand-picked and place within boxes for
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transporting to the trimming shed where it would later graded, spilt, and cut into various
specified sizes for sale” (Anon., n.d.). Due to the high cost of the mining procedure, the small
market, and also the high capital risk sheet micas are no longer mined in the US. Nonetheless,
most sheet micas are mined in India where the labor cost itself is considered to be
comparatively low.
For flake mica, it comes from several sources which are produced in the US. These include
“the metamorphic rock called schist which is a by-product of processing feldspar and kaolin
resources, from placer deposits, and also from pegmatites. Here, it is mined trough
conventional open-pit methods” (Anon., n.d.). With soft residual material, dozers, shovels,
scrapers, and front-end loaders are used within the mining process. “The North Carolina’s
production is accounted for half of the total US mica production” (Anon., n.d.). Hard-rock
mining of mica-bearing ore involves the process of drilling and blasting. After the blasting
process, “the ores are reduced in size by using drop balls and then loaded on the trucks with
shovels for transport to the processing plant where micas, quartzes, and feldspars would be
extracted” (Anon., n.d.).
In terms of uses, mica itself is “majorly used in gypsum wall board and joint compound in
which it act as a filter and extender that provide smoother consistency, improve workability,
and also prevent cracking”. Mica is used also in the paint industry where “ground micas are
used as pigment extender which facilitates suspension due to light weight and platy
morphology” (Anon., n.d.). Furthermore, ground mica is also used in the well-drilling
industry, plastic industry, and the rubber industry. Additionally, sheet mica is used generally
in the electronic and electrical industries.
Aside from the use mentioned above, mica is also being use within the cosmetic industry. In
cosmetics mica is often used as color additives. The luster trait of mica is the key ingredient
use to “add a natural shimmer to mineral makeup like blushers, eye shadows, lipsticks, and
foundations” (Paddison, 2016). Since it provides the user with pure pigment color, mica is use
not only within mineral makeup products but also to most of makeup products on today’s
market. It would mostly be hard to find any mineral makeup without mica in it, or even any
line of makeup that did not contain any mica at all. Mica is important in makeup. Without
mica, most makeup products would use artificial substance such as dyes and lakes
( “composite pigments made from precipitating the metal salt of a dye onto the surface of an
insoluble organics like, rosin or aluminum benzoate; inorganic, like alumia, blanc fixe,
titanium dioxide, or zinc dioxide; or mineral, like calcium, carbonate, kaolin, or talc
substrate” ) as colorants to their products (Kogel, 2006). Mica is different, it a mineral and it
has natural mineral pigment in which use as makeup colorants. Even though the use of mica
dose not exclude the possibility of harm for makeup users with sensitive or allergy-prone skin,
nonetheless, dyes and lakes presents a much bigger risk for those users. Hence, as it is
consider as one of the key ingredient for makeup colorants, mica is inseparable for the
cosmetic industry.
3.2 Mica mining in India
The mining industry has become a major economic activity in India. It contributes to the
growth of the country’s GDP with “average of 729,24 billion INR” recorder “from 2011 to
2017” (Anon., n.d.). In this matter India is consider as one of the largest producer of mica in
the world. For a very long time, India has conducted the mining of mica. To this matter
Robert J. Schabilion in his book Down the Crabtree ( 2009 ) stated that, “mica mining is
believed to have started in about 2,000 B.C. in India. The earliest use of mica was as a
5
medicine, a practice that is still continued today in remote areas. The ancient Indians also
used mica for decoration and paint” (Schabilion, 2009). Since then India enjoyed the
monopoly of production and exports of mica minerals, especially for sheet mica. “As in 2012
India was noted as the largest mica producer in the world”, and even though in recent years it
has experience some decline in terms of production, nonetheless, “as in 2017 India still
remain as one of the top ten mica producer in the world” (Anon., 2017). Furthermore, the
mining of micas are spread around the states of India with different volume of production :
Andhra Pradesh is the largest producer of mica, with Nellore district of Andhra Pradesh
is famous for its crude mica production. On the other hand, the waste and scrap of mica
is largely produced by the states of Andhra Pradesh, Rajasthan, Bihar, and Jharkhand.
With a production of 7,626 tons of mica in the year 2013-2014, Andhra Pradesh comes
at the top of the list of mica producing states. Rajasthan has occupied second place with
an estimate production of 6,635 tons of mica in the year 2013-2014….the mines of mica
are located in Bhilwara, Ajmer, and Rajsmand districts of the state. Bihar comes at third
position with an estimated production of 3,381 tons of mica in the year 2013-
2014....mica production in the state is centered in Nawada district. Jharkhand comes
next in the list with an estimated production of 2,110 tons of mica in the year 2013-
2014….mines of mica are found in Giridih and Kodarma districts of the state (Anon.,
2017).
As India is noted as one of the largest producer and exporter of mica, however, in terms of
obtaining or producing mica India has stubble upon an ethical issue which has come to light
in recent years. The issue of the use of child labors for mica mining has fully caught the
public attention due to its allegation to some of the world global cosmetic companies. As
previously explained mica played an important role in cosmetic production as it is use as color
additives and to give makeup its natural shimmer. Here, the use of child labor was discovered
working in mica mines in the Indian states of Bihar and Jharkand. In an article written by
Peter Bengtsen and Laura Paddison for the Guardian mentioned that “up to 20,000 children
are estimated to work in the mines, around 90 percent of which are illegal, according to a
recent report by NGOs Terre des Hommes and SOMO”. What attract the public attention the
most regarding its issue was that its allegation with mica sourcing to some of the world’s if
not global, well known cosmetic companies, as further mentioned within the article “some of
the world’s biggest cosmetics companies including L’Oréal and Estée Lauder, as well as
suppliers such as Merck, source mica from India” (Paddison, 2016). Within the Indian law the
use of child labor is strictly forbidden, however, the fact that their use is found in Indian’s
most prominent mining sector. As mentioned in a news article written by John Irvine tells
about the condition of India’s mica mining :
Koderma district in India’s Jharkhand Province has one of the world’s largest mica
deposits, according to the British Geological Survey. It is mined extensively and yet,
as far as we can tell, all of the mining here is illegal. The miners have no protection
whatsoever….we found children as young as six working at the mines….in 2015
India officially produced 19,000 tons of mica. But it exported 140,000 tones. Illegal
production accounts for the huge discrepancy….the illegal mines are run by cartels
that make huge profits. By comparison, the mine workers earn a pittance and their
work is extremely dangerous….it is estimated that between five and ten children die
in the mines each month….the numbers of adult fatalities is higher, but 90 percent of
the deaths are never reported because of the unwelcome attention they might
bring….mica is in vogue in makeup because it is a natural product and its extraction

6
 is supposedly environmental friendly. But mining is anything but people friendly
(Irvine, 2017).
Since India itself produced most of the world’s mica, especially for sheet mica, it brings a
difficult position toward global beauty companies. Here, about “more than 75 percent of
India’s mica production is proven to be illegal” (Irvine, 2017). This means that in this matter
it going to be impossible for the beauty companies and cosmetic industry to guarantee that
those illegally produced micas are not contained within the makeup product sold worldwide.
Furthermore, many of fatalities, either children or adults, from the mica mining industry goes
unaccounted due to a large number of India’s illegal mica mining.

4. Corporate Accountability and Corporate Social Responsibility

4.1 Understanding corporate accountability and corporate social responsibility
In recent years corporations or companies have move toward becoming more engage with
ethical technicality or even sustainable development. As the world come to realize the
growing importance and visibility toward a range of initiative of ensuring companies behave
in a more socially responsible and accountable way, this condition sets up a new development
for many parts of the business world. Previously, the state or government was assumed to lead
standard setting and behavioral norms for businesses in relation to most categories of
stakeholders. When community organizations and interest groups wanted to change business
behavior, they focused on changing the law. Yet, from the 1990s the focus changed,
“reflected in the emergence of new alliances and regimes of influence over business norms,
linking together consumers, communities, workers and producers” (Anon., n.d.). The idea of
this movement is reflected upon the concept of corporate accountability ( CA ) and corporate
social responsibility ( CSR ).
Corporate accountability or in short CA, generally refers to “the performance or activity of a
publicly traded company in non-financial areas such as social responsibility, sustainability
and environmental performance” (Anon., n.d.). Here, corporate accountability espouses that
“financial performance should not be a company’s only important goal and that shareholders
are not the only people a company must be responsible to”. In this matter, stakeholders such
as the company’s employees and community members also require the accountability of the
company. As mentioned above “private organizations, and not a government body should or
must set standards for social and environmental responsibility” which they expect “public
companies ( a company that has issued securities through an Initial Public Offering / IPO and
is traded on at least one stock exchange or over-the-counter market ) to meet and held
accounted for” (Anon., n.d.). Likewise, corporate accountability is also important to
shareholders concern with ethical investing. In this matter, “the basis of this practice is the
idea that business should be held responsible for impacts of their actions” (Anon., n.d.).
Government do not have broad authority to regulate companies or corporation except when
specific legislation has been passed, and historically the passing of such regulation has
required a concerted ( planned ) public effort to convince politicians to regulate particular
practice.
On the other hand, corporate social responsibility or CSR within its broadest sense is almost
similar to corporate accountability. Here, corporate social responsibility refers to “various
practices that reflect the belief that companies or corporations have responsibilities beyond
generating profit for their shareholders” (Anon., n.d.). Such responsibilities include “the
negative duty to refrain from harm caused to the environment, individuals or communities,

7
and sometimes also positive duties to protect society and the environment, for example
protecting human rights of workers and communities affected by business activities” (Anon.,
n.d.). Such responsibilities are generally considered to extend not only to direct social and
environmental impacts of business activity, but also to more indirect effects resulting from
relationships with business partners, such as those involved in global production chains.
From the explanation above, corporate accountability and corporate social responsibility in
general seems to be quite similar, if not maybe alike. Well this concept does sometimes
confused or even considered as synonym for one another. However, corporate accountability
and corporate social responsibility are two different concepts. If they are a same concept they
would not have two different names and definition. Here, corporate accountability mainly
focused upon “the legal obligation of a company to do the right thing” (Anon., 1997). It is
aiming to ensure that a company’s products and operations are in the interests of society and
are not harmful. This concept is therefore, “addresses the problem of those companies which
refuse to act responsibly, it also addresses those situations in which companies and employees
are held captive by the competitive demands of the economic system and forced to choose the
bottom line” (Anon., 1997). On the contrary, corporate social responsibility primarily refers to
“a code of conduct and action beyond what is required by law, regulation, and trade rules”.
This concept involves “enduring short-term cost that does not provide an immediate benefit to
the company, but in return promote positive social and environmental change” (Anon., n.d).
In this matter it can be done such as companies switching to operate in a more environmental
friendly ( eco-friendly ) manner, or providing social and ethical educational programs to its
employees. The main purpose of conducting this “code of conduct” besides creating good will,
it is also hoped to be able to highlight the company’s basic interest such as increasing the
sales of the company’s product, obtaining loyal customer, or even attracting external interest
to the company’s stocks.
Thus in short corporate accountability refers to a company’s legal obligation to its
performance, while corporate social responsibility refers to any action conducted by
companies or corporation within relation to the social and ethical norms.
4.2 CA and CSR’s effect to India’s mica mining issue
After the exposed of the use of child labor in India’s mica mining industry and its
allegation with some of the world’s global cosmetic companies such as L’Oréal, Estée Lauder,
Merck, and Lush, those beauty companies in nothing flat tried to sort out their mica sourcing.
However, what becomes the main issue here is that beauty companies were already noted
about the risk of the use of child labor in mica mining, as mentioned in an article written by
Chris Choi that “the big cosmetics firms have known about the risk of child labor in mica
mining for years and although the industry has been working since 2008 to tackle this issue
and work in India, yet, only now has it started the responsible mica initiative” (Choi, 2017).
The fact that only within recent years, and following the full expose of this issue to the public,
that beauty companies become more serious on sorting out their Indian mica suppliers.
In the wake of the exposed of the child labor use in India’s mica mining industry, beauty
companies simultaneously publish their actions and initiative of ethically sourced their mica
suppliers, beauty companies such as Lush, a British handmade cosmetic brand, stated in 2014
that they “will discontinue the use of mica within their products” (Nesbitt, 2014). Moreover,
Clarins a luxury French skin care brand states that its mica comes from “suppliers with their
own mines in areas where child labor is strictly regulated by laws”, then L’Oréal, the world
largest cosmetic company says that there is “a risk of child labor” in the Indian mica supply
8
chain but says its own supply chain of Indian mica is “now almost completely secured” (Choi,
2017). While in addition, other beauty companies such Estée Lauder, Yves Rocher, and even
L’Oréal have involved in an ethical initiative which focused on “child-friendly villages”, a
joint initiative with the National Resources Stewardship Council ( NRSC ) which is a non-
profit organization that promotes responsible sourcing (Paddison, 2016).
From the example above we can clearly see that only within recent years the imitative for an
ethically source mica supplier is being seriously conducted by the world’s global beauty
companies. Why only in recent years ? and, why only after their allegation is publicly
known ? Well, the simplest answer would be that those companies are concerned with the
issue’s impact toward their product sales, costumer decline, and even its impact toward the
company’s stocks. However, aside from that two important concepts also played an important
aspect on why those companies are eager to have an ethically source mica suppliers. The two
aspects are corporate accountability ( CA ) and corporate social responsibility ( CSR ). As
explained before in simple term corporate accountability refers to a company’s legal
obligation in its performance, while corporate social responsibility refers to any action
conducted by companies or corporation within relation to the social and ethical norms. Hence,
within this issue the action of the global beauty companies toward ethically sourced mica was
also driven by the concept of corporate accountability and corporate social responsibility. But
how come this two concept could have such a big influence toward company or corporate
behavior ?
An important factor which we could consider is that society, especially the people have
become more aware about ensuring business and their practicality would behave in a more
socially responsible and accounted manner. Various issues relating to companies irresponsible
behavior have proven to catch the public attention. Issue like environmental damage, labor
misuse, or even deprivation of a community’s livelihood are just some of the impact of
companies misbehavior and hence the public are now much more eager to render companies
to be socially responsible and accountable in their performance. Likewise, public pressure,
customer demand, and also enlightened management have become an aspect of company’s
consideration to conduct both corporate accountability and corporate social responsibility
within their business practice. Here, corporate accountability would act more as the
company’s legal guideline toward their business practice. The conduct of corporate
accountability would ensure company behave in manner that is suitable to law and that all of
their business practice can be held accounted and trusted by both the public and government.
In the child labor issue we see that after the public become fully aware about the risk of child
labor obtained mica in their makeup products, beauty companies become more serious to
clean up their mica suppliers. They did this to ensure that their company’s accountability
record does not show any trace of a child labor obtained mica. If it is discovered that in their
accountability those companies are involved with child labor use, it can bring great damage to
the company’s appeal to the public, and not to mention the legal obligation that they must
served due to the violation of the law or regulations. On the other hand corporate social
responsibility would act more as a company’s ethical code of conduct in which companies
took the initiative to endure short-term cost which does not provide immediate financial
impact to the company. In the issue of child labor within India’s mica mining, we could see
beauty companies such as L’Oréal, Estée Lauder, and Yves Rocher engage in a non-profit
organization which focus upon the initiative of “child-friendly village” that promote
responsible sourcing. We can see this action as the beauty company’s conduct of corporate
social responsibility, which in extend is beyond the required law and regulation. Those
companies conducted that initiative not solely to promote good will in this matter, the main

9
interest here is that the initiative of corporate social responsibility has the appeal to raise a
positive image of the beauty companies after the exposed of the child labor issue. Therefore,
we can see here that both corporate accountability and corporate social responsibility generate
a great influence toward beauty company’s behavior for ethical mica sourcing, especially after
the public become more aware to this issue.

5. Conclusion and Recommendation

The exposed news regarding the use of child labor in India’s mica mining industry struck a
big hit to beauty company’s reputation. Some of the world’s well known beauty companies
such as L’Oréal, Estée Lauder, Lush, Clarins, and many more are accused of an allegation
with India’s mica suppliers who uses child labor in their production process. Here, India is
noted as the world’s top ten mica suppler, and since almost 75 percent of India’s mica
production comes from illegal mines with unaccounted labor use it is mostly impossible for
beauty companies to deny the existence of child labor obtained mica within their products.
Although, for quite some times beauty companies have been alerted regarding the use of child
labor in their mica supply production, yet, those companies only focusing their responsible
mica sourcing in recent years due to the exposed of the issue to the public.
Here, we see that the presence of public pressure, customer demand, and the interest to revive
their companies image, as well as avoiding any legal prosecution have pushed those
companies to properly conduct their corporate accountability, and corporate social
responsibility. The reason why the role of both corporate accountability and corporate social
responsibility have become more significant within company practice is because public
awareness toward a social responsible and accounted company manner has become the motor
of both corporate accountably and corporate social responsibility’s presence. Business
executants have become more aware of the public’s capacity to influence their business, as
well as realizing that they no longer can focus upon their financial interest alone. As the target
of most company’s business in the people they must ensure that their business are not only
giving what the goods and services that they want, but also to give their customer with the
responsible business practice which they expect. Hence, the presence of corporate
accountably and corporate social responsibly have grown significantly since its assessment in
1990s.
To sum up the issue of child labor use in India’s mica mining is a proof of both corporate
accountability and corporate social responsibility’s impact on company’s ethical behavior.
Both concepts lay a significant aspect to the company’s wellbeing, as it is reflecting the
responsible behavior in which people and government expect companies to do. Likewise,
considering how close the connection of this issue is to the products, especially makeup that
we use in daily life, it is urged that we as consumers can be more critical toward the product
that we use and consume. Here, aside pushing companies and corporation to be more
responsible, we ourselves as consumer must also be more responsible in terms of buying and
using any products that exist in the market. By being a responsible customer and pushing
companies or corporation to be more responsible in their business practice, we are one step
ahead toward becoming an ethically responsible market and moving forward sustainable
development.

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