Via ValleyWag: Apple has released its 2010 Supplier Responsibility Report [PDF].
Apple’s crisis management process seems to roughly follow this pattern: First, Steve Jobs usually apologizes for any lapses publicly and personally. Second, they set up an action plan for addressing the issues raised over time. Last, they issue annual progress reports to show how they’ve improved against third-party industry standards and highlighting areas in which they are now world-class. Apple tries to cluster those steps in time so there’s always immediate progress to report.
That, for example, is how they responded to accusations from Greenpeace that their products were environmentally unfriendly.
Since 2006 Apple has also faced criticism over the activities of its outsourced manufacturers in China. This report details the results of their continuing audit-and-improve process (cf, The Toyota Way Section III Principle 11).
Outsourcing to countries with different labor practices is a strategy fraught with ethical pitfalls. Apple has decided to continue their presence in the Chinese market while thoroughly communicating and auditing their own standards for compliance. They take a drubbing for this in the press because they don’t typically hold suppliers to a standard higher than that of the governing law, which in China is not only weak but also unenforced (though see the “Beyond Compliance” section of the Supplier Responsibility site).
The progressive capitalist party line here is that engaging economically with developing nations helps raise their people out of poverty. Apple is trying to accomplish that as ethically as possible, and is improving, but might currently be failing.
Our cheap iDevices come with large Chinese externalities.
I’ve been considering future outsourcing opportunities for SIN in India. I’m going to follow Steve’s lead here and check up on working conditions — I know what life is like in a techno sweatshop, and that was in downtown Vancouver, not downtown Bangalore. Plus, at the Deutsche Haus on Saturday I got some info on outsourcing to the former East Germany that made for enlightening reading: “highest investment subsidies in the EU — up to 50%”, eh?
Plus, if SIN wants to make devices maybe we could just CNC everything locally…