Apple has made significant steps in improving the way suppliers treat employees and on the effectiveness their corporate social responsibilities with emphasis on dignity and respects as supplier core values. Progress in the supplier responsibility report is usually done with the objective of reviewing and identifying better ways through which suppliers can create fair employment and safe working conditions as the products move across the value chain. Moreover, incidences of violations are dealt with through termination of the contracts with suppliers or making suppliers pay for their unethical actions.
Apple’s stances with regards to varied key functional aspects are identified below:
Accountability
Over the years, changes have been done to Apple’s supplier's codes of conduct towards improving business ethics in the facilities. The need to involve suppliers in establishing codes of conduct is to ensure every party identifies key areas that require changes and the highest standards that could be set in making Apple and its suppliers sustain operations in the global environment. To promote accountability by suppliers, Apple monitors the working conditions, fair treatment of workers and ability to establish sustainable business practices. A case in which Apple has ensured accountability among its suppliers is after the discovery of violations of human rights, environment sustainability and health and safety violations at Lens factory in China. With appropriate actions, the factory managed to improve its audit score by 29% after interventions by Apple for the facility to adhere strictly to ethical practices. Among the accountability issues addressed at Lens factory included the need to control working hours, create a revised audit procedure, update the recruiting policy and proper storage and labeling of chemicals.
Labour and human rights
Apple requires its suppliers to identify the fact that workers’ rights are human rights. Among malpractices that Apple has established zero tolerance to include incidences where recruits are made to part with an excess fee before being employed. Revelations of such violations are not tolerated by Apple with suppliers required to repay the employees who had paid the fee. Such actions have seen repayments amounting to $ 4.7 million in 2015. Incidences of brokers exploiting recruits was witnessed when a broker managed to secure employment for Rechel, a recruit at Mektec, which is a part of Apple’s supply chain. However, upon the realization that the fee charged was in excess of Apple’s standards, Mektec was alerted and had to reimburse the amount to Rechel as well as terminating the contract with the broker. Key changes have been undertaken including partnering with Organization for Migration to train and educate potential employees regarding their rights, contract terms, organizational culture and how to report incidences of illegal practices by suppliers. Apple discourages any forms of discrimination based on age, disability, sexual orientation, age, religion, race or political affiliations. As an equal opportunity employer, Apple requires its suppliers to comply with the need to offer non-discriminatory compensation and employment opportunities. Forms of physical, sexual and verbal harassments are also discouraged by Apple. Suppliers are prohibited from engaging in forms of involuntary labor, slavery, bonded or prison labor that deny employees freedom within their workplace. Suppliers are also required to ensure they adhere to working hours, with the recommended hours no more than 60 hours per week with the tenth progress report proving significant steps in all suppliers facilities.
Empowering workers
For those who are not much educated, Apple requires that suppliers be able to train them in the factories and encourage them to enroll for classes to advance their careers. Changes in supplier codes of conduct have seen Apple supports suppliers to establish contacts with vocational schools to boost their standards of education. Approximately 9.25 million employees have been trained by suppliers since 2008 regarding appropriate policies, the need to maintain a safe workplace and the role of effective communication in the workplace. With the initiative to encourage employees to exploit more opportunities, Apple together with its suppliers established the Supplier Employee Education Program with classrooms set up to offer free courses on computer skills, graphic designs, English and Human Resource Management. Additional short courses include financial management skills, life skills, and job functions. The SEED program has been key to moving employees from their junior vocational schools through the ranks with other mangling to be part of the HR department.
The Environment
Apple believes that the planet deserves better thinking that is in line with enhancing sustainability. Apple requires suppliers to implement alternative sources of energy such as solar energy that reduce carbon footprint. The current vendors responsibility conducts are focused on switching to greener materials in efforts to create safer products. The need to protect forests and ensure they are sustainably managed is also emphasized in addition to the requirements for recycling programs that prevent over-exploitation of natural resources. The sustainability efforts have so far been achieved since 93 % of the energy used in 2015 came from renewable sources. Such sustainability efforts have been witnessed in nations such as Singapore where A 32-megawatt solar project covering more than 800 rooftops was implemented. To protect millions of acres of forest, Apple urges its suppliers to implement policies to ensure that 99 % of the paper used in packaging is recycled. Progress is also made to prevent incidences of wastes from the iPhone, and Apple Watch products finding their ways into landfills. To prove its concern for the sustainability of the ecosystem, Apple in 2015, engaged its suppliers in starting a Full Material Disclosure programs that show the use of chemical composition in every product manufactured. The need for such actions is to ensure products are free of mercury and beryllium such as with the case of Apple Watch.
Health and safety
Apple acknowledges the fact that the suppliers facilities have a lot of impact on the planet and employees involved in manufacturing process. The primary concern for Apple is to ensure that workers are protected with the right equipment and safety measures. To enhance the safety at the facilities, Apple requires its suppliers to have an effective curriculum on health and safety with basic precautions and procedures provided to employees. Major progress made include the establishment of Environmental Health and Safety Academy in 2013 that focuses on educating everyone on environmental protection, emergency preparedness, water and chemical management as well as how to safely use equipment available. While partnering with local universities, suppliers are able to take advantage of effective EHS curriculum. Over 1590 EHS projects have been implanted by Apple’s suppliers with 2015 witnessing the graduation of 310 from EHS Academy. Health and safety milestones have been achieved in suppliers facility like Marian Suzhou where students identified security gaps in the development, installation and maintenance of manufacturing machinery. Through their actions, additional safety apparatus and interlocks were installed with machine safety checks becoming a culture at the facility.
The progress report has changed in several ways with Apple managing to act more on the violations of employees rights and reporting on the essential progress that has been achieved. The primary emphasis for the company is placed on the need for suppliers to identify the right ways of making products while taking care of the interest of employees involved in the manufacturing process. Significant steps have been achieved in the areas of suppliers accountability with the requirement of the need for providers to strictly adhere to the codes of conduct to avoid incidences where their contracts with Apple are terminated. The progress report also indicates steps towards reducing rates of underage and bondage labor, empowering employees through career advancement programs and improving the sustainability of both employees and the environment.
How Apple’s Supplier codes of conduct prove its focus on fulfilling its corporate social responsibilities
The suppliers codes of conduct have led to a reduction of incidences of child labor whereby in the case of violation, vendors are required to return the child to their parents and pay for their education as well as provide basic income till they reach the legal working age. The codes have also seen suppliers avoid excessive recruitment fees so that everyone has the chance to be employed regardless of the economic status. Suppliers are more responsible in terms of environmental sustainability with projects such as clean water for the communities and eco-friendly energy sources utilized in most of the facilities. Sustainability efforts stipulated in the suppliers codes of conduct have led to a reduction of over 13800 metric tons of carbon emissions and diversion of more than 73000 metric tons of wastes from landfills.
References
Apple Inc. (2015). Supplier Responsibility 2015 Progress Report. California: Apple Inc. Retrieved from www.apple.com/supplier-responsibility
Apple Inc. (2016). Supplier Responsibility 2016 Progress Report. California: Apple Inc.