We end each chapter in the book with an Ethical Dilemma, intended to enhance class discussion on topics of interest. Here is a timely issue regarding Apple, based on a front-page New York Times (Jan.26,2012) report that details the shocking working conditions in Chinese factories that build the company’s products. The article tells the story of one worker who was killed in an aluminum dust explosion at a factory last year and paints a picture of the “harsh” and “bleak” environment in which iPads and other devices are built.
One former Apple executive says: “Most people would still be really disturbed if they saw where their iPhone comes from.” An ex-employee of Foxconn, the biggest of Apple’s suppliers in China, which has made headlines because of suicides among workers, said: “Apple never cared about anything other than increasing product quality and decreasing production cost. Workers’ welfare has nothing to do with their interests.”
And while excited buyers eagerly anticipate new products, Apple’s audits have found evidence of employees being forced to work more than 6 days a week and put in extended overtime. There have been allegations of involuntary labor, under-age workers, record falsification and the improper disposal of hazardous waste.
The Times also details the pressure manufacturers are under. “Executives want to know every financial detail. Afterward, Apple calculates how much it will pay for a part. Most suppliers are allowed only the slimmest of profits. So suppliers often try to cut corners, replace expensive chemicals with less costly alternatives, or push their employees to work faster and longer.”
The lengthy article notes that companies like Nike and Gap have been forced to change their ways in the face of public outrage, but ends with the words of a current Apple exec: “Right now, customers care more about a new iPhone than working conditions in China.” Do your students agree?
Having traveled to China on business trips several times, I am not surprised about the terrible working conditions. On one of my trips, my Chinese handlers and I were going to a provincial capital city about six hours drive from Beijing. I fell asleep in the back seat, and when I awoke, we were getting off an exit ramp that looked like it took us straight to hell! The landscape around the highway was barren, with some blackened trees, and smokestacks belching flames and soot. There was a thick blanket of what appeared to be dry cement on everything. The air was so bad and foul that the beggars and people selling apples were actually wearing hospital masks. I am not kidding. I spent two days in the city (which was actually quite lovely), with modern buildings and lively, hospitable people. I had almost forgotten about the terrible pollution until we had to drive through it to get back to Beijing. This time, the ride was in daylight, and the scene was even more disturbing. We drove through miles and miles of utter devastation. So, when I hear about poor working conditions, especially in a recessionary time, it is no wonder that these people are suffering. I don’t know how a major company can avoid this problem, but I agree with the Apple exec that most people will turn a blind eye on the problem as long as their cell phones work.