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Ethics of consumers: Do consumers care?

 
 
Reverie
 
Reply Sat 8 Dec, 2012 09:51 pm
Recently, Apple CEO Tim Cook announced that it's going to make some computers in America. A negative reaction is in effect seeing the stocks took a bit of a plunge.


Before this announcement, some time ago, news stories have brought public awareness to the the many Apple products produced in part in factories in China with a record of failure to provide safe working conditions, using child labor, and demanding employees to work long shifts for low wages.

The media have attuned a sharp eye on the status at factories run by Apple’s Chinese suppliers. Foxconn, that assembles the iPad and the iPhone, has got the brunt of attention.
Allegedly, Foxconn carelessness led to notorious stories to surface.

Foxconn didn't provide workers who worked with toxic chemicals appropriate safety equipments, it was responsible for the death or two people and injury of more than a dozen from a factory blast; it required workers to work levels of overtime deemed illegal for which it frequently did not play its employees in full; it deceived potential recruits regarding pay rates; its supervisors humiliated the workers; its workers were often to stand almost uninterrupted for a 12 hour shift; its poor working condition that led to a number of suicide in 2010 from its Shenzen plant.

Another supplier of Apple also faced a problem and was forced to shut down. Catcher Technology, who makes the aluminum casings for many Apple products, was recently instructed to shut down one of its factories by the Chinese government after neighboring denizens complaint of noxious and unbearable fumes coming from the factory.
A number of steps were taken by Apple to improve the situation in response to recent public pressure, albeit these "change" that the steps implement likely is a little more than cosmetic in nature.

The problem is that Apple’s competitors may have similar problems in their supply chains. To accurately put it, the same suppliers that Apple uses, many of Apple’s major competitions utilize as well. Foxconn supplies Hewlett-Packard, Samsung, and Dell. Likely the recent investigations and attention of unethical practices in Chinese electronics industry has focused on Apple, rather than its competitors, is likely due its size and high profit margins. Ethical Consumer Magazine ranks Apple to be mid-table in terms of the ethics of its laptop and phone manufacturing processes, and above some of its biggest competitors, such as Samsung, Sony, HP and Toshiba. In further regards, although Apple is not doing enough to improve the entire situation (as this likely out of their hands), arguably, it is doing more than most of its competitors, such as conducting more rigorous audits of its suppliers.

From this, it's safe to conclude that any Chinese-manufactured electronics product bought in current circumstances, is likely and probably one way or another will encourage some unethical labor practices, whether it be the mistreatment of Chinese workers or reward the company to continue with its unethical practices.

If you has no choice but to support this unethical behavior, seeing that most of the products in America are made in China, how might you go about trying to mitigate this effect?
I'm not picking on you, and by "you" I mean consumers, just as myself.

Or do most consumers just don't care?
So suppose you need a new laptop or a tablet (say to pack it as a gift for the Holidays), or at the least, are going to buy one, do you leave leave aside ethical considerations, and shop a product that best suits your wallet and comforts?

I know in the consumer electronics department, I know I am guilty.
 
hawkeye10
 
  1  
Reply Sat 8 Dec, 2012 10:08 pm
@Reverie,
there was a study released recently (have no idea where i saw it) that concluded that americans when faced with two equally good products, one american one not, the vast majority of us will buy the usa model. however, we are willing to spend almost no premium to buy the usa model.

i dont know what Apple thinks they are doing, but i do know that investors are rapidly coming to the consensus that post Steve Jobs apples best days are in the rear view mirror, that without his magic they are not much.
Reverie
 
  3  
Reply Sat 8 Dec, 2012 11:35 pm
@hawkeye10,
Bringing manufacturing to America is definitely a positive thing. While true that manufacturing is far cheaper in China, off shoring raises the price of their logistics, and companies pay a lot more on shipping as well as duties and tariffs. Even if the price goes up a "little bit," bringing jobs to Middle class Americans is vitally important. And I'm sure most Apple loyal supporters won't mind.

Big tech companies mostly manufacture outside America because of a loophole in the tax code that allows money from directly shipped products to remain offshore untaxed. Notice how when you purchase a iPhone, it ships directly from Shanghai or Shenzhen, instead of through a US warehouse. Fix the tax code by penalizing, not rewarding these companies, and more money and manufacturing will come back to America.
hawkeye10
 
  1  
Reply Sun 9 Dec, 2012 12:13 am
@Reverie,
Quote:
Bringing manufacturing to America is definitely a positive thing. While true that manufacturing is far cheaper in China, off shoring raises the price of their logistics, and companies pay a lot more on shipping as well as duties and tariffs. Even if the price goes up a "little bit," bringing jobs to Middle class Americans is vitally important. And I'm sure most Apple loyal supporters won't mind.

wow really? apple has huge loads of cash off shore and has for years without any plan to bring it home because it refuses to pay american taxes on it, i dont think that bringing a few jobs to the usa is going to cement in apples rep as a good US citizen. nobody in their right mind buys apple products because the act is good for america.
aspvenom
 
  1  
Reply Sun 9 Dec, 2012 09:44 am
@Reverie,
Generally speaking, behavior is not consistent with the attitude.

Here is a study on it.
http://www.people.fas.harvard.edu/~hiscox/Depelsmacker.pdf

I ain't even ashamed to admit that, and by that I mean I'm totally and completely ashamed to admit that. Shocked
Reverie
 
  1  
Reply Sun 9 Dec, 2012 10:50 am
@aspvenom,
Well join the club. I'm supposing the uncommented thumbs-down individuals don't approve of this behavior as well. Good for them. LOL.
0 Replies
 
hawkeye10
 
  1  
Reply Mon 10 Dec, 2012 11:45 pm
@hawkeye10,
Quote:
apple has huge loads of cash off shore and has for years without any plan to bring it home because it refuses to pay american taxes on it

documentation

Quote:
Specifically, I spent some time searching the latest SEC filings to see just how much cash some major techs have in overseas bank accounts where it's not subject to U.S. taxes.
Here's a snapshot: Percentage-wise,(MSFT) near the top of the list, with 87 percent of its $66.6 billion outside the U.S. (CSCO) not far behind at 83 percent of its $45 billion, (ORCL) at 80 percent of $31.6 billion, (AAPL) at 68 percent of $121.3 billion, and (GOOG) at 64 percent of $45.7 billion.

http://finance.yahoo.com/news/much-tech-giants-stash-overseas-233526584.html
0 Replies
 
 

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