How many suppliers has Apple taken action against for forced labour risks?

Question

Accepted Answer

Apple Faces Shareholder Vote on Forced Labour Transparency Report

Shareholders are seeking a report from Apple's board detailing the company's measures to prevent forced labour within its supply chain, including the extent of identified high-risk suppliers and actions taken against them. The US Securities and Exchange Commission (SEC) has rejected Apple's attempt to bypass this shareholder proposal, meaning the company will likely face a vote on the matter at its next annual meeting unless a resolution is reached with the proponents.
Shareholder Proposal Mandates Forced Labour Report

A coalition of shareholders formally requested that Apple's board prepare a comprehensive report. This report is intended to outline the company's strategies for safeguarding workers in its supply chain against forced labour. The proposal specifically seeks details on how Apple identifies suppliers and sub-suppliers that pose a risk for forced labour.
SEC Denies Apple's Bid to Exclude Proposal

Regulators at the US Securities and Exchange Commission have denied Apple's request to skip the shareholder proposal. In a letter reviewed by Reuters, the SEC stated that "it does not appear that the essential objectives of the proposal have been implemented" by Apple thus far. This decision compels Apple to address the proposal, potentially through a shareholder vote at its upcoming annual meeting, unless an agreement is brokered with the shareholders.
Growing Concerns Over Supply Chain Practices

The shareholder proposal is driven by increasing global concern regarding forced labour, particularly in relation to supply chains. American lawmakers recently passed legislation to ban imports from China's Xinjiang region due to widespread concerns about forced labour practices. Groups supporting the proposal, such as SumOfUs, have highlighted the "concentration camp-like conditions for Uyghurs and other Turkic Muslims" as a critical issue driving these demands for greater corporate accountability.
Apple's History with Shareholder Proposals

This instance is part of a pattern where Apple frequently seeks SEC approval to bypass shareholder proposals. Historically, the SEC grants such requests approximately half of the time. The SEC also recently rejected Apple's attempt to avoid a vote on a separate proposal concerning investor access to information about the company's use of non-disclosure agreements.

Reading history

Hide →

This history is cleared when the page is closed.

How many suppliers has Apple taken action against for forced labour risks?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends