Earlier this year, Apple reviewed its supply chain and looked for misconduct among its suppliers, according to a report in today's Wall Street Journal. The US technology giant has reportedly shaken up its suppliers in China by seeking clues and bribes. The investigation also shocked Apple's own employees in China, as the company's own employees may point to false attacks.
Suppliers in Apple's crosshairs were still providing parts to the tech giants, which was in Apple's best interest. It was hard to find a new iPhone component supplier so quickly. As it turned out, no supplier had to be dropped. Apple told the Journal that it had found no evidence of bribes or bribes. However, an Apple executive involved in parts procurement and two of the supply management team's junior staff in China dropped out of the company in May. According to people familiar with Apple's sample, it was about the same time that Apple was snooping around a supplier and asking him about possible kickbacks to Apple employees.
0, a global Apple supply manager named Paul Shin Devine was accused of having received more than $ 1 million in kickbacks from six Apple suppliers in Asia. He was arrested in the United States, and after he admitted to receiving the money from the suppliers, he was sentenced to one year in prison. He was also asked to repay $ 4.5 million.
Apple's Rules of Procedure prevent its employees from accepting gifts and meals from suppliers. Apple also has a Supplier Code of Conduct, which is published online. It cites the company's position on a number of questions about suppliers' dealings with their workforce (no discrimination and harassment is allowed), and notes that Apple is putting pressure on suppliers that use underage workers and overworkers. In addition, Apple writes that suppliers "do not engage in corruption, blackmail, embezzlement or bribery to gain an unfair or inappropriate advantage." However, given the amount of money Apple has to ask if the temptation is too big for some suppliers and employees.