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to clean
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use a poisonous chemical to clean iPhone
screens. Within seven months last year, two explosions at iPad factories, including in Chengdu,
killed four people and injured 77. Before those
blasts, Apple had been alerted to hazardous
conditions inside the Chengdu plant, according
to a Chinese group that published that warning.
“If Apple was warned, and didn’t act, that’s
reprehensible,” said Nicholas Ashford, a former
chairman of the National Advisory Committee
on Occupational Safety and Health, a group that
advises the United States Labor Department.
“But what’s morally repugnant in one country
is accepted business practices in another, and
companies take advantage of that.”
Apple is not the only electronics company
doing business within a troubling supply system. Bleak working conditions have been documented at factories manufacturing products for
Dell, Hewlett-Packard, I.B.M., Lenovo, Motorola, Nokia, Sony, Toshiba and others.
Current and former Apple executives, moreover, say the company has made significant
strides in improving factories in recent years.
Apple has a supplier code of conduct that details
standards on labor issues, safety protections
and other topics. The company has mounted a
vigorous auditing campaign, and when abuses
are discovered, Apple says, corrections are demanded.
And Apple’s annual supplier responsibility
reports, in many cases, are the first to report
abuses. This month, for the first time, the company released a list identifying many of its suppliers.
But significant problems remain. More than
half of the suppliers audited by Apple have violated at least one aspect of the code of conduct
every year since 2007, according to Apple’s reports, and in some instances have violated the
law. While many violations involve working
conditions, rather than safety hazards, troubling patterns persist.
“Apple never cared about anything other
than increasing product quality and decreasing
production cost,” said Li Mingqi, who until April
worked in management at Foxconn Technology,
one of Apple’s most important manufacturing
partners. Mr. Li, who is suing Foxconn over his
dismissal, helped manage the Chengdu factory
where the explosion occurred.
“Workers’ welfare has nothing to do with
their interests,” he said.
Some former Apple executives say there is
an unresolved tension within the company: executives want to improve conditions within factories, but that dedication falters when it conflicts with crucial supplier relationships or the
fast delivery of new products. Tuesday, Apple
reported one of the most lucrative quarters of
any corporation in history, with $13.06 billion in
profits on $46.3 billion in sales. Its sales would
have been even higher, executives said, if overseas factories had been able to produce more.
Executives at other corporations report
similar internal pressures. This system may
not be pretty, they argue, but a radical overhaul
would slow innovation. Customers want amazing new electronics delivered every year.
“We’ve known about labor abuses in some
factories for four years, and they’re still going
on,” said one former Apple executive who, like
others, spoke on the condition of anonymity because of confidentiality agreements. “Why? Because the system works for us. Suppliers would
change everything tomorrow if Apple told them
they didn’t have another choice.”
“If half of iPhones were malfunctioning,
do you think Apple would let it go on for four
years?” the executive asked.
Apple, in its published reports, has said it
requires every discovered labor violation to be
remedied, and suppliers that refuse are terminated. Privately, however, some former executives concede that finding new suppliers is timeconsuming and costly. Foxconn is one of the few
manufacturers in the world with the scale to
build sufficient numbers of iPhones and iPads.
So Apple is “not going to leave Foxconn and
they’re not going to leave China,” said Heather
White, a research fellow at Harvard and a former member of the Monitoring International
Labor Standards committee at the National
Academy of Sciences. “There’s a lot of rationalization.”
Apple was provided with extensive summaries of this article, but the company declined
to comment. The reporting is based on interviews with more than three dozen current or
former employees and contractors, including
a half-dozen current or former executives with
firsthand knowledge of Apple’s supplier responsibility group, as well as others within the technology industry.
others within the technology industry.
THE NEW YORK TIMES BUSINESS THURSDAY, JANUARY 26, 2012
In 2010,
Steven P. Jobs discussed the
act,
company’s
relationships with suppliers
las
at
an
industry
conference.
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actually
think Apple does one of
pathe best jobs of any companies in our inhat
dustry, and maybe in any industry, of
Deunderstanding the working conditions
ugin our supply chain,” said Mr. Jobs, who
usiwas Apple’s chief executive at the time
paand who died last October.
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“I mean,
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omsponsibility group,
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n
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ing
Steven P. Jobs discussed the
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hospitals
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ry
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acly think Apple
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rs.
ly chain,” said Mr. Jobs, who
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chief
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ves,
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ade
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ut,
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“We’re
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things
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said one former Apple
factory, it’s
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ons
ncluding workers inside such
be really disturbed if they saw where
has
nowledge the cafeterias and
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gn,
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ple really hard to make
rying
ng Work
rds
n Costs
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er,” said one former Apple
“But most people would still
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In the fall
ethe
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of 2010, about six months
before the explosion in the iPad factory,
dfor
to Chengdu
Lai Xiaodong carefully wrapped his
dll ofa 2010, clothes
about six months
around his college diploma, so it
xplosion in the iPad factory,
wouldn’t
in his suitcase. He told
ng carefully wrappedcrease
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ain.
und his college
diploma,
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friends
heso would
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ted
ease in his suitcase. He told
for
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poker
games, and said
would
longer be around
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his teachers. He was leaving
eekly poker
games, andto
said
ear
his teachers.
was leaving a city of 12 million that was
forHeChengdu,
u,
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rts,
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coming one of the world’s
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YM YIK/EUROPEAN PRESSPHOTO
AGENCY
YM YIK/EUROPEAN
PRESSPHOTO AGENCY
painfully
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SAFETY
PRECAUTIONS
Though
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CAUTIONS
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ety
After
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workers
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China,
had
safety
SAFETY
PRECAUTIONS
ursing student
to become his
surprised
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by persuading
a
netting installed
last May. Foxconn
said After
it acted workers
quickly
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comprehensively
to address
employee
suicides.
to marry,
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hSheofwanted
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a dormitory
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inapparent
Shenzhen,
China,
had safety
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forsafety
Foxconn wo
After
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apparent
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attempts,
a dormitory
for
workers
in
Shenzhen,
China, had
beautiful
nursing
student
to
become
his
his goal was to earn enough
ing
talled
last
May.
Foxconn
said
it
acted
quickly
and
comprehensively
to
address
employee
suicides.
uy an apartment.
netting
installed
last May. Foxconn
it acted
quicklysuicides.
and comprehe
girlfriend.
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to marry,
shesaid it acted
netting installed
last May.
Foxconn
quickly
and comprehensively
tosaid
address
employee
in Chengdu manufacture
lity
said,
and
so
his
goal
was
to
earn
enough
cording
to
witnesses.
Two
hundred
pothan
15
suppliers
have
been
terminated
lished
in
2007.
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last
year,
Apple
had
or hundreds of companies.
dai
Li
liceapartment.
officers wrestled with workers, arfor transgressions since 2007, according
inspected 396 facilities — including the
was focused
on Foxconn
money
to buy an
resting
eight. P.
Afterward,
trash cans
to former Apple
executives.
company’s
direct suppliers, as
well as trying
In
2010,
Steven
Jobs
discussed
the
com“We’re
really
hard to make things
China’s largest exporter
anFactories
Chengdu
manufacture
removed, and
piles of rubbish —
many of those suppliers’ suppliers —
“Once the deal is set and Foxconn bethe nation’s biggest
employ- in were
Two
hundred
pothan
15
suppliers
have
been
terminated
lished
in
2007.
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last
year,
Apple
had
e2sses.
of
cording
to
witnesses.
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hundred
polished
in supplier,
2007.
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last“But
year,
Apple h
pany’s
relationships
with
suppliers
at
an
indusand
rodents
—
became
a
problem.
Mr.
better,”
said
one
former
Apple
executive.
one
of
the
largest
such
programs
within
comes
an
authorized
Apple
cording
to
witnesses.
Two
hundred
pothan
15
suppliers
have
terminated
lished
in
2007.
By
last
year,
Apple
had
million workers.
The comproducts
for hundreds
of companies.
Lai felt inspected
lucky to have a 396
place facilities
of his own. lice
theincluding
electronics
industry.
Apple will
no
longer
give any
attention
stled
with
workers,
for
transgressions
since
2007,
according
—
the
ants
throughout
China,
and aring
officers
wrestled
with
workers,
arinspected
396
facilities
—
including
lice
officers
wrestled
with
workers,
arfor
transgressions
since
2007,
according
inspected
396
facilities
—
including
the
conference.
peopletowould
still be
really
if
Buttry
Mr.
Lai wasFoxconn,
focused
Foxconn
in a on
statement,
disputed
Those audits have most
found consistent
worker conditions
or anything
that disturbed
is
an estimated 40 trash
percent of
Afterward,
cans
former
Apple
executives.
company’s
direct shifts,
suppliers,
asdirect
well
as
onn
resting
eight.
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trash
company’s
direct
suppliers, as well
resting
eight.
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trash
cans
toitsformer
Apple
executives.
company’s
suppliers,
asac-where
well
ascans
workers’
accounts
of continuous
violations
of
Apple’s
code
ofto
conduct,
irrelevant
to
products,”
said Mr.
Li,from.”
Technology,
China’s
largest
exporter
consumer
electronics,
in“I
actually
think
Apple
does
one
of
the
best
they
saw
their
iPhone
comes
cording
to summaries
published
by of
the the
extended
overtime,
ac- were
thedeal
former
Foxconn
manager.
Mr. beLi suppliers’ suppliers
and
piles
of
rubbish
—
of crowded
those
suppliers’
—and
“Once
is
and
Foxconn
removed,
piles
rubbish
—set
rthe
customers
like
Amazon,
many
those
were
removed,
and
pilesmany
of
rubbish
— living
many
ofsuppliers
those
suppliers’
suppliers
—
“Once
theofdeal
is
set and Foxconn beand
one
ofany
the
nation’s
biggest
employcompany.
In 2007, for instance, Apple
commodations
andin
the
causes
of the
spent seven years with Foxconn in
jobs
of
companies
our
industry,
and
maytt-Packard, a
Nintendo,
Nokia
became
problem.
Mr.
one
of
the
largest
such
programs
within
ion
comes
an
authorized
Apple
supplier,
and
rodents
—
became
a
problem.
Mr.
one
of
the
largest
such
programs
wit
and
rodents
—
became
a
problem.
Mr.
one
of
the
largest
such
programs
within
comes
an
authorized
Apple
supplier,
conducted
over
three
dozen
audits,
tworiot.
The
company
said
that
its
operaShenzhen
and
Chengdu
and
was
forced
ers,
with
1.2
million
workers.
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comng.
The
inhis
any
industry,
understanding
the
thirds
which
indicated
that
employtions
adhered
tohis
customers’
codes
of electronics
outChengdu
in
April Apple
after
he
objected
to alonger
reloca- industry.
have
a place
of
own.
the electronics
Apple
will
no
longer
give
any
attention
Lai
feltofworklucky
to have
a Road
place
ofto
his
own.
the
electronics
s factory
in be
Chengdu,
Mr.
Lai
felt
lucky
to
have
athroughout
place
ofof
own. industry.
the
industry.
will
no
give
any
attention
pany
has
plants
China,
and
ees regularly worked more than 60
conduct, industry standards and nation to Chengdu, he said. Foxconn diswas
special. Inside, workers
adostatement,
disputed
audits
have
found
tothere
worker
conditions
anything
that
Foxconn,
inaddition,
a found
statement,
disputed
Those
have
found that
consist
In
the
of his
2010,
about
six
months
before
ing conditions
inThose
our
supply
chain,”
said
Mr.In
Foxconn,
in an
a statement,
disputed
audits
have
consistent
to or
worker
anything
is
hours
aconsistent
week.
were fall
tional laws.
“Conditions
at Foxconn
puted
comments,
andconditions
saidaudits
“bothis or
assembles
estimated
40
percent
of areThose
ng Apple’s
latest, potentially
six
“core
violations,”
the
most
serious
anything
but
harsh,”
the
company
Foxconn
and
Apple
take
the
welfare
of
ts
of
continuous
shifts,
violations
of
Apple’s
code
of
conduct,
acirrelevant
to
its
products,”
said
Mr.
Li,
workers’
accounts
of
continuous
shifts,
violations
of
Apple’s
code
of
conduct,
oduct:
the the
iPad.
workers’
accounts
of
continuous
shifts,
violations of
Apple’s
code
of
conduct, acirrelevant
to
its
products,”
said
Mr.
Li,
the
explosion
in
the
iPad
factory,
Lai
Xiaodong
Jobs,
whoconsumer
was
Apple’s
chief
executive
at
the
world’s
electronics,
inkind, including hiring 15-year-olds as
wrote. Foxconn also said that it had
our employees very seriously.”
. Lai finally
landed living
a job re- according
toa customer
summaries
published
by
the published
me,
crowded
the
former
Foxconn
manager.
Li manager.
say
cording
toMr.
summaries
published
by
overtime,
crowded
living
ac-efforts
summaries
by
the
extended
overtime,
crowded
living
ac- or cording
theclothes
former
Foxconn
Mr. Li
cluding
for
customers
like
Amazon,
wellto
as falsifying
records.
never
been cited
byOctober.
gov- extended
Apple’s his
have spurred
some his
carefully
wrapped
around
college
time
died
last
chines at the
plant,
oneand
of
the who
company.
In
2007,
for
instance,
Apple
and
the
causes
of
the
spent
seven
years
with
Foxconn
in
ernment
for
under-age
or
overworked
Over
the
next
three
years,
Apple
conhin
company.
In
2007,
for
instance,
Ap
changes.
Facilities
that
were
reaudited
commodations
and
the
causes
of
the
company. In 2007, for instance, Apple
he commodations
noticed
were Hewlett-Packard,
the almost
and the causes
of the
spent seven years with Foxconn in
Dell,
Nintendo,
Nokia
diploma,
soits
it operawouldn’t
crease
in
histhree
suitcase.
“I
mean,
you
this
place,
and,
it’s
a
employees
orgo
toxic to
exposures.
ducted
312
audits,
and every
year, about
“showed
continuedand
performance
imhts. said
Shifts that
ran 24 its
hours
a
conducted
over
three
dozen
audits,
twony
operaShenzhen
and
Chengdu
was
forced
imconducted
over
dozen
audits,
riot.
The
company
said
that
conducted
over
three
dozen
audits,
tworiot. and
The
company
said
that its
and Chengdu
and was forced tw
Samsung.
half or more showed evidence of large
provementsShenzhen
and better working
condi“All assembly
lineoperaemployees are give factory was
always
bright.
He
told
friends
he
would
no
longer
be
around
factory,
but,
my
gosh,
I
mean,
they’ve
got
resthirds
of
which
indicated
that
employo
customers’
codes
of
out
in
April
after
he
objected
to
a
relocabut
thirds
of
which
indicated
empl
tions
adhered
to
customers’
codes
of
numbers
of
employees
laboring
more
tions,”
the
company
wrote
in
its
2011
en
regular
breaks,
including
one-hour
thirds
of
which
indicated
that
employtions
adhered
to
customers’
codes
of
out
in
April
after
he
objected
to that
a relocament, there were
thousands factory in Chengdu, Mr.
Foxconn’s
than six days
a week
asfor
well
as working
supplier
responsibility
progress
report.
lunchmovie
breaks,”
the
company wrote,
and
standing
on assembly
lines and
ees
regularly
worked
more
than
60
ry
standards
and
nation
to
Chengdu,
he
said.
Foxconn
discts
ees
regularly
worked
more
than
conduct,
industry
standards
and
natheir
weekly
poker
games,
and
said
goodbye
taurants
theaters
and
hospitals
and
ees
regularly
worked
more
than
60
conduct,
industry
standards
and
nation
to
Chengdu,
he
said.
Foxconn
disknew,
was only
special.
Inside,
workers
extended overtime. Some workers reIn addition, the number of audited facili5 percent
of assembly
line workers
n backlessLai
chairs,
crouching
hours
aI mean,
week.
there
were
nditions
at
puted
his
comments,
and
“both
hours
acomments,
week.
In addition,
tional
laws.
athad
Foxconn
are
ceived
less
than
minimum
wage teachers.
or
ties
has
grown
every
year,
and
some
ex-Chengdu,
are
required
to stand
to are
carryIn
out addition,
their
hours
a week.
In
addition,
there
were
tional
laws.
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at and
Foxconn
puted
hissaid
and said
“bothw
eor
machinery,
orFoxconn
jogging
be- are
to his
He
was
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for
a there
swimming
pools,
for
a factory,
it’s
a“Conditions
were
building
Apple’s
latest,
potentially
pay
withheld
as punishment.
Apple
ecutives
say those
expanding
efforts
ob-of
tasks. six
Work“core
stationsviolations,”
have been de- the
ng
Some
workers’
legs
most
serious
harsh,”
the
company
Foxconn
and
Apple
take
the
welfare
es-bays.
six
“core
violations,”
the
most
serio
anything
but
harsh,”
the
company
six
“core
violations,”
the
most
serious
anything
but
harsh,”
the
company
Foxconn
and
Apple
take
the
welfare
of
greatest
product:
the
iPad.
city
million
that was
rapidly becoming one
pretty“It’s
nice signed
factory.”
found 70 core violations
over of
that12
periscure year-to-year
improvements.
to ergonomic standards, and emmuch they waddled.
kind,
including
hiring
15-year-olds
as
also
said
that Mr.
it had
oursaid
employees
seriously.”
kind, over
including
hiring 15-year-olds
luFoxconn
also
it very
had
kind,
including
hiring
15-year-olds
as
od,
including
cases
of involuntary
labor,that Apple
wrote.
Foxconn
also
said
it ahad
our
very seriously.”
ployees
havethat
opportunities
for job
rota- wrote.
also
has employees
trained
a million
nd
all
day,” said
Zhao Sheng,
When
Lai
finally
landed
job
reof
world’s
important
manufacturing
Others,
including
inside
such
workers,
record
falsificaand
promotion,
theworkers
statement
said.
workers
about
their
rights
methods
well
as falsifying
records.
ker.
by
a customer
or govefforts
have
spurred
some
well
asand
falsifying
records.
innever
been
cited
by the
a Apple’s
customer
ormost
govwell never
asunder-age
falsifying
records.
been cited
bytion
a“Foxconn
customer
or
govApple’s
efforts
have
spurred some
pairing
machines
at
the
plant,
one
of the
tions, improper disposal of hazardous
for injury and disease prevention. A few
hasthe
a very
good safety and
on the wallsplants,
warned the
hubs.
acknowledge
cafeterias
medical
der-age
or
overworked
Over
the
next
three
years,
Apple
conchanges.
Facilities
thatauditors
were
reaudited
onernment
ernment
forthree
orin-overworked
Over
theonnext
three
years,
Apple c
for onunder-age
or
overworked
Over
theand
next
years,
Apple
conwaste
over
aunder-age
hundred
workers
changes.
Facilities
were
reaudited
years ago, after
insisted
in- that
first hard
things
noticed
the
almost
thewere
company
wrote.
“Foxconn
ployees:
“Work
thehe record,”
jured
byaudits,
toxicabout
chemical
exposures.
terviewing low-level
factory
employees,
has
come
a ran
long
way
inhours
our efforts
to
icwork
exposures.
ducted
312
audits,
and
every
year,
“showed
continued
performance
im-surprised
ruld
hard
tofacilities,
find or
a job
to- but
Though
painfully
shy,
Mr.continued
Lai
had
insist
conditions
are
punishing.
employees
or and
toxic
exposures.
ducted
312 audits,
and every year,
ab
employees
toxic
exposures.
ducted
312
every
year,
about
“showed
performance
imblinding
lights.
Shifts
24
a
Last year, the company conducted
they discovered that some had been
lead our industry in China in areas such
pple’s supplier code of conhalf
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YM YIK/EUROPEAN PRESSPHOTO AGENCY
everyone by persuading a beautiful nursing
student to become his girlfriend. She wanted
to marry, she said, and so his goal was to earn
enough money to buy an apartment.
Factories in Chengdu manufacture products for hundreds of companies. But Mr. Lai
was focused on Foxconn Technology, China’s
largest exporter and one of the nation’s biggest employers, with 1.2 million workers. The
company has plants throughout China, and assembles an estimated 40 percent of the world’s
consumer electronics, including for customers
like Amazon, Dell, Hewlett-Packard, Nintendo,
Nokia and Samsung.
Foxconn’s factory in Chengdu, Mr. Lai
knew, was special. Inside, workers were building Apple’s latest, potentially greatest product:
the iPad.
When Mr. Lai finally landed a job repairing
machines at the plant, one of the first things he
noticed were the almost blinding lights. Shifts
ran 24 hours a day, and the factory was always
bright. At any moment, there were thousands of
workers standing on assembly lines or sitting
in backless chairs, crouching next to large machinery, or jogging between loading bays. Some
workers’ legs swelled so much they waddled.
“It’s hard to stand all day,” said Zhao Sheng, a
plant worker.
Banners on the walls warned the 120,000
employees: “Work hard on the job today or
work hard to find a job tomorrow.” Apple’s supplier code of conduct dictates that, except in
unusual circumstances, employees are not supposed to work more than 60 hours a week. But
at Foxconn, some worked more, according to
interviews, workers’ pay stubs and surveys by
outside groups. Mr. Lai was soon spending 12
hours a day, six days a week inside the factory,
according to his paychecks. Employees who
arrived late were sometimes required to write
confession letters and copy quotations. There
were “continuous shifts,” when workers were
told to work two stretches in a row, according to
interviews.
Mr. Lai’s college degree enabled him to earn
a salary of around $22 a day, including overtime — more than many others. When his days
ended, he would retreat to a small bedroom just
big enough for a mattress, wardrobe and a desk
where he obsessively played an online game
called Fight the Landlord, said his girlfriend,
Luo Xiaohong.
Those accommodations were better than
many of the company’s dorms, where 70,000
Foxconn workers lived, at times stuffed 20 people to a three-room apartment, employees said.
Last year, a dispute over paychecks set off a riot
in one of the dormitories, and workers started
throwing bottles, trash cans and flaming paper
from their windows, according to witnesses.
Two hundred police officers wrestled with workers, arresting eight. Afterward, trash cans were
removed, and piles of rubbish — and rodents —
became a problem. Mr. Lai felt lucky to have a
place of his own.
Foxconn, in a statement, disputed workers’ accounts of continuous shifts, extended
overtime, crowded living accommodations and
the causes of the riot. The company said that
its operations adhered to customers’ codes of
conduct, industry standards and national laws.
“Conditions at Foxconn are anything but harsh,”
the company wrote. Foxconn also said that it
had never been cited by a customer or government for under-age or overworked employees
or toxic exposures.
“All assembly line employees are given regular breaks, including one-hour lunch breaks,”
the company wrote, and only 5 percent of assembly line workers are required to stand to
carry out their tasks. Work stations have been
designed to ergonomic standards, and employees have opportunities for job rotation and promotion, the statement said.
“Foxconn has a very good safety record,”
the company wrote. “Foxconn has come a long
way in our efforts to lead our industry in China
in areas such as workplace conditions and the
care and treatment of our employees.”
Apple’s Code of Conduct
In 2005, some of Apple’s top executives gathered inside their Cupertino, Calif., headquarters
for a special meeting. Other companies had created codes of conduct to police their suppliers.
It was time, Apple decided, to follow suit. The
code Apple published that year demands “that
working conditions in Apple’s supply chain are
safe, that workers are treated with respect and
dignity, and that manufacturing processes are
environmentally responsible.”
But the next year, a British newspaper,
The Mail on Sunday, secretly visited a Foxconn
setts Instits
NEW YORK TIMES BUSINESS THURSDAY, JANUARY 26, 2012
“hotlines,” so that employeesTHE
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nn employee
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rtment buildforthcomin
ing
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Over
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icide suicide er Foxconn workers attempted suicide
mpted
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Lai
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apart
Lai
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factory in Shenzhen, China, where iPods were 312 audits, and every year, about half or more
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ives, and we psychological counseling.
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d we
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ple
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ntel and Nike
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RYAN PYLE FORincluding
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by
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RYAN PYLE FOR THE NEW YORK TIMES
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er beenofcontacted
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“He
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t
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After
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After
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gaging
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asthe
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asthe
falsifying
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rather
than
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oneing
atsolving
the
Chengdu
plant,
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tions
at
the
Chengdu
plant,
including
tlements
that
would
absolve
the
compatlements
that
would
absolve
compations
at
the
Chengdu
plant,
including
ements
that
would
absolve
compadrove
to
Mr.
Lai’s
hometown
and
delivdrove
to
Mr.
Lai’s
hometown
and
delivhealth
and
safety
issues
in
Chengdu
are
it
to
th
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the Chengdu
edge of the supplier responsibility group. “Noncompliance is tolerated, as long as the suppliers
promise to try harder next time. If we meant
business, core violations would disappear.”
Apple says that when an audit reveals a
violation, the company requires suppliers to
address the problem within 90 days and make
changes to prevent a recurrence. “If a supplier
is unwilling to change, we terminate our relationship,” the company says on its Web site.
The seriousness of that threat, however, is
unclear. Apple has found violations in hundreds
of audits, but fewer than 15 suppliers have been
terminated for transgressions since 2007, according to former Apple executives.
“Once the deal is set and Foxconn becomes
an authorized Apple supplier, Apple will no longer give any attention to worker conditions or
anything that is irrelevant to its products,” said
Mr. Li, the former Foxconn manager. Mr. Li
spent seven years with Foxconn in Shenzhen
and Chengdu and was forced out in April after
he objected to a relocation to Chengdu, he said.
Foxconn disputed his comments, and said “both
Foxconn and Apple take the welfare of our employees very seriously.”
Apple’s efforts have spurred some changes.
Facilities that were reaudited “showed continued performance improvements and better
working conditions,” the company wrote in its
2011 supplier responsibility progress report. In
addition, the number of audited facilities has
grown every year, and some executives say
those expanding efforts obscure year-to-year
improvements.
Apple also has trained over a million workers about their rights and methods for injury
and disease prevention. A few years ago, after
auditors insisted on interviewing low-level factory employees, they discovered that some had
been forced to pay onerous “recruitment fees”
— which Apple classifies as involuntary labor.
As of last year, the company had forced suppliers to reimburse more than $6.7 million in such
charges.
“Apple is a leader in preventing under-age
labor,” said Dionne Harrison of Impactt, a firm
paid by Apple to help prevent and respond to
child labor among its suppliers. “They’re doing
as much as they possibly can.”
Other consultants disagree.
“We’ve spent years telling Apple there are
serious problems and recommending changes,”
said a consultant at BSR — also known as Business for Social Responsibility — which has been
twice retained by Apple to provide advice on labor issues. “They don’t want to pre-empt problems, they just want to avoid embarrassments.”
‘We Could Have Saved Lives’
In 2006, BSR, along with a division of the
World Bank and other groups, initiated a project to improve working conditions in factories
building cellphones and other devices in China and elsewhere. The groups and companies
pledged to test various ideas. Foxconn agreed
to participate.
For four months, BSR and another group
negotiated with Foxconn regarding a pilot program to create worker “hotlines,” so that employees could report abusive conditions, seek
mental counseling and discuss workplace problems. Apple was not a participant in the project,
but was briefed on it, according to the BSR consultant, who had detailed knowledge.
As negotiations proceeded, Foxconn’s requirements for participation kept changing.
First Foxconn asked to shift from installing new
hotlines to evaluating existing hotlines. Then
Foxconn insisted that mental health counseling be excluded. Foxconn asked participants to
sign agreements saying they would not disclose
what they observed, and then rewrote those
agreements multiple times. Finally, an agreement was struck, and the project was scheduled
to begin in January 2008. A day before the start,
Foxconn demanded more changes, until it was
clear the project would not proceed, according
to the consultant and a 2008 summary by BSR
that did not name Foxconn.
The next year, a Foxconn employee fell or
jumped from an apartment building after losing
an iPhone prototype. Over the next two years,
at least 18 other Foxconn workers attempted
suicide or fell from buildings in manners that
suggested suicide attempts. In 2010, two years
after the pilot program fell apart and after multiple suicide attempts, Foxconn created a dedicated mental health hotline and began offering
free psychological counseling.
“We could have saved lives, and we asked
Apple to pressure Foxconn, but they wouldn’t
do it,” said the BSR consultant, who asked not
to be identified because of confidentiality agree-
with
some
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them.acast delivery
new aluminum
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“core
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cluded
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started
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ever,
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prevent
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child
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ployees
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contractors,
including
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Hewlett-Packard
and
others
allowed
health
and
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Chengdu
arein-including
Six
months
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publications
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Apple
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are
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ayear,
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ade
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vant
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vant
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ive
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alarming,”
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ory,
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Over
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first
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Georgia
ployees
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Other
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andexposures.
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with
tive
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but
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eworkplace
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orinolas
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ice,
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ssbeen
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Two
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Lai’s
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asee
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health
and
safety
protections,
ethics
and
more
than
over
aen
variety
of
issues,
including
wideus,”
said
Zoe
McMahon,
an
executive
in
there
are
serious
problems
and
recomA
copy
of
that
report
was
sent
to
Apus,”
said
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McMahon,
an
executive
in
give
suppliers
enough
profit
treat
verseas
had
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able
to
numbers
of
employees
laboring
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regular
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Apple
an
annual
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of
its
suppliers’
compliance
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company’s
code
of
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place
profit
to treat
highest
quality
medical
c
At
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“We
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highest
quality
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care.”
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the
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if
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ems,
year
after
year,
that
means
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spread
rumors
that
workers
were
being
rumors
that“There
workers
being
two
dozen
topics.
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company
says
every
detected
violation
issaid
corrected
or spread
theStates,
supplier
is ple.
terminated,
butwere
adherence
to
the
rules
issix
mixed.
Hewlett-Packard’s
supply
chain
social
mending
changes,”
said
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at
was
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said
DebHewlett-Packard’s
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social
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former
Apple
duce
more.
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days
asafety
week
as
well as
wo
ple.
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response,”
said
DebThen,
Apple’s
requests
start.
lunch
breaks,”
the
company
wrote,
and
e former
Apple
Malaysia,
Singapore,
South
Korea,
Taiwan
and
the
United
and
Apple
has
issued
rules
on
labor
rights,
health
and
protections,
eth
explosion,
the
company
a
of
workers
standing
on
assembly
lines
Gary
Niekerk,
director
of
corporate
citiexplosion,
the
company
added,
Foxconn
earthquake
was
under
way.
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was
a
company’s
ignoring
the
issue
rather
exposed
to
toxins.
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by
exposed
to
toxins.
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by
and
environmental
responsibility
proby
Chan
Sze
Wan
of
the
group.
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few
BSR
—
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known
as
Business
for
Soand“The
environmental
responsibility
proexecutive
firsthand
knowledge
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of
“A says
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xecutives
at other
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reApple
typically
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percent
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line
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nd
knowledge
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topics.
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company
every
detected
violation
is of
corrected
or
supplier
isworkers
terminated,
but
adherence
to the
rules
is mixed.
or the
in backless
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crouching
immediately
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work
zenship
at Intel.
world’s
complex,
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ofthe
blasts,
said.
han
solving
it,” said
one
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news
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revealed
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gram.
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us
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cial
Responsibility
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ceived
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wage
o
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internal
pressures.
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required
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The
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Then
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hundred
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went
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the
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as
punishment.
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em
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argue,
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and
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size
tasks.
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stations
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tween
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miss
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disposal,
tion
and
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Antidiscrimination
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core
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emswelled
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Apple’s
prominence
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to
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technologies
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ployees
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ership
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manufacturing,
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Incases
its
most
recent
sup
In
its most
recent
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responsisuppliers
promise
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vidEmployees
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orsaid
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avoid
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thetoexplosion,
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Lai ized
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portant
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calculates
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The
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Mr. Lai
Percentage
The
Explosion
tion
and
promotion,
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80 Apple
Explosion
tek,
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a
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company
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Apple
bility report, Apple
wrote
that
after
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ime.
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toll
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dered
to
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iPhone
dered
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rodehas
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ment,
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to
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We’ve
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ment
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Banners
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ways,
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the
company
ONLINE:
Join
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explosion,
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company
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“the
80
ations
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afternoon
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and
over
hundred
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slimmest
profits.
gone
on sale
weeks
earlier,
e60 factories
for infour
years,
andjust
‘WeiPad
Could
Have
Saved
Lives’
record,”
the
company
wrote.
“Foxconn
de,
the
company
120,000
employees:
“Work
hard telephoned
on
thecompany
done.
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company
to
be aApforemost
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itted
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ries
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quired
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e manufactured
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ation
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nd
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Two hours
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eply
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said
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pany’s first
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nytimes.com/businessday
fected
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Malaysia, Singapore, South Korea, Taiwan and the United States, and Apple has issued rules on labor rights,
health and safety protections, ethics and mo
NUMBER
two dozen topics. The company says every detected violation is corrected or the supplier is terminated,OFbutAUDITS
adherence to the rules is mixed.
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upational
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ENVIRONMENTAL
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IMPACT
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n-hexane,
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four
and
injured
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potential
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leastfour
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ofexecutives
more
screens
each
minute
December,
another
iPad factory
December,
another
iPad
factoryBwith n-hexaneworkers exceeded that limit. At 90 facilities,
obscures
year-to-year
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for
Hepatitis
more
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which had been
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andwith
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workers
than half worked seven consecutive days
or more
at because
used
previously.
aluminum
dust, injuring 59 workers.
aluminum
dust, injuring
facilities.
pregnancy
tests. 59 workers.
least once a month.
Source: Apple Supplier Responsibility Progress Reports; New York Times reporting
’11’11
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THE NEW YORK TIMES
ments. “Companies like H.P. and Intel and Nike
push their suppliers. But Apple wants to keep
an arm’s length, and Foxconn is their most important manufacturer, so they refuse to push.”
BSR, in a written statement, said the views
of that consultant were not those of the company.
“My BSR colleagues and I view Apple as
a company that is making a highly serious effort to ensure that labor conditions in its supply chain meet the expectations of applicable
laws, the company’s standards and the expectations of consumers,” wrote Aron Cramer, BSR’s
president. Mr. Cramer added that asking Apple
to pressure Foxconn would have been inconsistent with the purpose of the pilot program, and
there were multiple reasons the pilot program
did not proceed.
Foxconn, in a statement, said it acted quickly and comprehensively to address suicides, and
“the record has shown that those measures have
been successful.”
A Demanding Client
Every month, officials at companies from
around the world trek to Cupertino or invite Apple executives to visit their foreign factories, all
in pursuit of a goal: becoming a supplier.
When news arrives that Apple is interested
in a particular product or service, small celebrations often erupt. Whiskey is drunk. Karaoke is
sung.
Then, Apple’s requests start.
Apple typically asks suppliers to specify
how much every part costs, how many workers
are needed and the size of their salaries. Executives want to know every financial detail. Afterward, Apple calculates how much it will pay for
a part. Most suppliers are allowed only the slimmest of profits.
So suppliers often try to cut corners, replace expensive chemicals with less costly alternatives, or push their employees to work
faster and longer, according to people at those
companies.
“The only way you make money working
for Apple is figuring out how to do things more
efficiently or cheaper,” said an executive at one
company that helped bring the iPad to market.
“And then they’ll come back the next year, and
force a 10 percent price cut.”
In January 2010, workers at a Chinese factory owned by Wintek, an Apple manufacturing
partner, went on strike over a variety of issues,
including widespread rumors that workers
were being exposed to toxins. Investigations by
news organizations revealed that over a hundred employees had been injured by n-hexane,
a toxic chemical that can cause nerve damage
and paralysis.
Employees said they had been ordered to
use n-hexane to clean iPhone screens because
it evaporated almost three times as fast as rubbing alcohol. Faster evaporation meant workers
could clean more screens each minute.
Apple commented on the Wintek injuries a
year later. In its supplier responsibility report,
Apple said it had “required Wintek to stop using n-hexane” and that “Apple has verified that
all affected workers have been treated successfully, and we continue to monitor their medical
reports until full recuperation.” Apple also said
it required Wintek to fix the ventilation system.
That same month, a New York Times reporter interviewed a dozen injured Wintek
workers who said they had never been contacted by Apple or its intermediaries, and that Wintek had pressured them to resign and take cash
settlements that would absolve the company of
liability. After those interviews, Wintek pledged
to provide more compensation to the injured
workers and Apple sent a representative to
speak with some of them.
Six months later, trade publications reported that Apple significantly cut prices paid to
Wintek.
“You can set all the rules you want, but
they’re meaningless if you don’t give suppliers
enough profit to treat workers well,” said one
former Apple executive with firsthand knowledge of the supplier responsibility group. “If
you squeeze margins, you’re forcing them to cut
safety.”
Wintek is still one of Apple’s most important suppliers. Wintek, in a statement, declined
to comment except to say that after the episode,
the company took “ample measures” to address
the situation and “is committed to ensuring employee welfare and creating a safe and healthy
work environment.”
Many major technology companies have
worked with factories where conditions are
troubling. However, independent monitors
and suppliers say some act differently. Executives at multiple suppliers, in interviews, said
part
pts,
ntal
free
A SHRINE FOR A SON
Lai Xiaodong was killed in a Foxconn factory explosion. His parents have built a memorial in their village.
we
but
confied
nts.
Nike
s to
n is
, so
pl
Bu
in
vo
RYAN PYLE FOR THE NEW YORK TIMES
A JOB TURNS DEADLY
the
ose
pple
ghly
ndiexomons
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ram
cted
adhas
een
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ney
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ear,
ese
pple
rike
ide-
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Aluminum dust from polishing
iPads caused the blast at Foxconn’s plant in Chengdu, left. Lai
Xiaodong was among those
killed. He had moved to Chengdu, bringing with him his college
diploma, six months earlier.
RYAN PYLE FOR THE NEW YORK TIMES
that
Hewlett-Packard
others with
allowed
them dust.
ersWorkers
also highlight
the mother
problem
of poor returned,
ventila- she
their
medical
reports until full and
recuperahis
eventually
aluminum
wore
slightly
more
and
other masks
allowances
if tion
inadequate
personal
protective
equiption.”
Apple also
said profits
it required
Wintek
and earplugs,
but noand
matter
how
tried
to avoid touching
her son,
for fear
to fix
the were
ventilation
times they showered,
they
usedsystem.
to improve workermany
conditions.
ment.” they were that it would cause pain.
by the slight aluminum
That same
a Neware
York
Times
I had was
known,”
shetosaid,
“I would
“Ourmonth,
suppliers
very
openrecognizable
with us,” said
A copy of that “If
report
sent
Apple.
sparkle in their hair and at the corners
reporter interviewed a dozen injured
have grabbed his arm, I would have
Zoe workers
McMahon,
an they
executive
“There was no response,”
said Debby Chan Sze
of their eyes.
Wintek
who said
had nev-in Hewlett-Packtouched him.”
Just
two
weeks
before
the
explosion,
supply chain
social
environmental reer ard’s
been contacted
by Apple
or and
its inWan of the group. “A“He
fewwas
months
later Ishe
went
to “He
very tough,”
said.
an know
advocacy
group inCupertino,
Hong Kongand
pub-went
termediaries,
and program.
that Wintek “They
had presheld
on for
days.”lobby, but no
sponsibility
let us
when
into
thetwo
Apple
lished a report warning of unsafe condisured them to resign and take cash setdied, heard
Foxconn
workers
they that
are would
struggling
expectations,
one
would
meet withAfter
me. Mr.
I’veLai
never
from
at the Chengdu
plant,
including
tlements
absolve to
themeet
compa-our tions
drove to Mr. Lai’s hometown and delivthat influences
decisions.”problems with aluminum
anyonedust.
fromThe
Appleered
at all.”
ny and
of liability.
After thoseour
interviews,
a box of ashes. The company later
group, Students and Scholars
Against
Wintek pledged to provide more comThe morning of
theaexplosion,
Mr.$150,000.
Lai rode
wired
check for about
Corporate Misbehavior, or Sacom, had
pensation
to the injured workers and
The Explosion
Foxconn,
in had
a statement,
said
that at
his
bicycle
to
work.
The
iPad
gone
on
sale
videotaped workers covered with tiny
Apple sent a representative to speak
the
time
of
the
explosion
the
Chengdu
Onofthe
at the iPad
just“Occupational
weeks earlier, and workers were told thoualuminum
particles.
with some
them.afternoon of the blast
plant was in compliance with all releand safety issues
in Chengdu
areneeded
plant,
Lai later,
Xiaodong
telephoned health
his girlfriend,
sands
of cases
to beand
polished
eachand
day.
Six
months
trade publications
vant laws
regulations,
“after
alarming,”
the
report
read.
“Workers
reported
that
Apple
significantly
cut
as he did every day. They had hoped to see each The factory was frantic,
said. Rows
ensuringemployees
that the families
of the dealso highlight the problem of poor ventiprices paid to Wintek.
were
given the supother that evening, but Mr. Lai’s lation
manager
said ofpersonal
machines
buffedceased
casesemployees
as masked
employees
and inadequate
protec“You can set all the rules you want,
port they required, we ensured that all
had tomeaningless
work overtime,
told her.
pushed buttons. Large
air ducts hovered over
tive equipment.”
buthe
they’re
if you he
don’t
of the injured employees were given the
of that report
wasstation,
sent to Apgive suppliers
profit to treat
He hadenough
been promoted
quickly Aatcopy
Foxconn,
each
but they
could
not
keepcare.”
up with
highest quality
medical
After the
ple.
“There
was
no
response,”
said
Debworkers
well,”
said
one
former
Apple
explosion,
the
company
added,
Foxconn
and after just a few months was in charge of a
the three lines of machines polishing nonstop.
by Chan Sze Wan of the group. “A few
executive with firsthand knowledge of
immediately
halted
work
in
all
polishing
thatresponsibility
maintainedgroup.
the machines
that
everywhere.
months
laterpolI went Aluminum
to Cupertino,dust
and was
theteam
supplier
“If
workshops, and later improved ventilawent
into
the
Apple
lobby,
but
no
one
iPad
cases. you’re
The sanding
Dust is a known
hazard.
In 2003,
an
youished
squeeze
margins,
forcing area was loud
tionsafety
and dust
disposal,
and adopted
would meetwore
with me.aluminum
I’ve never heard
them
to cut
safety.”
and
hazy
with aluminum dust. Workers
dust explosion
in Indiana
technologies
to enhancedestroyed
worker safety.
from anyone from Apple at all.”
Wintek
still one
of Apple’sbut
most
In its most recent supplier responsimasksisand
earplugs,
noimmatterThe
how
many
wheel factory
morning of theaexplosion,
Mr. Lai and killed a worker. In 2008, agportant suppliers. Wintek, in a statebility
report, Apple wrote that after the
times
they toshowered,
they were
recognizable
ricultural
dust
rode
his bicycle to work.
The iPad
hadinside a sugar factory in Georgia
ment,
declined
comment except
to
explosion, the company contacted “the
sale
just weeks
earlier,
and
the
slight
aluminum
sparkle ingone
theiron
hair
and
caused
an explosion
that killed
14.in process safety” and
sayby
that
after
the episode,
the company
foremost
experts
workers
were
told
thousands
of
cases
took
“ample
measures”
to
address
the
at the corners of their eyes.
Two hours into
Mr. Lai’s
second
shift, the and
assembled
a team
to investigate
needed to be polished each day. The facsituation and “is committed to ensuring
make
recommendations
to prevent fuJust two weeks before the explosion,
ad- employees
building
started
tory was an
frantic,
said.
Rows to shake, as if an earthquake
employee welfare and creating a safe
ture
accidents.
in Hong Kong published
a report
of machines
buffed was
casesunder
as masked
way. There was a series of blasts,
andvocacy
healthy group
work environment.”
In December, however, seven months
employees
pushed
buttons.
Large
Many
major
technology
companies
warning of unsafe conditions at the Chengdu plant workersairsaid.after the blast that killed Mr. Lai, anducts
hovered
over
each
station,
but
have
worked
with factories
where with
con- aluminum dust.
plant,
including
problems
Then
screams
otherbegan.
iPad factory exploded, this one in
they could not keep up with
thethe
three
ditions are troubling. However, indeShanghai.
Onceran
again,
aluminum
The group,
Students
and Scholars
Against
Cor- polishing
When
Mr. Lai’s colleagues
outside,
darkdust
lines
of machines
nonstop.
pendent
monitors
and suppliers
say
was
the
cause,
according
to
interviews
Aluminum
dust was everywhere.
porate
Misbehavior,
or Sacom,
videotaped
smoke was mixingand
with
a light rain, according
some
act differently.
Executives
at mul- had
Apple’s most recent supplier reDust
is
a
known
safety
hazard.
In
tiple
suppliers,
in
interviews,
said
that
workers covered with tiny aluminum partito cellphone videos.
The tollreport.
would
eventually
sponsibility
That
blast injured 59
2003, an aluminum dust explosion in InHewlett-Packard and others allowed
workers,
with
23
hospitalized.
cles.
“Occupational
health
and
safety
issues
in
count
four
dead,
18
injured.
diana destroyed a wheel factory and
them slightly more profits and other al“It isLai’s
grossgirlfriend
negligence, saw
after that
an exploChengdu
arewere
alarming,”
the reportkilled
read.a “Workthe hospital, Mr.
worker. In 2008,Atagricultural
lowances
if they
used to improve
sion occurs, not to realize that every
dust
inside
a
sugar
factory
in
Georgia
worker conditions.
factory should be inspected,” said Nichcaused an explosion that killed 14.
“Our suppliers are very open with
olas Ashford, the occupational safety
Two hours into Mr. Lai’s second shift,
us,” said Zoe McMahon, an executive in
by
in
re
er
lis
th
pl
ve
co
wi
Th
di
ar
ito
ha
th
Ap
dr
in
“T
m
in
ch
ne
ca
th
ga
he
fo
op
Ga
ze
an
sid
er
co
wa
do
pl
Pr
ac
bu
tra
ec
pr
th
su
Ti
sp
an
te
th
to
his skin was almost completely burned away.
“I recognized him from his legs, otherwise I
wouldn’t know who that person was,” she said.
Eventually, his family arrived. Over 90 percent of his body had been seared. “My mom ran
away from the room at the first sight of him. I
cried. Nobody could stand it,” his brother said.
When his mother eventually returned, she tried
to avoid touching her son, for fear that it would
cause pain.
“If I had known,” she said, “I would have
grabbed his arm, I would have touched him.”
“He was very tough,” she said. “He held on
for two days.”
After Mr. Lai died, Foxconn workers drove
to Mr. Lai’s hometown and delivered a box of
ashes. The company later wired a check for
about $150,000.
Foxconn, in a statement, said that at the
time of the explosion the Chengdu plant was in
compliance with all relevant laws and regulations, and “after ensuring that the families of
the deceased employees were given the support they required, we ensured that all of the injured employees were given the highest quality
medical care.” After the explosion, the company
added, Foxconn immediately halted work in all
polishing workshops, and later improved ventilation and dust disposal, and adopted technologies to enhance worker safety.
In its most recent supplier responsibility report, Apple wrote that after the explosion, the
company contacted “the foremost experts in
process safety” and assembled a team to investigate and make recommendations to prevent
future accidents.
In December, however, seven months after
the blast that killed Mr. Lai, another iPad factory exploded, this one in Shanghai. Once again,
aluminum dust was the cause, according to interviews and Apple’s most recent supplier responsibility report. That blast injured 59 workers, with 23 hospitalized.
“It is gross negligence, after an explosion
occurs, not to realize that every factory should
be inspected,” said Nicholas Ashford, the occupational safety expert, who is now at the Massachusetts Institute of Technology. “If it were
terribly difficult to deal with aluminum dust, I
would understand. But do you know how easy
dust is to control? It’s called ventilation. We
solved this problem over a century ago.”
In its most recent supplier responsibility
report, Apple wrote that while the explosions
both involved combustible aluminum dust, the
causes were different. The company declined,
however, to provide details. The report added
that Apple had now audited all suppliers polishing aluminum products and had put stronger
precautions in place. All suppliers have initiated
required countermeasures, except one, which
remains shut down, the report said.
For Mr. Lai’s family, questions remain.
“We’re really not sure why he died,” said Mr.
Lai’s mother, standing beside a shrine she built
near their home. “We don’t understand what
happened.”
Hitting the Apple Lottery
Every year, as rumors about Apple’s forthcoming products start to emerge, trade publications and Web sites begin speculating about
which suppliers are likely to win the Apple lottery. Getting a contract from Apple can lift a
company’s value by millions because of the implied endorsement of manufacturing quality.
But few companies openly brag about the work:
Apple generally requires suppliers to sign contracts promising they will not divulge anything,
including the partnership.
That lack of transparency gives Apple an
edge at keeping its plans secret. But it also has
been a barrier to improving working conditions,
according to advocates and former Apple executives.
This month, after numerous requests by advocacy and news organizations, including The
New York Times, Apple released the names of
156 of its suppliers. In the report accompanying
that list, Apple said they “account for more than
97 percent of what we pay to suppliers to manufacture our products.”
However, the company has not revealed
the names of hundreds of other companies that
do not directly contract with Apple, but supply
the suppliers. The company’s supplier list does
not disclose where factories are, and many are
hard to find. And independent monitoring organizations say when they have tried to inspect
Apple’s suppliers, they have been barred from
entry — on Apple’s orders, they have been told.
“We’ve had this conversation hundreds of
times,” said a former executive in Apple’s supplier responsibility group. “There is a genuine,
companywide commitment to the code of conduct. But taking it to the next level and creating real change conflicts with secrecy and business goals, and so there’s only so far we can go.”
Former Apple employees say they were generally prohibited from engaging with most outside
groups.
“There’s a real culture of secrecy here that influences everything,” the former executive said.
Some other technology companies operate
differently.
“We talk to a lot of outsiders,” said Gary
Niekerk, director of corporate citizenship at Intel.
“The world’s complex, and unless we’re dialoguing with outside groups, we miss a lot.”
Given Apple’s prominence and leadership
in global manufacturing, if the company were to
radically change its ways, it could overhaul how
business is done. “Every company wants to be
Apple,” said Sasha Lezhnev at the Enough Project, a group focused on corporate accountability. “If they committed to building a conflict-free
iPhone, it would transform technology.”
Gu Huini contributed research.
But ultimately, say former Apple executives,
there are few real outside pressures for change.
Apple is one of the most admired brands. In a national survey conducted by The New York Times
in November, 56 percent of respondents said they
couldn’t think of anything negative about Apple.
Fourteen percent said the worst thing about the
company was that its products were too expensive. Just 2 percent mentioned overseas labor
practices.
People like Ms. White of Harvard say that
until consumers demand better conditions in
overseas factories — as they did for companies
like Nike and Gap, which today have overhauled
conditions among suppliers — or regulators act,
there is little impetus for radical change. Some
Apple insiders agree.
“You can either manufacture in comfortable,
worker-friendly factories, or you can reinvent the
product every year, and make it better and faster
and cheaper, which requires factories that seem
harsh by American standards,” said a current
Apple executive.
“And right now, customers care more about a
new iPhone than working conditions in China.” n