
Continuing concerns over conditions for workers in China’s Foxconn factories and massive profits at Apple have combined to create a growing chorus suggesting Apple needs to alter its manufacturing processes. Is it reasonable to suggest that Apple should radically change its behaviour, and what should other gadget companies be doing? Gizmodo’s Alex Kidman and Lifehacker’s Angus Kidman thrash out the problem.
Lifehacker: There are really two issues here: should any company adopt ethical manufacturing processes where possible, and should Apple have to take the lead? From a purely human point of view, the answer to the first question is obviously “yes”. If the price of getting a nifty new touchscreen device every 12 months is subjecting Chinese workers to miserable working conditions we wouldn’t personally put up with for a second, then something should change.
A big part of the problem is that listed companies — a category which covers Apple and every one of its rivals — are not designed in any way to better the human condition. They are designed to make money. That is their purpose, and that will be their defence whenever they are challenged about their behaviour. “We must act in the interest of shareholders.” Nothing else — human decency, ecological necessity, compassion — is allowed to get in the way of that goal.
It’s easy to say Apple is being singled out because it is such a lightning rod company, but the fact is that it’s much harder for Apple to argue that it can’t afford to change its manufacturing process. It made $13 billion last quarter. It is clearly not operating on wafer-thin margins, which is the usual argument made in favour of using cheap offshore labour. If it made half as much money, Tim Cook could still wear fresh undies made from $US100 bills every day. As such, I’m rather sympathetic to the view that it should do something different (even though I can’t imagine Apple changing its approach for a second).

Gizmodo: There’s a few obvious points to raise at the start here. Firstly, that Foxconn — usually the whipping boy for this kind of story, although it is not the only Chinese OEM out there — supplies products for a whole host of other companies as well. The odds are exceptionally high that whatever you’re reading this on right now at one point passed through a Foxconn factory.
That being said, Apple’s in, as you say, a rather unique position in that it has clearly negotiated (by whatever means) production quotas that mean that the company as a whole runs on rather fatter margins than the rest of the IT industry, and as such it could take a leadership position.
Which then raises the question: Is it already doing so? Tim Cook recently put out a company-wide email where he stated that
Any suggestion that we don’t care is patently false and offensive to us. As you know better than anyone, accusations like these are contrary to our values. It’s not who we are.
In an odd way, I suspect that Apple’s legendary silence on most issues backfires on it here. When there are new products mooted, Apple’s stance of ultra-secrecy works in its favour, because the hype machine whips up at virtually no cost whatsoever to Apple. The flip side is that saying nothing gives the impression of something to hide, and so even when Apple does go on the record regarding worker rights or such, it’s viewed with deep suspicion. Fair? Probably not, but it’s not surprising that a company that uses PR spin in such a particularly controlled way would be under the microscope for any PR activities at all.
It also makes me wonder: what would actually happen if Apple decided to shift all of its manufacturing back to, say, California (so it could put “Designed and made in California” on the label) and under the purview of US law? Leaving aside issues of the treatment of US workers (Hormel/Spam being perhaps the classic example), the price of Apple stuff presumably goes up a bit, but the Foxconn factories are still there, making gadgets for everyone else. Nothing much would have changed.
If Apple set new policies that stated, say, minimum wages and conditions for its Foxconn workers, would that change the activities of everyone else using those same facilities? That seems unlikely. What’s more likely to effect actual change would be a shift in the flow of money, and that comes back to the consumer at the end of the process. You know.. us? The folks actually buying the gadgets at retail?

LH: Very true. It’s easy to sign a petition arguing that Apple should change its approach; that doesn’t cost us anything. I don’t see a lot of people actually volunteering to give up their iDevice until Apple shifts locations. (A similar point got raised at Linux.conf.au by Karen Sandler; she noted that despite the apparent deep commitment to open software and free access, the room was filled with iPhones and Macs.)
Something else to bear in mind is that many of the loudest voices arguing against Foxconn want Apple to move manufacturing back into the States. The decline in US industry is a major issue in the presidential elections, so the argument is not really about making the world better for humanity; it’s about making it better for America. What no-one seems to address much in that discussion is the question: if Apple did decide to make an example and pull out, what happens to all those Chinese workers? I agree Foxconn wouldn’t disappear, but it would surely cut staff numbers.
I remember touring a Sony Ericsson factory in China in the mid-2000s. A point our guide constantly emphasised was that working in a factory for a Western manufacturer was a prestigious job and that competition for positions was fierce. We think it’s an awful job; apparently for many Chinese it’s a major career. In a similar vein, many commentators have pointed out that the overall suicide rate for Foxconn workers doesn’t seem at variance with the Chinese national average.
It’s dangerous to try and judge the appeal of a work environment when you don’t know what the alternative is. Sure, you might not want to live and work in a factory with a 72-hour week — but would that be better than living on scraps in a farming village with no electricity?
Here’s another thought. China is closer to Australia than the US is, so shipping stuff here is cheaper. If Apple did shift manufacturing to the US, its prices for Australians might go up to a level that makes current complaints about the “Apple tax” look rather hollow. It’s really hard to come up with an Apple manufacturing scenario where everyone is happy with.
Yes, it would be entirely contradictory to demand better working conditions for everyone and still expect to pay rock-bottom pricing. But I don’t have the impression that a lot of the discussion around this issue is especially rational. There’s the familiar players: those happy to attack Apple at any price; those willing to defend its actions no matter what they are; and a huddled mass in the middle enjoying the products while suffering occasional twinges of annoyance or guilt. It’s not exactly a situation likely to drive brilliant and rational collective analysis.

GIZ: Exactly. And that’s even without touching on the issues of what an “ethically” produced iProduct would actually entail. It’s not just a question of manufacturing, but also one of where the source minerals come from — you need to address issues like conflict minerals and the like and even, arguably, the conditions under which software is written. Once you start insisting on “ethical” you’ve got to set boundaries on it, and I suspect that nobody would be able to even begin to agree on what those boundaries would be. Although I do now have this image of a handwoven tablet made from recycled lentil skins floating through my mind . . .
Also implicit in the question is one of force; if Apple “should” make ethical gadgets, then presumably that’s going to be a question of force — as you noted above, companies act for the bottom line. That will mean getting the Chinese government involved at some kind of legislative level to pass laws that will make the country less competitive internationally. Somehow, I can’t see that happening.
And that brings it right back to the only kind of force that might make a change, and that’s one of the bottom line dollar. If consumers demanded it en masse, Apple might step up more than it is already doing, but in order for it to be meaningful that would have to be applied across every type and kind of IT gadget and gizmo. Anyone fancy going back to the typewriter?
LH: I’m not sure that typewriters are very green anyway. Liquid Paper surely can’t be that good for the planet.
Even though I can’t see anything changing, it is pleasing to see people thinking a little harder about what owning modern gadgets means in the bigger picture. The vast majority of Australian iDevice owners suffer from a massive case of #firstworldproblems a lot of the time (and I certainly don’t exclude myself from that criticism). We’re not going to fix any of these issues with a single petition, and we can’t expect Apple to shoulder the burden for any change alone. But at least we’re not just complaining about Siri sucking.
Giz: Of course not. It’s not like Siri could tell us where to go in Australia to stop sucking anyway.
That’s our say; have yours in the comments.



















MDolley
Friday, February 3, 2012 at 10:45 AMThis is a genuine question and I am not trying to be inflammatory but why people are committing suicide rather than just quitting?
Is it because Foxconn is the best option for a lot of the workers?
If that is true then surely the solution can’t be to just fix the conditions at one factory
Barry
Friday, February 3, 2012 at 10:56 AMWhat I’ve heard is that a lot travel over hundreds/thousands of kilometres to work at Foxconn because work is very hard to get where they are and anywhere else so if you cannot cope with the work there, there isn’t much else out there so suicide is an option that they take because the benifits that the company pays go to their families, another reason why they search and travel for jobs at places like Foxconn, to help their family out.
I think Foxconn changed the policy for suicide last year or the year before because of this fact. In the hope that they stop the suicides.
One has to remember that jobs like this help a lot of families
Colin
Friday, February 3, 2012 at 4:44 PMThere is more to suicide then the simple western net product loss/gain. Based on the sum of my cultural knowledge of China (ok about 3 movies on SBS worth) Shame face is a VERY big deal.
It would not be uncommon for fighters who have lost the battle to commit suicide on their return. Suicide is an acceptable way to deal with failure, if you let down the family what else will you do?
Also I think that this article runs away just a little from the companies ethical responsibilities. It will seem futile attacking these companies, but if you start purchasing ethically constructed devices then you are creating an alternative market. Even if you only do it some of the time where you are able, it will help. Be vocal, there is no need to accept cruel working decisions.
Ryan
Friday, February 3, 2012 at 11:17 AMApple are not the only company who use Foxconn many other companies such as dell use them as well.
Sam
Friday, February 3, 2012 at 11:55 AM…You didn’t read any of the article did you?
Blake
Friday, February 3, 2012 at 12:51 PMRyan the difference between apple and dell is that apple’s advertising strategy is *for* people. But yet simultaneously exploiting people at the foxcom factory.
This makes Apple’s advertising hypocritical, whereas Dell doesn’t make those statements so they aren’t held to the same level of scrutiny.
Saying all this, and I could be wrong. I’ve heard foxcom hires over 100,000 people, and while any suicide is tragic, percentage wise it is within standard margins.
Turd
Friday, February 3, 2012 at 11:17 AMThe poor get poorer while the rich (managers, ceos etc) will get richer…. Circle of life… STOP BUYING consumer goods!
olearymo
Friday, February 3, 2012 at 11:55 AMwhat did you use to write that comment?
Ozoneocean
Friday, February 3, 2012 at 12:03 PMStupidly facetious Olearymo. Turd’s intention isn’t hypocrisy, the idea is to stop continuing to by into the consumer product cycle: i.e. you don’t need the next new model of every device every year. i.e. if you have an ipad, you don’t need to replace it with an ipad2 and so on.
Ru
Friday, February 3, 2012 at 11:48 AMapple will never change because the bottom line is, most people just don’t give a shit.
hell some people I know who advocate for workers rights and working conditions here in Australia own iDevices.
The gloss of the latest product and fear of ‘not fitting in’/using tech as a status symbol outweighs humanitarian issues in most peoples minds. It’s all about self preservation.
Sam
Friday, February 3, 2012 at 12:12 PMI think it’s hard to argue that Foxconn’s (amongst other OEM groups) employees are treated ethically, and I believe that practical action should be taken to minimise abuse of workers’ rights – regardless of whether those rights are legislative or basic human decency.
The problem is how to instigate such change.
As the article points out, the vast majority of brands who produce out of China use the argument that they’re answerable to shareholders, and the bottom line delivered to them. Shareholders are faceless entities, so it’s unlikely that business is going to see a push from them for ethical manufacture.
So what about consumers; can we the people make a difference? I’m dubious of it. Chinese – and increasingly Bangladeshi, and other counties offering cheap labour – manufactured goods really are just not feasible to avoid these days. OK, so you boycott Apple – but in favour of what? Samsung, HTC and other brands are just as guilty ethically questionable manufacturing processes. Boycotting technology isn’t feasible and, unless performed en masse, isn’t effective. Not to mention that it’s not just technology related products that the topic isn’t limited to.
As far as protesting is concerned – Occupy Wall Street, Sydney etc is laughable. The people behind such movements just don’t have the political influence to make a significant difference, the problem is much larger than them and they were largely ignored.
The only party left is government. Assuming the Chinese government DID want to protect its workforce, they could act and introduce workplace safety legislation along with basic award rates; though such action would be disastrous for their economy. Undoubtedly, moving manufacture on a large scale to other countries is costly, but it is an expense soon made up by reduce workforce expenses – why else did everything move to China in the first place?
Timmahh
Friday, February 3, 2012 at 12:22 PMOk I understand the moral dilemma here, but somehow I don’t think treating those workers as charity cases is the way to go. Perhaps if we put pressure on the offending manufacturers to actually treat there workers with respect. What will happen if you start paying a dollar per item bought to the workers is drive their wages down, or worse! These people aren’t poor by their countries standards, they are treated like prisoners though…
Daniel
Friday, February 3, 2012 at 2:00 PMWe as consumers have to play a huge roll in reducing slave labour to satisfy our hunger for technology. No one factor is to blame for Chinese workers having to work under such conditions that suicide is the only out for them.
We are all to blame, All Governments, voters and companies like Apple, Microsoft etc. can and must dictate to their manufacturing arms that conditions should be set to a standard that Humans can endure and have a meaning to their lives.
“Any suggestion that we don’t care is patently false and offensive to us. As you know better than anyone, accusations like these are contrary to our values. It’s not who we are.” …. Tim Cook [I smell BS]
Western companies have an obligation to show the Chinese and other countries that Human Rights must be adhered to if you want our money, and yes to can still have obscene profits without raising prices for consumers.
Nuff Said..
Azza
Friday, February 3, 2012 at 2:05 PMI am personally steering towards bringing back manufacturing locally. I realise that the current factory workers will be out of a job and it will be much harder for them (harsh, I know), but as soon as Apple do this, there would be others that would follow. As soon as a few major brands have left, the Chinese government will be forced to re-evaluate their current labour laws and begin to bring them up to a higher standard. This also has the obvious benefits for local economies as well.
I don’t know, the current world economy doesn’t seem right to me. A world where all countries maintain a certain standard would definitely create a more level playing field and would be better for everyone in the long run.
If you took the alternative, of increasing wages and working standards, there is no way this will ever happen unless the brands put more money in. This will start playing serious havoc with their local economies in regards to costs of living.
Citizen
Friday, February 3, 2012 at 2:31 PMThe problem, imho, is what was touched on in the article but not elaborated on… organisations are, legally, only supposed to care about their bottom line, not the planet or human decency.. it’s THIS that needs to change first
Whenever we as human beings make a decision, we weigh out the pros and cons, we consider things like cost, profit, how it will affect others, whether it is bad for the planet, human decency, etc.. all in different percentages naturally… why is it then that when a CEO makes a decision for a company… all that matters is money?
Spock
Friday, February 3, 2012 at 4:05 PMHow to put this … I do not care about the chinks if they do not care about themselves. We are not nasty foreigners ruining their lives – they are taking the money, gladly. Screw them.
Go to Mexico
Friday, February 3, 2012 at 4:09 PMOnce China become more and more regulated, business will just start looking for another country where resource is highly available and not regulated (e.g. Cambodia) and the cycle will go on….
Something to consider
Friday, February 3, 2012 at 5:45 PMThere is an international standard called SA8000 that deals with the rights of workers.
reference
http://www.saasaccreditation.org/certfacilitieslist.htm
Total
Certified Facilities 2,785
Countries Represented 62
Industries Represented 65
Number of Employees 1,648,086
http://www.sa-intl.org
Some major companies already are certified to this standard.
http://www.saasaccreditation.org/certfaclists/2011_Q3/Q3%20SA8000%20Certs%20List,%20Public%20List,%20alpha.pdf
As a consumer you could shop at any of the companies listed with confidence that the rights of workers were being adhered to.
Daniel
Saturday, February 4, 2012 at 12:06 AMSomething to consider
February 3, 2012 at 5:45 PM
There is an international standard called SA8000 that deals with the rights of workers.
Cheers, very useful..
Something to consider
Friday, February 3, 2012 at 6:44 PMMajor companies that are part of the corporate members programs.
Note 1 electronics company = HP
http://www.sa-intl.org/index.cfm?fuseaction=Page.viewPage&pageId=906&parentID=478&nodeID=1
Jim Raynor
Friday, February 3, 2012 at 8:02 PMGreat article and which brought up some valid points.
What i dont understand is why the media is always targeting Apple rather than Foxconn for mistreating workers. Perhaps the media is just using Apple to get more attention? If i asked another company to manufacture a product im now responsible for the working conditions of that other company? No, but i may be ethically inclined to chose another company if i knew that this particular company mistreated its workers. The problem is if Apple chooses another company, the problem will likely still exist.
Ok, so now the problem is we need to make Foxconn treat its workers better, and to put pressure on them, not Apple. However, Foxconn is operating in what appears a legal way, otherwise it wont be operating at all. So the REAL problem is the Chinese government. Working conditions, minimum wage is up to the government to enforce, and make sure companies follow the law. Unfortunately, in China, with money, rules can be bent. The sad thing is the Chinese government does not care about its people, and the widening gap between rich and poor in China is not going to change if the government does not help out its OWN people.
olearymo
Friday, February 3, 2012 at 10:11 PMIt doesn’t matter what his intention was, but what he wrote. If he needs you to explain it he didn’t do a good job.
something to consider
Saturday, February 4, 2012 at 9:09 AMAfter much searching, Apple does have information regarding there “supplier responsibilities” process.
http://www.apple.com/supplierresponsibility/
Just thought you should know.