Foxconn, an outsourcing company in China has been accused of employee mistreatment, use of child labour, gross violation of basic employee rights and poor working environment. Therefore, an ethical corporation that obtains supplies from Asian manufacturing plants should use all the right channels to ensure that the supplier does not employ unethical business activities to reduce production costs and other operational costs.
Collier and Evans (2011) state that Apple Inc being an ethical corporation that would like its suppliers to engage in ethical business activities outlines a supplier code of conduct. Collier and Evans (2011) assert that the supplier code of conduct that Apple Inc gives its suppliers does not include Asian countries only but also other suppliers located in other locations around the world. The code of conduct requires suppliers of Apple Inc to conduct their business practices in a manner that respects labour rights, upholds human rights, observes ethical principles, promotes health and safety of employees, respects the environment and enhances management systems. The code, for example, requires that employees’ of Apple Inc’s supplier should work a minimum of 60 hours in a week and be granted a day off in a week. The code of conduct that Apple Inc is a scion of internationally recognized ethical standards and is meant to ensure that Apple’s suppliers do not engage in unethical business activities in their push to reduce production costs.Collier