Apple: Beware Of Collateral Damage!

by Christopher Tang

While Apple is known to be innovative in designing and marketing their products such as the iPhone and the iPad, they should think and act proactively about different ways to manage their supply chain now. If not, Apple is likely to become collateral damage in the wake of the actions of their unethical contract manufacturers in China.

As consumers continue their craze for Apple products and as investors continue to buy up Apple's stock, there are sad stories behind each iPhone and iPad. In 2010, the Institute of Public and Environmental Affairs (IPE), an NGO based in Beijing, revealed that various Apple suppliers' factories in China were violating national environmental standards. However, Apple remained silent until late 2011, and only finally agreed to a jointly-monitored audit of pollution controls at a supplier's factory in China in 2012.

The public was never told why Apple was so slow in responding to this rather public issue. Perhaps it is the case that Apple thinks consumers will continue to love Apple products regardless of its suppliers' unethical behavior? If this were the case, Apple should think twice and thrice. Social activism is on the rise in China and elsewhere. Apple should care about the possibility that its brand image could be ruined by its suppliers in China. For example in October 2012, Foxconn, Apple's key contract manufacturer and the world's largest contract electronics manufacturer, violated labor laws by hiring underage workers (age 14) in one of Foxconn's factories in China. To protect Apple's image, Foxconn declared that this particular factory did not produce Apple products (see: http://news.yahoo.com/foxconn-says-underage-workers-used-china-plant-015446422--finance.html).

This declaration clearly suggested that Apple is concerned about brand image and is worried about "collateral damage". Therefore, Apple should clean up its supply chain now. If not, they may find that fewer and fewer consumers will want a bite of their "rotten apple".

 

As consumers continue their craze for Apple products and as investors continue to buy up Apple's stock, there are sad stories behind each iPhone and iPad. In 2010, the Institute of Public and Environmental Affairs (IPE), an NGO based in Beijing, revealed that various Apple suppliers' factories in China were violating national environmental standards. However, Apple remained silent until late 2011, and only finally agreed to a jointly-monitored audit of pollution controls at a supplier's factory in China in 2012.

The public was never told why Apple was so slow in responding to this rather public issue. Perhaps it is the case that Apple thinks consumers will continue to love Apple products regardless of its suppliers' unethical behavior? If this were the case, Apple should think twice and thrice. Social activism is on the rise in China and elsewhere. Apple should care about the possibility that its brand image could be ruined by its suppliers in China. For example in October 2012, Foxconn, Apple's key contract manufacturer and the world's largest contract electronics manufacturer, violated labor laws by hiring underage workers (age 14) in one of Foxconn's factories in China. To protect Apple's image, Foxconn declared that this particular factory did not produce Apple products (see: http://news.yahoo.com/foxconn-says-underage-workers-used-china-plant-015446422--finance.html).

This declaration clearly suggested that Apple is concerned about brand image and is worried about "collateral damage". Therefore, Apple should clean up its supply chain now. If not, they may find that fewer and fewer consumers will want a bite of their "rotten apple".