Apple's supplier audit finds underage labor & bribery, addresses suicides
Apple has issued its 2011 "Supplier Responsibility" report, in which the iPhone maker reveals it terminated business with a facility that employed 42 underage workers, and explains how it responded to suicides at a Foxconn plant and n-hexane exposure to 137 workers.
In the annual report, Apple revealed that the company discovered a total of 49 underage workers across 9 facilities overseas. One of the facilities had the lion's share of child labor, with 42 underage workers.
"We required the supplier to support the young workers' return to school and to improve their management systems to prevent recurrences," the 2011 Apple Supplier Responsibility 2011 Progress Report reads. "Apple has terminated business with the facility."
The audit also uncovered one case of bribery, where a facility manager offered cash to Apple's third-party auditors and asked them to reduce the number of audit filings. Apple also ceased business with that factory.
The annual report also dedicates a section the incident in which 137 workers at a Wintek facility were exposed to n-hexane gas, a poisonous chemical that can cause nerve damage and paralysis in humans. Apple required the facility to discontinue the use of n-hexane, to fix its ventilation systems, and to implement improvement to their management systems.
Apple noted that all affected workers were successfully treated, and the company continues to monitor their medical reports until full recuperation. Further, Wintek has paid medical treatment, meals, and foregone wages for sick or recuperating workers, while a majority of the 137 affected employees have returned to work at the same factory.
Another entire section of the report is devoted to suicides at Foxconn, Apple's largest overseas manufacturer. A number of suicides at the company's major plant in the southern city of Shenzhen, China, gained public scrutiny in 2010.
The audit reveals that Apple Chief Operating Officer Tim Cook and other company executives were joined by two "leading experts" in a visit to the Shenzhen factory in June 2010, where they met with Foxconn Chief Executive Terry Gou. Apple also commissioned an independent review by a team of suicide prevention experts, in which more than 1,000 workers were surveyed about their quality of life, sources of stress, psychological health and other work-related factors.
The independent team commissioned by Apple "commended Foxconn for taking quick action on several fronts simultaneously, including hiring a large number of psychological counselors, establishing a 24-hour care center, and even attaching large nets to the factory buildings to prevent impulsive suicides."
The team also recommended improvements at Foxconn, such as improved training of hotline staff and care center counselors and better monitoring to ensure effectiveness. The recommendations were added to Foxconn's long-term plans for addressing employee well-being.
"Apple will continue to work with Foxconn through the implementation of these programs, and we plan to take key learnings from this engagement to other facilities in our supply base," the report reads.
Apple conducted a total of 97 first-time audits in 2010, along with 30 repeat audits for a total of 127 -- the company's most audited facilities in one calendar year. The Cupertino, Calif., hardware maker has audited 277 supplier facilities since 2007.
The company noted that as a result of its "audits and rigorous standards," $3.4 million in recruitment fee overcharges have been reimbursed to workers since 2008 for "involuntary labor." The report noted that immigrants who move from their home country to work in factories in another country are often charged "exorbitant fees that drive them into debt," and that Apple is working to address the problem.
In the annual report, Apple revealed that the company discovered a total of 49 underage workers across 9 facilities overseas. One of the facilities had the lion's share of child labor, with 42 underage workers.
"We required the supplier to support the young workers' return to school and to improve their management systems to prevent recurrences," the 2011 Apple Supplier Responsibility 2011 Progress Report reads. "Apple has terminated business with the facility."
The audit also uncovered one case of bribery, where a facility manager offered cash to Apple's third-party auditors and asked them to reduce the number of audit filings. Apple also ceased business with that factory.
The annual report also dedicates a section the incident in which 137 workers at a Wintek facility were exposed to n-hexane gas, a poisonous chemical that can cause nerve damage and paralysis in humans. Apple required the facility to discontinue the use of n-hexane, to fix its ventilation systems, and to implement improvement to their management systems.
Apple noted that all affected workers were successfully treated, and the company continues to monitor their medical reports until full recuperation. Further, Wintek has paid medical treatment, meals, and foregone wages for sick or recuperating workers, while a majority of the 137 affected employees have returned to work at the same factory.
Another entire section of the report is devoted to suicides at Foxconn, Apple's largest overseas manufacturer. A number of suicides at the company's major plant in the southern city of Shenzhen, China, gained public scrutiny in 2010.
The audit reveals that Apple Chief Operating Officer Tim Cook and other company executives were joined by two "leading experts" in a visit to the Shenzhen factory in June 2010, where they met with Foxconn Chief Executive Terry Gou. Apple also commissioned an independent review by a team of suicide prevention experts, in which more than 1,000 workers were surveyed about their quality of life, sources of stress, psychological health and other work-related factors.
The independent team commissioned by Apple "commended Foxconn for taking quick action on several fronts simultaneously, including hiring a large number of psychological counselors, establishing a 24-hour care center, and even attaching large nets to the factory buildings to prevent impulsive suicides."
The team also recommended improvements at Foxconn, such as improved training of hotline staff and care center counselors and better monitoring to ensure effectiveness. The recommendations were added to Foxconn's long-term plans for addressing employee well-being.
"Apple will continue to work with Foxconn through the implementation of these programs, and we plan to take key learnings from this engagement to other facilities in our supply base," the report reads.
Apple conducted a total of 97 first-time audits in 2010, along with 30 repeat audits for a total of 127 -- the company's most audited facilities in one calendar year. The Cupertino, Calif., hardware maker has audited 277 supplier facilities since 2007.
The company noted that as a result of its "audits and rigorous standards," $3.4 million in recruitment fee overcharges have been reimbursed to workers since 2008 for "involuntary labor." The report noted that immigrants who move from their home country to work in factories in another country are often charged "exorbitant fees that drive them into debt," and that Apple is working to address the problem.
Comments
Perhaps since the same huge factories in China make products for those same companies too, I bet they simply sit back and let Apple do all the work with audits and they go along for the ride. After all, Apple does all their R&D for the copy-machine folks, might as well let Apple do that too.
I think Apple does more in this regard than the other folks do.
Now how long before we see headlines blaring, "Apple admits using child labor, poisoning workers"?
Apple Report Details Supplier 'Core Violations'
Apple has released its 2011 report on Supplier Responsibility, a relatively new annual report that compiles results from audits it performs of its component suppliers and manufacturing facilities. Social responsibility at Apple's overseas partners has become an increasingly hot topic lately--fairly or not, Apple has often been singled out over other companies--and the report offers a summary of the progress that Apple's suppliers are making.
As Apple's packaging often so modestly touts, the company's products are usually designed at its U.S. headquarters in California. But like many companies, Apple's products are primarily built by a variety of manufacturers, most of which are located in Taiwan, China, and Singapore. Over the years, stories from these factories of worker abuse, inhumane working conditions, and a Chinese employee committing suicide after losing an iPhone prototype have prompted investigations from both Apple and Chinese authorities. A 26-page complaint lobbied against Apple from 36 environmental groups in China just last month revived the topic again.....
Amid outcry, Apple says it monitors work conditions in China
Apple restated its pledge to provide safe working conditions for workers assembling of its products after environmental groups in China released a report criticizing the tech company for failing to be transparent about its suppliers.
?Apple is committed to ensuring the highest standards of social responsibility throughout our supply base,? said Apple spokeswoman Carolyn Wu in a statement. The company requires all suppliers to sign up to Apple?s code of conduct before the contracts are made. Compliance is then monitored through factory audits and measures to correct violations....
Apple criticized by Chinese environmental groups
Environmental groups in China have criticized Apple for a lack of regard for its Chinese suppliers, blaming the Cupertino company for poor environmental and work safety standards.
Reuters reported this week that the Institute of Public & Environmental Affairs (IPE) published a critical report on the Apple supply chain, accusing the company of only caring about the ?price and quality? of its products.
?We?ve found that Apple isn't honouring its commitment in ensuring its supply chain?s work safety and environmental responsibility and giving dignity and respect to the workers,? Ma Jun of IPE told Reuters.....
Apple Report Details Supplier 'Core Violations'
Amid outcry, Apple says it monitors work conditions in China
Apple criticized by Chinese environmental groups
Just like AppleInsider exaggerates about Android news like that.
Sounds like Apple is doing a good job of monitoring its facilities. It's unfortunate that they need to be monitored at all. Hopefully, Apple will continue to be vigilant and more companies will follow suit.
Exactly, it "sounds like". The report is full of meaningless phrases such as "Apple is applying pressure", "we gained insight" (but probably did nothing) and (my personal favourite) "In addition, some workers (without specifying even a percentage) are able to join onsite associate degree programs linked to Chinese universities."
Overall, the report is very loose and vague and reeks faintly. How many people are there involved in the assembly of Apple's products? Doesn't say. How much do they get paid? Doesn't say. Which facilities did Apple terminate business with (did the company change it's name and re-secure the contract). Doesn't say. Without this kind of information, we're in no position to judge whether this report is truthful or not - it's what Apple wants you to hear and see (check out the air-brushed photos) - and until Apple reports that kind of information, it's safe to dismiss their "supplier responsibility programme" as primarily a PR exercise.
I'm sure the trolls will come out in force to spin this story. But I think this story results in another question being asked. What are the other big players - Motorola, HTC, Samsung, Nokia, etc.. doing in auditing the (same??) companies for violations?
Perhaps since the same huge factories in China make products for those same companies too, I bet they simply sit back and let Apple do all the work with audits and they go along for the ride. After all, Apple does all their R&D for the copy-machine folks, might as well let Apple do that too.
I think Apple does more in this regard than the other folks do.
It would be good if American companies banded together in requiring minimum standards. This would carry more weight than a single company asking/demanding changes.
I know there will be tons of bashing in this thread but I'm happy with Apple's response and believe in their sincerity to make things right.
I think these incidents are the last thing Apple wants and they'll spend the millions (small sum) to make sure this shit doesn't happen.
Yep. They will be a lot of bashing of Apple - nevermind that these people will gladly buy other brands whose products are made in the same factories.
It would be good if American companies banded together in requiring minimum standards. This would carry more weight than a single company asking/demanding changes.
This is a fabulous point.
Assuming some silly lawyer (that the suppliers would inevitably hire) doesn't make an antitrust issue out of it.....
Exactly, it "sounds like". The report is full of meaningless phrases such as "Apple is applying pressure", "we gained insight" (but probably did nothing) and (my personal favourite) "In addition, some workers (without specifying even a percentage) are able to join onsite associate degree programs linked to Chinese universities."
Overall, the report is very loose and vague and reeks faintly. How many people are there involved in the assembly of Apple's products? Doesn't say. How much do they get paid? Doesn't say. Which facilities did Apple terminate business with (did the company change it's name and re-secure the contract). Doesn't say. Without this kind of information, we're in no position to judge whether this report is truthful or not - it's what Apple wants you to hear and see (check out the air-brushed photos) - and until Apple reports that kind of information, it's safe to dismiss their "supplier responsibility programme" as primarily a PR exercise.
Agreed. Shame on Apple. They should do nothing like other companies.
And they need the PR so desperately to approach their goal of being a premium brand. Oh wait, they are already the top premium brand in any industry?
Silly, eh?
" The report noted that immigrants who move from their home country to work in factories in another country are often charged "exorbitant fees that drive them into debt," and that Apple is working to address the problem.
This may be a big source of the suicides. I've seen it in Singapore where filipinos are charged ridiculous amounts by employment agencies. These were graphic designers, 3d animators and architects who were promised a good wage but shown the small print when they arrived.
I know there will be tons of bashing in this thread but I'm happy with Apple's response and believe in their sincerity to make things right.
I think these incidents are the last thing Apple wants and they'll spend the millions (small sum) to make sure this shit doesn't happen.
Yah, I prefer my slaves to be of a certain age too.
And kudos to Apple for drastically ensuring the demise of the United States of America. 4 Million people on food stamps, real unemployment around the 25% range, debt to GDP ratio of 96%,... but hey, as long as their PR looks good for over-seas sweat shops...
The strident demand for details, and the criticism of the wording is so typically reactionary rhetoric from acorn.alert. What is particularly ridiculous is the fact that the commenter is yet another free consumer of the Western commerce feedmill, who is doing nothing or at best ineffectually little compared to the efforts of Apple and other companies who are working against national culture greed and corruption to make their SUPPLIERS workplaces better. This is one step abstracted from even making sure that Apple itself is fair and supportive in its own workplaces.
Oh wait apparently expressing disdain, applying calumny and consuming power-grid wattage to post drivel on the internet is more than enough activism to justify the critique. Yeppers, by golly a few million more like acorn.alert and there will be a real revolution - not.
Oh yeah and of course Apple is single-handedly bringing down the economy of the US by putting 4 million people on unemployment, nice. rain,you need find a real parade to piss on.
How about building some of this stuff in America?
Why ?
Yah, I prefer my slaves to be of a certain age too.
And kudos to Apple for drastically ensuring the demise of the United States of America. 4 Million people on food stamps, real unemployment around the 25% range, debt to GDP ratio of 96%,... but hey, as long as their PR looks good for over-seas sweat shops...
Bad premise for an argument from someone posting on a computer made in China and probably not even designed here or from an American company.
Agreed. Shame on Apple. They should do nothing like other companies.
And they need the PR so desperately to approach their goal of being a premium brand. Oh wait, they are already the top premium brand in any industry?
Silly, eh?
No its not silly. Apple should strive to be the best company they can be regardless of the PR outcome.
How about building some of this stuff in America?
They used to, the Apple I was made in the USA, in Paul Jobs' garage (the man who adopted Steve). The first Lisa, Macintoshes, even the first NeXT computers were assembled in the USA. I think they found the market for $10,000 computers very small.