Community

Find answers, ask experts and talk with the procurement community

Tools

Do you want to deliver savings faster, reduce risks and transform functional performance?

Industry-leading events

Inspirational thinkers and innovators share their vision, providing unique opportunities to network and share best practice

Upcoming events

12th Annual Europe Forum

Executive Briefing: 4 October, 2017

Forum: 5-6 October, 2017

Beurs van Berlage, Amsterdam

Join the annual procurement community gathering for EU procurement professionals centred on business alignment and category leadership.

7th Annual Asia Pacific Forum

Forum: 8-9 November, 2017

The Westin, Singapore

Join 150+ senior level procurement professionals from the Asia Pacific region to delve into topics ranging from the effects of geopolitical change on procurement through to transformation success measurements, and future-proof your procurement function and business.

Resources

My Profile

CSR comes with a cultural flavour

Manufacturing and engineeringCorporate social responsibilityAsia Pacific

It seems as if the news surrounding Apple’s CSR conflicts are here to last for a while.

 

The manufacturing giant just reported multiple cases of child labour in its supply chain, following increased audits of working conditions at major suppliers last year. A total of 70 out of nearly 400 Apple suppliers were involved in employing under-aged workers, many of whom were recruited and hired with the help of forged identity papers.

 

What’s more, Apple terminated its relationship with Guangdong Real Faith Pingzhou Electronics, the supplier where the bulk of the child labour was uncovered.

 

Is this Apple’s way of coming clean?

 

"Our approach to underage labor is clear: we don’t tolerate it, and we’re working to eradicate it from our industry," Apple’s report highlights.

 

But how rational is such claim coming from a company that operates in an industry well known for its complex supply chains?

 

Even Apple’s senior vice president of operations, Jeff Williams, admitted that child labour is more pervasive in the manufacturing sector than most companies are willing to admit.

 

Corrective action seems to be a popular approach undertaken by companies when facing non-compliant suppliers. According to the newest Procurement Leaders report series into CSR, 53% of companies have switched suppliers in response to non-compliant supplier behaviour in the past five year. 31% have even gone as far as blacklisting suppliers.

 

Still, we need to see CSR issues, including the occurrence of child labour, in a cultural context. Surely, the forms of work which deny children access to their rights, such as education, are unacceptable, but what about work that is unlikely to damage educational opportunities, and enables children to helping out their parents with generating income?

 

We need to keep these issues in mind when we expand our operations into low-cost economies. It is particularly in these geographies where we need to localise our CSR initiatives, check local laws and regulations, and above all, work with our suppliers, rather than deploying corrective plans.

 

Members with unrestricted access can download Report I:Motives and Objectives here and Report II: Benchmarking CSR Scope and Standards here.

 

All other users can download the executive summary of Part I here and Part II here.

 

Maggie Slowik is research manager and CSR lead at Procurement Leaders.

Maggie Slowik
Posted by Maggie Slowik