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Apple navigates China
Stung by accusations that its supply chain in China violates safety rules and worker rights, Apple Inc. recently released its annual supplier audit report and for the first time named the more than 150 companies that supply 97 percent of its product parts. According to the report, nearly a third violated Apple ’s wage and benefits standards. Seventeen relied on involuntary labor, 112 used unsafe handling for dangerous chemicals, and 5 hired underage workers.
Critics in Asia and the West have long cited unsafe conditions and hazardous materials used by Chinese suppliers that build the iPhone, iPad, iPod, and otherMac products. Reports of deadly accidents, pollution, improper waste handling, falsified records, seven-day workweeks, forced overtime, worker injuries, and even suicides have dogged the company, often centering on Chinese factories managed by the Foxconn Technology Group.
Even customers can find themselves at risk. The recent planned launch of the iPhone in China was halted before a single phone was sold. As thousands of would-be buyers lined up to await the opening of Apple stories in Beijing and Shanghai, it was clear there would not be enough phones to go around. The crowds grew violent and police were called to disperse them.
CEO Tim Cook says the company “will learn some things for the future and change some things,” citing safety as of the “upmost importance” to Apple.

Questions for Critical Thinking

1. Workers at Apple ’s Chinese suppliers often accept low wages, minimal benefi ts, and dormitory housing. Should Apple improve their situation or find other suppliers? What effects will such changes have on Apple ’s products?
2. Do you think reports of unsafe working conditions among its suppliers have hurt Apple ’s reputation? Why or why not?