The New York Times is the world’s most respected newspaper (other than the Guardian), and that means that when it pushes a story into the public consciousness, it gets noticed. That’s why the recent article in the Times, investigating Foxconn and other Apple suppliers for their work environment, has generated a major flap for the consumer electronics company.
What the Times found comes as no surprise to those who are familiar with the Chinese economic situation, or to the usual labor watchdogs. But as Apple continues its incredible climb into consumer electronics dominance, it has drawn increased scrutiny from the rest of us as to the methods it uses to claw its way to the top. And that scrutiny has yielded some pretty despicable fruit.
As it turns out, Apple’s prosperity is due to more than just the innovation and design expertise. Apple is also a relentless cost cutter, and it brings an incredible amount of pressure to bear on its supply chain to keep costs at an absolute minimum. In the United States, that means pushing hard to innovate more efficient processes. But most of the supply chain resides in China, and China’s labor regulations leave something to be desired. Consequently, more efficient processes often means virtual slave labor, unpaid overtime, cramped dorms, 7 day work weeks, and drastically unsafe working conditions.
In a situation where demand so drastically outstrips supply, Apple is facing a major profit incentive to keep cutting costs in any way possible, even at the expense of explicitly stated corporate ethics (Apple maintains that they are conscious of the problem and working to address it). Unfortunately, the profit incentive – which is Apple’s legal obligation – will often win out over ethics, as it so frequently does. It will take sustained consumer pressure to force a change (which is not at all unprecedented – many companies have forced reforms in their supply chains due to consumer demand). One can only hope this is the beginning of the application of that pressure.
