Why Apple doesn't do more to improve Foxconn working conditions - report
"Because the system works for us," says former exec.
Foxconn, the enormous Chinese manufacturer that pieces together products for Nintendo, Microsoft and Apple, among many others, has been the subject of numerous recent reports of atrocious working conditions and employee suicides.
With every new story, commentators are invariably quick to ask "why don't the platform holders hold Foxconn accountable and demand change?"
Well, an anonymous former Apple executive has offered a little insight as to why that doesn't happen.
"We've known about labour abuses in some factories for four years, and they're still going on," the source told The New York Times.
"Why? Because the system works for us. Suppliers would change everything tomorrow if Apple told them they didn't have another choice."
"If half of iPhones were malfunctioning, do you think Apple would let it go on for four years?"
The New York Times report adds that there is a desire within the company to bring about change at the plant, but that falls by the wayside when conflicts crop up over the need to deliver new products on time.
Apple has brought in a code of conduct that it expects suppliers to adhere to, and some improvements have reportedly been seen.
Its published reports insist that every disclosed labour violation be addressed, and suppliers that refuse to do so are terminated. However, former executives admitted that, in reality, finding a replacement supplier capable of picking up such a huge manufacturing burden would be both expensive and time consuming so infractions are often over-looked.
"If you see the same pattern of problems, year after year, that means the company's ignoring the issue rather than solving it," said another former Apple executive.
"Non-compliance is tolerated, as long as the suppliers promise to try harder next time. If we meant business, core violations would disappear."
Another source suggested that Apple's demanding list of requirements and the meagre profit margins offered to suppliers is partly to blame for corners being cut and labour regulations being neglected.
"The only way you make money working for Apple is figuring out how to do things more efficiently or cheaper," said an executive at a company who worked with Apple on the iPad. "And then they'll come back the next year, and force a 10 per cent price cut."
Apple is "not going to leave Foxconn and they're not going to leave China," predicted Heather White, a former member of the Monitoring International Labor Standards committee at the National Academy of Sciences. "There's a lot of rationalisation."
Apple, who earlier this week announced quarterly profits of around $13 billion, declined to comment for the story.
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Comments (94) Latest comment 4 weeks ago
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That's pretty sickening to be honest.
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Perhaps the insane profit marges have something to do with it?
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Nintendo: "Change your ways!" Foxconn: "Nope!"
Apple: "Change your ways!" Foxconn: "Oh, actually..."
It is as simple as that.
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Funny how one of the most popular stories on here is about Microsoft's use of Foxconn then, isn't it?
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In fairness to them dark, as Manic_mouse pointed out, they're hardly alone.
Also, they're only supplying the product that people want to buy. The vast majority of the buying public are more than happy to accept human rights abuses for their products, you, me, everyone.
You really think you own something that wasn't made in a sweat shop?
I'm not looking to pick on you. I'm as guilty as you are. How many of us here own a piece of equipment made in the foxconn plant, or clothing made in a sweatshop.
I really cant see the entire western world saying, i tell you what, we'll stop buying our toys.
I accept that that this is the way of the world. It probably makes me a total cunt, though.
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Guess you somehow missed the huge "Xbox 360 assembly workers threaten mass suicide" story a few weeks ago?
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What would that have anything to do with it? Apple make that insane profit margin by flogging their software and hardware engineers. When it comes to Foxconn they simply contract out the manufacture, no differently than MS, Nintendo or Amazon.
@Syrette
And out of every article on the internet about Foxconn abuse, how many emphasise that Apple is only one of many companies using it? Most make out like Foxconn is an Apple owned factory. I've read two Apple-centric ones on EG compared to one MS one. Being a game site shouldn't it be focusing on Nintendo, MS and Sony making their consoles there?
As for boycotting electronics, having a crappy job is probably a lot better than no job for these people - which is why they choose to work there. Not saying it's a good thing, but it's better than the alternative of unemployment which would be the result if we boycotted Foxconn.
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Okay, seems like you're just trolling. Best of luck!
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Is it possible that you're a Apple adopter?
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I couldn't care less.
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For them a story about Apple who makes that shiny phone everyone likes and that shiny music player everyone likes will resonate with their readership more than a story about that Sony/Microsoft/Nintendo company that makes those silly children's toys that are making everyone violent and distracting kids from their homework and otherwise ruining civilization.
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Should we fear speaking up about this issue?
all we really want is to see people that work in places like this treated fairly. which they might be. we dont really know, and paid fairly, enough so they can feed themself and family and have an ok life.
once again i cannot really comment as i dont know about this, but the suggestion is this is not happening and that is a really bad thing in my view.
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There's little news here. Working conditions at manufacturers in China of Western luxury products have been shit for decades.
Maybe articles like this will lead to more awareness and consumer outrage, but I'm afraid this will be forgotten soon.
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Quite frankly your defence of apple seems idiotic, because other companies use Foxconn that some how exonerates Apple's own wrongdoing, oh and you may as well say slavery is better than no work for these people.
Your apathy and misplaced concern are part of of the problem
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Let's not assume that everybody's only motivation is money. Some people actually do care about how people other than themselves are treated. I'd imagine there are lots of people at Apple, MS and elsewhere who don't like how their bosses are doing business.
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What if the Raspberry Pi was made under similar conditions?
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They have no legal responsibility, but it's possible to argue they have a moral responsibility. That's what most people are talking about.
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No idea why Apple take all the flack from this when everyone and their mother use Foxconn: http://en.wikipedia.org/wiki/Foxconn#Major_customers </quote>
Intriguing...
No Sony, just Sony Ericsson, no Samsung ( my phone ) and no JVC. Somehow my recent purchases have allowed me to be Foxconn free.
So apparently I can slag Apple and MS off without being a complete hypocrit. Well I probably could except I bet whoever I've bought from probably use someone just as bad.
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What's the solution? genuine question.
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It's because Apple announced profits in the billions whereas others are struggling, i.e. Nintendo.
Using Apple makes a more interesting story.
On balance though, they should mention that Apple seem to be doing far more than anyone else in respect of being actively involved in trying to change things for the better.
At the end of the day, it might seem unethical and damage sales slightly but it's China's problem to sort.
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No Sony, just Sony Ericsson, no Samsung ( my phone ) and no JVC. Somehow my recent purchases have allowed me to be Foxconn free.
Indeed - I took a look as well. Looks like Sony Playstation consoles are not being built at FoxConn. Interesting, I wonder where they are built.
I have a PS3, a Samsung Galaxy S 4G phone and a Sony 3DTV. Seems that as far as these are concerned, I am not a customer of FoxConn.
However, I have a Cisco LinkSys router, an HP laptop & a Dell laptop, both with Intel chips, 2 XBox 360s, a Wii, a Nokia phone (my wife), a Panasonic phone, and a Philips DVD player. So - as far as these are concerned - I am a FoxConn customer.
/feels ashamed now
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The solution, albeit an incredibly naive one, is for Western companies to accept a smaller profit margin in return for a better standard of living for workers in China.
I admit it is incredibly unlikely, but there is precedent. Starbucks used to have a terrible relationship with farmers in developing nations, but after protests they now use only fairtrade coffee - they pay more for coffee than they did before, but their suppliers are better off and they have managed to use it as a selling point, so has been a big success.
Not only that, but because Starbucks are market leaders, their influence meant that lots of their competitors moved to fairtrade coffee as well, so Starbucks used their success to make a really big difference to the lives of thousands, maybe millions, of very poor people. That is something Apple should think about when they are counting the bilions of dollars that poor Chinese people have enabled them to earn.
Fairtrade computing? That doesn't sound so bad.
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No it doesn't.
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↑
This. Once companies get as large as Apple, they're really just making money simply to make it; it's not like the people in charge could really improve the quality of their lives by having even more income so, really, it's just pointless. Like a fire, such greed, that burns, consumes, and grows without stopping to reflect.
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The retail price is most of all based on what people are willing to pay!
If Apple would move back to the US, Apple's profit would go down but it wouldn't necessarily mean that the retail price would go up.
I've read somewhere that the costs to assemble an iPhone at Foxconn is about $8, and it would be about $64 to assemble in the US. Profit per iPhone would thus go down only $54. The article also said that currently, the iPhones make Apple a profit of about 40% per phone.
(I'll try to find the source again of these numbers)
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"The love of money is a root of all kinds of evil"
- New Testament
Rather than risk the company (perhaps) losing some small percentage of market share, Apple would rather these workers continue to suffer.
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To be honest, I don't see the need to defend any company, or single it out. I think the entire industry is at fault here.
I like that fairtrade idea, but there's no chance in hell they'd do it without passing on the cost.
A drop in profits, for any reason, impacts share price. And if that goes into freefall, even a well-meaning gesture can doom a company.
Sad, but it's the system.
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This is about an interview with an ex-apple executive -- Not a Microsoft executive or a Nintendo executive. Do you honestly think that these sorts of stories grow on trees?
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What responsibility does Apple have in this over the Chinese government who have little to no employment law?
=====
DO YOUR RESEARCH.
http://en.wikipedia.org/wiki /Labour_Contract_Law_of_the_People%27s_Republic_of_China
Little or no employment law myarse. The Chinese Government ARE doing things about it, and look where it gets them:
"Small and medium enterprises in particular have already particularly felt the effects of the law. For example, some Korean companies have already decided to move their business from China to Vietnam or other developing countries where labor is much cheaper. About 98 percent of Korean enterprises in China are independent small and medium firms.
Other companies reacted to the law by proactively firing employees who would have come under the new guidelines. In October, US-based retail giant Wal-Mart fired about 100 employees at a sourcing center in China. The company said the layoff was part of its global restructuring. LG and Olympus have respectively announced plans to lay off employees. Carrefour China has asked over 40,000 of its Chinese employees to re-sign a two-year labor contract before December 28, 2007 regardless of an employees' service length or the expiration of their current labor contract."
Note that this is western companies firing workers because the Chinese government dared to improve working conditions. We in the west, with the luxurt of our cheap Chinese made goods, can easily criticise them for it and even (like in your case) flat out lie from ignorance, when the reality is that the corporations based in the west are pulling the strings. Not the Chinese government, and not the Chinese people.
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Well in this case it is because it's a former Apple exec talking. He can't really make any comments about MS (or any of the others) as he didn't work there.
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No need to feel ashamed, it is unavoidable for one to be involved in modern life without buying something Foxconn - or if we're looking at the wider picture - buying something that has, in some part of the production chain, used exploitation of workers or a country's resources.
What is important is for people not to pressurise foreign governments on change, but on the large corporations to do so. Of course it seems marketing overwhelming wins the day over boycotting, but the next best alternative would be to push and campaign for the large corps (not just Foxconn client related) to sacrifice a small percentage of their profits to go towards improving the "lower" - and usually forgotten - end of their production chain.
Unfortunately, the world situation is at a point where it seems even our governments cannot control what the private corps do.
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It doesn't, no. But fair trade coffee is quite different from this.
The problem with the coffee is that there's being so much produced that the commodity price is so low that it can't really sustain small farmers. Fair trade affiliated companies pay a premium, more than the stuff is worth on the market, basically to subsidize those small farmers. Quite noble but you could argue that it would be better if there was less coffee being produced in the first place.
In the case of Chinese workers, it's the companies that they work for that 'exploit' them, within the system as set by the Chinese government. But the fact that they are 'exploitable' is also the reason they have their jobs in the first place.
The Times article was a follow-up to one last weekend that explained why iPhones etc. are not being made in the US but in China. Labor costs are only a minor factor. It's primarily about the flexibility and scale of the Chinese manufacturing infrastructure. If you need thousands of skilled engineers on short notice to manufacture a new, advanced tech product, China is the only place to go. And constant technological progress is what's being demanded by Western consumers.
No company operates in a vacuum and it's not as simple to just say that Apple should demand better working conditions at the cost of lower profit margins. Their shareholders will not be happy and their customers won't be either if it slows down time-to-market for new products.
Unless consumers get more vocal about this issue and factor it in in their buying decision, not much will change. But given how little pressure consumers have put so far on the big oil companies, who besides exploiting workers, also destroy the environments of poor countries, count me skeptical.
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It's beyond disgusting, write to your favorite news channels now!
Edit: "No company operates in a vacuum and it's not as simple to just say that Apple should demand better working conditions at the cost of lower profit margins. Their shareholders will not be happy and their customers won't be either if it slows down time-to-market for new products."
This is the kind of attitude that has caused suffering worlwide on an unparrelled scale, i don't care about "product" i care about people, whether it's the countries fault or the companies fault, there is a moral obligation!
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If there are stories to tell that involve MS then I'm sure EG would publish an article about them. If there's nothing to say - no quotes, no situations, no particular events - then what do you expect EG to do?
There isn't some quota that they need to fill to make sure that every company gets an equal number of Foxconn-related articles.
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To be fair, they could contact every company listed as a customer and ask for their stance on the conditions at Foxconn. Isn't that what journalism is about? rather than y'know, just skimming other sites for info?
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Ah, the old "overpriced" bullshit. You mean "expensive". And when compared to similar products, most of their stuff is pretty well priced. I think my iPad was worth the money, don't see anyone else outdoing it for the same price. But that argument is pretty well covered elsewhere on the web…
manic mouse is right to some extent in that Apple gets named in most media stories about Foxconn, as if it's just Apple that uses them. However, they're named here because former Apple execs have spoken about it, like everyone else has observed!
On the whole I read enough about Apple and Foxconn elsewhere. I think EG should be more concerned with reporting which of the major gaming companies use Foxconn, in my opinion. Like they did with MS, yes, I did read that story.
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A great post. I don't think its naive to ask for a better world. I think that it would take a lot for the world to change though.
I am a cynic, and i get the feeling that if we did raise the standard of living in China, there need for consumer products would rise, and they would expect cheap products from the next step down on the food chain.
That's not a slight on the Chinese, but an observation of human nature.
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Um.
Noooo… I don't think it's entirely their problem to sort. We live in countries whose industries exploit workers in China and 'China' as in their government probably doesn't really give a fuck, and 'China' as in the people being exploited are in absolutely no position to sort it.
We're all on this planet together. There's a much wider responsibility to this problem than just China.
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Maybe they're in the process of doing just that for all we know?
Or maybe they just don't think it's worth the time.
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I care about people too. I also care about products.
The world is a complex mechanism and while human emotions often point to simple solutions ("just do this", "just stop doing that" ) they're generally quite hard to implement or simply just don't work.
Might be a bit fatalistic but I don't believe in change being forced from the outside. As standards of living will continue to improve in China, at some point workers will no longer put up with it. And they won't have to because there will be nobody else desperate enough to do so.
Edit: why the hell is there a smiley in my text?!
Edit 2: fixed, at the cost of ugly layout...
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It's the employment law in China that needs work. Apple cannot influence that.
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Yeah, that sounds more like EG's style tbh.
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...unless we start making sense and start dealing with these issues on a global scale in a respectful cooperative way...
You can't expect customers to simply vote with their wallets against inhumanity. And you can't expect companies to do the same. It's just not realistic.
I think this needs global guidelines and laws to enforce a better and fairer world. In the end, the majority of people *is* in favour of humane and fair working conditions everywhere if you ask them.
(but maybe I'm just being a simplistic idealist there...)
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One story seems to be that Apple tells Foxconn to play fair and report back when they don't, at which point Foxconn tells Apple that all is well and employees say otherwise.
Whether you choose to buy that or not is up to you, but Apple opening their own factory in China and not contracting to Foxconn would be a start, because then at least Apple are in a position to weed out, erm, bad apples in the management chain directly rather than everyone passing the buck down the line.
It's only a small solution for one specific problem with one specific company, though- the Chinese more generally are still going to get the shitty end of the stick for some time with that one.
@man.the.king >a Nokia phone (my wife)
You're married to a phone? You're weird.
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It is quite sickening, but that's how large-scale economy works. Profit is top priority and more important than health, life, happiness, fairness, social matters or any other guardian-reading communist nonsense.
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But the fairtrade idea and the Starbucks example is not about cost, it's about success! Starbucks made more money and enjoyed a better reputation after going for fairtrade.
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With Apple it's different, because people happily pay a lot more for their products, and also they enjoy an idealist reputation (for little reason--I have a Macbook, because it's really good, but I find that Apple/Steve Jobs cult disgusting). For Apple, it is about making 30 billion dollars in a quarter year, because with a lousy net profit of 29 billion their share price goes down. Apple is so filthy rich, they could easily change something, but of course they don't.
I say, with ability comes responsibility, and on that notion, Apple fails miserably.
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Indeed - especially here in the US where, since Corporations can "contribute" to campaigns like individuals, seemingly without a ceiling to said "contribution", their lobbying power is immense.
It seems, depressingly, that, short of a revolution (not just writing to representatives or useless fluff like that), this state of affairs doesn't have much chance of changing.
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You're married to a phone? You're weird.
Haha - nice one dude. Should have thought about an apostrophe following 'wife', but I guess, unlike you, I'm not perfect.
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"Maximizing profit" is concept that can only work for a small minority, like a pyramid scheme.
We - the consumers - are part of this also, getting the cheapest possible price is the consumer view of "maximize profit" and contribute to the issue also.
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http://motherjones.com/politics/2011/12/slave -elves-online-shipping
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"Earlier this month we opened our supply chain for independent evaluations by the Fair Labor Association. Apple was in a unique position to lead the industry by taking this step, and we did it without hesitation. This will lead to more frequent and more transparent reporting on our supply chain, which we welcome. These are the kinds of actions our customers expect from Apple, and we will take more of them in the future.
We are focused on educating workers about their rights, so they are empowered to speak up when they see unsafe conditions or unfair treatment. As you know, more than a million people have been trained by our program.
We will continue to dig deeper, and we will undoubtedly find more issues. What we will not do — and never have done — is stand still or turn a blind eye to problems in our supply chain. On this you have my word. You can follow our progress at apple.com/su pplierresponsibility." (from Apple head email)
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With Apple it's different, because people happily pay a lot more for their products,
/facepalm
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It's not right and as the gap between rich and poor becomes bigger their will be more civil unrest.
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'Unfortunately, the world situation is at a point where it seems even our governments cannot control what the private corps do.'
great comment look at out MPs and the House of Lords most of them own or rub shoulders with these corporations.
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Raspberry Pi Work Plan
1)Slaughter ALL THE RASPBERRIES
2)Bake them in a pie
3)Sell to bedroom coders
4)?
5)Profit
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that really is disgusting. I don't understand why this is possible in the first place. Every sane person will understand that this "contribution" is nothing else but corrupting and distorting the system. is it really so hard to see?
But the smell of fresh dollar notes makes one forget about repsonibilities right? It's always "what's in it for me?"
It's miserable.
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Fuck Apple