Apple finds more serious supplier problems as its audits expand

Apple finds more serious supplier problems as its audits expand


  • Apple said it had found a higher number of serious violations of its labor and environmental policies for suppliers
  • Compliance with Apple's 60-hour work week fell to 94 percent of suppliers from 98 percent in 2016
  • Apple also issued its conflict minerals report

Apple said on Wednesday it had found a higher number of serious violations of its labor and environmental policies for suppliers, such as falsifying work hours data, as it expanded the scope of its annual audit of conditions of workers making its iPhones and other products.

But the overall trend among 756 suppliers in 30 countries was toward higher compliance with Apple's code of conduct, according to a new report by the company, which has been carrying out the audits for 12 years. The latest annual supplier responsibility report includes 197 suppliers audited for the first time.

Apple runs one of the largest manufacturing chains in the world, mostly factories owned by contractors.

Apple said in the report that the proportion of "low performers," or suppliers scoring less than 59 points on its 100-point scale, fell to 1 percent in 2017 from 3 percent in 2016 and 14 percent in 2014. "High performers" with scores of more than 90 rose to a record high of 59 percent from 47 percent the year before.

Apple found 44 "core violations" of its labor rules in 2017, double the previous year. Those included three instances of employees forced to pay excessive fees for a job, a practice Apple banned in 2015.

In one case, over 700 foreign contract workers recruited from the Philippines were charged a total of $1 million to work for a supplier. Apple said it forced the supplier to repay the money.

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