Report on iPod Manufacturing

August 17, 2006

Like many of you, we were concerned by reports in the press a few 
weeks ago alleging poor working and living conditions at a 
manufacturing facility in China where iPods are assembled. Our 
Supplier Code of Conduct mandates that suppliers of Apple products 
follow specific rules designed to safeguard human rights, worker 
health and safety, and the environment. We take any deviation from 
these rules very seriously.

In response to the allegations, we immediately dispatched an audit 
team comprised of members from our human resources, legal and 
operations groups to carry out a thorough investigation of the 
conditions at the manufacturing site. The audit covered the areas of 
labor standards, working and living environment, compensation, 
overtime and worker treatment. The team interviewed over 100 randomly 
selected employees representing a cross-section of line workers 
(83%), supervisors (9%), executives (5%), and other support personnel 
(3%) including security guards and custodians. They visited and 
inspected factory floors, dormitories, dining halls, and recreation 
areas. The team also reviewed thousands of documents including 
personnel files, payroll data, time cards, and security logs. In 
total, the audit spanned over 1200 person-hours and covered over one 
million square feet of facilities.

To ensure the accuracy of the investigation, the team 
cross-referenced multiple sources of information from employees, 
management and personnel records. For example, working hours and 
overtime reported in the interviews were corroborated with line-shift 
reports, badge reader logs, and payroll records of those specific 
individuals to confirm that they were paid appropriately.

We found the supplier to be in compliance in the majority of the 
areas audited. However, we did find violations to our Code of 
Conduct, as well as other areas for improvement that we are working 
with the supplier to address. What follows is a summary of what we've 
learned, what's already being done in response, and our commitment to 
future diligence and action.

...

http://www.apple.com/hotnews/ipodreport/


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