Apple has been at the center of a controversy over the use of unethical labor practices to cut costs since 2013. In particular, during that period, it was discovered that the company was collaborating with a Chinese supplier to produce parts for a MacBook that used the labor of underage workers (Sonnemaker, 2021). Three months after the discovery of this fact, another audit was conducted on this Chinese supplier. Then it was also discovered that the company was still using child labor; some workers were as young as 14 years old (Sonnemaker, 2021). Despite the fact that this aspect violates Apple’s principles of ethical supply chains, which prohibit the use of child labor, the company continued to cooperate with the supplier for another three years.
At the moment, Apple is also experiencing trouble cutting business with vendors that use unethical work practices. In particular, the company continues to work with Biel Crystal, which produces glass for iPhones (Sonnemaker, 2021). This organization has repeatedly violated workplace safety requirements and failed to improve the situation. Additionally, in 2020, another Apple supplier in China, Lens Technology, was accused of using the forced labor of Uyghurs (Albergotti, 2020). The company has long received extensive criticism for its unethical labor practices regarding employees of their foreign manufacturing facilities and suppliers. For example, in 2020, a riot occurred in a factory in India with violence against workers due to the fact that Apple withheld their wages (Shalvey, 2020). Thus, the company has difficulty in ensuring ethical working conditions if this is associated with increased production costs.
While the company does not always respond to these ethical challenges in a timely manner, widespread public criticism forces it to change the situation. The main challenge for Apple in this regard is the need to increase the cost of production to ensure ethical working conditions. The company has handled this issue by cutting, albeit delaying it for years, partnerships with suppliers that use unethical practices. However, in most of these episodes, Apple does not take effective action to improve working conditions and ensure ethical practices. The main criterion for the company is the cheapness of production and not the ethical attitude towards employees. This aspect is the main problem that needs to be improved. Most notably, Apple has supply chain ethics policies that they systematically violate.
Since Apple has struggled in the past and present to ensure ethical labor practices and create an ethical supply chain, it is necessary to consider what can protect the company from new scandals in the future. First of all, it is important for the company to develop a more effective system for auditing working conditions at foreign production plants and suppliers. Apple needs to check the existing working conditions in factories before partnering with suppliers. When violations of ethical working conditions are detected, including the use of forced or underage labor and unsafe working conditions, the company must publicly report these episodes. It is also important to make efforts to change this situation, including ensuring ethical working conditions before cooperation. For Apple, it is crucial to communicate to the public about the company’s efforts to improve the situation in factories and suppliers.
These ethical challenges may have an extremely negative impact on charitable causes in the future. Specifically, the company says it will donate millions of dollars annually to non-profit organizations (Apple, 2021). One of the recipients of Apple’s investment is also the China Foundation for Poverty Alleviation (Apple, 2021). Considering that the company uses unethical labor practices to reduce production costs makes its charitable efforts controversial. On the one hand, Apple is committed to providing financial support to address global social issues. On the other hand, the company does not make sufficient efforts to improve the working conditions of its own employees and ensure their safety. In the future, Apple may lose much of its reputation as a company that prioritizes profit over social welfare. In the long run, this aspect can result in a reduction in the number of loyal customers and a slowdown in the company’s development.
The focus on the social cause of ethical labor practices may have a positive impact on the company’s activities in the future. First and foremost, with enough effort to create a more ethical work environment for its employees, Apple can save its reputation. This factor is associated with the need to increase the cost of production due to the provision of financial support for ethical labor practices. However, these expenses can be seen as an investment in the future of the company, as well as providing better working conditions in factories around the world, not only those used by Apple. Additionally, maintaining the company’s reputation as a socially responsible company will help maintain the pace of development, which in the future will lead to an increase in revenues. Unethical labor practices are currently a significant public concern, and their use could threaten the company’s success.
References
Albergotti, R. (2020). Apple’s longtime supplier was accused of using forced labor in China. The Washington Post. Web.
Apple. (2021). Apple marks a year of giving in the communities it calls home. Apple. Web.
Shalvey, K. (2020). An iPhone factory in India has erupted in violence over a dispute about workers’ pay. Business Insider. Web.
Sonnemaker, T. (2021). Apple knew a supplier was using child labor but took 3 years to fully cut ties, despite the company’s promises to hold itself to the ‘highest standards,’ report says. Business Insider. Web.