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The Supplier Code applies at all levels of our supply chain, including labor agents and recruiters and areas where the materials for our products may be sourced. In 2012, we extended our Supplier Code beyond manufacturing into the service domain to include AppleCare contact centers, logistics, and repair centers. Since 2015, the Supplier Code has been applied to Apple’s retail supply chain and suppliers that provide janitorial and other services to Apple’s retail stores worldwide. In 2018, we took steps to further strengthen implementation of our Supplier Code at the initial stages when labor is recruited.

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"Apple strictly prohibits human trafficking and the use of involuntary labor in our supply chain and “own” business" 2

 

"This 2018 Statement on Efforts to Combat Human Trafficking and Slavery in Our Business and Supply Chains (the “Statement”) reflects Apple’s progress during 2018 (including the financial year ended in September 2018), and ongoing efforts, working collectively, to combat and prevent human trafficking, slavery, or servitude, forced, compulsory, or involuntary labor, and worst forms of child labor (as defined by the International Labour Organization (“ILO”) in our supply chain and own operations" 2

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Human trafficking and the use of involuntary labor are strictly prohibited in Apple’s supply

chain and “own” business.This prohibition is explicitly stipulated in the Apple Supplier Code

of Conduct (“Supplier Code”) and the related Apple Supplier Responsibility Standards

(“Standards”). The Supplier Code is one of the strongest in the industry and helps to uphold the

rights of the millions of people touched by our supply chain around the world. Apple conducts

human rights due diligence across our supply chain, including at the deepest levels where

minerals in our products may be sourced.2

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Our suppliers are required to provide safe working conditions,

treat their employees with dignity and respect, conduct business fairly and ethically, and use

environmentally responsible practices wherever they make products or perform services

for Apple. Suppliers are required to operate in accordance with our Supplier Code and in full

compliance with all applicable laws and regulations.

...The Supplier Code applies at all levels of our supply chain, including labor agents and

recruiters and areas where the materials for our products may be sourced.

...Suppliers are required to adhere to the Supplier Code and Standards, including any

subsequent amendments or updates. Suppliers are also required to apply our requirements

to their suppliers, and so forth, through all levels of the supply chain.3

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Prevention of Involuntary Labor Requirements

The Supplier Code is supplemented by the Standards that include a range of human rights

topics, such as anti-discrimination and abuse; prevention of underage labor; juvenile and

student worker protections; working hours management; wages, benefits, and contracts;

and responsible sourcing of materials. In addition, the Standards include detailed sections

covering anti-modern slavery-related requirements, including: prevention of involuntary

labor, third-party employment agencies, and foreign contract worker protections

(collectively, the “Prevention of Modern Slavery Standards”).

We believe an individual should not have to pay to work. Apple has a zero tolerance policy for

any supplier employee paying fees for employment at any of our suppliers, even if those fees

fall within the legal limits of the supplier’s operating country. In 2008, we made debt-bonded

labor a core violation of our Supplier Code and limited permissible fees to one month’s wages.

In 2015, we went further to mandate that zero fees could be charged to prospective workers

for recruitment opportunities, even if those fees fell within the legal limits of the supplier’s

operating country. When fees are charged, Apple requires direct remedy, and suppliers must

repay any fees paid by their employees to obtain their jobs.4

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Through participating labor agents, we have taken steps to educate prospective supply

chain employees about their workplace rights before they leave their country of origin,

including strengthening pre-departure orientations where individuals are educated on their

labor rights, contract terms, the culture of their new country of employment, and how to

anonymously report illegal practices and abuse. Since 2015, pre-departure orientations

have been organized in six different locations, benefitting migrant workers from Philippines,

Indonesia, Nepal, and Vietnam. 8

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We consider any violation of core elements of the Supplier Code to be the most serious

breaches. These include cases of underage or involuntary labor, human trafficking, document

falsification, or intimidation of or retaliation against workers for participating in audits.

When a core violation is identified, Apple issues a Notice of Probation directly to the

president or CEO of the supplier, and we work to reduce production volumes at the offending

supplier. Core violations are required to be addressed immediately. When appropriate, we

also report these violations to local authorities.7