The more fundamental problem is that Apple's reporting doesn't tell you much about what impact the company is having. Cook's email, for example, says that Apple's
Supplier Responsibility team led more than 200 audits at facilities throughout our supply chain last year. These audits make sure [emphasis added] that working conditions are safe and just.
But othey don't. Suppliers are notorious for faking pay records and gaming the inspectors. And Apple's track record makes clear that conditions are not safe and just.
Cook also boasts that Apple offers free continuing education programs at factories in China, saying that "more than 60,000 workers have enrolled in classes to learn business, entrepreneurial skills or English." But are they earning more money? Working fewer hours? Safer?
See the problem here? Apple and other companies are measuring their actions, and not their impact. There's a big difference between the two. It's reason why we don't know whether the people who make the iPad are better or worse off than those who make an HP printer or a Microsoft XBox.
"Companies report on their activities -- audits conducted, training delivered -- but don't tell us what impact that effort has achieved for workers," Dan says. "As a result, while companies are getting better at reporting on their activities, we don't have a meaningful way to compare one company to another." We'd know more if companies reported on the wages that workers are paid, the number of workplace injuries, turnover rates, environmental discharges and the like.
Those who follow these issues also tell me that workplace issues are not part of procurement at most companies. If suppliers had to demonstrate that they provide ethical workplaces as a condition of doing business with a big U.S. brand, companies might avoid embarrassment -- and more important, make a difference in the lives of their workers.
Having said that, it's worth remembering that globalization and the manufacturing jobs it has brought to Shenzhen have on balance been good for China and its people. Workers line up for jobs at Foxconn, as the Atlantic reported last week. No less a crusader for the rights of the global poor than Nicholas Kristof has said as much, most famously in a 2000 Times Magazine article called Two Cheers for Sweatshops.
More recently, Kristof, who lived in China, told This American Life that industrialization has
created massive employment opportunities, especially for young women, who frankly didn't have a lot of alternatives. That tended to give women more clout within families, within the community ... for many Chinese, the grimness of factories like Foxconn was better than the grimness of rice paddies.
If you'd prefer the opinion of a Nobel Prize-winning economist, here's Paul Krugman, writing in Slate, back in 1997:
While fat-cat capitalists might benefit from globalization, the biggest beneficiaries are, yes, Third World workers.
It is not an edifying spectacle, but no matter how base the motives of those involved, the result has been to move hundreds of millions of people from abject poverty to something still awful, but nonetheless significantly better.
What's more, competition for workers -- and the very beginnings of a labor movement -- has also begun to improve conditions in China's factories. To retain workers, owners are said to be improving wages, working conditions and living conditions, albeit slowly.
But still.
My MacBookPro costs $1299. My iPad2 retails for $499. I don't even know how much my iPhone costs, and I don't want to think about how many iPods, Nanos or shuffles I've bought for my family over the years. By selling premium-priced products and generating high margins, Apple was the U.S.'s most valuable company -- worth more than ExxonMobil, Microsoft and IBM, last time I checked. It's holding $97 billion in cash and short-term securities.
Simple fairness dictates that more of that wealth should be shared with the workers in China who are making Apple products.
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The low cost of cheap labor
The low cost of cheap labor and many job being outsourced has caused all these problems
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Wait those people have
Wait those people have chairs.
All Apple has to do is put out iPad3, or have a sale, all the protesters will rush Apple Store like those poor peasants who rush the gates of Foxconn to get a job.
What our media doesn’t tell us is Foxconn pays above industry average, and to the unskilled migrant workers, it’s a good job. I’d love to see the protesters try to eek out an existence in 100 year old unheated, unplumbed huts in rural China, then stay at a Foxconn dorm. Perhaps then they'll have some sympathy for the 900 million Chinese who still live in 3rd world poverty.
A dollar an hour is low wage? Factor in Purchasing Power Parity Foxconn workers earn more than many minimum wagers in US. A hotdog is about 20 cents in China, how many McDonald's workers make enough an hour to buy 5 hotdogs at 3 bucks a pop here?
Worker abuse? Are there no evil bosses or industrial accidents in America? Do line workers not have to pull double shift sometimes? Again our media deceives us. Did NYT disclose the fact their primary sources are disgruntled employee and US government funded dissident group paid to red-wash China? Check China Labor Watch’s financial tie with congressionally funded National Endowment for Democracy.
Suicide? Check the facts – suicide is caused by mental illness, and suicide rate at Foxconn is below China’s national average, lower than US college campus, and a fraction of US military suicide rate. What our media doesn’t tell us is the Foxconn jumpers off themselves over relationship breakup, gambling debt, life insurance benefit, not working condition.
Is a dollar an hour the
Is a dollar an hour the average wage or the lowest wage... The average wage at Mcdonalds is 9 dollars an hour and that does not include overtime which they would get paid 13.50 an hour.. and Hotdogs are 3 dollars a pop here? I can go buy them at the grocery store for 50 cents each..
Worker abuse.. Yes they have to pull double shifts sometimes but not every day.. People have died from overworking there.. Find me a case of someone dying in the US that was overworked and died from exhaustion and not gone to prison.. So the US government trying to show the poor working conditions is a bad thing? Apple sure does alot of marketing promoting their working conditions so why cant the US government fight back and show the truth.
Suicide? Does apple and foxconn report every single suicide at its plants? When was the last time a US college campus has a mass suicide where people demanded more respect or over a hundred people would kill themselves at once.. Im sorry but mental illness does not cause mass suicides at factories.. Maybe the rates arent that high because Foxconn told employees that they would not help their families if they committed suicide.. and the Nets around the factories sure helped alot too.. I have not heard of Ford putting up nets to stop their employees from jumping..
You have to remember this is not some struggling company that is paying its employees a good wage.. The company is making tens of billions a year in PROFIT and can not even share the wealth with their employees..
It is arrogant to simply
It is arrogant to simply ignore our right from Apple and make sales of iPad in this market, and we will reject ... Could Aside from that, we are in serious debt and brands are valuable assets to help us to sort out which of these difficulties.
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Good article, Marc, that adds
Good article, Marc, that adds to the discussion. Those who have studied history and economics realize that you don't go from rural-agriculatural to industrial without growing pains, and poor treatment of workers happens everywhere - still in the U.S. in many industries, where victims of human trafficking work. We're not where we want to or need to be from an ethical/moral perspective but progress continues. Journalists educating, consumers speaking out, and voting with their dollars, shareholder resolutions and looking for made in the USA products where workers are more likely to be treated fairly, not to mention promoting economic growth for all of us as those dollars flow, are ways we can all help.