According to the Apple Inc. (NADSAQ:AAPL) 37-page Supplier Responsibility Progress Report, the company is no longer doing business with a past supplier, Guangdong Real Faith Pingzhou Electronics Co., Ltd.
Here is the full rundown from the report:
“In many of the cases of underage labor we’ve discovered, the culprit behind the violation was a third-party labor agent that willfully and illegally recruited young workers. In January 2012, for example, we audited a supplier, Guangdong Real Faith Pingzhou Electronics Co., Ltd. (PZ) that produces a standard circuit board component used by many other companies in many industries. Our auditors were dismayed to discover 74 cases of workers under age 16—a core violation of our Code of Conduct. As a result, we terminated our business relationship with PZ.”
One of the most interesting takes from this part of the report is that the company “produces a standard circuit board component used by many other companies in many industries.”
Does this mean that other companies are still doing business with Guangdong Real Faith Pingzhou Electronics Co., Ltd, despite the fact that they are employing underage workers? While there is no way of saying for sure, this definitely appears to be the case.
Fortunately, Apple Inc. (NADSAQ:AAPL) has shut down operations with this supplier.
While this seems like quite the accomplishment, they did not stop there. Here is another excerpt from the report:
“We also learned that one of the region’s largest labor agencies, Shenzhen Quanshun Human Resources Co., Ltd. (Quanshun), which is registered in both the Shenzhen and Henan provinces, was responsible for knowingly providing the children to PZ.”
“In fact, to obtain the workers, this agency conspired with families to forge age verification documents and make the workers seem older than they were.”
“We also alerted the provincial governments to the actions of Quanshun. The agency had its business license suspended and was fined. The children were returned to their families, and PZ was required to pay expenses to facilitate their successful return. In addition, the company that subcontracted its work to PZ was prompted by our findings to audit its other subcontractors for underage labor violations—proving that one discovery can have far-reaching impact.”
As you can see, Apple Inc. (NASDAQ:AAPL) is doing more than preventing issues with its own company. They are taking the steps necessary to clean up the industry as a whole. They should be commended for doing so.
Check back here for more updates on Apple Factory Workers.
DISCLOSURE: I have no positions in any stock mentioned.
For more Apple news, visit these pages:
Apple Inc. Q1 2013 Conference Call Recap
