Apple Makes Sure Its Supplier Dont Fall Too Far from the Tree

Ethics in Action
As a worldwide producer of technology, Apple has to coordinate with suppliers throughout the
globe. Many of these suppliers have standards of work that differ significantly from Western
expectations, including the use of child labor, workweeks exceeding 60 hours, and work
environments that are physically and psychologically crippling.
Apple got into some hot water recently over complaints of excessive work hours, sex
discrimination, and other serious abuses at some of its Chinese facilities. It also came under fire
for not carefully monitoring work conditions at supplier factories in other parts of the globe,
specifically those that mine what are known as conflict minerals. Such mineralstantalum,
gold, tungsten, and tin, for exampleare considered conflict minerals because they are found
in politically unstable countries such as the Democratic Republic of Congo and other African
nations. Tantalum, in particular, is a much-needed component in cell phone production. The issue
of mining in conflict zones has become important enough that in 2012 the Dodd-Frank Act
required U.S. companies to disclose whether their production materials come from such
countries and to file a report with Securities and Exchange Commission.
Apple responded to these events by stepping up its supplier compliance and monitoring efforts.
Each year, the company publishes an annual Report of Supplier Responsibility that is available to
the public. In the 2014 report, Apple listed the extensive measures it is taking to ensure that
workers throughout its supply chain are treated fairly and safely. It is conducting routine and
surprise audits (451 in 2013) of suppliers, interviewing workers, reviewing financial statements,
and monitoring production practices. Apple is also monitoring environmental conditions to
ensure that companies support good health and wellness for their employees. Suppliers who fail
to meet Apples standards risk the loss of its business.
The 2014 report showed significant improvement in many areas. Specifically, the company
reported that 95 percent of supplier factories adhere to a less than 60-hour workweek and none of
its suppliers mined for minerals in war zone countries. In addition, Apple started its own Clean
Water Program that reuses and recycles water at 13 supplier locations to keep use of this precious
resource to a minimum. A company touted for its meticulous attention to detail and quality has to
ensure that it extends that attention throughout its supply chain.