The furore over Syria at the G20 meeting has distracted attention from the potentially highly significant agreement by the leaders of the world’s largest economies to support an ‘ambitious and comprehensive’ plan to address the massive global problem of multinational corporations’ failure to pay tax where they earn it, using transfer pricing and other methods to pay lower tax elsewhere or none at all. Continue reading
Recent news stories have brought to public attention the fact that many Apple products, including iPhones, iPads, and Macs, are produced in part in factories with a record of using child labour, failing to provide safe work conditions, and requiring employees to work long shifts for low wages (see, for example, here, here, here and here). This raises the question: should we all stop buying these products?
Suppose you need a new laptop, or at least, are going to buy one. Leaving aside ethical considerations, you are indifferent between getting a Mac and buying a PC laptop from one of Apple’s competitors. Which should you buy?
To answer this, we need to say something more about the situation at factories run by Apple’s Chinese suppliers. Much of the attention has focused on Foxconn, which assembles the iPad and iPhone. It’s alleged that Foxconn negligence was responsible for a blast which killed two people and injured more than a dozen; that it exposes workers to toxic chemicals without adequate protection; that it requires illegal levels of overtime (often more than double the legal limit of 36 hours per month) for which it frequently does not pay in full; that it deceives potential recruits regarding pay rates; that workers are humiliated by supervisors; that workers often have to stand almost uninterrupted for a 12 hour shift; and that poor work conditions contributed to a spate of suicides at the company’s Shenzen plant in 2010. In addition, Mike Daisey, a New York performer who visited the Foxconn plant in Shenzen, reports that he met children in the age range 12-14 who were working in the plant. They told him that it was not difficult for children of their age to find employment there.