According to a report in today's Wall Street Journal, Apple previously investigated its supply chain and looked for misconceptions among…
According to a report in today’s Wall Street Journal, Apple previously investigated its supply chain and looked for misconceptions among its suppliers. The US-based tech giant shook up its suppliers in China by looking for evidence of repayment plans and bribes. The investigation also shook Apple’s own employees in China, as any indication of incorrectly could have caused the company’s own employees.
Suppliers who were in Apple Crosshairs still delivered the technology giant with parts, which were in Apple’s best interest. Finding a new iPhone component supplier at such short notice would have been hard to do. As it turned out, no supplier could be dropped; Apple told Journal that there were no signs of rescues or bribes. Nevertheless, an Apple manager who participated in the procurement of parts and two junior members in the Supply Management Team of China company left in May. According to people familiar with Apple’s probe, it was about the same time Apple began to sneak around a vendor, questioning any repayments paid to Apple employees.
0, an Apple Global Supply Manager, Paul Shin Devine, was accused of receiving over $ 1 million in backbacks from six Apple vendors in Asia. In the United States, he was arrested, and after being acknowledged to receive the money from the suppliers, he was sentenced to one year in prison. He was also ordered to pay $ 4.5 million in repayment.
Apple’s domestic rules prevent its employees from accepting gifts and meals from suppliers. Apple also has a provider code of conduct, which is published online. It sets out the company’s positions on a number of issues from how suppliers treat their workforce (no discrimination and harassment is allowed) and notes that Apple will come down hard on suppliers who use minors and overwork and underpaid employees. In addition, Apple writes that suppliers “should not participate in corruption, extortion, destruction or bribery to get an unfair or wrong advantage.” Nevertheless, Apple has to pay if the temptation is too much for some suppliers and employees.