There is more and more discussion now about the working conditions in China, especially those workers that build consumer electronics. And especially Apple’s iProducts. Can any conclusions be drawn?
On Wednesday, the New York Times published an investigative article on working conditions in China for those who make consumer electronics. “In China, Human Costs Are Built Into an iPad.” Much of the focus was on Apple, and some current and former Apple executives were quoted.
The article pointed out that Apple has a Supplier Code of Conduct and “has made significant strides in improving factories in recent years.” Apple has released a list of suppliers for the first time, and the supplier responsibility reports contain reports of abuses.
On the other hand, there are various comments that give one pause. A former Foxconn employee, who has been let go, said “Apple never cared about anything other than increasing product quality and decreasing production cost…. Workers’ welfare has nothing to do with their [Apple’s] interests”
A former Apple executive, unnamed, said, “We’ve known about labor abuses in some factories for four years, and they’re still going on… “Why? Because the system works for us. Suppliers would change everything tomorrow if Apple told them they didn’t have another choice.”
One way to look at this is from a business perspective. A company like Apple will go where the costs are the lowest. The opposing view is that lowering costs and making more money means allowing ever increasing abuses of employees to continue. Where does that end? Better working conditions raise product costs. This is the history of business all over the world ever since the start of the industrial age. The world economy walks a fine line in the middle of all that.
The cycle of public pressure is often brought to bear by journalism. A good example is Upton Sinclair’s “The Jungle,” a 1906 novel that exposed the lives of immigrant workers in the U.S. and the awful conditions of the meat packing industry. Now, a hundred and six years later, China faces the same issues.
Ultimately, the plight of the workers depends on them and public pressure by those who are informed about their conditions. Things get better in time, but we need to keep being reminded of that eternal business dilemma and when it gets out of control. That’s what the New York Times set out to do.


John Martellaro
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I’ve heard bits and pieces of this before, but the Times’ writers bring it together with much more perspective. This goes beyond the stock rationales such as “well, living conditions are different over there” and “most companies, especially tech, do pretty much the same, and worse.” (I do realize that in any industry employing hundreds of thousands [millions?] of workers, some accidents and tragedies are inevitable.)
Apple clearly, undeniably leads in product innovation. They have the means and the power to do so in safety and living conditions as well. Steve’s question of vision to John Sculley was about deciding between making sugar water or changing the world. I hope Tim Cook’s vision goes beyond changing how developed, wealthy countries use neat tech toys; I hope his vision goes to TRULY “changing the world” by raising the bar likewise on these profound social justice issues, and to prevent some of these worst situations.
As a stockholder, I’d be content to see my stock lose, say, 20-30% of its value if I KNEW that it was because of costs directly incurred by Apple making substantial, lasting, openly verifiable improvements in how their suppliers work regarding these issues. (I’d be even happier to see my stock take a hit if I knew it was because Apple chose to accept the much higher cost of manufacturing here in the U.S., with all that entails, but that’s another issue altogether.)
Please seriously consider voicing your concerns to CEO Tim Cook, tcook@apple.com.
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