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Apple audits more suppliers and finds serious policy violations

By Greg S ยท 5 replies
Mar 8, 2018
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  1. On the outside, Apple tries very hard to maintain a clean public image. After performing an annual internal audit on working conditions of employees and supplier activities, serious violations of policies have been discovered. Issues range from falsifying working hours to harmful environmental practices.

    This marks the 12th year that Apple has performed supplier audits to ensure that its reputation remains intact. Out of the 756 suppliers spanning 30 different countries, 197 suppliers were audited for the first time. The number of under-performing suppliers dropped to just 1 percent in 2017, significantly reduced from 14 percent in 2014. Exceptional or high performers account for 59 percent, up from 47 percent in 2016.

    Out of all the suppliers subject to audit, 44 "core violations" of policy were found. This is twice as many found compared to last year. A major issue discovered in three different cases was employees being forced to give up large portions of their pay to keep their jobs. Collectively, workers in the Philippines gave up over $1 million in order to maintain their jobs at a contractor facility. Apple has since ordered the money be paid back to employees.

    Working hours have traditionally been a concern for contract workers. Apple mandates that all employees under contract must not work more than 60 hours in any work week. This past year, compliance on working hours fell from 98 percent in 2016 down to 94 percent. There were 38 instances where hours were forged to try and hide policy violations.

    COO Jeff Williams states, "We’re committed to raising the bar every year across our supply chain." Upon finding violations of policy, the chief executive of a supplier is directly notified and is given a probation notice. Apple requires that corrections be made or it will consider cutting ties with non-compliant contractors.

    Last year, ten mineral and chemical refiners were dropped from Apple's supply chain after refusing to allow an audit to take place. An additional six businesses opted to cut ties with Apple of their own will before being asked to participate.

    Permalink to story.

  2. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,719   +1,135

    Next gen phone will be on the $2k range.
  3. wiyosaya

    wiyosaya TS Evangelist Posts: 3,425   +1,824

    That will not happen. crApple already knows that their current gen iCrapPhone is not selling because of its insane price.

    What is your point?

    In this day and age, it should be no surprise to anyone or any entity including crApple that these kinds of things are found. Much of the business world could care less how they line their pockets with money.
  4. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,208   +4,873

    "Apple has since ordered the money be paid back to employees."

    Since Apple is so concerned they have the money they gain by using these suppliers. The problem is Apple using these suppliers, when they know violations exist. These audits are nothing more than PR to make Apple look as if they care.
    wiyosaya likes this.
  5. wiyosaya

    wiyosaya TS Evangelist Posts: 3,425   +1,824

    Ordered the money to be paid back while sitting on $100bn in the bank. Ha! Typical crApple.
    senketsu and cliffordcooley like this.
  6. Evernessince

    Evernessince TS Evangelist Posts: 3,515   +2,825

    Providing temporary relief from a systemic issue doesn't solve the problem, it only encourages it to continue. The same thing happens in America, where companies like Walmart fail to pay a living wage, thus forcing these people to sign up for public assistance as well. In affect Walmart is being subsidized by the government. Ditto goes for tips as well. Why pay people a living wage when you can pass the cost off to the customer? It's a good business decision and bad for everyone else.

    Yeah, these audits make it appear as if Apple cares but they also have real tangible results.
    senketsu likes this.

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