Factory audit

The Origin of Apple's Factory Inspections 

The Apple factory inspection, as the name suggests, is an initiative by Apple to ensure the stable development of society and to shoulder the responsibility of social responsibility. It requires suppliers to also perform social responsibility work, and only after passing the Apple factory inspection can factories be allowed to cooperate with Apple. Moreover, the issue of corporate social responsibility must be continuously improved. 

Apple is committed to ensuring that the supply chain of Apple has a safe working environment, and Apple attaches great importance to human rights audits in factories, ensuring that all employees are respected and can maintain their self-respect. The entire manufacturing process assumes environmental responsibility. 

Apple's suppliers are obligated to ensure that all their business activities fully comply with the laws, regulations and systems of the countries where the factories are located. Apple's factory inspections are aimed at achieving the goal of promoting social and environmental responsibility. Based on the internationally recognized standards of the "Supplier Code of Conduct", stricter regulations have been established. 

The formation of Apple's factory inspection standards 

The "Apple Supplier Code of Conduct" follows and draws upon the terminology of the Electronic Industry Code of Conduct (RBA). When drafting the code, many recognized standards were referred to, such as the International Labour Organization Standards (ILO), the Universal Declaration of Human Rights (UDHR), the International Corporate Social Responsibility (SAI), and the Ethical Trading Initiative (ETI). These standards can also serve as a useful source of additional information. As an extension of the code, Apple has set a series of detailed standards that can illustrate compliance with expectations. 

Apple's Supplier Code of Conduct for Factory Inspections requires 

Apple requires all suppliers to implement the described management system to comply with the guidelines. Apple may conduct visits to supplier factories with or without prior notice (and/or with the presence of external inspectors), by monitoring the wages, working hours, payroll lists, and other employee files and practices of the suppliers, in order to assess the extent to which the suppliers meet the guidelines. Violation of the guidelines may result in the immediate termination of the supplier's Apple status and legal action. 

Apple's factory inspection has specific and clear requirements for the behavior guidelines of suppliers. In terms of the management system, Apple's inspection requirements are that suppliers should implement or maintain the corresponding management system in a timely manner to facilitate compliance with this guideline and legal provisions, identify and reduce relevant operational risks, and promote continuous improvement. 

Type of Apple Factory Inspection 

Apple supplier factory inspection mainly includes: 

— Apple MFi certification (the abbreviation of "Made for iPhone/iPod/iPad" by Apple Inc.) is a licensing agreement used by Apple Inc. for the external accessories produced by its authorized accessory manufacturers.

- Apple SR inspection

- Apple product safety inspection

- Apple supplier emergency preparedness response plan inspection

- Apple EHS inspection

- Apple conflict-free minerals inspection

- Apple hazardous substances inspection

- Apple inspections for other projects 

The Apple factory inspection mainly covers aspects such as social responsibility, quality, and information security. Currently, more attention is paid to the social responsibility aspect. Apple conducts the inspection based on the Sedex standards, and the standards it follows are quite strict. The specific list of social responsibility inspections for Apple is as follows: 

1. Anti-discrimination 

Human Resources Anti-Discrimination Policy 

The recruitment process, the resignation process, and the performance evaluation process include the promotion process. 

Female Worker (Pregnant) Protection Procedure 

Recent recruitment advertisements and recruitment promotional materials 

Job application form - Employee roster 

Employee medical records, including: 1. General health examination records; 2. Examination records for underage workers; 3. Relevant regulations and examination records for pre-employment or pre-employment physical examinations. 

Records of employee resignations and dismissals 

Employee performance evaluation includes promotion records 

Training materials and records related to the prohibition of discrimination for management personnel. 

The job descriptions and qualification requirements for the employees 

Employee Complaint Record 

Statistics of Female Employees on Maternity Leave 

Employee distribution statistics, such as ethnic distribution and gender distribution 

Summary Table of Regular Employees and Temporary Contract Workers 

II. Fair Treatment 

Human Resources Policy - Prohibition of all forms of harassment, threats and inhumane treatment 

Employee Code of Conduct and Discipline Punishment System 

Training materials and training records for the management personnel regarding the aforementioned human resources policies and procedures 

Security policy training materials and records 

Disciplinary Penalty Record 

Employee Complaint Record 

III. Preventing Forced Labor and Human Trafficking 

1. Human Resources Policy - Voluntary Employment 

2. Human Resources Policy - Prohibit any form of involuntary employment, including forced labor, bonded labor, contract labor, and prison labor. 

Recruitment and resignation procedures and processes 

Labor dispatch company, agency company management procedures 

Security policies, for instance, include regulations on how employees enter and exit specific areas, as well as the policies governing their activities within those areas. 

Employee files [including application forms for job seeking and registration forms for onboarding] 

Labor contract [including direct-hired employees and dispatched workers through labor agencies] 

The contracts signed with labor dispatch companies and agency companies 

Labor dispatch company, intermediary company qualifications 

* Pay Slip 

* Resignation Record 

Visitor/Entrance Guard Log 

Leave Record 

Training materials and records regarding voluntary employment for management personnel 

Security policy training materials and training records 

IV. Prevention of Child Labor 

Human Resources Policy - Prohibition of Using Child Labor 

Age Confirmation Procedure 

Child Labor Prevention Procedure 

Child Labor Remediation Procedure 

Labor dispatch company, agency company management procedures 

The contracts signed with labor dispatch companies and agency companies 

Labor dispatch company, intermediary company qualifications 

Employee files [including application forms for job seeking and registration forms for onboarding] 

Age proof document 

Copy of identification document 

Training materials and training records regarding the prohibition of the use of child labor 

Training on procedures and techniques for verifying the age of job applicants 

V. Protection of Minors Workers 

Special protection procedures for underage workers 

* Internship Management Procedure: 

Including the internship tracking mechanism 

The tracking procedures for the due diligence and rectification of the school 

Intern Complaint Mechanism 

Record of Physical Examination for Minors 

Record of Minor Registration and Declaration 

School qualifications 

Internship Tripartite Agreement 

Internship Insurance 

Internship work hours, salary and benefits records 

* Record of Employee Departure 

Training records for the management of underage workers and interns 

VI. Working Hours 

Human resource policies regarding working hours, such as: work schedule arrangement 

Overtime work management system, including regulations regarding voluntary overtime work 

Shift schedule for the work shift 

Holiday Schedule 

Overtime Application Record 

Leave application and record 

Review the attendance records, clock-in records and corresponding salary records for the previous 12 months. 

Signature confirmation records of employees' working hours 

Records of training and communication regarding working hours 

VII. Salary and Benefits 

Wage and Benefits System 

Reward and Punishment Procedures and Records 

List of subsidy types and calculation methods explanation 

The local minimum wage standard 

Review the salary records for the previous 12 months, including: 1. The salary records for the most recent month; 2. The salary records during the peak production period; 3. The salary records during the off-peak production period. 

If the employees' salaries are calculated on a piece-rate basis, the piece-rate wage standards and the production records for the corresponding months should be provided. 

Sample of Pay Slip 

Social Security Contribution Record 

Tax registration certificate and individual income tax record 

Paid leave salary payment records include annual leave, sick leave, marriage leave, and maternity leave. 

Leave scheduling procedures and records 

Communicate to the employees the salary and welfare system, including salary, deductions, and the calculation method of benefits. 

VIII. Freedom of Association 

Human resources policies, including: 1. Freedom of association; 2. No punishment or discrimination due to an employee's participation or withdrawal from the organization; 

Freedom of association and collective bargaining procedures, including: 1. Employees have the freedom to join or leave; 2. There shall be no discrimination against employees for their participation or withdrawal. 

Union Election Management Procedure 

Union Election Records 

Union Activity Record 

Records of employee resignations and dismissals 

The information provided to employees regarding freedom of association as stipulated in local laws and regulations 

Employee Communication Record 

Employee Meeting Minutes 

Employee SR-related information feedback channel-related regulations