Introduction
This paper deals with Apple’s Supplier Code of Conduct relating to the ethical conducts and activities to be carried by the suppliers in order to maintain accountability. It promotes information about the responsibilities of suppliers. It covers areas such as Apple’s influence in order to empower employees, to promote labor and human rights for the workforce, to safeguard the environment for the future generation and to maintain accountability on the part of suppliers through in-depth audits on a regular basis. This paper centers on the roles and standards towards the suppliers established by Apple, which has been developing over time.
Apple Supplier Code of Conduct
Apple challenges itself by transforming a complex and critical idea or object into a simplistic model. This enables Apple to develop new products which can improve the lives of the general people. Apple continuously thrives in formulating new products which will make people’s lives easier and better. It has become one of the largest supply chains in the world. It has a big interconnected network of suppliers. The products made by Apple such as iPhone, iPad, and Mac have been affecting the lives of millions of inhabitants all around the world. In order to achieve its international reach, it has employed more than hundred manufacturing partners for its products. It is believed that Apple’s Supplier Code of Conduct is one of the toughest ethical standards of the electronic industry. It has already conducted about 633 audits at the different hierarchical level of the supply chain in order to strongly implement the code of conduct. It had also trained around 1.5 million suppliers due to their right (Apple Inc, 2015). Apple always supports that every supplier and worker must have the right towards a safe and ethical working atmosphere in the workplace. Thus, the company conducts several audits within the system of their supply chain so that the suppliers are accountable to the company and do not deviate from the set standards.
Educating and Empowering Workers
Apple has also devoted its efforts towards educational facilities for its workforce. It aims to provide educational opportunities to the workers via educational resources within the supply chain. The company delivers several pieces of training to the workers on a regular basis under their right for free college classes. The legal obligation under Apple’s Code of Conduct provides facilities to the workforce to learn in areas such as technology, language, and other related subjects. The company does not restrict their facilities merely on training. Moreover, it also ensures the chance to earn bachelor’s degree or associate’s degree under its own program named Supplier Employee Education and Development (SEED) program. Apple had made its workforce aware about their rights through training around 2.3 million workers during 2014 while the number of trainees has been around 6.2 million since 2007. Using the technological advances of the company, it has created an app based iPad education program launched at 10 sites which promote education through a mobile app of SEED program. The participation of workers in the SEED program has been about 379,000 workers only in 2014 which were 861,000 more than since 2008. It has been making efforts to empower the workers to raise their voices and provide opinions and ideas.
Labor and Human Rights
Unlike other companies, Apple focuses on safeguarding workers from any kind of unfair treatments and exploitations. It plans to help the workers to protect their human rights and privileges. Due to the diversity in its workforce, it needs to be proactive in dealing with the varied nationality of people and their workplace issues. So, the company emphasizes its suppliers to promote 35% compliance with only 60 hours work week. The rising issue of the electronic industry is the increase in maximum standard to complete the task which hinders the labor right along with violating the standards of the company. Apple aims to maintain the standards at maximum 60 hours a week and to bring an end to any excess workload beyond it (Noronha, 2014). Furthermore, the company plans to end the unethical hiring practices that can affect the image of the company and also safeguard the workers from any types of exploitation in their work. The company had initiated around 33 specialized audits especially in places where a number of migrant workers are employed. There is always a greater risk for migrants for unjust treatments. Additionally, there were 64 representatives from 64 different supply facilities along with 240,000 workers who attended Ethical Hiring Training in 2013 (Apple Inc, 2015).
Health and Safety
The company has the main agenda to ensure safety at the workplace which can never be compromised under any circumstance. The safety of the workers plays a vital role to improve their productivity and motivation in the work. Every worker has the right to safety and healthy working environment. Apple is constantly trying to discover new methods to make their production process, working environment and other facilities in the workplace even safer. There are several educational facilities provided by Apple to the workers which develop their skills through training or app education program and builds a proactive management team to tackle problems with foresight (Noronha, 2014). The company has also established Environment, Health and Safety (EHS) Academy, which enables the company to develop their health and safety measures through education. The academy trains the workers, suppliers, and other personnel to ensure safe working ambiance with no adverse consequences in the work. During 2014, the academy trained around 156 suppliers and other 392 participants along with 270,000 workers about the health and safety topics in order to strictly follow the safety standards of the company. The EHS Academy works to reduce the risk in the workplace via specialized training on EHS topics (Apple Inc, 2015).
The Environment
With the increasing growth of industries and companies, the world has shifted its attention towards environmental issues and its consequences. Apple also has a strong motto to protect the natural resources of the planet for the future generation to utilize its benefits. The limited resources are depleting day by day. So, the company plans to reduce the environmental impact of its work and instructs the suppliers to follow the same. The company has assured to develop an environmental friendly product, and the suppliers will use environmentally supportive manufacturing process will producing its product (Ferrell, Fraedrich & Ferrell, 2014). The company has been disseminating information on several environmental topics. During 2015, there were more than 392 suppliers working with around 900,000 workers participated in the EHS academy to enhance their knowledge regarding water usage, air emissions, and water management. The company has also developed a Clean Water Program in partnership with 200 suppliers focusing on reuse and recycle of water.
Accountability
One of the core purpose of Apple is to maintain the accountability among its suppliers through the Suppliers Code of Conduct. The code of conduct guides the suppliers as well as the company to be open to the public and avoid any measures to deceive them. To enhance their accountability, Apple constantly works with the suppliers to identify problems, to find means to solve it and to fix it in a short span of time. Apple has conducted numerous audits within the various level of a supply chain to address any flaw in the system. During 2014, Apple did 490 audits at a varied level in the supply chain which was 298 audits more than since 2012 to discover any issues and to resolve them immediately. The intensity and frequency of audit have increased over the years as the Apple’s partners and suppliers are increasing internationally with time, and the need to maintain accountability in comparison to its competitors has also increased. The audits covered almost 1.5 million workers who are directly involved in making the Apple products (Apple Inc, 2015). The company has active engagement with its suppliers while listing them publicly along with their addresses, locations, and conflict-free certification. The internal standards guiding the behavior of suppliers are regarded as one of the toughest in the industry, and it was developed with the involvement of several renowned organizations. The organizations are International Labor Organization, United Nations, Electronic Industry Citizenship Coalition, and Fair Labor Association. The company believes that there are no other organizations showing the similar kind of transparency in their work.
Supplier Code of Conduct Helps Apple Operate as a Socially Responsible Organization
The company had started working with its suppliers to enhance their responsibilities since 2006. This has permitted the company to understand the weakness at a different level of supply chain and address those issues immediately for maintaining their efficiency. Such efforts by the company have enhanced their reputation as well as limited their problems to a minimal level. Apple works with its suppliers to publish the code of conduct guidelines annual in public so that not only Apple’s suppliers but people of various industries can also see it with the aim to support the transparency and accountability in the industry and the system (Quiller Media, Inc, 2015). The image of Apple has been as a socially responsible organization which shows commitment towards its workers and consumers. They aim to use transparency as a medium to project a strong image of the company’s work towards its people. It has constantly been thriving to improve health and safety in the working environment for protecting the workers, to empower the worker through educational resources and opportunities for raising their voice, to safeguard human rights of the workers, etc. Through these measures, Apple aims to support the company and operate as a socially responsible organization in the international level.
Conclusion
Thus, the information on Apple Suppliers Code of Conduct helps to understand the way Apple works and plans to work for the coming future in partnership with its suppliers. There is a significant role of empowering employees, protecting worker’s human right and labor rights, protecting the environment, and maintaining accountability for the success of the company for so many decades. The company still continues to progress as a result of the competitive advantage gained from such critical factors over other competitors.
References
Apple Inc. (2015). Supplier Responsibility. Retrieved from: https://www.apple.com/supplier-responsibility/
Apple Inc. (2015). Supplier Responsibility: 2014 Progress Report. Retrieved from: https://www.apple.com/kr/supplier-responsibility/pdf/Apple_SR_2014_Progress_Report.pdf
Ferrell, O.C., Fraedrich, J. & Ferrell, L. (2014). Business Ethics: Ethical Decision Making & Cases (10th ed,). USA: Cengage Learning.
Mohin, T.J. (2012). Changing Business from the Inside Out: A Treehugger's Guide to Working in Corporations. USA: Berrett-Koehler Publishers.
Noronha, C. (2014). Corporate Social Disclosure: Critical Perspectives in China and Japan. USA: Palgrave Macmillan.
Quiller Media, Inc. (2015). Apple releases 2015 Supplier Responsibility Report, targets the end of 'bonded servitude' practices. Retrieved from: http://appleinsider.com/articles/15/02/11/apple-releases-2015-supplier-responsibility-report-targets-the-end-of-bonded-servitude-practices
