Working with experts in areas such as human rights and environmental issues, Apple leads comprehensive, in-person audits deep into our supply chain. When these audits reveal problems, we work directly with our suppliers to take swift corrective action.
The Apple approach.
Apple takes an active role in supplier audits and does not rely solely on third-party auditors. An Apple auditor leads every onsite audit, supported by local third-party auditors who are experts in their fields. Each of these experts is trained to use Apple’s detailed auditing protocol and to assess requirements specified in our Supplier Code of Conduct. We start with annual audits of all final assembly manufacturers. Then we audit additional suppliers based on risk factors that include conditions in the country in which a facility is located or a facility’s past audit performance.
Often our audits, as well as feedback from the local community, make us aware of new areas where we see an opportunity to improve working conditions and further strengthen our Supplier Code of Conduct. In these cases, we work closely with experts to determine how changes can be implemented.
In addition to our own audits, as a member of the Fair Labor Association (FLA), we will open our supply chain to an FLA auditing team. This team will measure our performance against the FLA’s own Workplace Code of Conduct. The results of these audits will appear on the FLA website.
How an audit works.
During a typical audit, Apple’s auditing team reviews hundreds of records, conducts physical inspections of manufacturing facilities — including factory-managed dormitories and dining areas — and conducts interviews with the workers themselves. At the same time, we evaluate the facility’s senior managers, including their policies and procedures, their roles and responsibilities, and the training programs they provide for workers, line supervisors, and managers. Our auditors then grade each facility’s level of compliance with our Supplier Code of Conduct.
Surprise audits.
In addition to regularly scheduled audits at our suppliers, we conduct a number of surprise audits every year. In a surprise audit, our team visits a supplier unannounced and insists on inspecting the facility and meeting with employees immediately. All surprise audits must begin within an hour of our arrival. During our regular audits, we may also ask a supplier to immediately show us portions of a facility that are not scheduled for review. Through a combination of regular audits and unannounced audits, we’re working to make sure our suppliers are not showing us only what they want us to see.
Corrective action.
When we complete an audit, we review its findings with the facility’s senior management team. And when an audit reveals violations of our code, we require the facility not only to address those specific violations, but to change any underlying management systems to prevent problems from recurring. Apple tracks the progress of all corrective and preventive action plans, with the expectation that all issues will be closed within 90 days of the audit. We then verify that action has been taken. If we find that issues have been inadequately addressed, we will work with suppliers that are willing to make changes and improve their facilities. If a supplier is unwilling to change, we terminate our relationship.
Core violations.
Apple considers the most serious breach of compliance to be a core violation. These include instances of underage or involuntary labor, falsifications of audit materials, worker endangerment, intimidation or retaliation against workers participating in an audit, and significant environmental threats. All core violations must be remedied immediately. If a violation is particularly egregious, or we determine that a supplier is incapable of preventing recurrence of a violation, we terminate the relationship.