Apple is committed to ensuring the highest standards of social responsibility in everything we do. The companies we do business with must provide safe working conditions, treat employees fairly and use environmentally responsible manufacturing processes wherever Apple products are made.
Supplier Code of Conduct
In 2005, Apple published a comprehensive Supplier Code of Conduct. This document outlines our specific expectations for social responsibility and informs our suppliers that we hold them accountable to these standards.
The Code covers a broad range of requirements. Suppliers must uphold the human rights of workers by treating them with dignity and respect as defined by widely accepted international standards. Child labour is strictly prohibited, and the Code does not allow employment discrimination. It includes guidelines for working hours, wages and benefits. Additionally, the Code requires that suppliers ensure safe working and living conditions and be committed to reducing the environmental impact of their operations.
Following a series of audits and consultations with stakeholders, we updated the Code in 2006 to strengthen several key provisions on discrimination, fair treatment and freedom of association.
2006 Report on iPod Manufacturing
In the summer of 2006, we were concerned by reports in the press alleging poor working and living conditions at one of our iPod final assembly suppliers in China. In response, we conducted a thorough audit of the facility and worked closely with the supplier to correct the items that did not conform to our Code.
This audit and the actions that followed have improved the working and living conditions at this facility. The housing conditions are better, pay practices are clearer, and employee benefits have expanded in the areas of educational programmes and recreational options. Also, this supplier has incorporated the lessons learned into the design of new facilities.
Additional 2006 Audits
We expanded our compliance activities and completed audits of all Mac and iPod final assembly manufacturers in 2006. For more details, see our Final Assembly Supplier Audit Report.
Housing and recreational facilities at one of Apple’s final assembly suppliers in China.
Third-party experts conducted comprehensive audits of working and living conditions, including wages, work hours, health and safety, and other practices at these facilities. The auditors reviewed thousands of records, interviewed more than 500 employees, and conducted rigorous physical inspections of 11 factories and supporting facilities such as dining halls and dormitories.
We found that our suppliers complied with our Code in many areas. There were no instances of child labour or forced labour, workers were free to participate in local unions, and living conditions met our requirements. While the majority of employees interviewed were pleased with the work environment and how they were treated, we did find several instances in which suppliers fell short of our requirements. The most prevalent issues involved limits on working hours, disciplinary measures, and proper health and safety procedures. For each finding, we obtained documented corrective action plans. We then held a series of follow-up reviews on-site with executive management to ensure that the appropriate actions were implemented and that management systems were in place to prevent recurrence.
Moving Forward
Monitoring social responsibility is an ongoing process. To ensure sustained conformance with our Code, we have incorporated social responsibility updates into our business reviews with these suppliers, and we will conduct follow-up audits. We are also expanding our monitoring programme beyond final assemblers to other suppliers deeper in our supply chain.
We expect all of our suppliers to adhere to the standards in our Supplier Code of Conduct, and when we discover deficiencies we will require corrective actions with a focus on prevention and systemic solutions. In cases where a supplier’s efforts in this area do not meet our expectations, their contracts will be terminated.
Full compliance with the standards in our Code is our immediate objective, but our vision is much broader. Apple is committed to driving meaningful changes that will improve the lives of people wherever our products are made.