Apple

Last edited by Ian Elwood on August 18, 2008 - 12:33pm

Company Snapshot:

Apple Computer sells computers our of its Cupertino, California headquarters and retail stores around the world. In 2006, the company employed 16,820 people and generated revenues of $19.3 billion. Former Vice President Al Gore is a member of the company's board of directors.

Ownership status:

Publicly traded

Number of employees worldwide:

17,787

Chief executive officer:

Steve Jobs

2008 Global Fortune 500 rank:

337

Website:

http://www.apple.com/

Corporate accountability

Labor:

From Coop America's Responsible Shopper Profile:

Apple Computer found that their suppliers in China have been violating the company’s supplier code of conduct. Apple reported regular workweeks in manufacturing facilities in excess of 60 hours and workers labored more than six consecutive days 25 percent of the time. However, the company found "no evidence of forced labor" or use of child workers. Janek Kuczkiewicz, director of human and trade union rights at the International Confederation of Free Trade Unions (ICFTU), said he was unimpressed by the report: “Apple interviewed just 100 people out of the estimated 30,000 iPod workers.”

Apple’s investigation came after British newspaper, the Mail on Sunday, criticized Foxconn Electronics for labor violations. Foxconn Electronics supplies $20.7 billion worth of products annually to Apple, Dell, Hewlett-Packard, Intel and Sony, and other top name brands. According to the Mail, labor rights violations include the following:

Wages below the legal minimum, with workers reportedly earning $50 a month
Routine work shifts of 15 hours
Poor and unsafe working conditions
Inadequate dormitories

China Labor Bulletin research director Robin Munro stated, "They're not sharing proportionally in the benefits and profits in this huge globalization effort…. The only reason they can survive in these cities is because all they do is work." Foxconn states that there are huge discrepancies between the truth and allegations cited in the report.

Environment and product safety:

From Coop America's Responsible Shopper Profile:

More than 70 environmental groups have signed a letter to former Vice President Al Gore, who sits on the board of Apple, asking him to push the company to become more sustainable. Environmentalists express surprise that as America’s best-known environmental advocate, Gore would oppose shareholder resolutions—which Apple claims were unanimously voted against—asking Apple to become greener.

Apple Computer Inc. was one of the companies included in Greenpeace International’s "E-waste Hall of Shame." Greenpeace International discovered Apple products in their visit to a Chinese scrap yard. Apple, along with IBM, Panasonic, Toshiba, and Acer, has not committed to remove chemicals from products or be responsible for the safe recycling and responsible disposal of their products.

Apple was labeled one of "the bad guys" by Greenpeace International for failing to go beyond minimum legal requirements for cleaning up toxic chemicals in its products. Eliminating toxic chemicals from products reduces pollution and makes reuse and recycling less hazardous and cheaper. Greenpeace ratings are based on global policy on toxic chemicals in products. Acer, Dell, Toshiba and IBM were among the other under-performing companies named by Greenpeace.

Basel Action Network’s (BAN) report entitled “The Digital Dump: Exporting Re-use and Abuse to Africa,” examines the current downside to the information technology growth in the industrialized world, focusing on the environmental ramifications in Lagos, Nigeria. The study demonstrates how Nigeria, representative of developing nations, has disproportionately carried the burden of toxic cyber waste. The formal and informal dumps have leached dangerous toxins, such as dioxins, polycyclic aromatic hydrocarbons, and heavy metals, into the air and groundwater. Apple products were among those found “washed up” on the West African import market.

Greenpeace, a Washington, DC-based environmental advocacy group, released its annual "Guide to Greener Electronics" as part of an effort to encourage electronics companies to “clean up their act.” The Guide ranks 14 of the leading computer and mobile technology companies on a scale of one to 10 based on criteria relating to recycling, phase out of toxic chemicals and corporate responsibility issues. Apple was last scoring 2.7, almost a full point behind the next lowest company, Panasonic.

Anti-competitive and consumer protection:

From Coop America's Responsible Shopper Profile:

Apple Computer was the target of five class-action lawsuits based on accusations that the company’s iPod did not perform as promoted. Plaintiffs in the suit claim that the battery life of the iPod did not last as long as advertised, and are suing Apple on the grounds of false advertising, fraudulent concealment and breach of warranty. Apple Computer offered a settlement of $50 vouchers and extended service warranties.

Several computer retailers that sell Mac computers filed lawsuits against Apple alleging that the company was unfairly pushing customers to patronize Apple-owned outlets. Plaintiffs argue that the claim is evidenced by ongoing problems with billing systems and service. Tom Santos of San Francisco brought forth a multimillion-dollar lawsuit accusing the computer company of unfair competition, fraud, false advertising, breach of contract and violating the federal Racketeer Influenced and Corrupt Organizations Act.

In 2002, BusinessWeek named Apple Computer as having one of the worst board of directors. The magazine cited interlocking directorship--Steve Jobs sits on the board of directors for the Gap and the Gap CEO sits on Apple's board--and the fact that the CEO of Micro Warehouse, which accounted for nearly 2.9 percent of Apple's net sales in 2001, sits on the company's compensation committee. The magazine used criteria such as board independence and stock ownership for the listing.

Former Apple employee, Dan Riccio, filed a discrimination lawsuit against the corporation in October of 2001. Riccio claimed that he was overlooked for promotions, denied stock options, and kept segregated from white colleagues because he is African American. According to Riccio, Apple suspended and ultimately fired him for having a guest with him on the Apple campus, which had never been a problem when done by his white co-workers.

In 2005, as Apple Computer CEO Steven Jobs was paid a $1 salary. However, Mr. Jobs was awarded 10 millon restricted shares of the company's common stock in 2003, the value of which were estimated at $532 million as of September 2005.