Social Impacts of the Production of Notebook PCs. by Andreas Manhart & Rainer Grießhammer. LCM 2007, Zürich, August 27-29

Transcription

1 Social Impacts of the Production of Notebook PCs by Andreas Manhart & Rainer Grießhammer LCM 2007, Zürich, August 27-29

2 Various social trouble spots in the life cycle of ICT products Growing consumer concerns

3 BMBF: Case study computer & Methodology development to integrate social aspects into LCA

4 All companies in the supply chain meet a required set of minimum standards? 1 Notebook contains : working hours - less than 0,00002 accidents - no occupational diseases

5 The Computer s Life Cycle Focusing on social aspects L i f e C y c l e o f C o m p u t e r s Resource Extraction Hardware Manufacturing Use Disposal & Recycling World Bank FIAN FFI CAFOD SOMO Corporate data WSIS EMPA StEP Greenpeace

6 Supply Chain Simplification Notebook Network Interface Mainboard Boards & Cards Card Case CPU Printed Printed Circuit Circuit Printed BoardsCircuit Board Board Passive Inductors Inductors Electronic Components Resistors Resistors Si-Wafer Copper Foil Copper Foil Epoxy Resin Copper Foil Epoxy Resin Epoxy Resin Plastic Silica Sand Copper Ore Copper OreCrude Oil Copper Ore Crude Oil Oil Crude Oil

7 Developing Social Indicators A. Employees A.1 Safe & healthy working conditions A.2 Freedom of association, right to collective bargaining & workers participation A.3 Equality of opportunity and treatment & fair interaction A.4 Abolition of forced labour A.5 Abolition of child labour A.6 Adequate remuneration A.7 Adequate working time A.8 Employment security A.9 Social security A.10 Professional development A.11 Job satisfaction B. Local Community B.1 Safe & healthy living conditions B.2 Respect of human rights B.3 Respect of indigenous rights B.4 Community engagement B.5 Maintaining & improving social and economic opportunities C. Society C.1 Public commitments to sustainability issues C.2 Prevention of unjustifiable risks C.3 Employment creation C.4 Vocational training C.5 Anti-corruption efforts C.6 Social & environmental minimum standards for suppliers and co-operation partners C.7 Non-interference in sensitive political issues C.8 Contribution to the national economic development C.9 Prevention & mitigation of armed conflicts C.10 Transparent business information C.11 Protection of intellectual property rights D. Users / Consumers

8 Quantitative & Qualitative Indicators Quantitative and qualitative information of various sources Companies Labour rights activists Internet-sources Expert judgements

9 The Notebook Industry: Brandname-Companies Brandname Headquarter Dell USA No own production Hewlett-Packard USA No own production Lenovo (formerly IBM) China (formerly USA) No own production Acer Taiwan No own production Toshiba Japan No own production Fujitsu-Siemens Japan & Germany Own production (high-end only) NEC Japan No own production Sony Japan Own production (high-end only) Apple USA No own production Asus (= Asustek) Taiwan Own production

10 The Notebook Industry: Assembly-Companies Company Headquarter Production Sites Production volume 2006 Quanta Taiwan Compal Taiwan Wistron Taiwan, Philippines Inventec Taiwan Asustek Taiwan Mitac Taiwan Uniwill Taiwan FIC Taiwan Arima Taiwan Twinhead Taiwan ca Clevo Taiwan ca

11 The Notebook Industry: Supplier-Structure Battery-block assembly: Company Headquarter Production Simplo Taiwan GLW Taiwan New Sun Hong Kong Gold Peak Hong Kong Jingyou Vina Strongwill Sanger Hong Kong Hong Kong

12 The Notebook Industry: Supplier-Structure Battery-cell manufacturing: Company Headquarter Production Sites Market-share Sanyo Japan Japan 28% Sony Japan Japan, 15% Samsung SDI South-Korea South-Korea 12% MBI Panasonic Japan Japan 12% LG Chem South-Korea South-Korea, 7%

13 Social Indicators (for Chinese Factories) Workers: Remuneration: Working hours: Child labour: Forced labour: Freedom of association: Social insurances: Housing: Discrimination: Health & safety: 690 RMB (= 69 Euro) per month 196 hours / months officially, about 290 hours unofficially no major problem no major problem not guaranteed basic (legal obligations) Dormitories (8 persons per room) Young women preferred Partly hazardous work in component manufacturing On product level: Remuneration: Working hours: Euro per notebook (assembly only) hours per notebook (assembly only)

14 Some Problems & Findings 1.) Access to reliable data very difficult and time intensive 2,000 parts per notebook Nondisclosure widespread No sympathy of labour rights activists focus on improvements and not science 2.) In assembly no differentiation of brands and products possible Same wages Same working hours Same treatment Products of engaged companies and those of free riders would get the same ratings

15 Way Out 1.) Use data and information of various sources Companies, labour rights activists, newspapers, expert judgements 2.) Focus on hot-spots health & safety in parts manufacturing labour intensive productions 3.) Focus on improvements Evaluate on measures companies / governments / consumers could imply to improve the situation 4.) Measure the companies engagement

16 Measures towards FAIR electronics: IMPROVE the handling of critical production processes (chemicals) ALLOW independent reporting on working conditions (e.g. SA 8000) ESTABLISH durable and trustful business relations between brandname-companies, suppliers and sub-suppliers ( investments in social and environmental standards should not lead to disadvantages) ENCOURAGE workers to organise and participate TRAIN workers and management in labour rights issues ( national labour law, international standards (ILO)) COMMUNICATE with the consumers ( positive marketing of fair and sustainable products)

17 THANK YOU FOR YOUR ATTENTION! Contact: Dr. Rainer Grießhammer +49 (0) Andreas Manhart +49 (0)