For the first time, Apple
The high cost of cheap labor
Apple has always been famously secretive about its suppliers. But now The Telegraph is reporting that Apple has joined the Fair Labor Association, a group set up in 1999 to monitor workplace conditions around the globe. It's the first technology company to do so.
For several years now, Apple has conducted its own survey of its suppliers. The company recently released its sixth-annual supplier responsibility report, detailing audit results of factories throughout its supply chain. And for the first time, this report lists the firm's major suppliers, more than 156 in all.
Like most of today's major technology companies, Apple manufactures many of its products at overseas companies like Foxconn, a Taiwan-based company that employs over a million people in factories across the mainland, and a company that's come under severe scrutiny in recent years. In 2010, 12 Foxconn workers committed suicide, and just days ago some 150 workers at a Foxconn factory in Wuhan threatened mass suicide if they were moved to a new production line.
Suicide is bad for PR
The Foxconn employees recently threatening mass suicide were, in fact, involved in producing Microsoft's
Speaking of flagship technology products on which companies are placing big bets, Foxconn also manufacturers the Kindle for Amazon.com
Way to go, Apple
No company, even industry chiefs like Apple, Microsoft, or Amazon, need the kind of bad press that can come with situations like the one at Foxconn. Consumers are becoming more and more socially conscious, and want the goods and services they use to measure up. In truth, it doesn't take much. A simple action that costs a company very little or even nothing at all can make a real difference in the mind of the consumer.
Apple has recognized this truth, has bravely joined the Fair Labor Board, and, this Fool thinks, will no doubt benefit from it, both perceptually and financially. In this day and age, the two go together. Are any companies perfect in this regard? No, but to paraphrase Voltaire, it's important to never let the quest for the perfect drive out the good. Read about two more Motley Fool favorites that are healthy, wealthy, and making a difference in their own ways in this special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." Get your copy while it's still available by clicking here.
Fool contributor John Grgurich thinks Apple should go and get itself a Superman cape to wear, but owns no shares of any of the companies mentioned in this article. The Motley Fool, however, owns shares of Amazon.com, Microsoft, and Apple. Motley Fool newsletter services have recommended buying shares of Microsoft, Amazon.com, and Apple . Motley Fool newsletter services have recommended creating a bull call spread position in Microsoft. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a scintillating disclosure policy.