Apple CEO calls Times supplier report "patently false and offensive"
By Jacqui Cheng | Published January 27, 2012
Apple CEO Tim Cook has reportedly called recent reports on Apple's attitude toward its supply chain "patently false and offensive" in a new e-mail sent internally to Apple employees. Cook's remarks came the same day The New York Times [ http://www.nytimes.com/2012/01/26/business/ieconomy-apples-ipad-and-the-human-costs-for-workers-in-china.html (the post to chish this is a reply)] published a lengthy feature about the "human cost" of our iPads, iPhones, and other gadgets. That report, based on sources and interviews conducted by the Times, made the assertion that many of Apple's executives are willing to look the other way when it comes to unsafe conditions and worker abuse because of the pressure to keep gadget costs down. Apple declined to comment for the Times story.
"Any suggestion that we don’t care is patently false and offensive to us," Cook wrote. "As you know better than anyone, accusations like these are contrary to our values. It’s not who we are."
The Times report in question is worth reading in full; it's full of quotes sourced from former and current Apple executives about the company's view of supply chain problems in China and elsewhere. The prevailing message appears to be that Apple cares to a certain extent, but can pretend certain reports don't exist until there's a PR disaster to deal with (such as the aluminum dust explosion [ http://www.nytimes.com/2011/05/25/technology/25foxconn.html ] at a Foxconn plant that killed several workers in 2011).
It's clear that Cook feels strongly about the new story, and he claims that Apple is committed to improving worker conditions overseas. "What we will not do—and never have done—is stand still or turn a blind eye to problems in our supply chain," he wrote. "On this you have my word."
As a company and as individuals, we are defined by our values. Unfortunately some people are questioning Apple’s values today, and I’d like to address this with you directly. We care about every worker in our worldwide supply chain. Any accident is deeply troubling, and any issue with working conditions is cause for concern. 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.
For the many hundreds of you who are based at our suppliers’ manufacturing sites around the world, or spend long stretches working there away from your families, I know you are as outraged by this as I am. For the people who aren’t as close to the supply chain, you have a right to know the facts.
Every year we inspect more factories, raising the bar for our partners and going deeper into the supply chain. As we reported earlier this month, we’ve made a great deal of progress and improved conditions for hundreds of thousands of workers. We know of no one in our industry doing as much as we are, in as many places, touching as many people.
At the same time, no one has been more up front about the challenges we face. We are attacking problems aggressively with the help of the world’s foremost authorities on safety, the environment, and fair labor. It would be easy to look for problems in fewer places and report prettier results, but those would not be the actions of a leader.
Earlier this month we opened our supply chain for independent evaluations by the Fair Labor Association. Apple was in a unique position to lead the industry by taking this step, and we did it without hesitation. This will lead to more frequent and more transparent reporting on our supply chain, which we welcome. These are the kinds of actions our customers expect from Apple, and we will take more of them in the future.
We are focused on educating workers about their rights, so they are empowered to speak up when they see unsafe conditions or unfair treatment. As you know, more than a million people have been trained by our program.
We will continue to dig deeper, and we will undoubtedly find more issues. What we will not do — and never have done — is stand still or turn a blind eye to problems in our supply chain. On this you have my word. You can follow our progress at apple.com/supplierresponsibility [ http://apple.com/supplierresponsibility ].
To those within Apple who are tackling these issues every day, you have our thanks and admiration. Your work is significant and it is changing people’s lives. We are all proud to work alongside you.
5 Fascinating Comments by Chinese Readers About Apple and Foxconn
A protest in Hong Kong during 2011. Reuters
Chinese observers see the manufacturing labor landscape pretty much the way American businesspeople do, which is to say, cynically.
Alexis Madrigal Jan 26 2012, 12:56 PM ET
The New York Times investigative series into Apple's manufacturing practices in China are being published in Chinese [ http://thelede.blogs.nytimes.com/2012/01/25/chinese-readers-on-the-ieconomy/ ] as well. In a smart move, the Times decided to translate Chinese reader comments for the consumption of its English-speaking audience. You can read a couple dozen of them here [id.]. And here's a selection that I found fascinating:
There are two stories about Apple: one is about its brilliant business performance, and the other is about the blood and sweat behind Apple miracles. I strongly recommend that all Apple fans read this. Corporations should bear social responsibilities, and customers should also understand and be responsible to the society. -- ????
Without Apple, Chinese workers will be worse off. I hope China can some day soon have dozens of its own companies like Apple, who (only) work on high-end research and development and send manufacturing lines to Africa. -- Anonymous
Working conditions in smaller factories are even worse (than Foxconn). They have even longer work hours. The major reason is that suppliers are not at the top of the value chain and major brands can easily replace them. Also, workers in China do not have labor unions, and the Chinese government always protects the large companies. -- ?????
If Foxconn were to abide by the labor law, which is supposed to protect workers and keep them basically to 8 hours a day and 5 days a week, their wages will be lower. If workers establish a formal labor union, lots of workers will be disappointed and return home to rural areas. The production cost of Chinese manufacturers will increase, and those Chinese factories will lose their competitive advantage. Who would be happy if that really happened? -- ????,
If people saw what kind of life workers lived before they found a job at Foxconn, they would come to an opposite conclusion of this story: that Apple is such a philanthropist. -- Zhengchu1982
What sticks out to me is the openness of the debate over the conflicted relationship between labor and corporate profits. No one thinks that Apple is going to do anything out of a sense of corporate conscience (err, responsibility). At least from the comments that the Times translated, there is no sense that regulations would help anything. Apple's profit margins, here and among (at least some in) China, are seen as sacrosanct, while the health and safety of workers is up for discussion.
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