Apple launches damage control

Apple is in damage control mode. By now anyone with a computer and an interest in technology and/or Apple have heard about and probably read, the New York Times article that started the whole furore.

Like Nike years ago, they find themselves up to their necks thanks to the labour practices of others who manufacture their products. Arguably the Nike case was harder to stomach – when child labour is used to manufacture the symbols of the company’s empowerment message the misalignment wasn’t just jarring, it was downright disturbing.

Nike took action, cleaned up its supply chain on that account and has had relatively few public issues since then.

In Apple’s case the working conditions of people employed by their suppliers are the issue. It is an issue that Apple has been working with for a number of years and one that at its root is caused as much by our own insatiable demand for ever new products at “affordable” prices, as by any inaction on Apple’s part or indifference on part of those suppliers.

I’ve commented previously on the problems that outsourcing can lead to, however in this day and age it is unrealistic to imagine that a company could “do it all,” not to mention that to do so would render anyone uncompetitive when working at any large scale.

If your “brand” is the result of the promises you keep, and conversely the ones you break, then Apple is surely guilty of failing to fully enforce its own supplier code of conduct. But was that code ever enforceable? When global appetite for your products demands one of your major supplies is the largest employer in China, your options to take your business elsewhere are limited to non-existent.

Even providing suppliers with higher margins would necessitate a rise in prices of the product (or cut in profits) that probably wouldn’t be acceptable to the marketplace. Would I pay an extra $100 or more for my Apple products to ensure that working conditions of those manufacturing them in China could be improved? Yes. Would others? Well only you can answer that.

Take it a few steps further and just imagine for one moment the beating Apple’s share price would take were they to announce they were halving their production capacity for 12 months to find new suppliers. Or further yet if they were to announce they were bringing manufacturing back to the US and an iPad would now cost $2,000.

These are the kinds of decisions the company must grapple with. The balance between the promises they make of “affordable quality” (an oxymoron if ever one existed), and their ability to keep them, when others not under the umbrella of Apple Inc. are really the ones doing the keeping, make this issue almost impossible to navigate.

Airline tickets, food, clothes, technology, household furnishings – the list of items that we consumers demand at ever cheaper prices goes on and on. How many of us stop and think about the “who” in the “what” equation before we make a purchase?

To all those calling for Apple to do the right thing (and no question they and the technology industry as a whole must do better), perhaps part of the answer is for us to become more “conscious consumers,” take the time to find out where the things we buy come from, how they are manufactured and by whom, under what conditions. Then choose accordingly.

As a step further, maybe Apple should have a two-tiered price, where price A allows the status quo and a higher price B is guaranteed to go towards improving worker conditions. And at the same time earmark a percentage of their profits for the same. I wonder how many people would buy at price B or how many shareholders would complain about their returns being used in that way? I don’t know, but that’s something that would be interesting to watch.

See you next week.

Michel Hogan is an independent brand adviser and advocate. Through her work with Brandology here in Australia and in the United States, she helps organisations make promises they can keep and keep the promises they make, with a strong sustainable brand as the result. She also publishes the brand thought leadership blog – Brand Alignment. You can follow Michel on Twitter @michelhogan