To what extent should corporations be accountable for improving labour conditions in their supply

chains for the production of digital technology devices?"

Corporations have an ethical responsibility to improve working conditions in their supply chains to
produce digital technology devices. Improving working conditions can also be good for business as
research has shown that productivity and profitability can improve when workers are treated well ⁷.
Many companies work with their suppliers to strengthen local capacity and measure work environment
performance ⁷. However, poor working conditions, even very deep in the supply chain, can cause severe
reputational damage ⁷. Monitoring for compliance with codes of conduct is currently the principal way
that both global corporations and labor rights nongovernmental organizations address poor working
conditions in global supply chain factories ⁸. Transparency is one of the key drivers of improvement in
working conditions. A number of companies have developed online maps of their supply chains that
dramatically improve the traceability of their products. For example, Patagonia and Marks & Spencer
have developed such maps ¹.

Another way that corporations can improve working conditions is by leveraging digital technologies and
data analytics to optimize their supply chain performance and responsiveness ². Digital supply chains
empower businesses with up-to-date information to ensure the most efficient planning possible ². They
also enable companies to share information and assets with each other in new ways, such as on-demand
warehousing or collaborative forecasting ¹. These new opportunities require companies to change the
way they forge and manage relationships with other entities in the supply chain, such as suppliers,
customers, or competitors ¹. It also requires managers to adopt a boundary-spanning mindset to
facilitate collaboration, experimentation, and trust across organizational boundaries ¹.

One example of a company that has embraced digital transformation in its supply chain is Apple. The
Apple Supplier Responsibility program was developed to ensure that the company’s global supply chain
is managed in an ethical and socially responsible manner. The guiding document of the Apple Supplier
Responsibility program is the Supplier Code of Conduct, which outlines Apple’s ethical standards for the
manufacture of their products ⁵. Apple suppliers are held to high standards of labor and human rights,
health and safety, environmental stewardship, and ethics ⁵. Apple also uses digital tools and platforms to
monitor its suppliers’ compliance with its code of conduct, such as audits, assessments, trainings,
corrective action plans, supplier responsibility reports, supplier list disclosures, conflict minerals reports
etc. . By using digital technologies to enhance its visibility and accountability along its supply chain,

Apple demonstrates how corporations can improve working conditions while also achieving operational
excellence.

Source: Conversation with Bing, 20/03/2023(1) Apple Supplier Responsibility Compliance Services.
https://www.asiaqualityfocus.com/services/factory-audit-ethical-sourcing/retailbrand-specific-
compliance-programs/apple-supplier-responsibility-compliance-services/ Accessed 20/03/2023.
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(3) Apple Supplier Responsibility Compliance Services.

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(5) Apple details supply chain progress in annual responsibility report.

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(6) Supplier Responsibility - Apple (IN). https://www.apple.com/in/supplier-responsibility/ Accessed

20/03/2023.

Companies can also work with their suppliers to strengthen local capacity and measure work
environment performance ³. Indicators are needed to measure performance, identify problems, and
eliminate root causes. Both the physical aspects such as lost-time injuries and psychosocial aspects such
as stress of working conditions should be considered ³.

Source: Conversation with Bing, 20/03/2023(1) 7 Examples of Poor Working Conditions and How to
Improve Them - Pulpstream. https://www.pulpstream.com/resources/blog/working-conditions
Accessed 20/03/2023.

(2) 5 Steps to Building Better Working Conditions in Global Supply Chains.

https://sustainablebrands.com/read/supply-chain/5-steps-to-building-better-working-conditions-in-
global-supply-chains Accessed 20/03/2023.

(3) Improving working conditions has positive impact on safety - Eurofound.

https://www.eurofound.europa.eu/publications/article/2009/improving-working-conditions-has-
positive-impact-on-safety-environment Accessed 20/03/2023.

(4) 7 Strategies to Improve Your Employees’ Health and Well-Being. https://hbr.org/2021/10/7-

strategies-to-improve-your-employees-health-and-well-being Accessed 20/03/2023.

(5) How to Improve Working Conditions in the Developing World.

https://www.gsb.stanford.edu/insights/how-improve-working-conditions-developing-world Accessed
20/03/2023.

In addition, Nike launched a program to boost supply-chain productivity and quality by introducing lean
manufacturing principles to its apparel suppliers in the developing world ⁴.
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(2) How to Improve Working Conditions in the Developing World.

https://www.gsb.stanford.edu/insights/how-improve-working-conditions-developing-world Accessed
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(3) 23. Working Conditions - International Labour Organization.

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(6) Four Ways Technology Can Enhance Your Supply Chain. https://hbr.org/sponsored/2020/11/four-
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(7) Digital Transformation Is Changing Supply Chain Relationships. https://hbr.org/2022/07/digital-

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