Apple Supplier Code of Conduct
Apple Inc.'s Supplier Code of Conduct delineates the company's high standards for generating safer work settings, treating employees equitably, and making use of environmentally responsible practices. The company has made significant strides to form one of the most stringent codes of conduct within the industry and more often than not necessitates practices that go above and beyond the local rules and regulations. The company's suppliers are obligated to be in compliance with the Code of Conduct by meeting the strict requirements in Apple's Supplier Responsibility Standards (Apple Inc., 2017). This paper discusses the distinctive changes that Apple has made to its Code of Conduct in the past few years.
Accountability
Through audits, Apple is able to build the competencies of its suppliers. The company does this through an established four-phase procedure to facilitate them in being compliant with the Code of Conduct. The first phase is audit prioritization. Apple employs a risk-based method to select which suppliers to audit. The company takes into account aspects such as business, social, environmental, health and safety risks of an entity. In turn, the audits are ranked on the basis of geography risk, product risk, and prior audit performance. In particular, Apple examines apprehensions presented by external stakeholders. Every entreaty is appraised based on urgency (Apple Inc., 2017). The second phase is the onsite audit. Each audit is steered by Apple with the help of a local third-party specialists who have been educated on the company's auditing code of behavior. This encompasses interviewing personnel, assessing several payroll documents, physically evaluating the health and welfare circumstances of the facilities, and scrutinize internal and external environmental conditions. More so, the company investigates core violations that are not tolerated by Apple, taking into account underage personnel, falsification of documents and intimidation of employees. Between 2007 and 2015, the annual Apple audits have substantially increased from 39 to 640 and this covered more than 1.6 million personnel. In particular, there were approximately 140 first-time audits across Apple's supply chain spanning 25 nations. To the present moment, Apple has terminated agreements with 20 suppliers, owing to core violations (Apple Inc., 2017).
The third phase is addressing issues. Suppliers that have not been compliant to the code of conduct are obligated to submit a Corrective Action Plan in the course of the 14 day audit, delineating the manner in which they will resolve the issues found. In turn, Apple substantiation experts work in tandem with suppliers, undertaking checks after 30, 60 and 90 days to ascertain the...
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