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Access all these print and web products for just 58p a week.been a contributor to carbon emissions which had a damaging razors & shavers effect on the environment. (ref: 3) No palm oil policy (July 2009) A search was made Sustainableof the Walmart for website (www.walmartstores. com) on 8th July 2009.Wal-Mart No policydid notestry on respond palm policy oil (2008)could be found. Walmart received fornegative the company’s marks for po climate change, impact on endangered speciesThe and company’s habitat destruction, w whichto a request were all results licy on the by ECRA of unsustainable inpalm Novemb oil production.ebsite Palm (www.walmartstore oil is usedsustainable in a vast sourcing in Ocober of wood. 2008 ASDA er 2008, stated that Wal-Mart ha contacted, 123 had a Owned by Asda Group Ltd array of consumerGlobal products. Fore (ref: 4) st & Trade Network in Jul meat. It said Sea S Pollution & website,Toxics this commited the s.com), when viewed dmitted to selling whale and/ Asda Group Ltd, Corporate Social Responsibility, Asda, ASDA of where its wood furniture d joined the WWF’ concerned public tohepherd c had been urging Sold children’s clothes coated with Teflon (May 2007)y 2008. According to and to wi House, Southbank, Great Wilson Street, Leeds, LS11 5AD, legal and well-managed company to completing an ontact the Wal-M The ASDA website was visited in May 2007 and was found to s thhold their custom. (ref: 12) its membersor dolphinand the England the company was com was coming fr the be selling children’s clothes coated with. Once Teflon. t Chemicals such assessment art website to complain Asda Group Ltd is owned by Wal-Mart Stores Inc and unknown sources om and whther it wa Sale of meat not labelled as free as Teflon, belonging to the “non-stick”mit familyhis of assessment perfluorinated w also eliminate wood fro ed to eliminating wood f Wal-Mart did not res , Wal-Mart Stores Inc, PO Box 1039, Bentonville, Arkansas, chemicals (PFCs) had been classifiedwithin as fivecancer-causing years. The by theas completed,s their environmental, soci for the comapny’s anima 72716-8611, USA US Environmental Protection Agencym forests and had of critical been found in rom illegal pond to a request range by ECRAor organic (2008) values. ECRA considered thi commitment to stocking organic or Wal-Mart Stores Inc also owns ASDA Extra Special chocolate a wide range of species including polar bears, dolphins company and would sustainable o-economic, bi importance due to could be found o l welfare policy. No such pol [O] humans worldwide. Environmental sourcing of wood. campaigners However hadodiversity called for or in October 2008 many wood and paper-ba s to be com) when it wasn viewed the company’ in PFCs to be replaced with safer alternatives especially a positive in clothing step toward landscape free ran icy, nor any FSC certified considered it like s websitege (www.walmartstores. meat, poultry or eggs Sign up and unlock all our content for the introductory offer price of just £29.95Environment a andyear. othermark consumer in this products. category., and therefore PFCs( sed such t produc as Teflon, the were company used in s the November 2008. You ts that were not from factory farmedly thatanimal the company was Environmental Reporting many school trousers and skirts to givehe them company durability received and are still sold ref: 229) labelled as As a result, ECRA Middle ECRA rating for environmental report (August frequently labelled “non-iron”. (ref: 5) s. ( selling meat pr a negative People ref: 3) 2008) No policyAnimals for reduction of harmful chemicals (2008) Human Rights oducts Wal-Mart did not respond to a request made by ECRA in October In May/June 2009, ECRA contacted Asda and a copy of the Animal Testing Conflict Diamond S company’s environment report was requested. The company did 2008 for information on its policies for dealing with harmful Worst ECRA rating for anima In May 2007 A not respond. On 8th July 2009, a search of the company website chemicals in its products. A statement naming three priority urvey Results (May 2007) 2009) a report entitledmnesty “Co International and G was made. Under the section “Sustainability”, information chemicals of concern, identified by Wal-Mart in 2006, was According to the FAQ s not doing enough.” Asd about the company’s environmental activities was found. The found on the company’s website (www.walmartstores.com)l testin in nflict Diamonds, UK jewellery ret co.uk, viewed on 4th S g policy (September The report wa lobal Witness released section contained at least 2 future, dated, quantified targets. November 2008. The documentection stated of the that ASDA Wal-Mart had worked a were mentioned in t testing the wesite st leading retailers.s based The rep on findings fr No evidence of independent verification of the section could with suppliers and developedeptember a timeline 2009, ASDAfor the eradication of ailers still funds research into altern webs adhere to the indu his report. be found. The website had a copyright date of 2008 and the these chemicals of concern.ated “AHowever, no date was givenite, www.asda. nor any om a questionnaire this was implemen SDA is against aniwas against animal are not effective in preventort stated tha section text appeared to be current. No mention of the issue of information on further research the company was undertaking to stry’s minimal systemt “although of sel most com year roll atives.” However it more needs to be done by sent to the business being dependent, at the time of writing, on customer identify othering rule harmful andted the chemicals. i.e. company through ECRA did not did not considermal testing this and to relevant information. A did not state how no longer fuel conflict.” A ing the tr f regulation,panies th car use, could be found. Although the section covered several demonstrate any real commitment to athe fixed reduction cut-off of date chemicals industry ade in blood dia Naturewatch Comp policy and o ese and pesticides in the company’sSDA was products, also not and endorsed as such, in it received leaders to ensure thatmonds, diamonds and environmental aspects, there was no mention of pesticides and company sold branded cos supply any additional or five had no policyther on itsmeasures dsataken itself to combatfailed to dis other agricultural impacts that occur as a result of producing a negative mark in thisassionate category. Shopping (ref: 3) Guide household products of any jewellery trade a close its auditing goods for the company, therefore the company was not deemed the 2008 company website and i testingWater their pollution products and madeon finea by companiesmet(2004)ics, toiletries, which medicines w. In addition and the conflict diam to have a reasonable understanding of the main environmental ratingAccording for animal to antesting article po posted on Sustainable Business (www. ssociations. (r t was not a memberonds. It impacts of its business. The company was given ECRA’s middle sustainablebusiness.com)nimals. titled ASDA ‘Wal-Mart: recei Every Day Low... Dropped from ef: 13) Factory farming ere According to issue 71 rating for environmental reporting. (ref: 1) Impact,’ Wal-Mart had beenlicy. accused(r of indifferenceved ECRA’s toactively evidence wor Norwegian pension fund (2006) Sale of factory farmed turk ef: 7) to Earth magazine, Norway had Poor independent rating on CSR in supermarkets that pesticides and fertilisers were escaping into waterways from According to ‘Su st Wal-Mart Store (November 2006) of (November 2006) gardening products stored unprotected in its car parks. It was Standard’ publishedpermarkets by th &ey Farm (2006) Animal W systematic violationss from of its h Government Pension F can cancel at any time in the first four weeks for a full refund. Ethical Performance November 2006 reported that Asda received fined $3.1 million in 2004 by the US Environmental Protection announced thatIndonesia’s it w Down in 2006, over 90% of t 15) a poor rating (rated as a ‘D’) in a report by the National Consumerfarmed. Agency In addition, for Clean the m watere Compas Act violations. (ref: 6) uman ri as dropping he turkeys solsion in Worldelfa reFarming - Raising Trust the ghts and labourund rights”. for Council on supermarkets’ progress on corporate responsibility. alsoThe intensively reared. ( Workers’ Rights “serious, rating covered supermarkets progress on CSR factors including: ajority of dducks by ASDA s were intensivel Workers’ rights abuses in Factory farmed chicke (ref: commitment to stocking seasonal food and organics, sustainable Habitats & Resourcesref: 10) According to a sto According to ‘Supermarkets & old by ASDA werey sourcing policies and attempts at cutting waste. (ref: 2) website (www.bus Bangladesh (October 2008) the Standard’ publishe n (2006) ry dated 9 October 2008 Voters say no to Wal-Mart (March 2004) buying school uni inessweek.com), Wal Climate Change Trust in 2006, over Farm Animal Welfare The Ecologistd reported by the Compass that voters from Inglewood in Los Angelesconditions at a factoryforms in that were made underon extthe BusinessW Policy on stocking local produce (October 2008) intensively farmed. The report s SweatFree Comm -Mart had been accused o had voted in90% March of 2003 not to letion Wal-Mart in World buildFar- Raising a store in their eek Wal-Mart did not respond to a request made by ECRA in Octobermaximum stocking the chickens sol Bangladesh. The neighbourhood. According to the Ecologist, Wal-Mart wantedin Bangor, to who counities, an anti reme sweatchopf 2008 for details on its policy towards stocking locally producedof floor space, which excee d by ASDA wereming build theguideline store on aof piece 38kgtated ofbird- thatland per ASDA the size of nearly 20 footballthe factory. The reportnducted stated intervie that-sweatshop activist report group came fromba food. ECRA searched the company’s website (www.walmartstores.maximum of 34kg bir pitches, yet didn’t see the need for an environmental had set a impactto studyfinish the Wal com) in November 2008 and found a page entitled ‘Locallychickens Grown were bred to grow ded the gove ws with over 90 workers from or publicd-per-metre-squared hearings. The Ecologist of floor said-metre-squared locals voted 61 toto 39stand per for ho -Mart’s orders underthey tightworke de sed Products’, which stated that Wal-Mart noted that buyingjust locally 6 weeks. CIW rnment guidelines of cent against the project. (ref: 227) were frequentlyurs subj as punishm d up to 19 hour s grown produce was “a hot marketplace trend”. However,and no theyfigures suffer quickly so a F argue that thei they reachedspace. slaughter Broiler in Allegedly, some workers ent for arrivng adlines;late to work; were andmadhifts were given for the percentage of Wal-Mart’s salesAccording accounted to CIWF,Announcemented painful the maj and crippling of sustainable lameness fishing policy (2006) ect to verbal abuse and r bones could not kee which was even less th e were ‘fast-g According to the March 2006 issue of ENDS Report, Wal-Mart earned for by local produce. ECRA also downloaded a document with $24 per month. (re as little as $20kickings each orper beatings. m rowing’had announcedstrains. (ref:ority that ofit chiwas implementing pa pacepolicy on sourcing an the c the title “Wal-Mart makes national commitment toAnimal buy locally Rights ountry’s legal minimum wa of sustainable fish. The companyckens sold was byas saidaASDA result. to have Lawsuitclaimed thatover Bangladesf: 16) grown produce”, but again, this contained no figuresSea for Shepherd sales and Boy 10) onth, within three to five years all fish in North AmericanAccording stores would to an article da set no targets to increase sales of local produce. ECRAAccording did tonot the Se h working condi ge of becott sourced (5 March in line 2004) with Marine Stewardship Councilnews guidelines, website New Nation, n consider that this constituted a real commitment toaccessed encouraging on 12th March 2 a lawsuit had been taken outted 16th Aug tions (2006) anda Shepherd that UK subsidiaryConservation ASDA Soci would be following suit after ust 2006 on the sales of locally produced products, and as a resultfor the a boycott company o Fund in California ation.ittefaq.com, in Augus being named the country’s worst supermarket in this area by Bangladeshi received a negative mark in this category. It hadthemselves been noted of by theirf Wal-Mart 37 stores004, unti the with international labour standard by the Internat Greenpeace. The announcement society had been etywas ca website, said to cover frozen and against Wa environmental campaigners that the issue of ‘foodchain miles’ called -Seiyu the Ltd, or c in supplier factori l-Mart, for allegedional non-compliance Labour t 2006 Subscribe via our website (click the sign up tab below), or call us on 0161 226 2929fresh% wild-caught shares in the l fish Japanethey buthad noeither mention divested was made of operations distance travelled by a product from supplier to consumer - had dolphin meat. lling have chosen to usees US in alienBangladesh. to The Rights outsideonvinced the USA it and to sUK. (ref: 228) s and its own Code of C 2 It said that the US Environmen se s that labour rights campai top sellingupermarket whale and organisation was sai recently hired a resear hearing in Bangladesh. (re rt law for the suit on the groonduct gners could not be inquire if t tal Investigation Gender discrimination lawsuits d to hey sold whalecher or todolphin call 202 meat Seiyu ret f: 17) 3 According to informa guarant unds Agency had eed a fair huffingtonpost.com), dat ail outlets to tion on the Huf (March 2009) , and of the 202 stor to oppose a class action lawsu fington es and 2 million fema ed 23 March 2009, WPost website (www. le employeesit. The lawsuit i al-Mart w as trying who claimednvolved the comp Betty Dukes (Monday to Friday). any had trial sign up

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Anna Clayton, Tim Hunt and Jane Turner investigate the social and environmental impacts of the 21st century’s most pervasive technology. The green shoots of an ethical insurgency

n the UK, 94% of us have one, and Outside the niche ethical companies 37% of adults even say they are other changes are afoot. In the mobile ‘highly addicted’ to them.1,2 By 2014 phone market, thanks to the efforts Iit’s predicted that 7.3 billion will be in use of campaign groups such as Enough, globally (not to mention those lurking in there has been some steps forward in the back of drawers and languishing in the sourcing of conflict minerals. New landfill). It seems mobile phones are now research shows that armed Congolese as much a part of modern day life as sliced militias are receiving 35% less funds from bread, alcopops and television. mining projects. The Dodd-Frank Act, In this report we look at the ethical which came into effect earlier this year, performance of companies producing has helped hugely in this area, although mobile phones and also the companies there is still much to be done (see page running mobile phone and broadband 14). However environmental concerns, networks in the UK. from recycling (see page 18) to the use of hazardous substances (see page 16), still The good news is that since our last loom large, not to mention the potential report (in 2010) ethical options are now effects on human health (see page 19). beginning to emerge as these relatively new markets begin to mature. For The last time we covered mobile instance, the Fairphone is now offering a phones Nokia was still king and the Apple practical and commercial challenge to the iPhone was relatively new. However unethical hegemony in the mobile phone the market is moving along apace. handset market (see page 12); while the According to market analysts Mintel, Phone Co-op and others are now giving “The smartphone market has grown consumers a more ethical option for their faster than any other consumer mobile phone network and broadband technology in recent history, with provider (see page 31). We do, however, penetration almost doubling offer a word of caution on page 28 as we between 2010 and see which networks these new providers 2012.” Perhaps are using. surprisingly, © Ivansmuk | Dreamstime.com © Ivansmuk

10 Mobile phones & broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

it is Samsung and not Apple that leads the tune of £1.2billion) and uses them to pay smartphone market, and Nokia has seen for the rights to premier league football its market share fall to such an extent that and other sporting events.3 Regular Good it’s now the subject of a take-over bid from Technology columnist Shaun Fensom Microsoft. sheds more light on the impact of BT’s Smartphones now already account for state-funded projects to supposedly supply 58% of the mobile phone market but not rural areas with broadband on page 32. everyone will be getting the latest Apple offering. Sarah Irving gives us a personal account of why she’s avoiding the latest Mobile phones for trend on page 20. While on page 21 Joanna dummies Long gives a run down on how corporates are using technology to track us and sell • A basic mobile phone makes calls and texts. They are not- us advertising. However not all activists smartphones and are sometimes are pessimistic and many are embracing called ‘dumb’ phones in the the new technology. Tanya O’Carroll industry. from Amnesty International gives us a glimpse into a brighter future where 3G • A ‘feature’ phone is a low-end smartphone or not-so-smartphone. has reached new areas of the globe and is There is often not a great deal being used in the fight for human rights of difference from a smartphone (page 24). except they are usually cheaper When it comes to broadband, BT is the and have less apps (software dominant force, holding a market share applications). of over 30%. This is hardly surprising as it • A smartphone is a phone which swallows up government subsidies (to the usually has a music player, camera, GPS navigation, web browsers, a touch-screen and lots of apps.

References 1 www.mobilemastinfo.com/stats-and- facts 2 http://media.ofcom.org.uk/2011/08/04/a- nation-addicted-to-smartphones 3 www.theguardian.

com/commentisfree/2013/aug/12/bt-broadband-scam – Dreamstime.com Edkoumi and Bottom: – Flickr.com, © Fairphone Top: Photos:

11 Mobile phones & broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

This year sees the release of Fairphone, a mobile phone that has ethics at its core.

a mobile you need to understand all the We also looked at using a factory in complexities of production. So Fairphone Europe. But we felt it was as important is a way to open up that system and show to stay in China, as it was to use minerals that you can use transparency and social from the Congo. You can move out of goals in your decision making. areas where there are problems but that Can you tell us about finding conflict- will create new problems and we want to free minerals? shed a light on the supply chain in those areas and work to improve them. Being active as a campaign group for three years and building relationships over that What sort of auditing have you done? period has really helped. In that time we We’ve done a social assessment and made started working with NGOs like Action it clear to the manufacturer we want to Aid and Somo and we built up many work with them on a long term project. Tessa Wernink, Director, Fairphone. contacts. We’ve been crunching the data from For example we use conflict-free tin this and will be publishing all the data in airphone is a bold new social and tantalum in our phones and we have a full on our website. This will be the first enterprise which aims to challenge relationship with Fairtrade, Max Havelaar time that a phone manufacturer will have producers in the mobile phone and others. done this. Fmarket by producing a smartphone that’s There are likely to be issues that need not only free of some conflict minerals but We are working with other NGOs on improvement and if we find problematic also has the usability and quality of any of sourcing cobalt, and have set up working issues we want to work together to change the big name brands. groups to look at other elements. them. Tim Hunt caught up with Tessa However that is not to say that all the We are setting up a working group to Wernink, a director of Fairphone, at their gold, tin and cobalt in the phone is ethical. look at workers’ rights. $2.50 from every launch event in Soho, London. We’ve become part of an existing supply chain rather than setting up a totally new phone goes into the workers’ welfare fund Give us a run down of what you’ve been one. We are trying to make interventions and is matched by the factory and we’ll use up to in the last year. where we can with component this to ensure people earn a living wage. Three years ago we set up Fairphone as a manufacturers but it’s a challenge as The rest will be used to create a dialogue campaign. In January 2013 we became a we need to know about second tier between workers and managers. We’ve social enterprise, and we got our first lot suppliers. There are issues with suppliers been talking to unions and NGOs to help of funding to produce the phone. In May maintaining secrecy for a competitive achieve this. we started a crowd-funding campaign advantage but part of what we want is We’ll also make sure we aren’t doing to see if there was a market for what we transparency: to know which materials go what the big brands do, growing quickly, were doing. In three weeks we sold 10,000 into what and to be able to trace them. It’s forcing fast production times and reducing phones which was double our target. a long journey. the manufacturer’s margins. We’ve now sold 15,000 online and Was it difficult to find a factory to use? the Dutch equivalent of BT has also What have been the biggest challenges? It was quite a journey. At the time we bought 1,000 phones from us. We aim to There are four main ones I’d say: were going to produce 20,000 phones and sell 25,000 this year. We’ve now started we didn’t have any funds. And we had 1. Working in volatile regions and with production and hope to have the first all these requirements on transparency initiatives that are in war zones, such phones by December. and social values. So we needed to find as the Congo, is obviously difficult. Why did you choose to build a phone a company that was willing to listen and You need to monitor the situation and rather than campaign in the traditional most didn’t have the time to talk to us! make sure your people are safe. way? But local experts selected a number 2. To work on a global level is difficult, You can campaign and create awareness of factories based on our criteria. For where you have cultural differences but phones aren’t going to go away. If instance we wanted to look at a factory and language barriers. people don’t have an alternative then which didn’t use a large number of 3. Also we’re all about transparency and campaigning doesn’t really make sense. migrant workers. It’s also a state-owned so when you communicate mistakes But also because to actually change the company, so its motives are different from and difficulties you lose people along system you need to understand it and with a purely commercial enterprise. the way, which is tough.

12 Mobile phones & broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

Fairphone campaigners on a visit to the Congo.

Above: Fairphone representatives looking round the supplier factory in China. Right: Fairphone founder & CEO Bas van Abel at the Fairphone launch.

4. And remaining true to values with impact rather than making profits, it’s industry and we’re trying to maintain our commercial pressures is also difficult. easier for us to help make changes in independence and to make a phone that What’s been the most positive aspect of the industry and to show that change is proves you don’t need to sacrifice quality the project so far? possible. for ethics. People are hungry for change. There is so We need to grow as we are a company Do you think you’ll ever make a 100% much goodwill and people who want to and we need a commercial strategy and fair phone? help out. to reinvest to take the next steps, but if we It’s good to realise that ‘fair’ is a human can take along the whole industry then People we have met from corporations concept and not a static thing. It changes that would be great. are also working for change from the depending on what angle you are viewing inside. There is so much greenwash around Our next step in growth is to work with it from. Fairphone is a discussion and that there is also a lot of healthy scepticism some networks but it’s hard because it’s not we want people to constantly have and that’s good because it helps people to our intention to become a huge company that discussion about how our actions really engage with what we are doing. in an untenable situation where you grow influence other people. Fairphone will be a exponentially, strain the supply chain and platform where people can talk about what The speed at which the word has spread end up with all the same problems as the constitutes fairness in the mobile market has also been a surprise. It was a dormant mainstream producers. but we’ll never achieve the 100% fair thing and it’s been amazing to wake it. phone – that’s not really the point. It’s not just us, we’ve just formulated It’s our intention to influence the something that people were thinking already and given it a means to take action. I’m also surprised by people calling us and the amount they are willing to do. How are you looking to progress the project? It’s not our intention to become a big brand. Our campaign was to raise awareness and now we’re creating an alternative for people who want to act. Making it and buying it is a political act, we are showing that there is a market for it. The second thing is to work with people in the industry to share best practice. To influence the way the industry works and, because we come from a different fundamental principle of creating social

13 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Consumer action on conflict minerals begins to bite

ccording to the US-based Enough vibrating function of mobile phones; gold Enough’s conflict minerals rankings 2012 Project, which campaigns against is also used by the electronics industry – as BlackBerry 42% conflict minerals in eastern a coating for wires. Acer 40% ACongo, mineral resources are financing Enough does a bi-annual ranking of Best Apple 38% multiple armed groups, many of whom 24 big electronics companies, including 9 use mass rape as a deliberate strategy to mobile phone companies covered in this Motorola 35% intimidate and control local populations, guide. Nokia 35% thereby securing control of mines, trading The criteria used by Enough were: LG 27% routes, and other strategic areas. “Over 5.4 tracing of the suppliers of minerals; the million dead. Over 2 million displaced. Middle Samsung 27% auditing of suppliers by a third party to Congo is home to the deadliest conflict Sony 27% determine mine of origin and chain of since World War II.” Worst HTC 4% custody; and the development and support There are four main conflict minerals of a certification system. being mined in the Congo: tin, tantalum, tungsten (the 3 Ts) and gold. Enough Notably, Apple was the first company to says that the majority of these minerals publicly identify the number of smelters in Ethical Consumer eventually wind up in electronic devices its supply chain and require its suppliers to and so it is campaigning to get electronic use only audited, conflict-free smelters. It ratings companies to remove conflict minerals also leads a smelter training program. And We’ve rated all the mobile phone from their supply chain. Tin is used as a Sony and BlackBerry have significantly companies on whether they have a policy solder in circuit boards; tantalum goes improved their efforts by surveying their on the use of conflict minerals and into capacitors (small components used to suppliers, piloting due diligence, and we’ve used Enough’s rankings for the 9 store electricity); tungsten is used in the joining the smelter audit programme. companies that they covered. In addition,

Environment Animals People Politics +ve USING THE TABLES USING THE TABLES Ethiscore: the higher Positive ratings (+ve): the score, the better the • Company Ethos: company across the criticism = full mark, categories. e = half mark. H = bottom rating, E h = middle rating, • Product Sustainability: empty = top rating Maximum of five positive (no criticisms). marks.

MOBILE PHONES (out of 20) Ethiscore Reporting Environmental Nuclear Power Climate Change Toxics & Pollution Habitats & Resources Testing Animal Farming Factory Animal Rights Human Rights Rights Workers’ Supply Chain Management Irresponsible Marketing Arms & Military Supply Genetic Engineering Call Boycott Activity Political Anti-Social Finance Ethos Company Product Sustainability COMPANY GROUP

Fairphone 15 e Fairphone Doro 10 H h h H H Doro AB Amplicomms 9.5 H h H H H Audioline GmbH Alcatel 9 H h H H h H TCL Corporation Acer 8.5 H h H H h h H Acer Inc Huawei 8.5 H h H H H H Huawei Investment Holding Nokia 7.5 h h H H h H H H Nokia Oyj HTC 7 H h H H h H H H High Tech Computer Corp Sony Xperia 6.5 h H H H H h h H H Sony Corp Blackberry 5.5 H h H H h H H H H h BlackBerry Ltd iPhone 5.5 H H H H h H H H H Apple Motorola 4.5 H H H H h H H H H H Google Inc Samsung 4 h H H H H H H h H H H Samsung Group LG 3 H h H H H h H H H h H H h LG Corp

See all the research behind these ratings together on www.ethicalconsumer.org. Free to subscribers.

14 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org four companies not forward progress m covered by Enough on the ground. nsu er o .o c r – TCL, Audioline, The Dodd- l g Doro and Huawei a c

Frank Act took i The Best Buy for

h – had no policy at all effect from t

so we scored them e Y smartphones is the beginning B U bottom. Fairphone, ES T B Fairphone. Armed groups are now only of 2013 a company setup and requires For a basic phone, a principally to make able to generate a third of companies to disclose ‘feature’ phone or a cheaper a smartphone with what they made from the whether they source smartphone, Nokia fares best for its conflict-free minerals, trade in tin, tantalum, and conflict minerals policy rankings. scored best. tungsten two years ago. from the Congo Its forthcoming sale to Microsoft Companies who or neighbouring may affect its ethical performance in scored worst or countries, and to the long term. middle received negative ratings in the report on steps taken to exclude conflict Habitats & Resources (unsustainable sources from their supply chains, backed 15 mining) and Human Rights columns by independent audits. (oppressive regimes and human rights However, the Act was held up for 16 abuses) on our ratings table for their use months by corporate lobbying which of conflict minerals. culminated in a clause which will allow companies to dodge their duty for Have things improved? another two years by stating they don’t 7.5 know where the minerals are coming All the companies in the Enough rankings, from. Furthermore, three corporate apart from HTC, improved their score lobby groups – the National Association from the 2010 ranking. And, of course, the of Manufacturers, the US Chamber of appearance of the Fairphone has meant Commerce and the Business Roundtable that we are closer to the first conflict-free – sued the US government to have the product on the market. new law set aside. The grounds of the According to Enough: “Despite some These steps have had an effect on the lawsuit were that, among other things, progress, there is still a long road ahead. ongoing conflict in the Congo, as armed the disclosure requirement violated a The violent extraction of mineral resources groups are currently only able to generate company’s first amendment right because continues to stoke conflict on the ground approximately 35 percent of what they it required the company to say whether the in eastern Congo. It will take a collective made from the trade in tin, tantalum, and minerals in its products support conflict effort by multiple industries to curtail tungsten two years ago. in the Great Lakes region of Africa. The the demand for conflict minerals, and Much of the progress made by plaintiffs also sought an exemption for the impetus for such efforts will continue companies on conflict minerals since 2010 smaller companies who use minimal to arise in large part from conscious is due to U.S. legislation (Dodd-Frank amounts of tin, tantalum, tungsten, and consumers.” Act), as well as the rapid growth of the gold in their products. More information is available from conflict-free consumer movement. But on July 23rd 2013, the U.S. District www.enoughproject.org where you can Companies ranked best and middle Court in Washington, DC rejected the download the report ‘Taking Conflict Out have been directly targeted by activists lawsuit. The Court upheld the legislation, of Consumer Gadgets: Company Rankings and the leadership of these companies dismissing the challenge by big business on Conflict Minerals 2012’ and you can has impacted the entire industry, pushing lobbyists. email the 24 electronics companies.

Mobile phones tackle Indonesian tin problems on Bangka. Tin is used as solder in all phones and electronic gadgets and around a third of the world’s mined tin comes Samsung, Philips, Nokia, Sony, Blackberry, Motorola and from Bangka and neighbouring island Belitung. LG Electronics have all publicly accepted that their phones are likely to contain tin from Bangka island, Indonesia. The FoE report ‘Mining for Smartphones: the True Cost of Tin’ According to Friends of the Earth, mining of tin there is revealed: destroying tropical forests, killing coral and wrecking the • Dangerous and unregulated tin mining on Bangka – police lives of communities. figures show that in 2011 an average of one miner a week This now leaves Apple, alone among the best-known died in an accident. brands, failing to give a straight answer to more than 27,000 • Coral and sea life threatened – silt from tin mining is customers who have asked if it sources tin from Bangka killing seagrass eaten by turtles, killing coral reefs, driving island. This is surprising given that Apple is one of the most away fish and ruining fishermen’s livelihoods. progressive mobile phone company on its sourcing of conflict • Farmers struggling to grow crops – soil has become acidic minerals from the Congo. after the destruction of forests for tin mining. The moves were prompted by Friends of the Earth’s investigation into the devastation caused by mining for tin Email Apple from the FoE website – www.foe.co.uk

15 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Guide to greener mobile phone companies

lobal electronics companies The bulk of the carbon footprint Score out Overall Company must do more to end the use of associated with many electronic devices is of 10 ranking climate-changing dirty energy in buried in the manufacturing chain, where NOKIA 5.4 3rd Gtheir manufacturing and supply chains, the electronic devices are assembled. ACER 5.1 4th according to a report by Greenpeace. More carbon is used in the manufacture APPLE 4.5 6th Greenpeace International’s 18th version of smartphones than consumers ever use of the Guide to Greener Electronics was after buying them. SAMSUNG 4.2 7th released in November 2012. It ranked “Companies should work with their SONY 4.1 8th 16 electronics companies, including 7 suppliers to implement more efficient LG 3.5 12th mobile phone makers, based on their manufacturing processes and to power the BLACKBERRY 2.0 16th commitment and progress in three supply chain with renewable energy, not environmental areas: Energy and Climate, fossil fuels, just as they have successfully Greener Products and Sustainable We have used Greenpeace’s data to done to reduce the toxic materials in Operations. give the companies above a rating in our electronics,” said Greenpeace International Climate Change, Pollution & Toxics and The Guide’s criteria reflect Greenpeace’s IT analyst Casey Harrell. Habitats & Resources categories on our demands of electronics companies to: Nokia moved up from 4th place overall rankings tables. • reduce emissions of greenhouse gases; rd to 3 . Taiwanese computer maker Acer The Greenpeace Guide to Greener • clean up their products by eliminating was the most improved company in the Electronics, launched in 2006, has hazardous substances; guide, moving up nine places to No. 4. prompted improvements within the • take-back and recycle their products Apple dropped slightly from No. 5 in electronics industry, including the responsibly once they become obsolete, 2011’s edition to No. 6. Sony, Samsung and phase-out of hazardous substances from and; LG all moved up whilst BlackBerry did not products. • stop the use of unsustainable materials improve from its 16th ranking, the bottom See the full details at www.greenpeace. in their products and packaging. of the group. org/international Theenvironmental impact of a mobile phone Carbon footprint use of their smartphones (not including avoidance of hazardous substances; use the transmission of calls) is 55 kg CO2e for of recycled plastics; extending life cycles Manufacturing an ordinary mobile the iPhone 4s, 60 kg for the 5C and 70 kg (warranties and spare parts). phone is estimated to cause 16 kg of CO 2 for the 5s. Despite its high overall ranking, Apple’s equivalent emissions, nearly the same as To reduce the impact of your mobile iPhones still contain built-in batteries. 1 kg of beef. Add the power it consumes phone, texting is a much lower carbon They only last for around 400 charges and over two years (average phone use length) option than calling. But for calls, landlines then you are meant to pay Apple about £55 and that figure rises to 22 kg. But the take only a third of the power to transmit to replace the battery which takes about footprint of the energy used to transmit a call than it does when both callers are on a week. When replacing it they erase all your calls across the network is about a mobile.1 your data and you may even get a different three times all this put together taking us phone back. But there are many guides to 94 kg CO equivalent over the life of the 2 on the internet to how to do it yourself, 1 phone. Greener products although Apple definitely don’t make Apple publishes environmental impact rating it easy – you may need to buy a special reports for all its smartphones which screwdriver and disconnect various cables. cover: greenhouse gas emissions during As part of their ‘Guide to Greener production, transport, use and recycling; Electronics’ (see above), Greenpeace Eco ratings energy efficiency; amount of materials have ranked seven of the mobile phone used; and use of restricted substances. The companies in this report on four product Several mobile network operators carbon footprint for the manufacture and criteria (see opposite): energy efficiency; – Vodafone, O2 and Orange – have

16 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org developed eco-ratings for models of Greener products rating mobile phones. They are all based on Score out Energy Hazardous Recycled Extended life Company questionnaires sent to the manufacturers. of 16 efficiency materials plastics cycle O2 was the first network to develop Apple 11 high med low low an eco-rating in the UK in 2010 with Nokia 9 high med zero zero independent sustainability group Forum for the Future. It’s the only eco-rating Samsung 9 med low low med currently available in the UK. It currently Acer 7 med med low zero gives 73 handsets a score out of five SONY 7 high low low zero according to their environmental impact, LG 6 med low low low functionality (how they help people lead more sustainable lives) and the ethical BLACKBERRY 5 med low zero zero performance of the manufacturer. We are disappointed that the corporate You can’t search the phones to just show manufacturing impacts plus corporate impact only accounts for 11% of the those with an eco-rating and they are not social responsibility issues. But it has rating but the functionality accounts for separately listed. It is apparently displayed independent third party verification of 25% which means that smartphones don’t on shelf tags in O2 shops. the manufacturers’ responses. Fairphone necessarily get rated worse than simpler The full list of 73 phones will appear used the rating in the development of their devices. The justification is that they on our website at www.ethicalconsumer. phone. negate the need for separate devices such org/ethicalreports/mobilesreport.aspx. More details from www.vodafone. as a camera, MP3 player and satnav, saving More details of how the phones com/content/sustainability/operating_ the energy that would be required to make are rated is available from www.o2.co. responsibly/customers_and_the_ them. uk/thinkbig/planet/sustainableproducts/ environment.html This weighting means that the top 15 ecorating Orange’s rating was produced in phones listed below are all smartphones Vodafone’s eco-rating is available in partnership with WWF and covers except for the two Alcatel phones. Australia, Czech Republic, Hungary, the greenhouse gases emitted at key stages of Most of the brands on our score table Netherlands, New Zealand, Portugal, product life cycle, use of non-renewable have been rated except for Fairphone, Romania and Spain, and will be rolled materials and eco-friendly design. It has Amplicomms, Acer, Motorola and, the out to a number of other European been deployed in France, Spain, Romania most notable exception, Apple. Apple markets during 2013. Like O2’s, it covers and Armenia. declined to take part in the rating scheme, highlighting its own product 5 steps to smarter phones environmental reporting online. Tim Cooper, Professor of Sustainable Design and Consumption at Nottingham On the O2 shop website, not many Trent University, looks at just some of the ways phone manufacturers could phones carry the rating and it isn’t very reduce the impact of their products on the environment – from design innovation prominent – you have to click through and technological advances to improved production processes. on each brand to see if it has been rated. 1 Energy-saving batteries – the organic radical battery (ORB) uses no heavy metals that can be harmful to humans, and charges in just 30 seconds. O2 mobile phone eco-rating 2 Change contract length – a UK mobile phone’s typical lifetime is just 18 Eco-rating Company Name months. Instead of offering contracts that encourage us to keep upgrading when (out of 5) our phones are still usable, the industry could offer customers savings if we take Nokia Lumia 625 4.7 on longer contracts, or explore options like fixing or leasing, helping phones live Samsung Galaxy Fame 4.6 longer. One Swiss study concluded that extending service life from one to four Sony Xperia Z1 4.4 years would decrease environmental impacts by about 40%. Nokia Lumia 925 4.4 3 Design for disassembly and repair – many phones are deliberately glued Galaxy SIII Mini shut or have special screws that stop users from opening them. Designing Samsung 4.4 NFC phones so they are easier to take apart, to repair or replace parts would make Samsung Galaxy Music 4.4 a big difference. And it would make it more cost-effective to extract and reuse components and metals. The value of precious metals in 85 million discarded Sony Xperia M 4.3 phones exceeds £150 million. (See Phonebloks on page 18.) Samsung Galaxy SIII (LTE) 4.3 4 Choose greener materials – such as polylactic acid plastic (PLA), which is Samsung Ativ S 4.3 made entirely from corn starch or glucose and is renewable and biodegradable; Alcatel Ginger 4.2 recycled plastic, and natural materials like bamboo. Or use fewer materials. Samsung Galaxy Young 4.2 5 Cut down on packaging and accessories – are all those manuals, chargers Alcatel 2005 4.2 and packaging materials really needed? 70% of buyers already have compatible Nokia Lumia 720 4.2 chargers for the 30 million new phones sold annually. HTC, Nokia and Sony now Samsung Galaxy SIII Mini 4.2 sell some models with just USB leads instead of unnecessary chargers, as part of O2’s Chargers out of the Box campaign. Sony Xperia J 4.2

References 1 How bad are bananas, Mike Berners-Lee, 2010

17 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Sell, donate or recycle?

ritain’s hoarders currently parts. Phones that are beyond economic store approximately 70 million repair or recycling are sold into China for Building a better mobile unused mobile phones within parts.” Phonebloks is an idea that is just Bforgotten drawers and cupboards. With It is worth recycling with an starting to get off the ground and is approximately 1,712 mobile phones being organisation (such as Oxfam) that you due to go public on 29th October replaced every hour of every day in the trust. Despite tight e-regulations within 2013. The concept is that a mobile UK alone (thanks to ‘smarter phones’), the West, it is common for e-waste to be phone should be built from easily the phone recycling industry should be sent to developing countries since labour changeable ‘bloks’ to make it booming. According to the Green Alliance is cheaper and health and safety standards upgradable and repairable. If one think tank, the UK recovered only 25 per are more lax. It may be exported illegally part goes wrong, you don’t need to cent of unwanted mobile phones in 2010. or by taking advantage of loopholes e.g. buy a new phone, you just change It did however predict this figure to rise to redundant electronics exported under the the ‘blok’ that has the problem. 2 80 per cent by 2020. category of ‘used’ or ‘second-hand’ goods Phonebloks is the brainchild of Dave The value of old mobile handsets is which are not subject to any restrictions.5 Hakkens. He says of the project becoming of greater importance as access “The market for electronic devices to rare minerals becomes increasingly Sell is growing rapidly, but it feels like difficult, both physically and financially. we are building disposable stuff. Numerous mobile recycling websites Paul Haldane, owner of the recycling Every time we make something new can be found online, offering money we completely throw away the old website phones4cash, highlighted a in exchange for unwanted mobile one. Imagine all the good displays, mobile’s hidden value by stating “the gold phones (exceptions to this exchange bluetooths and speakers we have content of around 40 mobile phones is the include phones registered as lost or thrown away. I love the connected same as in 1 ton of gold ore”.3 stolen). Price comparison websites world that we live in and it’s time to such as www.sellmymobile.com and set up a universal modular platform What to do with your ww.recyclemobilephones.co.uk, highlight that companies work on together.” the need to shop around before accepting You can find out more at old mobile phone an offer, as the prices quoted for specific www.phonebloks.com. Under the EU WEEE directive, mobile handsets can vary hugely. For example, a manufacturers are obliged to collect old Blackberry Porsche Design P9981 can be mobile phones. However, because they sold for anything between £200 and £400. have value to charities or even businesses, It is also worth checking online auctions it’s best to donate or sell. such as ebay to see what your phone is going for. It is also important to check that Donate the mobile buyer is credible before selling. An increasing number of charities are There have been numerous complaints of also collecting old mobile handsets – both sellers not being paid the original quoted working and non-working. These are then amount, or receiving nothing at all! Sell sold for money, which goes towards the my mobile’s website recommended phones charities’ work. be sent via special delivery to buyers, rather than using their Freepost address.6 Lucy Brinicombe, senior press officer for Oxfam, was asked what happened to old mobile phones once they were donated Think second hand to Oxfam. She stated: “Oxfam recycles mobile phones through its recycling If you want to buy a second-hand phone, partner Corporate Mobile Recycling. the following tips can help: Damaged and barred phones are accepted • Make sure the phone works! Don’t buy References 1 Fonebak, 2013, www.fonebak. – lost or stolen phones are quarantined a phone if you can’t play with it first. com/News/where-does-your-phone-go 2 Sep 2013, www.businessgreen.com/bg/news/2257597/landfill- for 28 days then destroyed if unclaimed. • Check the phone is not blocked or bans-could-save-gbp25bn-a-year 3 Aug 2013, PR Working phones are sold to wholesale registered as stolen by visiting Newswire, www.prnewswire.com/news-releases/ buyers in emerging markets including www.checkmend.com will-the-latest-iPhone-add-to-the-uks-stockpile- Africa and China ,though particularly of-unwanted-technology-220367371.html 4 The • If the battery doesn’t hold its charge for Guardian, Recycled mobile phones retain previous modern phones e.g. smartphones would long, make sure that the model has a owner data, 2013 www.theguardian.com/media- be sold back into the UK, once all data network/partner-zone-infosecurity/mobile-phones- replaceable battery. has been deleted. Phones that are not in a previous-owner-data) 5 Lori Bennear research group, Electronic waste disposal, Nov 2012, http://sites. good condition are recycled. They are sent • Find out which networks the phone is compatible with. nicholas.duke.edu/loribennear/2012/11/15/ to a company called Else in Sweden where electronic-waste-disposal 6 BBC News business, Jan they are broken down into their composite • Ask for a receipt. 2012 ,www.bbc.co.uk/news/business-16652964

18 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

Thehealth impact of mobile phones

ritish neurosurgeon Kevin O’Neill, Small-print warnings in phone instruction Chairman of the Brain Tumour manuals should be replaced with clear Research Campaign, says: “It would statements in a prominent place on phone Bbe a mistake to ignore the mounting packaging. evidence pointing to a link between The Department of Health has issued mobile phones and risks to health, warnings about the risks of mobile use, especially when we know that children are recommending that under-16s use phones much more vulnerable to phone radiation only for essential calls. But MobileWise and that there are simple measures criticises the Government for doing little available to help them cut their exposure. to publicise these warnings, citing the fact We have an opportunity now to promote that the current Department of Health/ safety measures, mindful of the benefits NHS leaflet has never been printed and is of mobile phone technology but reflecting only available as a pdf on the Department the potentially serious risks”. of Health website. The World Health Organization’s WHO gives this advice about reducing International Agency for Research on exposure levels: Cancer (IARC) confirmed these concerns when, in May 2011, its expert panel of 30 • Mobile phones are low-powered scientists classified mobile phone radiation radiofrequency transmitters. The as “possibly carcinogenic to humans” after handset only transmits power when having reviewed all the existing evidence. it is turned on. The power (and hence This classification is often the first step the radio frequency exposure to a towards an exposure being classified user) falls off rapidly with increasing as probably or definitely carcinogenic. distance from the handset. A person Indeed, some of the scientists on the panel using a mobile phone 30–40 cm away argued that the higher level categorisation from their body – for example when (“probably carcinogenic”) was already text messaging, accessing the Internet, justified. or using a ‘hands free’ device – will therefore have a much lower exposure However, WHO concluded that the to radio frequency fields than someone lack of data for mobile phone use over holding the handset against their head. time periods longer than 15 years warrant further research of mobile phone use and • In addition to using ‘hands-free’ brain cancer risk. In particular, with the devices, which keep mobile phones recent popularity of mobile phone use away from the head and body during among younger people, and therefore a phone calls, exposure is also reduced by potentially longer lifetime of exposure, limiting the number and length of calls. WHO has promoted further research on • Using the phone in areas of good this group. reception also decreases exposure as it UK charity MobileWise highlights the allows the phone to transmit at reduced fact that the use of mobiles among primary power. school children is on the rise and that by In addition, MobileWise recommends: secondary school 9 out of 10 children are • Keep phones away from babies – before using them, many habitually. MobileWise and after birth. is calling for them to be informed about how to limit their exposure – including • Apply the same caution to cordless keeping calls to a minimum, texting, using phones – use a corded one wherever headsets and keeping phones away from possible. the groin. Additional information about It states that phone companies should electromagnetic fields and public health actively engage in the information are available on the following site: campaign, providing customers with clear www.who.int/peh-emf. practical advice in marketing literature, More info from MobileWise at on websites and during conversation. www.mobilewise.org

19 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Why I’m not getting a smartphone (for as long as possible)

Sarah Irving asks ‘Is too much technology bad for the planet about the situation in the Democratic Republic of Congo? The – and for us?’ death toll in Syria is perhaps 100,000, which is appalling. But something like 6 MILLION have died in Congo in the last decade, and one of the main drivers of conflict is the quest for rare metals needed to produce miniaturised electronics – like ne of the few irritations of an amazing two years on my smartphones and iPads. That’s another way in which your gadget recent MSc has been the background pressure to get a increases the overall sum of human misery. And if those metals smartphone. Or an iPad. Or some other piece of over- don’t come from Congo, perhaps they come from Malaysia or Ohyped technology. Brazil, where scientists have warned of the rising dangers of toxic I’m not technologically illiterate, and I’m not an anarcho- and radioactive waste from processing plants. primitivist. But I don’t buy tech tat, and I don’t get excited about Four: what kind of horrible culture do we live in where every new Apple product on the market. Interestingly, some everyone is expected to be available, online, all the time? The last of the people who do get excited, then seem to use technology thing I want is a phone that follows me with email and Twitter ineffectively. In the end, despite the glitz, IT is just bits of metal and Facebook. When is a person supposed to think, to notice and plastic; if you don’t use it properly it’s nothing more than and experience the world and other human beings? It drives me expensive bric-a-brac. nuts when friends check every text and break off from coffee or Partly this is a matter of simple practicality. I can’t afford lunch to take calls. It’s bad manners, and implies an underlying expensive phones and tablets, and I don’t like carrying an disrespect for face-to-face communication. And it gets worse as expensive object that risks getting broken or nicked. So I don’t. the stream of information available through mobile devices gets But there are also bigger, more important reasons why I don’t buy faster and fatter. (into) that stuff. Five: so much of what happens on mobile devices is One: generally speaking, the more a device does, the more consumption, not production or creation. My husband pointed energy it consumes. Better energy efficiency means this isn’t this out when he acquired a tablet. He’s found himself using a straight-line increase, but we still get headlines about a it only rarely, because he feels that it transforms him into a smartphone using as much energy as a fridge. I’ve heard a lot passive consumer, only able to interact or produce by using of smartphone owners complaining that their devices need a cumbersome onscreen keyboard. The point was reinforced recharging daily, whereas my elderly mobile can hold out for by a twitter exchange with a friend who fancied a mini-iPad. several days. And it’s not just a matter of expense. What about I suggested (jokingly) a pad of paper and a pencil. He was peak oil and climate change? Does the ability to play games surprised; he wouldn’t be writing anything. True, you can buy and check emails in the back row of lectures really warrant the keyboards for most tablets, but the fact that they have to be additional energy use? bought separately underlines that they are very much a secondary Two: name me an electronics brand whose products aren’t function. One is meant to use this device to consume, to be made in disgusting sweatshops in China and other ‘developing’ passive – the modern version of ‘bread and circuses’, the time- countries, where people work long hours for shit pay in wasting ‘opiates of the masses’ that keep us diverted from things dangerous conditions. Where some are driven to suicide. Where that really matter. some of those workers are children. Is your ability to waste your time on yet another gadget really worth that measure of human Sarah Irving is an ex-Ethical Consumer co-op member and is pain? Really? now studying for a PhD in Middle Eastern history at Edinburgh Three: the world is getting very exercised about the war in University. This is an extract from a blog on sarahirving.co.uk. Syria, which is as it should be. But when did we last hear anything Twitter: @sarahonline_

20 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Tracking smartphones The rise of smartphones has opened up many more opportunities for your phone to be located and tracked, both with and without your consent. Joanna Long investigates.

obile phones are effectively mobile phone handsets. Legally these hand-held radio transceivers, services require the consent of the ‘locatee’ which constantly search for to be located, meaning that parents cannot Msignals from ‘cell towers’ or masts through monitor their children without their which they connect to the mobile network. children’s knowledge, or employers their In order to work, mobile phones must employees. remain in contact with the network using Some passive location services, the strongest available tower signal. however, are operational without In this sense, locating and tracking is subscribers’ knowledge and without any fundamental to how a mobile phone works clear indication on the phone handset. and to how network operators provide an effective service for their customers. By Locating consumers triangulating the phone’s signal using two An example is FootPath developed by additional towers, it is possible to locate Path Intelligence. This software uses a phone more precisely, accuracy can be strategically positioned devices to locate further increased by combining the cell and track mobile phones within a shop tower connections with GPS and WiFi or throughout a shopping centre, helping signals. retailers to better understand customer browsing and purchasing behaviour and across an area, these bins can track the Who wants to locate therefore optimise their layouts. movements of people/phones over time, your phone? Shopping centres can also use this learn their habits and enable advertisers to information to set rents for retail units, target particular individuals. Location services can be useful personal advertise events, as well as improve the This kind of targeted advertising is tools for people with smartphones. They siting of emergency exits and amenities. already in use by mobile networks who use improve the accuracy of map applications, Path Intelligence claims that this kind of software such as AdvertWise (Creativity enable geo-tagging of social media posts tracking is equivalent to the way online Software) or companies like Weve (a and can even provide alerts for location- shops track customers’ movements and joint venture by EE, O2 and Vodafone) to based errands e.g. ‘get cash’ alert appears that FootPath simply levels the playing send location-based adverts and offers to when you are within 100m of an ATM. field for offline retail outlets. consumers when they are close to a certain These are all examples of active location The information gathered from mobile ‘attraction’ (restaurant, shopping centre, services, in which location information phones by FootPath are the unique theatre etc.). is sent from the phone at the subscriber’s numbers assigned to handsets by the request. Subscribers can turn these active network operator – the Temporary Mobile location services off and on in the phone Subscriber Identifier or TMSI. They do What you can do settings. not identify the user, their telephone You can minimise the possibility of being Location information can also be number or the content of texts, phone calls tracked by commercial organisations in passively detected on a mobile phone or emails. This enables Path Intelligence several ways. Firstly, turn off the WiFi by a third party. Sometimes this is done to promote FootPath as gathering receiver when you leave a WiFi zone at the request of the subscriber via that ‘anonymous’ data. and turn off all location services. If you third party. For example, applications Mobile phones with WiFi receivers want to avoid being located through your exist that enable subscribers to locate are also open to passive location services, signal, you can turn this off manually or lost or stolen phones through their WiFi otherwise known as WiFi ‘sniffing’. by switching your phone to ‘flight mode’ signal (providing it is switched on) and A recent high profile example of this whenever possible. their phone signal (providing it is on and concerned recycling bins installed in Subscribers should be able to stop connected to the network). the City of London. These bins recorded targeted advertising messages simply by Similarly, companies such as information from nearby mobiles phones texting STOP to a specified (free) number. MobileLocate, Creativity Software and with WiFi turned on and used this to If such messages continue even after you Mobile Commerce offer services that can target the electronic adverts on the bins have requested them to stop, you should ‘find’ specific individuals through their to specific passers-by. By sniffing WiFi report this to Ofcom.

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Make IT Fair The fact sheets cover the mining of metals used in electronics, production in MakeITfair is a European project low-wage countries, the use of temporary co-ordinated by SOMO that aims to workers, freedom of association and the raise awareness about problems in the disposal of electronic waste. supply chains of electronic goods. It is a Each factsheet highlights the major collaborative project that brings together problems associated with each issue a number of European campaign groups and outlines what companies can do to including the Fair Trade Center from improve the situation with regard to each. Sweden, DanWatch from Denmark, and The factsheets can be downloaded at: the Association of Conscious Consumers www.somo.nl/publications-en (ACC) from Hungary. research papers. The first entitled, “A suicide survivor: the life of a Chinese In their latest work the campaigners worker”, looks at the spate of suicides at conducted a survey of Foxconn workers China Labor Watch the Foxconn factory in China in 2010. The in response to press reports stating that CLW conducts in-depth investigations of paper provides a first-hand account of the Foxconn had allowed independent unions Chinese factory conditions. experiences of one of those who survived to operate at their manufacturing facilities The organisation’s latest research is a suicide attempt,17-year-old Tian Yu. and had organised voting for union focused on a US-owned factory, The Jabil Despite the sobering subject matter the leadership. Green Point, in Southern China. This author draws many positive conclusions, The results rubbished the press factory produces the rear plastic covers of reporting that “A momentum of change is reports. Campaigners found that 94.7% Apple’s iPhone. emerging as Chinese workers, concerned of the workers had never participated in CLW’s undercover investigation at students and scholars, and transnational the union voting in any form. 82.5% of Jabil exposed a series of violations of labour movement activists are joining workers did not know who the leader of Chinese law as well as Apple’s code of hands to strengthen workers’ power.” They the union group was, while only 16.9% conduct. For example, workers at Jabil conclude that workers are “increasingly had union cards. Half of the workers were reported to stand for eleven and a emboldened to take actions to fight back”. (55.7%) said they joined the union half hours of work per day, accumulating The second paper, “The politics of “automatically” when they began work at more than 100 overtime hours per month, global production: Apple, Foxconn and Foxconn. three times that permissible by Chinese China’s new working class” looks at Apple’s The most worrying statistic however legal limits. In fact, Jabil forces workers supply chain, its position in the global came from a question about the union’s to accept overtime hours, at the same economy, the effect on workers and their care line. Although the survey showed time requiring newly hired workers to reactions to the harsh working conditions, that 89.8% of the workers were familiar sign an agreement indicating that their and Apple’s dominance over production. with the hotline, only 32.5% of them had overtime will be considered voluntary. The The conclusions are stark. The researchers used it. Of these, 56.1% state that their company also hires dispatch workers in note that “At the workplace level, very issues were “seldom” or “never” solved; excess of statutory limits and forces female short delivery times imposed by Apple and while disturbingly 47.4% of them were applicants to accept pregnancy tests. other multinational corporations make penalised by their seniors after they called You can find out more at it difficult for suppliers to comply with the hotline. www.chinalaborwatch.org legal overtime limits. Price pressures lead firms to compromise workers’ health and SOMO safety and the provision of a decent living Students and Scholars wage.” However as with the previous paper The Centre for Research on Multinational against Corporate there is some hope. “A new generation of Corporations (SOMO) is a research and workers, above all rural migrant workers, network organisation that brings together Misbehaviour is standing up to defend their dignity different groups working on social, and rights.” They add, “At present, the ecological and economic issues. SACOM is based in Hong Kong and aims vast labour force at Foxconn and many Earlier this year SOMO produced to bring concerned students, scholars, workplaces are striving to expand social a number of fact sheets to support labour activists, and consumers together and economic rights, bypassing state and responsible investors in their critical to monitor corporate behaviour and to management-controlled unions.” engagement with the electronics advocate for workers’ rights. You can read the papers and find out companies in their portfolio. SACOM recently published two more at http://sacom.hk

23 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org How can emerging mobile technologies help activists and human rights defenders?

By Tanya O’Carroll, Project Officer, Technology and Human Rights, Amnesty International.

magine for a moment that we’re in be arrested. The app also ‘stamps’ the and academics to chart new applications the year 2018. Mobile technology uploaded footage with metadata, such as of proven tools for use in human rights has radically transformed the global time, date and location, that will later help work, have revealed a troubling picture of Ieconomy and the lives of people all over to verify it for use as evidence. a fragmented, inefficient, and often insular the world. 8 billion people now reach In order to keep her communications landscape. These inefficiencies shrink the Internet primarily through a mobile private, Marta uses Text Secure to send the “promise of technology” for human device and 5 billion own their own encrypted SMS and Gibberbot for secure rights workers and organisations while handset. Entire communities who just five instant messaging with her colleagues. threatening to create “tech fatigue” among years earlier were ‘off the grid’ are able to She has Orbot installed which uses Tor to users who are flooded with competing access information, connect to each other encrypt all her Internet traffic and routes options and information about which tools and publish content instantly to a global it via remote computers, masking the to use. There needs to be a less fragmented audience. location of her Internet activities. approach if such tools are to be really useful and relevant to the individuals This is the context in which Marta, Marta also has Panic Button on standby a Honduran human rights defender is on her phone should she be physically operating. She works within a highly threatened. On activation, the app triggers organised and well trained network of an emergency SMS to the closest members human rights investigators whose purpose of her network and sends location updates is to gather testimony and documentation every five minutes. Panic Button also of human rights abuses to inform national signs out of open apps on the phone and and international advocacy efforts. integrates with KillPacket to remotely ‘lock In Honduras this means exposing down’ email and social media accounts. As violations by the military and police, as it is smartly disguised, the aggressors are well as abuses by the notoriously violent unaware the app is running and unable to drug cartels and rich land owners of disarm the alerts. mining and palm oil plantations that Finally, Marta uses Pressy to give her have been sponsoring violence against one-touch control of all these apps. This the indigenous communities that claim allows her to trigger Panic Button or to communal rights to the land. start the microphone recording discretely As a result of her work, Marta faces should she need to – say, from the inside constant risk of reprisal. For the past of a jacket pocket. decade journalists and human rights While many of these tools and mobile defenders have been killed or disappeared gadgets sound like something from Q’s in staggering numbers with complete laboratory, they are not the stuff of sci-fi impunity. The network has to be careful imagination. As of 2013, every single one and equipped. of the apps mentioned exists in some stage Marta uses her mobile phone in every of development and many are already aspect of her work. Apps like StoryMaker being used by journalists and activists in have turned it into a discrete kit for a the field. journalist, with tips on producing and The problem is that what is possible publishing professional-grade news as to achieve with emerging mobile safely and securely as possible. This is technologies is still leaps and bounds integrated with InformaCam, which allows ahead of viable, sustainable products that her to upload fresh footage automatically have been truly designed to meet the to a secure server whilst deleting the needs of those they profess to help. evidence from her phone should she Recent efforts by developers, NGOs

24 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

in communities that are threatened by more likely become a weapon used against Panic Button – an app to send out an human rights abuses. them than a tool at their disposal. encrypted message when you are in trouble. A second problem is that, from One option is to build alternatives to our perch in the present, we still lack mainstream mobile handsets that allow knowledge about how mobile technology us to achieve some of the same aims. Civil interacts with the work of human rights Rights Defender’s alarm bracelet and activists. Design assumptions are often the incredible series of stealth cameras based on anecdotal evidence rather than created by the human rights group Videre structured research and engagement with are examples of recent efforts. However the intended users. The result is an arsenal there is no escaping the trade-off with of tools that are created for activists convenience and access. Niche and without a deep understanding of how and expensive devices are a barrier to use whether these tools are trusted, relevant whereas most activists already carry a and used. basic mobile phone – that is precisely the A third problem is that too many power of such a ubiquitous technology. technology projects are looking for quick At least in the short term, more efforts wins and simple solutions. We need to lift to engage with and include users in a our eyes from the development of apps participatory design process will make a and start thinking more about the mobile difference. That also requires us to break operating systems that they are built on down the silos. There should be more and the companies that run them. At collaboration to create joint approaches the moment there is almost no default to research, testing and training around security or privacy built into the systems, tools. This is not just a question of creating which makes tracking and monitoring an useful and relevant tools but of security. If activist’s communications and activities people start to install and use these apps There is great potential for mobile increasingly trivial (especially as remote- in their daily work it is vital that they technologies to offer direct and practical control surveillance software become understand the inherent security risk of a assistance to journalists and human rights bread and butter for security services). In conventional mobile device – something defenders but we would be naive not to this context an activist’s mobile phone may which an app merely puts a plaster on. recognise the challenges. If we want to see activists like Marta equipped with the mobile tools for robust and secure human rights reporting we need to create more bridges between those designing the tools and the human beings they are designing them for. Images © Amnesty International Images ©

(left) Mobile technologies allow individuals to send distress signals with coordinate information for their location and (above) mobile recording app.

25 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

Pools of stagnant water and the cratered landscape of this tin ore mine in Bangka, Indonesia have replaced forest and farmland. Apple is the only well-known brand not to admit that it is likely to source tin from Bangka. © Ulet Ifansasti/Friends of the Earth © Ulet Ifansasti/Friends

Mobile phone company profiles

Problems in Apple’s supply chain Financial Officer, Peter Oppenheimer, advertising. Google said the plaintiffs persist despite its supply chain policy had been paid a total of $68,591,562. were making “an attempt to criminalise protestations. ordinary business practices” and that Those executives look set to get even “all users of email must necessarily In July the BBC reported accusations richer with Apple starting to supply the expect that their emails will be subject against Apple of violating at least 86 US military after the armed forces ended to automated processing”. It claimed workers’ rights within several Chinese Blackberry’s exclusive contract. There are that the practice of scanning emails in factories. According to China Labor currently 41,000 Apple devices used by order to target advertising was industry- Watch, three factories of an Apple the US military and this figure is set to wide. The US pressure group Consumer subcontractor (Pegatron) “violated a great rise dramatically over the next few years.2 Watchdog described the company’s number of international and Chinese laws This isn’t the only relationship between statement as a “stunning admission” of and standards as well as the standards of Apple and the US military. the extent to which internet users’ privacy Apple’s own social responsibility code is compromised.4 of conduct”. These violations were said French authorities have launched to include under-age labour, contract a preliminary investigation into the Meanwhile Google has claimed in the violations, insufficient wages, abuse by US National Security Agency’s Prism British High Court that it is not subject management, poor working conditions surveillance program after French human to UK privacy laws. The company was and excessive working hours, with an rights groups complained it was snooping being sued by Apple users for breaches average working week of 66, 67 and 69 on citizens’ emails and phone calls. of confidence and privacy, computer hours within the three factories under The groups named Apple as a potential misuse and trespass, and breach of the investigation.1 accomplice of the NSA and FBI - Google Data Protection Act 1998. The legal was also named.3 The company hierarchy, however, is action was said to be based on claims that the company circumvented Apple enjoying better pay and conditions than Google, which owns the Motorola brand security settings on iPhone, iPad and ever before. The Apple annual report of phones, has recently been criticised desktop versions of Safari. The US states that in 2012, Senior Vice President over its privacy policy after saying that Federal Trade Commission (FTC) fined of Operations, Jeffrey Williams, had its email users have “no legitimate Google $22.5 million in August 2012 for been paid a total of $68,691,612: Senior expectation of privacy.” They made the Vice President, Bruce Sewell, had been statement in a Californian court case monitoring US Safari users by “exploiting paid a total of $68,989,812; the Senior accusing the company of unlawfully a Safari loophole that enabled it to Vice President of Technologies had been opening up and acquiring the content of install monitoring-enabling cookies on paid a total of $85,540,637; and Chief private email messages in order to target web users’ machines through adverts on

26 Mobile phones NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org websites”. The company is attempting The Brazilian Ministry of Labour said to have the case dismissed in the UK by that employees at the factory work up to arguing that there was “no jurisdiction” 15 hours a day, including 10 hours on for the case to be heard in the UK their feet, sometimes for 27 days straight. because its consumer services were not It claimed that the company “subjects provided by Google UK but by its US its employees to the risk of illness from division.5 repetitive activity and the intense pace of work on the assembly line”.8 Nokia, which could soon be bought out by Microsoft, was in the headlines earlier Electronics brands including Sony this year over tax avoidance in India. were mentioned in a report earlier this According to an article published on the year outlining workers’ rights issues BBC News website, the firm’sChennai in Malaysia. Research from campaign factory, one of its largest manufacturing groups SOMO and MakeITfair outlined facilities, had been raided by Indian tax a number of issues in the country which officials. Officials said they were looking has high levels of foreign investment from to recover tax payments totalling as much multinational corporations outsourcing as 30bn Indian rupees ($545m; £340m).6 their labour-intensive production. The company also scores our worst rating The report explains how Malaysia’s for tax avoidance. Industrial Development Council (MIDA) Samsung is facing trial in France advertises its special economic zones about working conditions. In two of three where the public prosecutor’s office in (Free Industrial Zones) with no minimum factories, hazardous working conditions Bobigny, Paris, has decided to open an wage legislation, minimum conditions with inadequate protection were investigation after three French NGOs of employment, and responsible trade reported. made a complaint accusing Samsung unions and harmonious industrial France of misleading commercial relations. Earlier this year workers at an HTC practices. The campaigners claim that supplier reported that a large number of The report found a number of issues promoting a code of conduct for the child workers were hired. China Labor linked to these industrial zones including treatment of workers that Samsung does Watch reported that some of the workers low pay, repetitive and tedious tasks and not enforce is tantamount to misleading were as young as 12 to 14 years old, advertising. This is the first investigation long exhausting hours of up to 72 hours and they worked 11 hours per day in the of its kind in Europe and the first time per week. factory. that a public prosecutor has begun an This in turn leads to a high turnover rate Based on Chinese media inquiry on the gap between the ethical of staff at factories. Due to the lack of reports, the child workers commitments of a company and its local workers, the electronics industry were working under the contradictory practices. We will be now relies heavily on migrant workers. same conditions as adults, 7 following this story very closely. receiving no special SOMO’s field research confirms that protection. Shifts ran The Sum of Us website has started a migrant workers in Malaysia’s electronics from 8am to 9pm, with petition calling for Samsung “to stop industry are typically employed on a only two one-hour meal denying that illnesses [occurring within temporary basis and were victims of breaks and two its South Korean factories] are industrial contract fraud (false promises about 10-minute work accidents, and to properly compensate wage levels, not receiving a copy of the breaks.10 the victims and their families”. Numerous contract or receiving one in a language cases have been reported of current not understood by the worker), debt Amplicomms and Doro or former Samsung factory workers bondage and subsistence wages for make specially adapted developing lymphoma, brain tumours above-average working hours, including phones with large and leukaemia. Sum of Us stated that unpaid overtime. buttons and text. “more than 137 cases of illness, and 53 deaths, have been reported among former Outsourced workers were discriminated against with regard to working hours, workers in Samsung’s semiconductor References 1 www.cityam.com/blog/apple-supplier- factories, where employees were required overtime and gender, plus they faced china-accused-86-labour-rights-violations 2 http:// to work with toxic chemicals”.9 additional disciplinary measures and news.cnet.com/8301-13579_3-57585027-37/apple- threats of deportation. All workers ios-6-devices-get-nod-for-u.s-military-use 3 www. The Brazilian government has started reported that sick days were deducted reuters.com/article/2013/08/28/us-usa-security-france- proceedings against Samsung alleging idUSBRE97R0WE20130828 4 www.independent. from their salaries by the agencies. poor working conditions at a factory in co.uk/life-style/gadgets-and-tech/news/google- the Amazon. The Brazilian government The report also concluded that gmail-users-cant-expect-privacy-when-sending- emails-8762280.html 5 www.computerweekly. is demanding 250 million Reals (£71m) anonymous complaint mechanisms were com/news/2240203739/Google-claims-it-is-not- in “collective moral damages”. The virtually absent or not made accessible subject-to-UK-privacy-laws 6 www.bbc.co.uk/ company was said to already be facing to migrant workers by failing to provide news/business-20954837 7 www.chinalaborwatch. approximately 1,200 legal complaints information in their native language. org/news/new-461.html 8 www.businessspectator. by workers at the Manaus plant, one Most workers reported that their passports com.au/news/2013/8/14/technology/brazil-sue- samsung-over-working-conditions 9 action.sumofus. of the largest of Samsung’s 25 factories were being held by the outsourcing org/a/samsung-cancer-cluster/?akid=2122.1376797. worldwide, which employs 6,000 agencies. Some reported receiving threats H-egqN&rd=1&sub=fwd&t=2 10 www. workers. of deportation when they complained chinalaborwatch.org/news/new-460.html

27 Mobile phone networks NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org Who piggybacks on whom? here are four Mobile Network Operators (MNOs) who own the network infrastructure – O2, Vodafone, EE and 3 – and the rest are Mobile Virtual Network Operators (MVNOs). They ‘piggyback’ on the MNOs reselling services Toffered by the existing operators. On our ranking table below, we have combined the score of the MVNO and the operator they piggyback on. All the companies on the table offer 3G networks. We have not covered 4G as this is still a new technology used by less than 1% of the population.

MVNO/Reseller O2 Vodafone EE

ASDA Green Mobile Lebara Lycamobile Sainsbury’s TalkTalk Tesco The Co-operative TPO Vectone Virgin Mobile WWF © Phaitoon | Dreamstime.com

Environment Animals People Politics +ve USING THE TABLES USING THE TABLES Ethiscore: the higher Positive ratings (+ve): the score, the better the • Company Ethos: company across the criticism = full mark, categories. e = half mark. H = bottom rating, E h = middle rating, • Product Sustainability: empty = top rating Maximum of five positive (no criticisms). marks.

MOBILE NETWORKS (out of 20) Ethiscore Reporting Environmental Nuclear Power Climate Change Toxics & Pollution Habitats & Resources Testing Animal Farming Factory Animal Rights Human Rights Rights Workers’ Supply Chain Management Irresponsible Marketing Arms & Military Supply Genetic Engineering Call Boycott Activity Political Anti-Social Finance Ethos Company Product Sustainability COMPANY GROUP TPO 11.5 h h h h h The People’s Operator/EE

The co-operative 11 H h h h h h E Phone Co-op Ltd/EE Green Mobile 10.5 H h H H Green Mobile/O2/Vodafone Lycamobile 10.5 H h h H h Lycatel/O2 Vectone 10.5 H h h h h h Mundio Mobile/EE O2, giffgaff 10 H H H H Telefonica WWF Wildlife 10 h H h H H Digital Spring/Vodafone Lebara 9.5 H H h H H Lebara Group/Vodafone Talk Mobile 9.5 H H h H H Talktalk Telecom/Vodafone Virgin 9 H h h H H H Liberty Global/EE Vodafone 8.5 H H H h H H Vodafone Group EE, Orange, T-Mobile 7.5 h h h H H H H H Orange/Deutsche Telekom Sainsbury’s 3.5 H H h h H H H H h h h H H J Sainsbury/Vodafone Tesco 3 h H H H h H H H H h h H H Tesco/O2 3 2 H H H H H H h H H H H h H Cheung Kong (Holdings) Ltd ASDA 1 H H H h H H H H H h H h h H H Wal-Mart Stores/Vodafone

See all the research behind these ratings together on www.ethicalconsumer.org. Free to subscribers.

28 Mobile phone networks NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

company distributed £4.8bn in cash Mobile phone networks m dividends to shareholders (more nsu er o .o than any other British business) and c r company profiles l g TPO followed by paid chief executive Vittorio Colao a

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1 i The co-operative

£11m. h

Spanish company, Telefonica owns O2 t e score best for and is the highest scoring of the four Y The firm made a £294m operating B U networks. Green mobile network operators – Telefonica, profit in Britain in 2012, but was ES T B Vodafone, Everything Everywhere and Mobile follows closely able to transform that into a loss by behind. 3. It is the only one of them to get Best claiming UK network investment and rating for its environmental reporting. It interest payments wiped out corporation scored poorly in Greenpeace’s rating of tax liabilities for the year to April.1 11.5 IT companies’ climate change policies in 11 April 2013, being dragged down by its lack of clean energy advocacy. Everything Everywhere, a 50-50 joint venture between the UK mobile network operations of Deutsche Telekom (T- Mobile) and Orange, officially began in mid-2010. It is now the most popular 10.5 network provider with 32% of the market in 2012. These three are all Orange was formerly known as France best buys because Telecom. The French government owns they are all social or more than one-quarter of Orange. The Vodafone took the biggest tumble this environmental alternatives. EE brand picks up criticisms from other year in Greenpeace’s ranking of IT companies’ climate change policies They are all mobile virtual network French state-owned companies such operators and so ‘piggyback’ on the as electricity company EDF and Areva. because it had not continued to publicly advocate for renewable energy and four mobile network operators. Best Areva is one of the world’s top nuclear greenhouse gas emissions targets. rated of these four is O2 which also energy companies and is involved in owns giffgaff. every step of nuclear power production Cheung Kong is a Hong Kong property from uranium mining right through to conglomerate which controls around recycling used fuel.2 50% of Hutchison Whampoa, a firm with operations in ports and container 10 The German government and German terminals, retail, telecom, and oil. state-owned development bank KfW Hutchison owns the ‘3’ network provider together own about 32% of Deutsche and also owns Husky Energy Inc, which Telekom. has substantial involvement in the oil UK company Vodafone is infamous for sands projects in Alberta, Canada. For stories about its tax avoidance. Vodafone, that reason Ethical Consumer called a the world’s second largest mobile phone boycott of all subsidiaries of Cheung company by revenue, paid no corporation Kong including its most obvious References 1 The Guardian, 7th June 2013 tax in the UK for a second year running consumer boycott target, Superdrug – Vodafone paid no corporation tax in Britain last year in 2012. However in the same year the stores. 2 Areva Group website – www.areva.com

Mobile phones and price different providers blind you with get an older iPhone model for around complicated alternatives and try to lock £17 per month with 300 minutes, The are two main ways of buying a you into deals for anything up to 24 unlimited texts and 500MB of data for mobile phone: months. surfing the net. • A pay-as-you-go deal where you The Which? website, used in You can get a SIM Only contract with buy your own phone and pay for conjunction with our own ethical Green Mobile for £10 per month with each call, text or time you spend information, is a useful guide. 50 minutes talk time and 50 texts. You on the internet. Pay-as-you-go can get 500MB of data for an extra • A monthly contract where you £7.50 per month. For mobile handsets we’ve picked best pay a set amount each month, buys that cover a range of prices. The TPO does a SIM Only deal for just £5 usually by direct debit, and either Fairphone, which you can pre-order per month for 50 minutes of talk time, get a phone ‘free’ or a SIM Only now before its release in December, 50 texts and 50MB of data. deal which you can use with any is £280. You can get a Nokia feature The Co-operative do a SIM Only deal phone. phone for as little as £16. A new iPhone for £15 per month this includes 100 Within these two options there are will cost upwards of £400. minutes, unlimited texts and 1GB of literally hundreds of different deals Contract data. available (Orange alone has 28 different O2’s cheapest SIM Only deal is £8 per monthly contract plans). You could If you choose a contract on our best month for 100 minutes, unlimited texts liken it to the energy market, where buy network O2 (see page 28), you can and 100MB of data.

29 Broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

Sky, O2 home broadband and BE sands. The boycott was called by Ethical broadband are all owned by BSkyB Consumer. whose major shareholder is Rupert Broadband BT is the world’s oldest communications Murdoch’s rightly demonised News company, with a direct line of Corporation. News Corporation’s list of descent from the world’s first national roadband is what we call fast dodgy activities include phone hacking telecommunications undertaking. internet. You can choose to get your at the News of the World, Page 3 in broadband through your telephone The Sun and the alleged lobbying of The Disconnect Now campaign, a Bline, or superfast fibre optic cables. Tony Blair in support of the Iraq war. A coalition of NGOs including War study conducted in 2003 by Fairness & Fibre optic is broadband that runs on Want and the Palestine Solidarity Accuracy in Reporting (FAIR) found that Campaign, is calling on BT to over cables in the ground, whilst ADSL the two networks notably likely to present sever its links with Israeli company broadband runs over copper telephone pro-war commentary were News Corp’s Bezeq International which provides wires. 6 Fox Network and CBS. telecommunication services to illegal All of the companies on the broadband The Post Office is a UK government- Israeli settlements in the Occupied table use BT’s infrastructure with the 5 owned company, although how long it Palestinian Territories. exception of Tooway which uses satellite will remain a public company remains technology and Virgin Media which uses it BT scored best for environmental unclear. It was reported in the Guardian reporting but received a worst rating for owns fibre optic cables. on 12th September 2013 that Vince supply chain management due to its lack Cable, the business secretary, had filed of policy. Broadband company a formal “intention to float” on the stock exchange within the next six years. Its profiles score will change with the planned sale References 3 Guardian, 12th September 2012 of 50%.3 Government to float Royal Mail on stock exchange Following its acquisition of Virgin Media “in the coming weeks” www.theguardian.com/ in June 2013, Liberty Global plc is the The Post Office picks up criticisms from business/2013/sep/12/government-float-royal-mail- largest international cable company with other UK state-owned companies – RBS stock-exchange-privatisation 4 www.libertyglobal. operations in 14 countries including com 18th September 2013 5 Disconnect Now (80% owned) and Lloyds Banking Group website – http://disconnectnow.org 6 The Press and Russia, a country on our list of oppressive (32.7% owned). It receives a Boycott Public Misperceptions About the Iraq War – Harvard regimes.4 Call mark for RBS’s involvement in tar Nieman Report, Summer 2004

Environment Animals People Politics +ve USING THE TABLES USING THE TABLES Ethiscore: the higher Positive ratings (+ve): the score, the better the • Company Ethos: company across the criticism = full mark, categories. e = half mark. H = bottom rating, E h = middle rating, • Product Sustainability: empty = top rating Maximum of five positive (no criticisms). marks.

BROADBAND (out of 20) Ethiscore Reporting Environmental Nuclear Power Climate Change Toxics & Pollution Habitats & Resources Testing Animal Farming Factory Animal Rights Human Rights Rights Workers’ Supply Chain Management Irresponsible Marketing Arms & Military Supply Genetic Engineering Call Boycott Activity Political Anti-Social Finance Ethos Company Product Sustainability COMPANY GROUP

Green ISP 15 e Green ISP GreenNet 15 e GreenNet Educational Trust Green Mobile 14 Green Mobile Ltd Eclipse 13.5 h KCOM Group plc

The co-operative 13.5 H E Phone Co-op Ltd Tooway satellite 13 H Satellite Solutions Worldwide Zen 13 H Zen Internet Ltd Utility Warehouse 12 H H Telecom Plus plc TalkTalk, AOL 11.5 H H h Talktalk Telecom O2 mobile broadband 10 H H H H Telefonica Virgin Media 10 H H H H Liberty Global Sky, BE, O2 home broadband 9 h H h H H H BSkyB/News Corp BT, PlusNet 7.5 h H H H H H H BT Group plc EE, Orange, T-Mobile 7.5 h h h H H H H H Orange/Deutsche Telekom

John Lewis 3.5 h H H H H H H H h H h H h E John Lewis Partnership Tesco 2.5 h H H H h H H H H H h H H Tesco Post Office 0.5 H H H h h h h h H H H h H h H H H UK Government

See all the research behind these ratings together on www.ethicalconsumer.org. Free to subscribers.

30 Broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org

m nsu er o .o c r Alternative providers l g The Best Buys for a

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i are Green Net and

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t e Green ISP followed There are now a number of alternative providers Y BES T BU by Green Mobile across the mobile network and broadband markets. and The co-operative. These four are all best buys Anna Clayton and Tim Hunt explain more. because they are all social or environmental alternatives. Green network Agency and World Land Trust. They give 5% of your monthly phone bill to one of companies the three charity partners of your choice. They do not supply new handsets and There was once a time that your only 15 encourage you to keep hold of your old 15 mobile phone network option was to phone but they can sell you a refurbished use one of the big boys such as Orange one. Digital Spring operates the WWF or T-Mobile. However as the market network on the same basis with 10% of matures new operators with a more ethical the cost of each call going to the wildlife approach are entering the market. charity. 13.5 The People’s Operator is one such The Phone Co-op, which has been company. This network provider gives 10% around for a while, also offers mobile of what you spend on calls and texts to a tariffs. It is the only telecoms provider charity of your choice. At the same time it in the UK that is owned and run by its has also committed to sharing 25% of it’s customers. The Co-op’s Fiona Ravenscroft, 14 profits through a new foundation. believes that what they offer is a true Yasmin Azirar from the company told alternative in the mobile market. “Being us “The TPO Foundation is a transparent a consumer co-operative and independent entity run by means we are owned by our Green broadband trustees and chaired by Sir customers who have an Christopher Kelly. equal vote on key issues. companies It was set up to They can attend the award funds to AGM to ask questions There are currently four ‘green’ broadband organisations, local on performance, have providers – Green Mobile and Phone Co-op communities and the opportunity to (see above), plus GreenNet and Green ISP. charities making a participate in choosing As an ISP GreenNet provides email, positive difference the board (or even broadband, hosting and web design services to people’s lives.” standing for election), and support to both domestic users and She added and have a share in the organisations. They are a not-for-profit “we give users profits.” organisation and a founder member of the the opportunity She added that, Association of Progressive Communications, to nominate any “As a consumer co- an international network promoting easy organisation or operative, we abide by and affordable access to a free and open charity they wish. the internationally- internet to improve people’s lives and create Members can recognised co-operative a more just world. They also promote the use choose any cause or principles, and social of Free and Open Source Software (FOSS) select one from the and environmental and offer advice and training on sustainable network’s long list responsibility underpin and ethical IT and internet use. of partners, which everything we do, from GreenNet’s charity, GET, provides includes national the way we conduct all research on IT accessibility and organisations business dealings to sustainability, and has recently published a such as The Big how we treat colleagues series of guides on ‘Greening IT’. Issue, Children’s and invest our profits.” Green ISP was founded in 2003 and is Heart Foundation, Ethical Consumer a not-for-profit Internet Service Provider Childline, NSPCC, was also pleased to (ISP). By working with TreeSponsibility – a Regenerate, The hear that “We changed community based Climate Action Group Trussell Trust, and Trinity Hospice.” our network three years ago because a new – it offsets its estimated 25 tonnes of CO2 Resource Utilities and Digital Spring provider enabled us to offer competitive per year through planting a tree for every are two similar companies. The former pricing to all our customers along with new broadband and web hosting customer. set up Green Mobile in partnership with excellent UK coverage. In addition, using The company aims to run its operations in a three green organisations – Friends of the Three network meant we did not score completely radical way, through only using the Earth, Environmental Investigation highly in the Ethical Consumer ratings.” renewable energy.

31 Broadband NOVEMBER/DECEMBER 2013 www.ethicalconsumer.org The best network in Europe - apart from all the others Shortly after the 2010 election, the coalition government announced a plan for Britain to have the “best superfast broadband in Europe by 2015”. To many observers the goal looked unachievable from the outset. Now it appears the government has actually made things worse. Shaun Fensom explains more.

n order to achieve its target, the UK “If you (the government) had devised government set aside £530m to help it differently, had bigger areas for the reach the ‘final third’ of the population contracts so you could spread your costs Iin areas where BT has no plans to extend more, allowed different technologies to its ‘superfast’ service. This programme be used and insisted on a 100% coverage, offered a unique opportunity to achieve we would have found other people in the two things: make a start building the pure game and I bet we would have spent less of fibre network the UK will eventually need, the taxpayers money.” and bring some competition into a market Progress has been so slow that rural dominated by two big infrastructure communities have taken matters into their players. own hands. An excellent example is B4RN, Instead it has arguably achieved a community-owned cooperative that has raised funds from residents and is rolling the opposite. The sorry story of how out a network in rural Lancashire. It’s a was displayed in gory detail in a report pure fibre optic network, not the hybrid by Margaret Hodge’s Public Accounts solution favoured by BT (which relies on Committee (PAC) published in September. old copper telephone lines). B4RN told the Witnesses told the PAC how most of county council which villages it planned the money has ended up going to BT, to connect – good news you’d think for undermining the efforts of communities Lancashire, leaving more government and small providers. When the money to spend on the rest of the county. government asked county councils to But earlier this year residents of one village come up with plans to fix the holes in their on the list received letters saying that BT broadband coverage – mostly in rural would be rolling out the council’s superfast areas – they stressed that the best way to broadband scheme to the village – ahead comply with EU competition rules would of most of the rest of the county. B4RN be to use the government’s approved list supporters pointed out that BT’s hybrid of suppliers. But as time went on, all but technology would struggle to deliver good one of the suppliers on the list pulled out, speeds given the village’s remote location. some openly complaining that the funding No problem said the council – BT would terms favoured one supplier – BT. be installing 100% fibre – a privilege BT has reserved for a handful of areas in the The PAC concluded that the UK. Thankfully the political heat from the government had “mismanaged” the PAC forced a re-think by the council, and project by awarding all 26 rural broadband the threat to the community scheme has contracts to BT and that BT had “exploited been lifted. its quasi-monopoly position”. The With the government funding BT’s committee found ministers were failing to compromise technology and the UK check whether BT’s bids were reasonably falling further behind countries that are priced and said there had been “wildly investing in new fibre networks, far- inaccurate” estimates of costs. sighted communities along with some Committee chair Margaret Hodge told small private firms are ready to step up to the BBC: “The taxpayer has been ripped the plate. It will take more political heat off with £1.2bn going to the shareholders to ensure the cards are not stacked against

© Stocksnapper | Dreamstime.com of BT. them.

32 Mobile phones – The stories behind the company ratings

Acer smartphones While Acer’s Products score improved with progress in energy Owned by Acer Inc. efficiency, the company continued to score no points on product life cycle for failing to publicly disclose the length of warranty Acer Inc., 8F, 88, , Sec.1, Hsin Tai Wu Rd. , Hsichih, Taipei, and spare parts availability for its main product lines. Acer’s new Hsien 221, Taiwan deadline of eliminating polyvinyl chloride plastic (PVC) and all phthalates by 2012 is fast approaching, and Greenpeace is looking Environment forward to seeing this goal achieved. Environmental Reporting Acer scored higher in Sustainable Operations, mostly due to its Worst ECRA rating for environmental reporting (August more dynamic role with its suppliers. The company continued 2013) doing particularly well on chemicals management for its lobbying In August 2013 Ethical Consumer sent Acer Inc a questionnaire for restrictions on organo-halogens, and for its precautionary requesting a copy of the company’s environmental policy. No approach to chemicals. response was received. Ethical Consumer searched the company’s As a result Acer lost half a mark in the pollution and toxics website, www.acer-group.com, and the environmental section of category. (ref: 2) the website was viewed. The website explored a large number of environmental issues. People These included waste management, packaging, pollution prevention, emission reduction, hazardous substance management Human Rights and reduction, recycling, re-using, end-of-use return initiatives, Subsidaries in oppressive regimes (September 2013) sustainable sourcing of materials and a detailed breakdown of In September 2013 Ethical Consumer viewed ACER’s Annual the company’s carbon emissions. The company was therefore Report 2012 which listed the companies subsidaries. These considered to have a reasonable understanding of its environmental included subsidaries in China, Russia, India, Vietnam, Thailand impacts. and the Philippines. Ethical Consumer, at the time of writing considered each of the countries to be governed by an oppressive Only one future quantified target was provided: regime. (ref: 3) - reducing GHG emissions by 30% in 2015, compared with 2009, Conflict minerals company ranking (August 2012) followed by a 60% reduction between 2009 and 2020. In the Enough Project’s 2012 Conflict Minerals ratings of 24 No information about the report being independently verified companies, Acer scored 40% in its progress towards responsible could be found. sourcing of conflict minerals - the 3Tgs of tin, tungsten, tantalum Although an up-to-date environmental report was provided, and the and gold. company showed reasonable understanding of its environmental It had taken proactive steps to trace and audit its supply chains, impacts, only one quantified future target could be found and no pushed for some aspects of legislation, exercised leadership in information about an independent auditor could be found. Ethical industry-wide efforts and started to help the DRC develop a Consumer therefore gave Acer a worst rating for environmental clean trade. But it could still dig deeper in its supply chains and reporting. (ref: 1) outreach. Pollution & Toxics Acer was a top tier company and came joint 7th from the top with Greenpeace rating for toxics, climate change and takeback 40%. The top score was 60%. (November 2012) Its highlights were that it had: The latest version of Greenpeace’s Guide to Greener Electronics Greatly improved its efforts on conflict minerals and moved from (version 18) was released November 2012. The guide ranks the a middle-tier to a top-tier company. 16 top manufacturers of personal computers, mobile phones, TV’s and games consoles according to their policies on Energy and Was one of the only companies to publish the number of smelters Climate, Greener Products, and Sustainable Operations. in their supply chain. Acer moved up the ranking to 4th position, with a score of Was one of the only four companies to adopt a proactive policy 5.1/10. Acer showed a larger leadership role in its conversations requiring its suppliers to only source from conflict-free smelters with suppliers on a range of issues, including greenhouse gas when available. (GHG) emissions and hazardous substances, conflict minerals, Applied to join the Public Private Alliance but did not participate and fibre sourcing. This has resulted in increase scoring across in a program to source clean minerals from Congo. the three criteria. Acer can improve its score by enforcing its new sourcing policy Acer showed greatest improvement on the Energy criteria. The for smelters with supplier audits, joining the Early Adopters company has set new reduction targets for its GHG emissions, program, piloting the OECD guidance, and fully supporting and which aimed to reduce its global GHG emissions by 30% by 2015, implementing Section 1502 regulations issued by the Securities relative to a baseline of 2009. Acer’s target for 2020 is a 60% and Exchange Commission. (ref: 4) reduction between 2009 and 2020. Acer also continued to support Workers’ Rights cuts of 30% by 2020 for industrialised countries. Additionally, Sweatshop conditions at Chinese supplier (13 April 2010) Acer has asked all 1st tier suppliers to adopt more aggressive The US National Labor Committee released an in-depth report GHG reduction strategies, setting a deadline of the end of 2012 in April 2010, “China’s Youth Meet Microsoft: KYE factory in to provide details.  China produces for Microsoft and other U.S. Companies.” so low that they were only a third of what a family would need to Over the course of a three-year investigation of the KYE factory make a living, meaning that workers would need overtime pay to in Dongguan, China, unprecedented photos were smuggled out make ends meet. The legal minimum wage was seen by companies of the factory, of exhausted teenagers, seen slumping over asleep as the basic wage and the maximum entrance salary, the report on their assembly line during break time. stated. In the peak season overtime was high and workers regularly worked 7 days per week, sometimes 12 hours per day. This was According to worker estimates, Microsoft accounts for the largest worst in Export Processing Zones (EPZs) especially regarding proportion of production at KYE, about 30 percent, and their the freedom to organise in unions as this was influenced by the production is consistent. But other major corporations outsourcing “no union-no strike” practice in EPZs. production to KYE included Acer Inc. Esther de Haan of the Center for Research on Multinational The investigation found: Corporations (SOMO), coordinator of makeITfair said in an * KYE recruits hundreds (up to 1,000) “work-study” students 16 associated press release that “Workers producing computer parts and 17 years of age, who work 15-hour shifts, six and seven days are still working long hours for low wages, and have no possibility a week making webcams, mice and other computer peripherals. to organise themselves in order to demand improved conditions.” Some of the workers appear to be just 14 or 15 years old. A typical The report concluded that although considerable efforts had been shift is from 7:45 a.m. to 10:55 p.m. Most of the students work made around CSR, by both the computer companies and suppliers, for three months, but some stay longer. essentially the computer companies were asking suppliers to * Along with the students, KYE prefers to hire only women 18 to 25 improve labour conditions, but not ensuring it was financially years old, who are considered easier to discipline and control. attractive for them to implement the changes they were asking * Workers report that before the recession, they were at the factory for. (ref: 6) 97 hours a week, while working 80 ½ hours. In 2009, workers Supply Chain Management were at the factory 83 hours a week, while toiling 68 hours. Worst ECRA rating for supply chain management (August * Workers are paid 65 cents an hour, which falls to a take-home 2013) wage of 52 cents an hour after deductions for factory food. In August 2013 Ethical Consumer emailed Acer and attached a * Workers have to report early, unpaid, for military-like drills. questionnaire that included a request for a copy of the company’s Management controls every second of their lives. policy addressing workers rights at supplier companies or any policies regarding sourcing. The company did not respond. A * The work pace is grueling as workers race to complete their search was made of the company’s website, www.acer.com, in mandatory goal of 2000 Microsoft mice per shift. During the long the same month. The company’s supply chain management web summer, factory temperatures reach 86 degrees and the workers page was viewed. are drenched in sweat. The company was awarded Ethical Consumer’s middle rating for * Security guards sexually harass the young women. Workers its supply chain management for the following reasons. are prohibited from talking, listening to music or going to the bathroom during working hours. Freedom of movement is The company was found to subscribe to the EICC code, which restricted and workers can only leave the factory compound covered child labour, forced labour and anti-discrimination. during regulated hours. However it did not mention a living wage and working hours (under 48 with 12 hrs over time) and the freedom of association * Fourteen workers share each primitive, dirty dorm room, committment was not sufficiently robust. Also there is no explicit sleeping on narrow bunk beds. To “shower” workers fetch hot mention of it covering the whole supply chain or secondary water in a small plastic bucket for a sponge bath. Workers report suppliers. Therefore ECRA considered it to be a rudimentary that the food is awful. supply chain policy. KYE management claimed factory conditions were excellent, and that they were in full compliance with China’s labour laws. But young women described the factory as a prison, where There was some reporting of audits (although the data was three everyone who could leave did so within six months. It is almost years old), but no schedule for follow ups or second visits. There impossible to find a worker who has been at the factory for more was no information on stakeholder enegagement. The data released than a year or two. included coe compliance at 40 locations. The company therefore scored negative marks for long working hours, use fo child labour, bullying of the workforce, intimidation One difficult issue was addressed that of training which was also of workers, not paying an adequate wage and the rpovision of a on offer to buyers and suppliers. (ref: 7) dangerous working environment. (ref: 5) Poor conditions at supplier factories (July 2009) Politics Acer was mentioned in the SOMO report “Configuring Labour Political Activities Rights: Labour Conditions in the Production of Computer Parts Member of WBCSD (February 2012) in the Philippines” as being a computer company sourcing from According to the organisation’s website www.wbcsd.org, viewed factories in the Philippines investigated in the report. by Ethical Consumer on 13/02/2012, Acer Group was a member of The report found that since 2006 some aspects of working the World Business Council for Sustainable Development. This was conditions had become worse, largely due to the growth of contract regarded by Ethical Consumer as an international corporate lobby labour through agencies in which workers were worse off in group which exerted undue corporate influence on policy-makers many ways including: wages and benefits, freedom to organise in favour of market solutions that were potentially detrimental to and working hours. The report also said that the economic crisis the environment and human rights. (ref: 8) might have a further negative effect on issues such as wages and Anti-Social Finance organising, with workers losing their jobs. Worst ECRA rating for likely use of tax avoidance It was reported that workers were not able to cover their basic costs strategies (September 2013) with the wages they earned for a basic working day. According to In September 2013, Ethical Consumer viewed Acer Annual Report the National Wage and Productivity Commission, wages were set 2012. The report contained a list of “Company and subsidiaries in

 which the Company is able to exercise control over the subsidiary’s Ethical Consumer considered these countries to be governed operations and financial policies”. by oppressive regimes at the time of writing but as the company According to the report the company had several holding was headquartered in China it did not receive a rating for having companies in the British Virgin Islands, Hong Kong, Luxembourg, subsidiaries there. (ref: 9) the Cayman Islands, the Seychelles and Somoa. It had an insurance Workers’ Rights company based in Guersey. Chinese supplier using child labour (August 2013) ACER also had several companies which were for the “sale of China Labor Watch reported on 13th August 2013 that workers brand-name information technology” based in the British Virgin reported that a large number of child workers are hired at a Chinese Islands, Switzerland, Singapore and Hong Kong. electronics manufacturing company named Jiangxi Lianchuang Given that the company had several high-risk company types likely Electronics Co., Ltd. Some of the workers were as young as 12 to be involved in tax avoidance strategies based in jurisidictions to 14 years old, and worked 11 hours per day in the factory. which were on Ethical Consumer’s tax haven list at the time of Based on Chinese media reports, the child workers at Lianchuang writing, it received a worst rating in this category. (ref: 3) work under the same conditions as adults, receiving no special protection. The children work 11 hours per day. Shifts ran from 8 a.m. to 9 p.m., with only two one-hour meal breaks and two Alcatel mobile phones 10-minutes work breaks. The child workers at Lianchuang were Owned by TCL Communication all dispatch workers from a Shenzhen labour dispatch company TCL Communication is owned by TCL Corporation and earnt a low salary. TCL Corporation, Tcl Technology Mansion, No. 17 Huifeng 3rd According to Lianchuang’s official website, the company was a Road, Zhongkai High-T, 516002 Huizhou 516002 Guangdong, joint-venture between a local Chinese and a Taiwanese company, China mainly producing touch screens and optical parts for major brands such as Hisense, TCL, SHARP, and HTC. (ref: 10) Environment Supply Chain Management Environmental Reporting Worst Ethical Consumer rating for supply chain Worst Rating for Environmental Reporting (August 2013) management (August 2013) In August 2013 Ethical Consumer sent TCL Corporation a In August 2013 Ethical Consumer emailed TCL and attached a questionnaire requesting a copy of the company’s environmental questionnaire that included a request for a copy of the company’s policy. No response was received. Ethical Consumer searched policy addressing workers rights at supplier companies or any the company’s website, www.tcl.com, and the environmental policies regarding sourcing. The company did not respond. A section of the website was viewed. search was made of the company’s website, www.TCL.com, in the same month. The company’s CSR web page was viewed. No report dated within the last two years could be found, and no quantified, future environmental The company was awarded Ethical Consumer’s worst rating for its supply chain management for the following reasons. targets were presented. The ‘Green’ section of the website discussed emissions and the company’s effort in producing a ‘circular There was no information regarding workers rights in the company economy’ within the Chinese Industry. However, no discussion supply chain on the CSR pages of the company website. (ref: of carbon dioxide emissions, waste, or the sustainable sourcing 7) of minerals could be found. Ethical Consumer therefore gave TCL Corporation a worst rating for environmental reporting. (ref: 9) Amplicomms mobile Owned by Audioline GmbH Pollution & Toxics Audioline GmbH, Hellersbergstraße 2a, 41460 Neuss, no toxics policy (2013) Germany In September 2013 Ethical Consumer searched the TCL website for its policy on toxic chemicals. The site contained no information on the subject. As a manufacturer of smartphones the company Environment would be expected to report on the chemicals it uses and set Environmental Reporting targets for reducing the use of toxic chemicals. Therefore it lost Worst ECRA rating for environmental reporting marks for the maufacture and sale of products containing toxic (September 2013) chemicals. (ref: 9) In August 2013 Ethical Consumer sent Audioline GmbH a questionnaire requesting a copy of the company’s environmental Habitats & Resources policy. No response was received. Ethical Consumer searched the No policy on conflict minerals (September 2013) company’s website, www.audioline.de, in August 2013 which was In September 2013 Ethical Consumer searched the TCL website written in German. Google Translate was used to translate any (www.tcl.com) for its policy on conflict minerals. The site information into English. No evidence of an environmental report contained no information on the subject. As a manufacturer of could be found. The Amplicomms website (http://amplicomms. smartphones the company would be expected to report on the com) was also searched but nothing could be found. Ethical conflict minerals it uses. (ref: 9) Consumer therefore awarded Audioline GmbH a worst rating for its environmental reporting. (ref: 11) People Pollution & Toxics Human Rights no policy on toxics (September 2013) (See also ‘No policy on conflict minerals’ in Habitats & In September 2013 Ethical Consumer searched the Amplicom Resources above.) website for its policy on toxic chemicals. The site contained no Subsidiaries in oppressive regimes (August 2013) information on the subject. As a manufacturer of mobile phones The TCL Corp website was searched by Ethical Consumer in the company would be expected to report on the chemicals it August 2013, and it stated that the company had subsidiaries uses and set targets for reducing the use of toxic chemicals. in the following countries: Vietnam, China and Thailand.  The company therefore received a mark for the manufacture of Climate Change products containing toxic chemicals. (ref: 12) Rated in Greenpeace’s greener guide to electronics Habitats & Resources (November 2013) No conflict minerals policy (September 2013) The latest version of Greenpeace’s Guide to Greener Electronics In September 2013 Ethical Consumer searched the Audioline (version 18) was released November 2012. The guide ranked the website (www.audioline.de) and the Amplicomms websites 16 top manufacturers of personal computers, mobile phones, TV’s (http://amplicomms.com) for its policy on conflict minerals. The and games consoles according to their policies on Energy and site contained no information on the subject. As a manufacturer Climate, Greener Products, and Sustainable Operations. of smartphones the company would be expected to report on the RIM (the former name of Balckberry) continued to score low conflict minerals it uses. The company therefore received marks in the Greenpeace Guide to Greener Electronic, with 2.0 points under the habitats and resources and human rights categories. out of 10. It remained in the 16th and lowest position of all the (ref: 11) 16 companies evaluated. RIM scored poorly on the Energy criteria. The company received People points for basic disclosure of its greenhouse gas (GHG) emissions Human Rights for its operations and business travel to the Carbon Disclosure (See also ‘No conflict minerals policy’ in Habitats & Project, but without externally verified data, it failed to score Resources above.) additional points. RIM lacked both a comprehensive clean Supply Chain Management electricity plan and a target to increase renewable energy. The Worst Ethical Consumer rating for supply chain company must also set ambitious targets to reduce its own GHG management (September 2013) emissions by at least 30% by 2015 for its operations, and use 100% In September 2013 Ethical Consumer searched the Amplicom renewable electricity by 2020. At the time it had no target. website for information on its supply chain management. The site RIM’s Products score increased in this edition, as it had made contained no information on the subject. The company therefore significant progress in its products’ energy efficiency. Allof received Ethical Consumer’s worst rating in this category. (ref: RIM’s chargers met or exceed Energy Star standards and achieved 12) Level V for International Energy Efficiency Mark. The company also provided energy saving advice. RIM stated all smartphones are free of brominated and chlorinate substances and aimed Blackberry smartphones to eliminate polyvinyl chloride plastic (PVC) and brominated Owned by BlackBerry Limited frame retardants (BFRs) from all new products, although there is currently no timeline. RIM failed to score on the use of post- BlackBerry Limited, Headquarters, 295 Phillip Street, Waterloo, consumer recycled plastics and life cycle criteria. Ontario, N2L 3W8, Canada RIM scored most points on Sustainable Operations, and was one Environment of the better scorers on conflict minerals. RIM surveys its suppliers on their sourcing, and has joined efforts to provide conflict-free Environmental Reporting minerals from the Democratic Republic of Congo (DRC). The Worst ECRA rating for environmental policy (August company’s paper procurement policy aimed to source its fibre 2013) from sustainably managed forests, and specifically excluded In August 2013 Ethical Consumer sent Blackberry Ltd a suppliers who engage in illegal logging or source from countries questionnaire requesting a copy of the company’s environmental that have been engaged in systemic illegal logging. For a higher policy. No response was received. Ethical Consumer searched score, RIM needed to also exclude suppliers who were involved in the company’s website, www. uk.blackberry.com, in August deforestation. RIM had slightly expanded its take-back programme 2013 and the company’s 2012 Corporate Sustainability Report for e-waste to outside the US. The company continued to score was downloaded. points for adopting a Restricted Substances List as a part of its The Product Sustainability section of the report stated that in chemicals management. 2012 the company worked with Five Winds International to Therefore the company lost marks in the following categories: conduct life cycle assessments on the BlackBerry® Torch™ Climate change, habitats and resources and manufacture of 9810 smartphone and the BlackBerry® PlayBook™ tablet. products containing toxic chemicals. (ref: 2) Consequently, the company identified sustainable sourcing, conflict free minerals, the use of recycled materials in products, Pollution & Toxics and energy efficiency as the key focus areas for reducing the (See also ‘Rated in Greenpeace’s greener guide to company’s environmental impact. electronics’ in Climate Change above.) The report went on to discuss issues relating to packaging, end Irresponsible sourcing of tin (July 2013) use recycling of products, renewable energy. In August 2013, Ethical Consumer viewed a Press Release by Friends of The Earth (FOE). It stated that Blackberry alonmg with Although the company seemed to show reasonable understanding several other phone manufacturers had publicly accepted that their of its environmental impacts, no quantified future targets could phones were likely to contain tin sourced from Bangka island, be found. Blackberry Ltd stated that the company was working Indonesia, and that they were committed to tackling the issues to develop GHG emission reduction targets as a result of its ISO associated with tin mining. FOE reported that approximately one 14001 utility management programme. third of the world’s tin was mined from Bangka, and that this had The report was not independently verified. huge consequences for both the environment and the communities Due to the fact that the report was dated within the last two of Indonesia. Investigations by FOE exposed reports of child years, did not present dated, quantified targets for reducing labour, unsafe working conditions, damage to farmland and marine its environmental impacts, had demonstrated a reasonable ecosystems in the area due to mining. (ref: 14) understanding of its environmental impacts and yet failed to be No policy on toxics (July 2011) independently verified, Ethical Consumer gave Blackberry Ltd In July 2011 ECRA searched the RIM company website but a worst rating for its environmental reporting. (ref: 13) could find little evidence of a policy on toxic chemicals and no

 reply was received after requesting the information via email. As of the company’s policy addressing workers rights at supplier a producer of mobile phones and other electronic devices ECRA companies or any policies regarding sourcing. The company believed this policy was a necessary part of their CSR reporting. did not respond. A search was made of the company’s website, Its 2010 Sustainability report did have a section on toxics which www.rim.com, in the same month. The company’s supply chain included “Restriction of lead (Pb) in Polyvinyl Chloride (PVC) management web page was viewed. as specified by the California Safe Drinking Water and Toxic The company was awarded Ethical Consumer’s worst rating for Enforcement Act of 1986 (also known as Proposition 65) – RIM’s its supply chain management for the following reasons. threshold level is lower than required by Proposition 65” but The website stated that the company was a member of the it did not mention phase out nor did it go into any details of Electronics Industry Citizenship Code. Ethical Consumer viewed what chemicals were being used in manufacture. The company the EICC code on the organisation’s website, www.eicc.info. The therefore lost marks for the manufacture of products containing code covered child labour (to a limited extent), forced labour and toxic chemicals. (ref: 15) anti discrimination. However it did not mention a living wage Habitats & Resources and working hours (under 48 with 12 hrs over time). It did cover (See also ‘Rated in Greenpeace’s greener guide to the whole supply chain and some secondary suppliers. Ethical electronics’ in Climate Change above.) Consumer considered it to be a rudimentary supply chain code. (See also ‘Irresponsible sourcing of tin’ in Pollution & There was little information on auditing included on the RIM site, Toxics above.) and also little information on stakeholder engagement. Only one difficult issue was mentioned and only briefly - that of training People purchasers. (ref: 17) Human Rights Operations in two oppressive regimes (August 2013) Arms & Military Supply The Hoovers Family Tree for Blackberry Ltd, accessed on its Supply to the Military (September 2013) website, www.hoovers.com, by Ethical Consumer in August According to an article on internet news service cnet, Blackberry 2013, stated that the company had subsidiaries in the following were the number on supplier of mobile phones to the US army countries: China and Russia. These countries were considered in 2013. The article stated that “BlackBerry has long been the by Ethical Consumer to be oppressive regimes at the time of handset provider of choice for the U.S. government” and that writing. (ref: 16) the military were using 470,000 BlackBerrys at he time of publication. (ref: 18) Ranking for conflict minerals from the Congo (August 2012) In the Enough Project’s 2012 Conflict Minerals ratings of 24 Politics companies, RIM (the previous name for Blackberry) scored 42% Political Activities in its progress towards responsible sourcing of conflict minerals Political lobbying (2012) - the 3Tgs of tin, tungsten, tantalum and gold. In September 2013 the website for the Centre for Responsive Politics, www.opensecrets.org, reported that a total of $3,176,000 It had taken proactive steps to trace and audit its supply chains, had been spent by Blackberry on political lobbying in 2012. The pushed for some aspects of legislation, exercised leadership in company had also contributed $46,016 to both the Democratic industry-wide efforts and started to help the DRC develop a and Republican parties in the same year. (ref: 19) clean trade. But it could still dig deeper in its supply chains and outreach. Anti-Social Finance RIM was a top tier company and came 6th from the top with Class action claims company misled investors (May 2011) 42%. The top score was 60%. According to an article, ‘Class action claims RIM misled investors’ dated May 24th 2011 and posted on the Thomson Reuters website, The highlights were that it had: http://newsandinsight.thomsonreuters.com, lawyers had filed a Significantly improved its score and moved from the middle-tier class action lawsuit against Research In Motion on behalf of its to the top-tier of companies. shareholders claiming its executives misled investors about its Had identified 95 percent of the smelters in its supply chain. prospects in recent months. RIM said it believed the allegations Participated in the Conflict-free Smelter program, but did not were without merit and said it would “vigorously defend” itself. adopt a policy requiring its suppliers to only use conflict-free The lawsuit claimed that RIM knew, but did not disclose to smelter when available. investors, that product delays and lack lustre launches would hurt its earnings. “Specifically, the company failed to inform investors Joined the Public Private Alliance and the Solutions for Hope that its ageing product line and inability to introduce new products project. to the market was negatively impacting the company’s business RIM can improve its score by publishing its smelters, requiring and margins,” the legal document said. It said that, as a result, its suppliers to source from only conflict-free smelters when RIM’s stock traded at an artificially inflated level. The claim enough are available and enforcing this policy through audits, covered a period from when RIM reported its third quarter results piloting the OECD guidance, joining the Conflict-free Smelters in December 2010 to when it slashed forecasts in April 2011, a Early Adopters program, joining the Public Private Alliance, month after reporting fourth-quarter numbers. The profit warning, joining a clean minerals sourcing project from Congo, and by fully blamed on poor performance in the United States and Latin supporting and implementing Section 1502 regulations issued by America, stunned investors and sent the stock spiralling lower. It the Securities and Exchange Commission. (ref: 4) had not recovered since. The lawsuit sought unspecified damages Workers’ Rights on behalf of shareholders during this period. The defendants named (See also ‘Irresponsible sourcing of tin’ in Pollution & in the suit were co-CEOs Mike Lazaridis and Jim Balsillie and Toxics above.) Chief Financial Officer Brian Bidulka. (ref: 20) Supply Chain Management Fined for backdating stock options (2009) Worst ECRA rating for supply chain policy (August 2013) According to the New York Times Several executives and directors In August 2013 Ethical Consumer emailed Research In Motion of Research in Motion agreed to pay penalties totalling about 77 and attached a questionnaire that included a request for a copy million Canadian dollars ($62.5 million) to settle an investigation  into the backdating of stock options. The bulk of them were to be Supply Chain Management paid by the company’s co-chief executives, James L. Balsillie and Worst ECRA rating for code supply chain management Michael Lazaridis. The order included repayment of improper (August 2013) gains from the options backdating, which lasted about a decade, In August 2013 Ethical Consumer emailed Doro and attached a fines and payments to the company and the regulator to offset questionnaire that included a request for a copy of the company’s the cost of their investigations. (ref: 21) policy addressing workers rights at supplier companies or any policies regarding sourcing. The company did not respond. A search was made of the company’s website, www.Doro.com, Doro PhoneEasy in the same month. The company’s CSR web page was viewed. Owned by Doro AB The company was awarded Ethical Consumer’s worst rating for Doro AB, Magistratsvägen 10, 226 43 Lund Skåne, SWEDEN its supply chain management for the following reasons. There was no information regarding workers rights in the company Environment supply chain on the CSR pages of the company website. (ref: Environmental Reporting 24) Worst ECRA rating for environmental performance (August 2013) In August 2013, Ethical Consumer sent Doro AB a questionnaire Fairphone smartphone requesting a copy of the company’s environmental policy. Owned by Fairphone No response was received. Ethical Consumer searched the Fairphone, Piet Heinkade, Amsterdam, 181 A, The Netherlands company’s website, www.doro.com, and the ‘our environmental responsibility’ section of the website was viewed. Environment The website discussed basic information about legal compliance Environmental Reporting to environmental laws but did not make any commitment to Best rating for environmental reporting (August 2013) enforcing an environmental policy across its whole supply chain. In August 2013 Ethical Consumer searched the corporate section It briefly discussed hazardous substances, e-waste, the efficient of the company’s website, www.fairphone.com, in August 2013 use of materials, recycling and packaging. However, it did not and download the company’s press release pack. go into any detail and did not discuss the environmental impacts caused by mineral extraction and carbon emissions. Ethical The Q&A section of the company’s website discussed hazardous Consumer therefore felt the company did not fully understand materials and stated that it complied with the Restriction of its environmental impact. Hazardous Substances Directive. However, for substances not yet on the RoHS legislation, e.g. PVC, the company stated that it could The environmental page was un-dated and was not independently only account for first tier suppliers. The company discussed e- verified. Ethical Consumer therefore gave Doro AB a worst rating waste, recycling, packaging, the importance of a circular economy for its environmental reporting. (ref: 22) and pollution. In an attempt to limit e-waste the company had Pollution & Toxics joined existing e-waste programs, had a phone sell back program no policy on toxics (2013) and offered spare parts of all crucial components through its In 2013 Ethical Consumer searched the Doro company website sales channels. Fairphone had chosen to use a micro-USB with but could find no evidence of a policy on toxic chemicals and adapter which was a standardized norm in the industry, did not no reply was received after requesting the information via email. sell chargers with the phone and therefore encouraged consumers As a producer of mobile phones Ethical Consumer believed this to re-use existing chargers. The company had a phone return policy was a necessary part of their CSR reporting. Therefore program in the Netherlands and was working on establishing one the compaany received a mark for the manufacture of products within the UK, Germany and Austria. The press release stated containing toxic chemicals. (ref: 23) that the company’s Fairphone was free of conflict minerals, and had joined the conflict-free tin initiative and the Solutions for Habitats & Resources Hope Project. The company briefly discussed the environmental No policy on sourcing from DRC (September 2013) damage caused by mining and stated that Fairphone intended to use In September 2013 ECRA searched the Doro company website for only materials extracted in acceptable humane and environmental a policy on sourcing minerals used in mobile phone production conditions. The company was also in the process of carrying out from the DRC, a country renowned for human rights abuses a full lifecycle assesssment of the Fairphone. in the extractive industries and profits from them being used to fund armed groups. This trade also has dire environmental Although no quantified future targets were presented, the company consequenses generating a massive amount of waste which had only sold 13,565 phones, which amounted to £3,794,537. contains toxic and even radioactive substances which pollute the The company was therefore considered a small company with a environment and water supplies and affect local communities. turnover of less than £8 million, and offered an environmental Ethical Consumer could find no such policy. An email was sent and social alternative to other mobile phone handsets. The to the company requesting information on the subject but no company therefore received Ethical Consumer’s best rating for reply was received. environmental reporting. (ref: 25) Therefore the comany lost marks for unsustainable resource extraction and links to projects with human rights abuses. (ref: People 23) Human Rights Positive policy adressing conflict mninerals from Congo People (September 2013) Fairphone started as a campaign, a non-profit organisation with Human Rights a mission to raise awareness on the relationship between conflict (See also ‘No policy on sourcing from DRC’ in Habitats & minerals and electronic goods. The production of its first phone Resources above.) was crowdfunded. The phone used conflict-free tin and tantalum. The soldering paste  used tin from conflict-free mines in the South Kivu Province, Consumer searched the company’s website, www.htc.com, for Democratic Republic of Congo (DRC). The tantalum in the an environmental policy. The Corporate Responsibility (CR) capacitors was extracted from coltan sourced from Mai Baridi, section of the website was viewed. The company stated that it Kisengo and Luba – conflict-free mines located in the northern was ‘committed to making innovative products that respected part of the Katanga Province, DRC. the environment’. Fairphone had joined the conflict-free tin initiative and the The environmental section of the CR page discussed carbon Solutions for Hope Project which certify the conflict-free status of emissions, how the company had attempted to shorten its supply the tin and coltan (tantalum) that goes into their smartphones. chain in order to reduce carbon emissions, in addition to designing They said that their next steps would be to: more energy efficient devices and building an energy efficient head office in Taipei. The company also discussed hazardous “make progress on fairly mined cobalt in locations like the DRC substances and their management, recycling (within offices and Zambia and use Fairtrade certified gold in our smartphone. and during the manufacture process), a take-back- program that This would make us the first electronics company with certified the company had implemented in the US, responsibly sourcing Fairtrade gold in their products.” They added that, minerals, conflict free minerals and water use. Ethical Consumer “We’re also in talks with a mine in Rwanda to conflict-free therefore felt that the company had a reasonable understanding tungsten and are working with a sustainable tin initiative in Banka, of its environmental impact. Indonesia through our friends at Friends of the Earth.” (ref: 25) Although an up-to-date environmental report was provided, Supply Chain Management and the company showed reasonable understanding of its Ethical Consumer rating for supply chain (September environmental impacts, no quantified future targets could be found 2013) and no information regarding environmental information being In September 2013 Ethical Consumer rated Fairphone for its independently verified was provided. Ethical Consumer therefore supply chain management. The company was a small start up gave HTC a worst rating for environmental reporting. (ref: 26) that had been running for less than one year and its sole purpose Pollution & Toxics was to campaign on ethical issues in the mobile phone market. no policy on toxics (2013) The company states that, “We’re approaching a number of In September 2013 Ethical Consumer searched the HTC website organizations to help us improve accountability and transparency for its policy on toxic chemicals. The site contained a limited in our supply chains. Part of this effort includes providing a living amount of information on the subject. The site stated that “We wage, ensuring reasonable working hours, improving working have also implemented an inspection system employing chemical conditions and empowering workers to enter into direct discussions and physical analysis and document collection throughout our with their employers.” supply chain to reduce or eliminate substances of environmental The above was part of a staged approach to making a fairphone, concern.” However there were no further details of this initiative. the first stage of which was to source conflict free minerals. There was some information on banned substances but no targets In October 2013 the company was due to publish the full details for the reduced use of other toxic chemicals. Therefore the company of its supplier which was carefully selected with the help of received a mark for the production of products containing toxic NGO’s in China. chemicals. (ref: 27) The approach was considered to be an effective approach to the Habitats & Resources long term mitigation of all supply chain management issues. No policy on unsustainable mining of coltan (August 2012) the company therefore received Ethical COnsumer’s top rating In the Enough Project’s 2012 Conflict Minerals ratings of 24 in this category. (ref: 25) companies, HTC scored 4% in its progress towards responsible sourcing of conflict minerals - the 3Tgs of tin, tungsten, tantalum Politics and gold. Company Ethos (+ve) It had done next to nothing to shift their practices toward conflict- Not - for - profit structure (2013) free from Congo. The company was not members of industry-wide Fairphone was a social enterprise. The company website stated that efforts, have not taken the proper steps to investigate their supply “We started in 2010 as a project aimed at raising awareness about chains, said nothing about legislation, and were not actively conflict minerals in electronics and the wars that the sourcing of engaged with other stakeholders. these minerals is fueling in the DR Congo. In 2013, we established HTC was a bottom tier company and came 23rd from the top our social enterprise with the aim of designing, creating and with just 4%. The top score was 60%. producing our first smartphone and taking the next crucial step in HTC had: uncovering the story behind the sourcing, production, distribution and recycling of electronics.” (ref: 25) Communicated to Enough through a media firm that they said they had made progress in some categories but did not have the time or capacity to complete the survey. HTC smartphones Owned by High Tech Computer Corp (HTC) HTC could have improved its score by taking the first step to High Tech Computer Corp (HTC), 23 Hsin Hua Rd., Taoyuan determine the smelters in its supply chain, more actively and 330, Taiwan,, Taiwan, R. O. C. directly engaging with outside stakeholders, requiring its suppliers to use only audited conflict-free smelters when enough are Environment available and enforcing this policy through audits, joining the Early Adopters program, joining the Public Private Alliance, piloting Environmental Reporting the OECD guidance, and fully supporting and implementing Worst ECRA rating for environmental policy (August Section 1502 regulations issued by the Securities and Exchange 2013) Commission. (ref: 4) In August 2013 Ethical Consumer sent High Tech Computer Corp (HTC) a questionnaire requesting a copy of the company’s environmental policy. No response was received. Ethical  People Singapore Human Rights HTC HK, Limited - Hong Kong (See also ‘No policy on unsustainable mining of coltan’ in Habitats & Resources above.) Due to the fact the company had two or more companies suspected Subsidiaries in 6 oppressive regimes (August 2013) of being use for tax avoidance purposes, in juridictions which The company’s 2012 Annual Report was downloaded in Spetember were on Ethical Consumer’s tax haven list at the time of writing, 2013 and stated that the company had subsidiaries in the following it receceived a worst rating in this category. (ref: 16) countries: Philippines, India, China, Thailand, Russia and Belarus. All of these countries were considered to be oppressive regimes by Ethical Consumer at the time of writing. (ref: 16) Huawei smartphone Workers’ Rights Owned by Huawei Investment & Holding Co. Ltd Chinese supplier using child labour (August 2013) Huawei Investment & Holding Co. Ltd, Huawei Industrial Base, China Labor Watch reported on 13th August 2013 that workers Shenzhen 518129, Guangdong, China reported that a large number of child workers are hired at a Chinese electronics manufacturing company named Jiangxi Lianchuang Environment Electronics Co., Ltd. Some of the workers are as young as 12 to 14 years old, and they work 11 hours per day in the factory. Environmental Reporting Worst rating for environmental reporting (August 2013) Based on Chinese media reports, the child workers at Lianchuang In August 2013 Ethical Consumer sent Huawei Investment work under the same conditions as adults, receiving no special & Holding Co. Ltd a questionnaire requesting a copy of the protection. The children work 11 hours per day. Shifts run from company’s environmental policy. No response was received. 8 a.m. to 9 p.m., with only two one-hour meal breaks and two Ethical Consumer searched the corporate section of the company’s 10-minutes work breaks. The child workers at Lianchuang are website in August 2013 and downloaded the company’s 2012 all dispatch workers from a Shenzhen labor dispatch company Annual Report and Sustainability Report. and earn a low salary. The sustainable development section of the report discussed According to Lianchuang’s official website, the company is a how the company was promoting environmental protection by joint-venture between a local Chinese and a Taiwanese company, ‘providing energy-efficient green ICT solutions that reduced mainly producing touch screens and optical parts for major brands carbon emissions and drove cyclical economic growth.’ The such as Hisense, TCL, SHARP, and HTC. (ref: 10) report discussed how the company was making its products and Supply Chain Management base stations more energy efficient, and a breakdown of carbon Worst ECRA rating for supply chain management (August emissions throughout a products life-cycle was provided, in 2013) addition to the company’s performance. The company’s website In August 2013 Ethical Consumer emailed HTC and attached a discussed conflict minerals, pollution prevention and treatment, questionnaire that included a request for a copy of the company’s green packaging and stated that the company had reduced waste policy addressing workers rights at supplier companies or any water, waste gas, and solid waste. policies regarding sourcing. The company did not respond. A The company stated that it was aiming to reduce waste, greenhouse search was made of the company’s website, www.HTC.com, in gas emissions, to improve resource utilisation and to minimise the same month. The company’s supply chain management web negative environmental impacts throughout a product’s life-cycle. page was viewed. However, the company failed to provide future, quantifiable targets The company was awarded Ethical Consumer’s worst rating for for reducing the company’s environmental impacts. its supply chain management for the following reasons. Huawei required all of its suppliers to sign the Supplier The company had a poor supply chain policy with weak clauses on Sustainability Agreement, which incorporated social responsibility child labour, working hours, discrimination, and wages. It was also and environmental protection requirements into decision-making unclear if the policy extended across the whole supply chain. and routine operating activities, thereby helping to control for potential social and environmental risk. The company said it carried out audits but no public facing results or schedules could be found. There was no difficult issues The sustainability report was verified by TUV Rheinland addressed and no stakeholder engagement. (ref: 28) (Guangdong) Ltd The company had an environmental report dated within the last two Politics years, showed reasonable understanding of its key environmental Political Activities impacts and the company’s environmental performance was Lobbying (2012) independently verified. However, the company failed to present In September 2013 Ethical Consumer viewed the Open Secrets two future, quantified targets and therefore received Ethical website. The site stated that HTC had spent $620,000 on lobbying Consumer’s worst rating for environmental reporting. (ref: 30) the US government in 2012. The issued it lobbied on included Pollution & Toxics copyright and telecommunications. (ref: 29) no policy on toxics (September 2013) Anti-Social Finance In September 2013 Ethical Consumer searched the Huawei website Worst ECRA rating for likely use of tax avoidance for its policy on toxic chemicals. The site contained no information strategies (September 2013) on the subject. As a manufacturer of smartphones the company In September 2013 Ethical Consumer viewed Hoovers website for would be expected to report on the chemicals it uses and set targets High Tech Computer Corp’s family tree. It listed two companies for reducing the use of toxic chemicals.Therefore the company as holding subsidaries and one was suspected of being holding looses marks for the manufacture of products conatinaing toxic company. chemicals. (ref: 31) H.T.C. (B.V.I.) Corp - British Virgin Islands HIGH TECH COMPUTER ASIA PACIFIC PTE. LTD. -

 People In August 2013 Ethical Consumer emailed Hauwei and attached a Human Rights questionnaire that included a request for a copy of the company’s policy addressing workers rights at supplier companies or any Inadequate statement on conflict minerals (September policies regarding sourcing. The company did not respond. A 2013) search was made of the company’s website, www.hauwei.com, Huawei’s statement on conflict minerals was downloaded from in the same month. The company’s supply chain management its website in September 2013. It stated: web page was viewed. “Huawei takes this issue very seriously and takes actions to The company was awarded Ethical Consumer’s worst rating for address it. its supply chain management for the following reasons. The issue of conflict minerals is well known in the electronics and The company’s supply chain sectipon of the website contained a other industries and is extremely complex. Resolution will require number of vague commitments regarding sustainability but there the commitment and cooperation of businesses, governments was no specific information on workers rights, supplier audits or and non-governmental organizations (NGOs). Huawei does not difficult issues. (ref: 31) procure nor support the use of conflict minerals. Huawei requires all suppliers not to procure conflict minerals. Huawei also asks suppliers to cascade this requirement to sub-tier suppliers. Politics Huawei continuously supports industry collaboration to address Political Activities supply chain social responsibility issues. We continue to participate Lobbying (2012) in the efforts with customers and suppliers through the Global In September 2013 Ethical Consumer searched the Open Secrets e-Sustainability Initiative (GeSI) to seek a sustainable solution website. It stated that Huawei had spent $1,200,000 on lobbying to conflict minerals issue.” the US government in 2012. The company was lobbying mainly on the issues of telecoms and trade. (ref: 33) They are not members of industry-wide efforts, have not taken the proper steps to investigate their supply chains, have said Anti-Social Finance nothing about legislation, and are not actively engaged with other Worst ECRA rating for liekly use of tax avoidance stakeholders. (ref: 31) strategies (September 2013) Operations in Iran (October 2011) In September 2013, Ethical Consumer viewed Hoovers website An article by the Wall Street Journal published online at www. for Huawei’s family tree. It listed several subsidaries which online.wsj.com, on 27th October 2011, stated that Huawei were considered not to be serving the local population based in Technologies Co dominated Iran’s government controlled mobile Hong Kong. phone industry. Since Huawei’s takeover of Iran’s Telecom Market, Huawei had gained the trust and alliance of major governmental Huawei Marine Systems Co., Limited - Hong Kong and private entities which included military industries. Huawei Digital Technologies (Hong Kong) Co., Limited According to the article Huawei recently signed a contract to install Huawei Tech. Investment Co., Limited - Hong Kong equipment for system at Iran’s largest mobile-phone operator that allowed police to track people based on the locations of their Huawei Technologies Co. Ltd - Hong Kong mobile-phones. While the technologies are available on Western networks the article noted that in the hands of repressive regimes, It was highly likely that these subsidaries were being used for it can be used as a critical tool in helping to quash dissent. tax avoidance purposes and therefore the company received a In Iran, the government beefed up surveillance of its citizens after worst Ethical Consumer rating in this category. Hong Kong was the controversial 2009 election which led to many anti government on Ethical Consumer’s list of tax havens at the time of writing. uprisings. Human rights organisations have said that more than (ref: 16) 6,000 people have been arrested and hundreds remain in jail since the uprisings citing mobile phones as being key to the Iranian police monitoring; tracking; and arresting individuals. iPhone smartphone The article also implicated Huawei in helping the Iranian Owned by Apple Inc government censor the internet and news after they apparently Apple Inc, Corporate PR (retail), 1, Infinite Loop, Cupertino, emphasised to Iran’s second largest mobile phone operator that Ca 950142083, USA being from China it had expertise in censoring news and internet. (ref: 32) Environment Subsidiaries in 12 oppressive regime (August 2013) Environmental Reporting The Hoovers Family Tree for Huawei Investment Holding Co., Ltd, Worst ECRA rating for environmental reporting (August accessed on its website, www.hoovers.com, by Ethical Consumer 2013) in August 2013, stated that the company had a subsidiary in China. In August 2013 Ethical Consumer sent Apple Inc a questionnaire Ethical Consumer considered China to be an oppressive regime requesting a copy of the company’s environmental policy. The at the time of writing. company responded with an email containing a link to the Corporate Social Responsibility section of the company’s website. According to the company’s website, www.enterprise.huawei. The Environment section of Apple’s website was viewed in August com, the company also had branches in the following countries, 2013, and no further information could be found- compared to which were regarded by ECRA as oppressive regimes at the time when it was last viewed in March 2013. of writing: Colombia, Venezuela, Ethiopia, Nigeria, Iraq, Saudi It stated that the vast majority of Apple’s carbon emissions comes Arabia, Bangladesh, India, Philippines, Pakistan and Thailand. from the manufacturing, transportation, use, and recycling of its (ref: 16) products. The rest—2 percent — comes from its data centres Supply Chain Management and other facilities. Worst Ethical Consumer rating for supply chain Apple produce Product Environmental Reports for every product management (September 2013) they make which looks at the materials and toxics used, its climate  change impact, energy efficiency and recycling. sales 7 years ago), a level that it was confident it would maintain Some of its data centres and facilities are run on 100% renewable through 2015. electricity, especially those in the USA. At the data center in Apple was a top scorer for policies and practices regarding conflict Maiden, North Carolina, Apple has built the largest end user- minerals, but failed in developing a paper procurement policy owned solar array and the largest non-utility fuel cell in the banning suppliers involved in deforestation and illegal logging. United States. Its target is to be 100% renewable electricity at Apple scored poorly on the Energy criteria; though Apple stated all Apple facilities. that greenhouse (GHG) emissions data of its operations were All its products are BFR, lead, mercury and arsenic free. All its externally verified, it did not provide details. Apple continued products have PVC free internal cables but in some countries to lose points for not setting a target to reduce emissions. While power cords still contain PVC. 13% of Apple’s facility-related electricity consumption came Apple’s facilities’ emissions are third-party verified by Bureau from renewable sources, the company could have increased its Veritas (BV). score by setting an ambitious goal for boosting its renewable energy use by 2020. Whilst the information covered Apple’s main environmental impacts, including conflict minerals, we could not find any future Apple was one of the first companies to sell products free of dated, quantified targets for improvements in its environmental polyvinyl chloride plastic (PVC) and brominated frame retardants performance so Apple received our worst rating. (BFRs), but it did not mention plans to phase out antimony or beryllium. Overall, Apple continued to score well on the Products Its one previous target of acheiving a global recycling rate of 70% criteria. Apple has received public scrutiny for its decision to glue by 2015 was met and exceeded in 2010 and 2011 and Apple stated in batteries in its newest Macbook Pro, which created barriers to “we are confident that we will maintain this level up to 2015” i.e easy recycling. (ref: 2) it did not set a more ambitious target. (ref: 34) Rating for climate change policy (2012) Climate Change Climate Counts is a nonprofit organization launched in Reliance on dirty energy for cloud computing (April 2012) collaboration with Clean Air-Cool Planet. The organization At the time of writing the current explosion in cloud computing annually scores companies on the basis of their voluntary action offered by major IT companies was driving significant new demand to reverse climate change. Climate Counts use a 0-to-100 point for dirty energy like coal and nuclear power, according to a report scale and 22 criteria to determine if companies have: from Greenpeace International. The report was released on 17th * MEASURED their climate “footprint” April 2012 and scrutinises the energy choices of 14 global IT leaders and illuminates ways they can instead invest in clean, * REDUCED their impact on global warming renewable data-centre energy options. * SUPPORTED (or suggest intent to block) progressive climate Greenpeace was targeting three companies – Apple, Amazon legislation and Microsoft - as the biggest owners of data centres reliant on * Publicly DISCLOSED their climate actions clearly and highly polluting coal and nuclear to power their data centres. comprehensively These companies are all rapidly expanding without adequate In 2012, Apple were given a ‘striding’ rating (second from regard to source of electricity, and rely heavily on dirty energy top rating) and scored 62 out of 100, up 2 points from 2011’s to power their clouds. rating. Of the 14 companies surveyed, Apple data centres had the Review: 22/22 points. Apple has completed a comprehensive highest reliance on coal power and the second highest reliance inventory of the impact it has on global warming and that the on nuclear power. Its Clean Energy Index (how much renewable company expects to continue its review in the future. energy is being used) was only 15.3% (the highest being Yahoo! Reduce: 31/56 points. Apple has established clear goals to reduce with 56.4%. the company’s greenhouse gas emissions and has initiated projects Cloud computing is a way of storing and sharing data on the that have resulted in reductions. Internet. The cloud allowed users to share data like photos, music Policy Stance: 2/10 points. Apple has distinguished itself by and documents on the Internet instead of using software or storage strongly advocating for comprehensive public policy that addresses on a local computer. ‘Cloud’ data centres, many of which can be climate change and would lead to market-wide reduction in seen from space, were the factories of the 21st century information greenhouse gas emissions and the growth of renewable energy age, containing thousands of computers. Some consumed the capacity. Apple resigned from the US Chamber of Commerce electricity equivalent of nearly 180,000 homes. (ref: 35) over the trade group’s opposition to comprehensive climate and Greenpeace ranking on energy, products and operations energy legislation. (November 2012) Report: 7/12 points. Apple has made some public information The latest version of Greenpeace’s Guide to Greener Electronics available on its efforts to address global warming. (ref: 36) (version 18) was released November 2012. The guide ranked the 16 top manufacturers of personal computers, mobile phones, TV’s Pollution & Toxics and games consoles according to their policies on Energy and Irresponsible sourcing of tin (July 2013) Climate, Greener Products, and Sustainable Operations. In August 2013, Ethical Consumer viewed a Press Release by Apple dropped to 6th position, with a score of 4.6. Though one of the Friends of The Earth (FOE). It stated that many mobile phone high scorers in this edition, Apple missed out on points for lack of manufactruers had publicly accepted that their phones were transparency on GHG emission reporting, clean energy advocacy, likely to contain tin sourced from Bangka island, Indonesia, further information on its management of toxic chemicals, and and that they were committed to tackling the issues associated details on post-consumer recycled plastic use. with tin mining. FOE reported that approximately one third of the world’s tin was mined from Bangka, and that this had huge Apple received half marks in Sustainable Operations. Apple did consequences for both the environment and the communities of not score high on the e-waste criteria, losing points for lacking Indonesia. Investigations by FOE exposed reports of child labour, a robust take back programme in India. However it continued to unsafe working conditions, damage to farmland and marine score points for its global take-back programme, reporting that in ecosystems in the area. 2010 global recycling exceeded its 70% goal (as a percentage of 10 FOE stated that tin was used as solder in all phones and electronic App removed from istore (September 2011) gadgets. According to the Guardian on September 14th 2011 Apple removed However Apple Inc had yet to openly admit to its iPhones and iPads an iPhone game called Phone Story from its App Store. The app containing tin mined from Indonesia, despite being pressured by took the form of four mini-games about the what the designers consumers to be open about its sourcing. Craig Bennett, Director say was the “troubling supply chain” behind smartphones. The of Policy and Campaigns at FOE, stated: “Apple’s cowardly games satirise key elements of a phones life cycle from coltan public refusal to give a straight answer to concerned customers extraction in Congo, outsourced labour in China, environmental is totally at odds with its competitors and contradicts its own waste in Pakistan, as well as the mania for gadgets in the West. CEO’s commitment to be more transparent about Apple supply The game was released by Italian developer Molleindustria, chains.” (ref: 14) whose mission statement is to “reappropriate video games as a popular form of mass communication” and “investigate the Accused of mishandling dangerous chemicals (1 September persuasive potentials of the medium by subverting mainstream 2011) video gaming cliche”. Apple was accused of censorship by the According to an article which appeared on the BBC news website games producers. (ref: 39) (www.bbc.co.uk) on 1 September 2011, Apple had to defend its environmental record after allegations that some of its suppliers Workers’ rights abuses in Chinese factories (December were polluting in China. The technology giant said that it was 2008) committed to the highest standard of social responsibility. The The Ecologist reported in December 2008, that a report by comments came after a report by Chinese environmental groups Make IT Fair had found that handset components for a number claimed a number of Apple manufacturers were discharging of companies, including Apple, were made by workers paid harmful pollutants. below a living wage and forced to work long overtime hours. The report found that workers in one factory had been expected The report by the Institute of Public and Environmental Affairs to work weekends, and that there was a case of staff who had (IPE) and other non-governmental environment groups also said not fulfilled production quotas working ‘voluntary’ overtime that one factory in the city of Taiyuan emitted irritating gases and without premiums. It was reported that there was evidence of residents had reported difficulty opening their windows. unjust wage deductions in the Chinese factories - such as fining In response, Apple told a BBC reporter that the company had workers for making mistakes or falling asleep on their 13 hour a tough code of conduct for all its supply firms and it audited shift. Furthermore, it was also found that safety protocols were many of them. often ignored. The companies concerned had promised to inspect But a company report released earlier in 2011 had reportedly the factories as a result of the research. (ref: 40) found that dozens of suppliers across the world were mishandling Workers’ Rights dangerous chemicals. More than 100 workers were contaminated Supplier violates 86+ worker’s rights (29 June 2013) at one Chinese plant. The BBC News website, www.bbc.co.uk, was viewed by Ethical According to the article environmental groups said that Apple was Consumer in July 2013. It reported accusations against Apple taking advantage of say the fact that China didn’t have sufficient of violating at least 86 worker’s rights within several Chinese rules in place to protect the environment. (ref: 37) factories. These factories were owned by one of the company’s Rated for pollution in China (November 2010) suppliers- the Pegatron Group- who assembled iPads and In April 2010, a coalition (Friends of Nature, Green Beagle and iPhones. According to Chinese Labour Watch, “three factories the Institute of Public and Environmental Affairs) published its of Pegatron violated a great number of international and Chinese 1st. report on water pollution and IT companies in China. The laws and standards as well as the standards of Apple’s own social coalition reported on evidence of heavy metal pollution from the responsibility code of conduct”. These were said to include IT supply chain and also evidence that the named suppliers who under-age labour, contract violations,insufficient wages, abuse were causing the pollution were supplying well-known IT brands, by management, poor working conditions and excessive working amongst them Apple. The coalition had presented this evidence hours, with an average working week of 66, 67 and 69 hours to the brands and asked them to take action on the issues. within the three factories under investigation. (ref: 41) This report listed copper, chromium, nickel, nickel compounds Supplier of iPad mini criticised for poor workers’ rights and lead as the pollutants discharged by the IT industry, and (October 2012) also listed many specific incidents of discharges from the named An article in October 2012 published by SACOM called ‘iPad suppliers. Minimizes Labour Rights’ stated that Apple supplier, Riteng Apple were mentioned as one company that “performed Computer Accessory Co, Chinese manufacturer of its iPad mini, negatively” and there were expectations that there would be was implicit in gross and systematic labour abuses. The labour difficulties for them to make progress “in mending the gaps in rights organisation conducted off-site interviews with the Riteng their supply chain management.” (ref: 38) workers in October 2012 and found the following major labour rights violations: Habitats & Resources *Excessive overtime- Workers reported working overtime up to (See also ‘Irresponsible sourcing of tin’ in Pollution & 200 hours per month per person. Toxics above.) *Unpaid overtime - Workers estimated up to 20 hours per month People were not paid due to being forced to start work early or cutting Human Rights breaks short. Subsidiaries in 4 oppressive regimes (August 2013) *Abusive use of student workers - Student workers on work The Hoovers Family Tree for Apple Inc, accessed on its website, experience forced to become frontline production workers. www.hoovers.com, by Ethical Consumer in August 2013, stated *Cheating on social insurance - SACOM found that the company that the company had subsidiaries in the following countries: only to brought insurance for regular workers who had worked India, Kazakhstan, China and Thailand. These countries were in the factory for 6 months. considered by Ethical Consumer to be oppressive regimes at the *Exploiting dispatched labour (sub-contracted labourers) - workers time of writing. (ref: 16) reported denial of fundamental rights to have employment contract 11 and social insurance. The company’s supply chain policy was rudimentary, based on *Pressuring injured workers - SACOM found that injured workers the Electronic Industry Citizenship Coalition (EICC) Code. This from an explosion at the factory in December 2011, had been included clauses on discrimination, working week, child labour threatened to have their payments stopped if they refused to move and forced labour. It did not include a committment to paying a to smaller hospitals. A move by the company to prevent injured living wage nor to allow collective bargaining, only as respected workers organising themselves. by local law. The working week clause stated “Our Supplier Code of Conduct limits working weeks to 60 hours except in unusual *Hazardous working environment - Workers reported that in the circumstances, and all overtime must be voluntary.” Apple found polishing department, the shop floor was filled with dust while working weeks of over 60 hours were standard so it now tracks the ventilation was poor and the masks used were ineffective in working hours weekly for over one million employees, publishing protecting workers. the data every month. As a result of this effort, its suppliers have achieved an average of 92 per cent compliance across all working According to SACOM it was not the manufacturers fault for the weeks, and the average hours worked per week was under 50. violations of workers rights but attributed the problems to Apple and its demand for quick turn around and cheaper production costs The company’s Supplier Responsibility 2013 Progress Report which forced suppliers to deny workers the right to a safe working included some evidence of stakeholder engagement; it joined environment and the right to earn an adequate wage. the Fair Labor Association (FLA) in 2012, “We’ve invited the Institute of Public and Environmental Affairs (IPE) and other SACOM stated that only if workers could form genuine unions environmental groups to work with us on specialised audits. to defend their rights, working conditions could be improved. It We’re also continuing our work with Verité, a non-governmental also said that equally important was the fact that Apple must raise organisation (NGO) focused on ensuring fair working conditions, the unit price and prolong the delivery time, so workers would to develop new strategies for worker-management communication. not need to work excessive overtime to earn a living. Apple We participate in the Electronic Industry Citizenship Coalition should also provide remedies to the workers for its negligence (EICC) and the Global e-Sustainability Initiative (GeSI) to promote in enforcing labour rights standards. (ref: 42) the use of conflict-free minerals.” It was involved in two complaints Poisoned workers demand new CEO addresses their initiatives, exploring a range of solutions for encouraging more concerns (August 2011) open communication, including hotlines and committees in which Ethical Consumer found a statement on the Students and Scholars worker representatives address concerns with managers. Apple Against Corporate Misbehaviour website (SACOM), http://sacom. was judged to have good stakeholder engagement. hk, titled ‘Poisoned Workers Demand Steve Jobs Successor to Live Up to CSR’, dated August 26th 2011. It said that poisoned The company’s Supplier Responsibility 2013 Progress Report workers at an Apple supplier Wintek in Suzhou, China, had been provided the results of its 2012 audits. It disclosed the results of awaiting a response from Steve Jobs, the former CEO of Apple its audits, in terms of % of compliances. It stated that it audited all who resigned the day before but had not had a response. The final assembly manufacturers annually, and selected component poisoned workers were hoping the new Apple CEO, Tim Cook, and nonproduction suppliers for audits based on risk factors, such would live up to corporate social responsibility commitments and as the prevailing conditions in the country where a supplier facility provide them with remedies. SACOM supported the cause of the is located and the supplier’s past audit performance. Repeat audits victims and called on Tim Cook to address the grievances of the were performed where on-compliances were found. It listed cases poisoned workers and provide remedies for them. of non-compliance and the remediation plans for these facilities. A strike erupted at the Taiwanese-owned electronics manufacturer Apple itself conducted the audits “supported by local third-party Wintek, which produces touch screens for the iPhone, in early auditors who are experts in their fields”. Apple was judged to 2010. The rumour of massive poisoning was confirmed by the have good Auditing and Reporting policy. local authorities after the strike. According to the workers, about 200 of them were poisoned by the chemical called n-hexane The Supplier Responsibility section of the company’s website which leads to nerve damage. Apple only admitted the gross discussed one difficult issue in its supply chain - workers having labour rights violation in its Supplier Responsibility Progress been asked to pay extortionate fees by employment agencies were Report one year later. The company stated there were 137 helped by the company who ordered the monies to be paid back. workers hospitalised due to the poisoning and that all of them In terms of audit fraud - “In addition to regularly scheduled audits, had been successfully treated. In reality, 2 years on, the workers we conduct a number of surprise audits, during which our team still felt weak and suffered from symptoms of relapse including visit a supplier unannounced and insists on inspecting the facility sweaty hands and feet, and leg cramps, according to the SACOM within an hour of arrival. We conducted 28 of these surprise audits statement. Mr. Jia Jing-chuan, a former engineer at Wintek, said in 2012. During our regular audits, we may also ask a supplier to that he remained worried about his health. He spent about CNY immediately show us portions of a facility that are not scheduled 500-600 (USD $78-94) for health supplements per month due for review.” Apple was judged to have a reasonable policy on to feeling weak. Mr. Jia recently resigned from Wintek to take Difficult Issues. (ref: 44) rest in his hometown. The massive poisoning at Wintek was a serious breach of the labour Arms & Military Supply law and Apple’s code of conduct. Corporate social responsibility Supply to the military (September 2013) was no more than rhetoric without remedy to the workers for the According to an article on the website of consumer news site code infringement said SACOM which demanded Apple under Cnet over 41,000 Apple devices were used by the US military. the leadership of Tim Cook starts a dialogue with the workers as The company website also stated that Apple offered a discount soon as possible. (ref: 43) to those serving in the military. (ref: 18) Supply Chain Management Best ECRA rating for supply chain policy (2013) The Apple Inc website (www.apple.com), contained a section entitled Supplier Responsibility, when viewed in March 2013. 12 Politics $17bn in bonds to raise cash to fund payouts to shareholders, Political Activities rather than repatriating some of its cash reserves, which would be taxed in the US. The move saved the company an estimated Political lobbying in US (2012) $9.2bn in taxes. In its prepared testimony, Apple said that the In March 2013 the website for the Centre for Responsive Politics, move was in its shareholders’ best interests. (ref: 49) www.opensecrets.org, reported that a total of $1,970,0000 had been spent by Apple Inc on lobbying in 2012. Specific lobbying issues Tax avoidance outside USA (November 2012) identified included Taxes, Education and Copyright. In the same The BBC News website reported on 5th November 2012 that year the company also spent $620,929 on campaign donations to Apple paid less than 2% corporation tax on its profits outside both Republican and Democrat candidates. (ref: 45) the US, according to its filing with US regulators. Lobbying for tax breaks (June 2011) The company paid $713m (£445m) in the year to 29 September According to an article in the Dirt Diggers Digest in 2011 a group 2012 on foreign pre-tax profits of $36.8bn, a rate of 1.9%. of major U.S.based corporations were lobbying for a “repatriation It is the latest company to be identified as paying low rates of holiday” i.e. so that they would be allowed to bring home many overseas tax, following Starbucks, Facebook and Google in billions of dollars in largely untaxed overseas profits and, for a recent weeks. limited time, pay only a fraction of the statutory rate. This was It has not been suggested that any of their tax avoidance schemes being done through a corporate front group called Working to are illegal. Invest Now in America, or WinAmerica. Apple was a part of this group. (ref: 46) It had paid a rate of 2.5% the previous year. Member of AMCHAM (March 2013) Apple channels much of its business in Europe through a subsidiary Apple was listed as a member of the American Chamber of in the Republic of Ireland, which has lower corporation tax (12.5%) Commerce (AMCHAM) EU on its website www.amchameu.be, than Britain (24%). (ref: 50) viewed by Ethical Consumer in March 2013. ECRA regarded AMCHAM-EU to be a corporate lobby group which lobbied for free trade at the expense of the environment, animal welfare, LG mobile phone handsets human rights or health protection. (ref: 47) Owned by LG Electronics Inc LG Electronics Inc, 20 Yeouido-dong, Yeoungdeungpo-gu, Seoul, Anti-Social Finance 150-721, South Korea Routing sales offshore (July 2013) Research conducted by Ethical Consumer in July 2013 found that LG Electronics Inc is owned by LG Corp (33%) Apple was routing UK sales from its iTunes platform through LG Corp, Environmental Specialist, LG Twin Towers, 20 Youido- Luxembourg (as stated in the companies terms and conditions). At Dong, Youngdungpo-gu, Seoul, 150-721, South Korea the time of writing Luxembourg had recently been critisised for offering lower tax rates to multi-national companies. (ref: 48) Environment Tax avoidance in the USA (May 2013) Environmental Reporting The BBC News website reported on Tuesday May 21st that Best ECRA rating for environment report (2013) Apple has been accused of being “among America’s largest tax In August 2013 Ethical Consumer sent LG Corp a questionnaire avoiders” by a Senate committee. requesting a copy of the company’s environmental policy. No The committee said Apple had used “a complex web of offshore response was received. Ethical Consumer searched the company’s entities” to avoid paying billions of dollars in US income taxes, website, www.lg.com, and viewed the Corporate Governance although there was no indication it had done anything illegal. section of the website. Apple has a cash stockpile of $145bn (£95bn), but the committee The ‘environment’ section of the website discussed issues relating said $102bn of this was held offshore. to carbon emissions, hazardous substances, waste, recycling, disposal of pollutants, take-back initiatives and e waste. However, The company said it is one of the largest taxpayers in the US, all environmental issues discussed referred to LG factories and having paid $6bn in federal corporate income tax in the 2012 operations and did not discuss suppliers nor the environmental fiscal year. damage cause by mineral extraction. It was therefore felt In its report into Apple, committee chairman Carl Levin said: that the company did not have a reasonable understanding of “Apple wasn’t satisfied with shifting its profits to a low-tax its environmental impacts- especially as subsidiaries of LG offshore tax haven. International were involved in coal and oil production at the “Apple sought the Holy Grail of tax avoidance. It has created time of writing. offshore entities holding tens of billions of dollars, while claiming Although LG Electronics stated that it was fully committed to to be tax resident nowhere.” the UN proposal to “reduce CO2 emissions by at least 50% But committee member John McCain said: “Apple claims to be below 1990 levels by 2050 in order to relieve global warming”, the largest US corporate taxpayer, but by sheer size and scale, it no company specific, future quantified environmental targets is also among America’s largest tax avoiders.” could be found. Apple said in its statement: “Apple does not move its intellectual Environmental information provided was not independently property into offshore tax havens and use it to sell products back verified. into the US in order to avoid US tax. Although the company did provide an environmental report dated “It does not use revolving loans from foreign subsidiaries to fund its 2013, the company did not demonstrate a reasonable understanding domestic operations; it does not hold money on a Caribbean island; of its environmental impacts, did not present two dated, quantified and it does not have a bank account in the Cayman Islands.” future targets for reducing its environmental impacts, and failed to It added that it had “substantial” foreign cash because it sells the be monitored independently. Ethical Consumer therefore gave LG majority of its products outside the US, and these foreign earnings Corp a worst rating for its environmental reporting. (ref: 51) were taxed in the jurisdictions where they were earned. Apple drew criticism at the beginning of May 2013 when it sold 13 Nuclear Power Greenpeace rating for energy, products and operations Nuclear power industry supplier (2013) (November 2012) In September 2013 LG was promoting itself as a member of the The latest version of Greenpeace’s Guide to Greener Electronics Canadian Nuclear industry body the OCI. The company appeared (version 18) was released November 2012. The guide ranked the on the OCI website advertising sales of power plant cooling 16 top manufacturers of personal computers, mobile phones, TV’s systems stating it had over 40 years of technology and project and games consoles according to their policies on Energy and experience. (ref: 52) Climate, Greener Products, and Sustainable Operations. Environmental and human rights implications of multiple LGE scored 3.5 points out of 10 and moved up to 12th place. operations (September 2011) LGE received points on a strong precautionary principle policy, In September 2011 Ethical Consumer viewed the LG International but lacked sufficient advocacy follow up. website, www.lgicorp.com, and obtained information regarding the company’s areas of business. A page entitled ‘Electronics- All of LGE’s mobile phones were free of polyvinyl chloride Machinery’ stated that the company sold auxiliary nuclear-power plastic (PVC) and brominated frame retardants (BFRs), and free generation facilities and imported and exported automotive of phthalates, antimony trioxide and beryllium oxide. While TVs parts and facilities. It was said to be strengthening its total and notebooks had many PVC/BFR-free parts, LGE had not aviation services based on its know-how in selling Russian-made publicly disclosed information on its movement to phase these helicopters. Regarding military equipment it was stated: “in substances out from TV monitors and PCs by 2012, and household our defense business, which is recently active worldwide, we appliances by 2014. In other Products categories, LGE retained import sophisticated defense systems, thereby helping strengthen points for its strong statement in support of more stringent Energy the country’s military capabilities. We are actively exploring Star verification standards, and gained a point for more detailed overseas markets for local defense supplies in the Middle East information about warranties and replacement parts. and Africa.” Regarding coal, the company anticipated becoming “Asia’s largest coal trader”. It was said to have invested in coal mines in a variety LGE scored modest points on the Energy criteria. It set a weak countries including Indonesia, Russia, China. target of a 10% reduction in greenhouse gas (GHG) emissions from its operations by 2020 – the company should have aimed for a Its aviation business was apparently focussed on helicopters, more ambitious target of at least 30% by 2015. LGE had achieved and it was stated that the company intended to expand its market a yearly GHG reduction of approximately 20,000 tonnes through base and continue to develop new businesses, including the various energy efficiency measures. LGE’s low carbon strategy defence business. China was named as a an overseas market it included renewable energy use, but it needed an ambitious target was exploring. to dramatically increase renewable electricity use by 2020 and an Regarding petrochemicals, it was stated: “Our resin business implementation strategy of how to do this without over-reliance handles diverse products, including general plastic resins such on renewable energy credits. It earned a point for its support as PP, PE, and PVC as well as functional plastic resins such as for mandatory emissions cuts of at least 30% in industrialised PET and ABS”. countries by 2020. LGE also reported on its GHG emissions for Regarding crude oil, the company was said to have engaged in its operations and business travel. Although LGE had verified its the development of oil and gas fields in fields in Oman, Qatar, emissions from a third party in Korea, it was still awaiting third Vietnam and Kazakhstan. party verification for its global emissions. In 2008 the company was said to have gained the right to manage the Rapu Rapu copper mine in Philippines, which it operated with LGE scored best in Sustainable Operations, but still had plenty of the Korea Resources Corporation. room for improvement. It provided a take-back programme in 52 The company was said to be in the process of building a Gas- countries for obsolete mobile phones, but needed to continue to Desulfurization Plant in Turkmenistan, a country it described as expand its programme for all its products in non-OECD countries. “abundant in natural resources but undeveloped”. Along with LGE no longer reported its recycling rates as a percentage of a number of of the countries named above, Turkmenistan was past sales. Its chemicals policy was based on the precautionary on Ethical Consumer’s list of oppressive regimes at the time of principle, and its communication with its suppliers on chemicals writing. management reflected its hazardous substance phase-out plans. A page entitled ‘Green’ stated that the company had entered the oil LGE did not yet publish data on GHG emissions from its palm plantation business in West Kalimantan, Indonesia. It had supply chain, but had begun to work with suppliers to gather begun planting in 2010 and planned to complete the construction this information. LGE was in the process of addressing conflict of a crude palm oil processing mill in 2012, and produce and sell minerals, but had not publicly mapped smelters or suppliers, and crude palm oil in 2012. It was also said to have entered into the did not yet have a policy. It improved its score for paper sourcing industrial forestation business with the local energy company by pledging to no longer buy from Asia Pulp and Paper, until the Medco Group, also in Indonesia. (ref: 53) company no longer practices illegal logging and deforestation in Indonesia. LGE should have expanded that stance into a more Climate Change comprehensive paper policy that excluded purchasing from other (See also ‘Environmental and human rights implications of companies practising deforestation. multiple operations’ in Nuclear Power above.) Climate change impacts in oppressive regimes (2011) In August 2011 the Hoovers factsheet for LG International Corp, The company therefore lost marks on our rankings table for viewed by Ethical Consumer at www.hoovers.com, stated that climate change and manufacture of products containing toxic the company “contracted to build industrial plants and refineries chemicals. (ref: 2) around the world, including $1.6 billion to build a natural gas Pollution & Toxics plant in Iran, and a $3 billion project ... to build a petrochemical Irresponsible sourcing of tin (August 2013) and oil refining complex in Tatarstan, Russia. At the time of In August 2013, Ethical Consumer viewed a Press Release by writing Russia was on Ethical Consumer’s list of oppressive Friends of The Earth (FOE). It stated that Nokia, Sony, Blackberry, regimes. (ref: 54) Motorola and LG Electronics had publicly accepted that their 14 phones were likely to contain tin sourced from Bangka island, open pit copper and zinc mines that threatened the livelihoods of Indonesia, and that they were committed to tackling the issues the island’s 8000 inhabitants and the ecosystem on which they associated with tin mining. FOE reported that approximately one depended.According to Bank Track, the mining operation was third of the world’s tin was mined from Bangka, and that this had widely opposed by the local population and did not conform to huge consequences for both the environment and the communities the Equator Principals nor the requirements of the mining policies of Indonesia. Previous investigations by FOE exposed reports of of the lead investing banks. child labour, unsafe working conditions and damage to farmland The status of the mine as of October 2008 was that the mine had and marine ecosystems. (ref: 14) been in operation since February 2007 after a prolonged shut (See also ‘Greenpeace rating for energy, products and down due to an operating ban as a result of two spills that lead to operations’ in Climate Change above.) fish kills. The mining operation had been repeatedly interrupted (See also ‘Environmental and human rights implications of by breakdown of equipment and damage caused by a typhoon in multiple operations’ in Nuclear Power above.) early 2007 but the first shipments had been made. Habitats & Resources Since mid 2007 Lafayette was actively seeking ways to expand (See also ‘Irresponsible sourcing of tin’ in Pollution & the current operation and extend the life time of the mine. Aerial Toxics above.) and surface explorations and blasting efforts were underway and (See also ‘Environmental and human rights implications of Lafayette believed it would be able to expand the current pit. The multiple operations’ in Nuclear Power above.) extension plans were squarely opposed by local communities. Limited policy on sourcing minerals from the DRC (August (ref: 56) 2012) In the Enough Project’s 2012 Conflict Minerals ratings of 24 Workers’ Rights Poor working conditions at Chinese supplier factories companies, LG scored 27% in its progress towards responsible (December 2009) sourcing of conflict minerals - the 3Tgs of tin, tungsten, tantalum In December 2009, MakeITFair published the report “Mobile and gold. Phone Production in China: A follow-up report on two suppliers It had taken some steps to investigate their supply chains, and in Guangdong”. The two factories were suppliers to a number are members of industry-wide efforts. But more commitment and of companies, including LGE (LG Electronics). Although it was action on tracing, auditing, certification, and legislative efforts reported that improvements had been made since problems were is required of them. reported in 2007/08, a number of issues were said to remain. These LG was a middle tier company and came joint 14th from the top were: illegal overtime hours; health and safety problems due to with 27%. The top score was 60%. long working hours and labour intensity; legal basic wages but problematically low for workers; reports of discrimination during recruitment; introduction fees collected by employment agents LG had: (Factory 2); difficulties to resign; (Factory 1) fines for quality Published the number of smelters in its supply chain. mistakes (Factory 1) and medical tests before hiring. Some of Did not adopt a policy requiring suppliers to only use conflict-free these practices were prohibited under company policy. (ref: 57) smelters when available. (See also ‘Irresponsible sourcing of tin’ in Pollution & Did not join the Public Private Alliance or participate in a program Toxics above.) to source clean minerals from Congo. Sweatshop conditions at Chinese supplier (13 April 2010) The US National Labor Committee released an in-depth report in April 2010, “China’s Youth Meet Microsoft: KYE factory in LG can improve its score by publishing the names of smelters China produces for Microsoft and other U.S. Companies.” in its supply chain, requiring its suppliers to use only audited conflict-free smelters when enough are available and enforcing Over the course of a three-year investigation of the KYE factory this policy through audits, joining the Early Adopters program, in Dongguan, China, unprecedented photos were smuggled out of joining the Public Private Alliance, piloting the OECD guidance, the factory, of exhausted teenagers, seen asleep on their assembly and fully supporting and implementing Section 1502 regulations line during break time. issued by the Securities and Exchange Commission. (ref: 4) Major corporations outsourcing production to KYE included LG Electronics. Animals The investigation found: Animal Testing * KYE recruited hundreds (up to 1,000) “work-study” students Animal testing (October 2009) 16 and 17 years of age, who worked 15-hour shifts, six and According to the LG life sicences website (LGLS.com) the seven days a week making webcams, mice and other computer company produced drugs for both humans and animals. This is peripherals. Some of the workers appeared to be just 14 or 15 a sector where animal testing is widely used and there was no years old. A typical shift was from 7:45 a.m. to 10:55 p.m. Most evidence on the company website to suggest that the company of the students work for three months, but some stay longer. was not testing on animals. (ref: 55) * Along with the students, KYE prefered to hire only women 18 to 25 years old, who were considered easier to discipline People and control. Human Rights * Workers report that before the recession, they were at the factory (See also ‘Limited policy on sourcing minerals from the 97 hours a week, while working 80 ½ hours. In 2009, workers DRC’ in Habitats & Resources above.) were at the factory 83 hours a week, while toiling 68 hours. (See also ‘Environmental and human rights implications of * Workers were paid 65 cents an hour, which falls to a take-home multiple operations’ in Nuclear Power above.) wage of 52 cents an hour after deductions for factory food. Mining operations in Philippines (October 2008) According to the Bank Track website viewed in August 2007 * Workers had to report early, unpaid, for military-like drills. (www.banktrack.org), Lafayette Phillippines Inc (owned 35% by Management controls every second of their lives. LG) had mining leases for 80% of the island of Rapu Rapu for * The work pace was grueling as workers race to complete their 15 mandatory goal of 2000 Microsoft mice per shift. During the Arms & Military Supply long summer, factory temperatures reached 86 degrees and the Listed in Jane’s Defence Directory (2011) workers wree drenched in sweat. LG Electronics Inc of South Korea was listed in Jane’s International * Security guards sexually harassed the young women. Workers Defence Directory 2011. It was listed for: were prohibited from talking, listening to music or going to the “manufacture, design and service of flat panel TVs, audio and bathroom during working hours. Freedom of movement was video products, mobile handsets, air conditioners and washing restricted and workers could only leave the factory compound machines”. (ref: 60) during regulated hours. (See also ‘Environmental and human rights implications of * Fourteen workers share each primitive, dirty dorm room, multiple operations’ in Nuclear Power above.) sleeping on narrow bunk beds. To “shower” workers fetch hot water in a small plastic bucket for a sponge bath. Workers report Politics that the food is awful. Political Activities Political lobbying (2008) KYE management claimed factory conditions were excellent, In January 2011 the website for the Centre for Responsive and that they were in full compliance with China’s labor laws. Politics, www.opensecrets.org, reported that a total of $210,000 But the young women described the factory as a prison, where had been spent by LG Electronics USA on lobbying in 2008. everyone who could leave did. It was almost impossible to find The lobbying issues identified were Energy & Nuclear Power, a worker who has been at the factory for more than a year or specifically ““Issues related to the Energy Star program at the two. (ref: 5) U.S. Department of Energy and the DOE’s pending rulemaking on refrigerator/freezer energy consumption standards and testing Supply Chain Management procedures”. (ref: 61) Worst ECRA rating for supply chain policy (2013) Membership of ICC lobby group (2009) In August 2013 Ethical Consumer emailed LG and attached a The website of the International Chamber of Commerce (www. questionnaire that included a request for a copy of the company’s iccwbo.org), viewed in October 2009, listed LG as a member. policy addressing workers rights at supplier companies or any According to the ICC, it had “direct access to national governments policies regarding sourcing. The company did not respond. A all over the world through its national committees”; “speaks search was made of the company’s website, www.LG.com, in for world business when governments take up such issues as the same month. The company’s supply chain management web intellectual property rights, transport policy, trade law or the page was viewed. environment”; “At UN summits on sustainable development, The company was awarded Ethical Consumer’s worst rating for financing for development and the information society, ICC its supply chain management for the following reasons. spearheads the business contribution.” ECRA noted that the activity of lobby groups such as the ICC often meant that business The website stated that the company was a member of the interests were protected at the expense of the environment and Electronics Industry Citizenship Code. Ethical Consumer viewed human rights. (ref: 62) the EICC code on the organisation’s website, www.eicc.info. The code covered child labour (to a limited extent), forced labour and anti discrimination. However it did not mention a living wage Motorola smartphones and working hours (under 48 with 12 hrs over time). It did cover Owned by Motorola Mobility Holdings Inc the whole supply chain and some secondary suppliers. Ethical Motorola Mobility Holdings Inc is owned by Google Inc Consumer considered it to be a rudimentary supply chain code. Google Inc, 1600 Amphitheatre Pkwy., Mountain View, CA, 94043,, USA On the company website there was some information on auditing including the right to carry out spot checks. However the document Environment also states, “Such a right does not mean that LGE will institute Environmental Reporting regular inspections or any inspections at all. Suppliers have total Worst Ethical Consumer rating for environmental policy responsibility for their compliance with this Code of Conduct, (March 2013) not LGE.” There was no information on stakeholder engagement. The Google company website, www.google.co.uk/about/ One difficult issue was briefly mentioned, that of training buyer’s corporate/company was visited in March 2013 and a search was and suppliers. (ref: 58) made for its environmental policy. None was found. The company Irresponsible Marketing does have an environmental initiative, www.google.com/green/. Misleading environmental claims (21 June 2009) This website details the investments the company has made in On 21 June 2009 it was reported on the Guardian website, www. renewable energy, and some efforts to reduce impact. According guardian.co.uk, that a US Congress committee on commerce, trade to information linked from here, Google was aiming to be carbon and consumer protection had heard evidence from a consumer who neutral by 2007. According to this page, Google’s carbon neutrality had been mislead by environmental claims made about a washing was independently verified every year. Additionally, information machine manufactured by LG Electronics. The consumer was was included about encouraging employees to find alternatives said to have bought the product in 2007. It’s Energy Star rating to getting to work to driving, (and rewarding them for doing so), from the department of energy, was supposed to be awarded to and recycling initiatives. However, no actual report was found, appliances that consumed at least 20% less electricity than a and no targets for future reduction in impact. In addition the standard appliance. However, in 2009 he received a letter saying pages were not dated. that the fridge “did not qualify for Energy Star status because LG, It should be noted that some of the initiatives mentioned on the in its process of “self-certification”, had strayed from the efficiency site were innovative for a big company - such as donating money guidelines set by the department of energy”. (ref: 59) to employee’s favourite charities based on how often they ‘self- power’ their commute, and using goats instead of lawnmowers. The company had also made investments into renewable energy

16 projects and was considered a leader in the sector by Greenpeace. but could find no evidence of a policy on toxic chemicals such as (ref: 63) PVC and brominated flame retardants (BFRs). Ethical Consumer Climate Change felt this was necessary as the company produced a tablet computer. No reply was received after requesting the information via email. Named in report on cloud computing and climate change As a producer of electronics Ethical Consumer believed this (March 2010) policy was a necessary part of the company’s Corporate Social Google was named as a contributor to climate change in a 2010 Responsibility reporting. (ref: 63) Greenpeace report on cloud computing (a term used as a metaphor for using the internet to store data, rather than your own device) Toxics policy (2013) and its contribution to climate change. The report criticised In September 2013 Ethical Consumer searched the Motorola site companies running internet-based businesses which used dirty for its toxic chemicals policy. The company website stated that, “We coal and nuclear power to run their data centres. These companies have taken a proactive approach and compiled a significant list of were also said to be increasing the size and scale of the data centres substances or substance groups targeted for exclusion, reduction they were building and to be expanding despite the economic or reporting during the design and manufacture of our products.” downturn. Greenpeace identified this as a sector of concern since A document on the site also gave details of the chemicals used in it was predicted to grow rapidly over the coming years. production. However no document pertaining to the reduction of use / targets as mentioned above could be found. (ref: 65) The report urged companies to be strategically placed to utilise or be co-developed with renewable sources of electricity and to Habitats & Resources reduce the energy consumption of their data centres. (ref: 64) (See also ‘Irresponsible sourcing of tin’ in Pollution & Top Climate change rating in internet sector (2012) Toxics above.) Climate Counts is a nonprofit organization launched in No policy on conflict minerals (March 2013) collaboration with Clean Air-Cool Planet. The organization As a producer of a tablet computer Google was using a number annually scores companies on the basis of their voluntary action of minerals within component parts including tin, gold and to reverse climate change. Climate Counts use a 0-to-100 point tantalum. scale and 22 criteria to determine if companies have: In March 2013 Ethical Consumer searched the company website * MEASURED their climate “footprint” for a policy on sourcing minerals used in electronics production but could not find one. * REDUCED their impact on global warming This was important as these resources were often taken from * SUPPORTED (or suggested intent to block) progressive conflict zones such as the the Democratic Republic of Congo climate legislation (DRC). Amnesty International had reported numerous cases * Publicly DISCLOSED their climate actions clearly and of human rights abuses in particular relation to the extractive comprehensively industries in the DRC including the use of profits raised from In 2012, Google received the second from top ‘striding’ rating for mines funding armed groups.The extractive industry also had dire still having work to do. It scored 64 out of 100 and was the best environmental consequences generating a massive amount of waste company of the 6 covered in the internet/social media sector. containing toxic and even radioactive substances which pollute Change from previous year’s score: +8 the environment, water supplies and affect local communities. Review: 19/22 points. Google has started to measure the A report by the Enough Campaign, ‘Getting to Conflict-Free companywide impact it has on global warming (i.e., its greenhouse - Assessing Corporate Action on Conflict Minerals’, stated that gas emissions or climate footprint). companies should be taking pro-active action to trace, audit, and certify their supply chains to ensure that the effects of the above Reduce: 31/56 points. Google has started to reduce the problems were limited. However Ethical Consumer could find companywide impact it has on global warming (i.e., its greenhouse no evidence that this company was doing so and therefore it gas emissions or climate footprint). lost a mark in Ethical Consumers’ human rights and habitat and Policy Stance: 8/10 points. Google has distinguished itself by resources categories. (ref: 63) strongly advocating for comprehensive public policy that addresses climate change and would lead to market-wide reduction in Animals greenhouse gas emissions and the growth of renewable energy Animal Rights capacity. Criticised for hosting videos promoting hunting and the Report: 6/12 points. Google has made some public information meat & dairy industry (29 April 2011) available on its companywide efforts to address global warming. According to a letter sent from Mercy to Animals to You Tube (ref: 36) CEO Salar Kamangar on 29th April 2011, You Tube allows “highly Pollution & Toxics sanitised meat, dairy and egg industry propaganda videos that Irresponsible sourcing of tin (August 2013) promote killing animals for profit” and also hosts “sensationalised In August 2013, Ethical Consumer viewed a Press Release by pro-hunting videos” which they claimed glamorised “hunters Friends of The Earth (FOE). It stated that Motorola and other mercilessly maiming and killing animals for sport”. The letter phone manufacturers had publicly accepted that their phones was sent after an undercover video made by Mercy for Animals were likely to contain tin sourced from Bangka island, Indonesia, was taken down by you Tube due to the animal cruelty it exposed. and that they were committed to tackling the issues associated This video was later reinstated. (ref: 66) with tin mining. FOE reported that approximately one third of the world’s tin was mined from Bangka, and that this had huge People consequences for both the environment and the communities of Human Rights Indonesia. Previous investigations by FOE exposed reports of (See also ‘No policy on conflict minerals’ in Habitats & child labour, unsafe working conditions, damage to farmland Resources above.) and marine ecosystems. (ref: 14) Claims email users’ expectation of privacy illegitimate No policy on toxics (March 2013) (August 2013) In March 2013 Ethical Consumer searched the Google website Google has said that email users have “no legitimate expectation 17 of privacy” in a Californian court case accusing the company of in 2007/08, a number of issues were said to remain. These unlawfully opening up and acquiring the content of private email were: illegal overtime hours; health and safety problems due to messages in order to target advertising. According to an article long working hours and labour intensity; legal basic wages but posted on the Independent website, Google said the plaintiffs were problematically low for workers; reports of discrimination during making “an attempt to criminalise ordinary business practices” and recruitment; introduction fees collected by employment agents that “all users of email must necessarily expect that their emails will (Factory 2); difficulties to resign; (Factory 1) fines for quality be subject to automated processing”. It claimed that the practice mistakes (Factory 1) and medical tests before hiring. Some of of scanning emails in order to target advertising was industry- these practices were prohibited under company policy. wide. The US pressure group Consumer Watchdog described the Motorola Mobility was a wholly owned subsidairy of Google company’s statement as a “stunning admission” of the extent to inc. (ref: 57) which internet users’ privacy is compromised. (ref: 67) (See also ‘Irresponsible sourcing of tin’ in Pollution & Claims not subject to UK law in privacy case (August 2013) Toxics above.) On Monday 19 August 2013 it was reported on Computerweekly. Supply Chain Management com that Google had claimed in the British High Court that it Worst Ethical Consumer rating for supply chain was not subject to UK privacy laws. The company was being management (August 2013) sued by Apple users for breaches of confidence and privacy, In August 2013 Ethical Consumer emailed Motorola and attached computer misuse and trespass and breach of the Data Protection a questionnaire that included a request for a copy of the company’s Act 1998. The legal action was said to be based on claims that the policy addressing workers rights at supplier companies or any company circumvented Apple security settings on iPhones, iPads policies regarding sourcing. The company did not respond. A and desktop versions of Safari that block websites from tracking search was made of the company’s website, www.motorola.com, users through cookies. The US Federal Trade Commission (FTC) in the same month. The company’s supply chain management was said to have fined Google $22.5 million in August 2012 for web page was viewed. monitoring US Safari users by “exploiting a Safari loophole that enabled it to install monitoring-enabling cookies on web users’ The company was awarded Ethical Consumer’s worst rating for machines through adverts on websites”. The company was its supply chain management for the following reasons. attempting to have case dismissed the case in the UK by arguing that there was “no jurisdiction” for the case to be heard in the The website stated that the company was a member of the UK because its consumer services were not provided by Google Electronics Industry Citizenship Code. Ethical Consumer viewed UK but its US division. (ref: 68) the EICC code on the organisation’s website, www.eicc.info. The Workers’ Rights code covered child labour (to a limited extent), forced labour and Workers’ rights abuse allegations at Chinese supplier anti discrimination. However it did not mention a living wage factories (February 2011) and working hours (under 48 with 12 hrs over time). It did cover In 2008, the makeITfair project researched working conditions the whole supply chain and some secondary suppliers. Ethical at four factories operating in the Guangdong province in China, Consumer considered it to be a rudimentary supply chain code. namely Celestica Technology, Flextronics International (incl. Vista Point Technologies/Multek), and Hong Fu Jin Precision of There was no information on auditing included on the site and Foxconn. They manufacture or deliver components to portable no information on stakeholder engagement. One difficult issue music player, multimedia phone and video game console was briefly mentioned, that of fostering long term relationships companies. A follow-up report, ‘Game console and music player with suppliers. (ref: 65) production in China: A follow-up report on four suppliers’ published in February 2011 re-examined working conditions at these four factories two years after the first research. In total, over Politics 100 workers were interviewed in mid-2010 by the project. Political Activities Lobbying on anti-trust (2011) It found that Multek produced LCD screens for Motorola. According to an 18th July 2011 article on Consumer Watchdog’s Although there had been improvements at the factory, the report “Inside Google” website (insidegoogle.com), Google was noted these remaining issues still needed addressing according spending significant sums on lobby firms. The article stated to workers interviewed: that “Driven by an antitrust probe, Google could even outspend * Delays of resignations during peak season. Microsoft in it’s arm-twisting campaign.” (ref: 70) * Basic wages are legal but insufi cient for a decent living in Lobbying against privacy laws (February 2013) Shenzhen. According to the website Business and Human rights the head * Difi culties in getting a permission not to perform overtime. of a key pan-European industry group criticised intensifying pressure from US lobbyists on behalf of Google and others to * Lack of awareness of, and trust in, trade union relax EU privacy laws to suit Silicon Valley businesses. Google * Many worker regulations involving disciplinary measures. and several other top US tech companies, with the help of the * No food allowance provided, food cost increased. Obama administration, had been increasing pressure on European lawmakers to standardise privacy laws across borders to make * Workers must clean dormitory rooms by themselves. their business operations flow more easily, which would mean Motorola Mobility was a wholly owned subsidairy of Google more lax EU legislation at a time when the bloc was proposing inc. (ref: 69) exactly the opposite. Jacob Kohnstamm, head of the Article 29 Poor working conditions at Chinese supplier factories Working Party, which represented EU privacy and data protection (December 2009) regulators… [said] European lawmakers were “fed up” with US In December 2009, MakeITFair published the report “Mobile tech companies trying to put their corporate interests ahead of laws Phone Production in China: A follow-up report on two suppliers that protect what Europe saw as fundamental rights. (ref: 71) in Guangdong”. The two factories were suppliers to a number Donations and Lobbying (2012) of companies, including Motorola. Although it was reported According to the Open Secrets website, viewed by Ethical that improvements had been made since problems were reported 18 Consumer in Spetember 2013, Google spent $3,822,862 on Britain is Google’s biggest market after America, representing contributions to the Democrat and Republican parties in the US 11 per cent of group sales. (ref: 74) in 2012. It also spent $18,220,000 on lobbying, this was the 8th largest amount spent by a company in 2012. (ref: 72) Anti-Social Finance Nokia mobile phones Worst ECRA rating for likely use of tax avoidance Owned by Nokia Oyj strategies (September 2013) Nokia Oyj, Nokia Head Office, Keilalahdentie 2-4, P.O. Box 226, In September 2013 Ethical Consumer viewed Google Inc’s family Espoo, Fl-02150, Finland tree on the Hoovers website, www.hoovers.co.uk. The family tree included a list of subsidiaries considered to be at high risk of being Environment used for tax avoidance purposes due to the company type and the Environmental Reporting fact that they were located in jurisdictions considered by Ethical Best ECRA rating for environmental reporting (August Consumer to be tax havens at the time of writing. 2013) According to Hoovers Google had three holding companies: In August 2013 Ethical Consumer sent Nokia a questionnaire Motorola Mobility International Limited; Bermuda requesting a copy of the company’s environmental policy. No response was received. Ethical Consumer searched the company’s Google Holdings Pte Ltd; Singapore website, www.nokia.com, in August 2013 and the company’s Motorola Mobility China Holding Limited; Hong Kong 2012 Sustainability Report was downloaded. The report discussed Due to the fact it had two or more subsidaries which were carbon emissions, e-waste, take back and recycling schemes, considered high risk in tax havens the company received Ethical mineral extraction and water use. It discussed the difficulty of Consumer’s worst ranking for likely use of tax avoidance ensuring that the whole of its large supply chain minimised its strategies. (ref: 16) environmental impacts. The company’s main focus in terms of Routing sales offshore (July 2013) enforcing ‘good environmental behaviour’ on suppliers was on Research conducted by Ethical Consumer in July 2013 found energy consumption, greenhouse gas emissions, waste and water that Google was routing UK sales on its Google play platform use. The company encouraged direct suppliers to set reduction through Ireland. At the time of writing Ireland had recently been targets, and followed up on their performance. The company also critisised for offering lower tax rates to multi-national companies, required suppliers’ sites to be ISO 14001 certified. including Google. (ref: 73) The company provided more than two quantified future targets. Tax avoidance in the UK (May 2013) These included: Google and its accountants, Ernst & Young, are to face a fresh - Reducing greenhouse gas emissions at offices, R&D sites and grilling about tax avoidance after Public Accounts Committee manufacturing facilities by a minimum of 30% by 2020 (2006 chairman Margaret Hodge said in May 2013 that a new baseline). investigation by Reuters had raised “very serious” allegations. - By 2020, using only 100% certified renewable or recycled The internet giant is facing mounting scrutiny because it generates materials for the company’s packaging more than £3 billion a year from sales in Britain but pays virtually no Key corporate responsibility indicators were verified by UK corporation tax because revenues are diverted via Ireland. PricewaterhouseCoopers Oy (Nokia’s statutory auditor). From 2006 to 2011, Google generated $18 billion in revenues Due to the fact that the company had two dated, quantified targets from the UK, according to statutory filings, and paid just $16 for reducing its environmental impacts, had demonstrated a million in taxes. reasonable understanding of its environmental impacts and had Google insists that its UK offices, which employ more than 1300 its environmental performance independently verified, Ethical people in London, are involved in “the provision of marketing Consumer gave Nokia Oyj a best rating for its environmental services” and all sales are made in Ireland. reporting. (ref: 75) But an investigation by news agency Reuters, published on May Pollution & Toxics 1st 2013, claimed to show that many of Google’s UK staff have Irresponsible sourcing of tin (August 2013) jobs which “actually target, negotiate and close sales of Google’s In August 2013, Ethical Consumer viewed a Press Release by advertising products to its customers”. Friends of The Earth (FOE). It stated that Nokia and other mobile Reuters interviewed more than a dozen Google customers and phone manufacturers had publicly accepted that their phones former staff as well as looking at job advertisements and CVs were likely to contain tin sourced from Bangka island, Indonesia, on networking website LinkedIn. If it were proven that Google and that they were committed to tackling the issues associated has made sales in the UK, it could mean it was liable for a huge with tin mining. FOE reported that approximately one third of tax bill. the world’s tin was mined from Bangka, and that this had huge The internet company said: “Our advertisements for UK staff consequences for both the environment and the communities of sometimes refer to sales skills and many of the roles include sales Indonesia. Previous investigations by FOE exposed reports of in the title as we are seeking to attract people with those skills and child labour, unsafe working conditions, damage to farmland that background. We accept that the wording of some adverts may and marine ecosystems. (ref: 14) have been confusing and we are working to make it clearer. Ranking in Greenpeace guide (November 2012) “We comply with all the tax rules in the UK and in every other The latest version of Greenpeace’s Guide to Greener Electronics country in which we operate.” (version 18) was released November 2012. The guide ranked the 16 top manufacturers of personal computers, mobile phones, TV’s Google Ireland Ltd. reported sales of 12.5 billion euros ($16.4 and games consoles according to their policies on Energy and billion) in 2011, but profits of only 24 million euros, and an Irish Climate, Greener Products, and Sustainable Operations. corporation tax bill of 8 million euros. The low profit comes from the fact it pays most of its turnover to an affiliate in Bermuda, For Energy, Nokia met a renewable energy target of 40%, a strong which levies no income tax on foreign-controlled corporations, number but still below its original 2010 target of 50%. The company for the right to use the computer algorithms. fell short in other areas as well, including a robust clean electricity 19 plan, an ambitious greenhouse gas (GHG) emissions reduction computers in the country, based on conversations with Bahraini target of 30% by 2015, and a renewable energy target of 100% officials, one said. The other said he knew of the arrangement from by 2020. However, Nokia did receive top points for disclosing internal company communications. Neither knows whether the externally verified GHG emissions from its own operations. equipment originally installed and maintained by the companies Nokia’s Products scores did not change in the latest edition. was still in use. The company’s status as exclusive provider in Although the company released new information on warranties, it Bahrain continued at least through 2009 both of them say. That failed to provide similar data on spare parts to increase the life of period of more than two years coincided with the dates of text its products. Nokia failed to score on the use of recycled plastics, messages used to interrogate scores of political detainees Rajab although the Nokia 700 was its first smartphone made with 33% says. Based on his conversations with former detainees and their recycled plastics. The company was just shy of maximum points representatives, he says that authorities used messages that dated on hazardous substances, do to its lack of a target for eliminating as far back as the mid-2000s, even in recent interrogations. “We all antimony compounds. It continued to score maximum points are very aware that communications technology can be used for for the energy efficiency of its products, setting a new target to good and ill,” Nokia-Siemens Network (NSN) spokesman Ben reduce no-load power used by its chargers. Roome says. The elevated risk of human rights abuses was a major reason for NSN’s exiting the monitoring-center business, Nokia scored highest marks on the Sustainable Operations and the company has since established a human rights policy and criteria. The company had a comprehensive voluntary take-back due diligence program, he says. (ref: 76) programme, which spaned 100 countries and provided nearly 6,000 collection points for end-of-life mobile phones, with accessible Operations in 14 oppressive regimes (August 2013) information provided to customers. The Hoovers Family Tree for Nokia Oyj, accessed on its website, www.hoovers.com, by Ethical Consumer in August 2013, stated Nokia was also one of the first global brands to offer a take-back that the company had subsidiaries in the following countries: Iran, programme in India. However, it failed to score maximum points, China, Philippines, Thailand, Venezuela, India, Russia, Vietnam, as the quantities were still small and not reported as a percentage Colombia, Libya, Yemen, Syria, Israel, Jordan and Nigeria. These of past sales. Nokia needed to improve its chemicals management countries were considered by Ethical Consumer to be oppressive programme, further developing its policies and programme to regimes at the time of writing. (ref: 16) address conflict minerals as well as a paper procurement policy that excludes suppliers involved in deforestation and illegal Tax officials raid Indian factory (January 2013) logging. According to an article published on the BBC News website ‘Nokia’s India factory raided by tax officials’ dated January 9th The compnay therefore lost marks in the pollution and toxics 2013 the firm’s Chennai factory, one of its largest manufacturing category. (ref: 2) facilities, has been raided by Indian tax officials. It said that in Habitats & Resources some media reports, officials said they were looking to recover (See also ‘Irresponsible sourcing of tin’ in Pollution & tax payments totalling as much as 30bn Indian rupees ($545m; Toxics above.) £340m). Nokia said that it always observes “applicable laws and rulings in the countries where we operate” and added that People it was fully cooperating with authorities “to ensure they get the Human Rights necessary information to help in their inquiry”. Maintenance of surveillance equipment linked to torture in Bahrain (August 2011) India is one of the fastest growing mobile phone markets in the According to an article posted on the Bloomberg website, www. world and is key to Nokia’s future growth. The firm has been bloomberg.com, ‘Torture in Bahrain Becomes Routine With Help present in India since 1995 and is one the market leaders. The From Nokia Siemens’, dated August 22nd 2011, the company country was on Ethical Consumer’s list of oppressive regimes at had been involved in the maintenance of surveillance equipment the time of writing. (ref: 77) for Bahrain which had been implicated in human rights abuses committed by the regime. At least 30 people had been killed at Workers’ Rights the time of writing in the uprising in Bahrain. Security forces beat Death of worker at Nokia mobile phone factory (2010) paramedics, doctors and nurses who treated the wounded, and According to a story which appeared on The Telegraph, India prosecutors had charged dozens of medical workers with crimes website (www.telegraphindia.com), on 1 November 2010, a such as “incitement against the regime,” according to Human 22-year-old woman working with Nokia had lost her life on the Rights Watch. In June, the U.S. put Bahrain on its list of human previous Sunday in an industrial belt seen as a gleaming symbol rights violators. In Bahrain, officials routinely used surveillance in of new-age technology and the ubiquitous cellphone. the arrest and torture of political opponents, according to Nabeel Police sources quoted witnesses as saying S. Ambica’s skull was Rajab, president of the Bahrain Center for Human Rights. He crushed when the robotic arm of a “loader machine” came loose and claimed to have evidence of this from former detainees. Bahrain’s fell on her while she was working under it at Nokia’s manufacturing telecommunications regulator said monitoring technology facility in Sriperumbudur, about 50km from Chennai. was used only by order of legal authorities such as judges and “We have registered a case of accidental death. We are inquiring prosecutors. Bahrain’s 2009 regulations for lawful interception into the exact sequence of events and if there was any negligence make clear that every phone and Internet operator must provide anywhere,” Kancheepuram SP Prem Anand Sinha said. the state with the ability to monitor communications. Phone companies must also track the location of phones within a 50- Company sources said Ambica, who was from Vellore district and metre radius. Al Khanjar, a victim of torture whose text messages had been working with Nokia for two years, had basically been were cited as evidence of why he was detained, said the first of involved in assembling, sorting and packing mobile phones. She his communications used in the interrogations was intercepted was apparently working at the “manual loader” on the Sunday in June 2009. At that time, the Nokia Siemens family of related evening when the accident happened. companies, through its ‘Intelligence Solutions’ unit, was the only A third version was given by M. Shanmugam, the general secretary known supplier and maintainer of monitoring centres to Bahrain. of the Labour Progressive Front that heads the workers’ union The unit was spun off and renamed in March 2009. Company at Nokia. He claimed Ambica’s co-workers had said she was executives understood that they had the only monitoring-centre operating a punching machine and chatting when her hand got 20 caught in the machine and crushed. restrictions had resulted in overtime records being falsified, “She panicked while trying to free herself and, in the process, lost meaning that overtime did take place, but was not recorded or her balance, slipped and fell into the slot and the machine crushed paid as overtime. Foxconn workers also said they were kept in her head and neck,” Shanmugam told The Telegraph. compulsory meetings for about an hour a day, which they were not paid for at all. Time spent in training was also not fully paid. He claimed the accident had happened in the production area, As a result, workers were not earning any more than before the not in the manual loading dock as put out by the company. “The June 2010 wage increase. mishap was because of inattention on part of the worker and there was little time for others to rescue her.” Ambica was taken to a Sriperumbudur hospital where she was In the aftermath of the suicide trauma, Foxconn announced that declared dead on arrival. She was the sole earning member of her it was to relocate to central, western and northern China, where family, with a salary of around Rs 8,000 a month. the minimum wage was lower. This would make the Shenzen wage increase irrelevant. It was clear to workers that they could A Nokia spokesperson said: “Safety and security of our employees either relocate, or accept dismissal. is of utmost concern to us. Any such incident will be investigated properly as per factory norms and guidelines.” (ref: 78) Working conditions still poor at Foxconn supplier (6 May According to the report, trade unions existed, but totally lacked 2011) any credibility. The chairperson of the Federation of Foxconn In March and April 2011, Students & Scholars Against Corporate Technology Group in Longhua was also PR manager and secretary Misbehaviour (SACOM) researchers visited two Foxconn to Foxconn’s CEO. The Hangzhou factory had a trade union, production facilities in Chengdu (Apple iPads) and Chongqing but this shared offices with the company’s human resources municipality (HP mainly) in Western China. They also revisited department. Workers who felt wronged were asked to deposit Foxconn’s flagship plants in two industrial towns, Longhua complaints directly with the management. SACOM found that and Guanlan in the Shenzhen (Apple, HP, Nokia, Dell, etc.), workers did not fully enjoy the freedom to organise as stipulated where employees were still housed in dormitories surrounding by Chinese Trade Union Law. with anti-suicide nets. The results of the visits were publsihed in a report on 6th May 2011 called ‘Foxconn and Apple Fail to The press release also mentioned the fact that Foxconn took on fulfill promises’. school students as interns. SACOM found that in some cases, While Apple commends the measures taken by Foxconn to between 35-50% of the labour force were students. Governent improve working conditions in the year since the series of suicides, regulations stipulate that interns’ work should be in line with SACOM finds predicaments of workers remain. Workers always their school curriculum and learning targets and that working have excessive and forced overtime in order to gain a higher hours should not exceed 8 hours a day. The SACOM report wage. Workers are exposed to dust from construction site and described how students were deployed as ordinary production shop floor without adequate protection. Even worse, they are line workers and could not be exempted from overtime work. threatened by potential harm of occupational diseases in various Moreover, placement was not voluntary – students were placed departments. Additionally, military-styled management is still in by their schools. practice, characterized by “military training” for new workers. Wages at the plants were criticised by SACOM as being below The SACOM report also found evidence of lacking personal living wage levels. (ref: 79) personal protective equipment and inadequate safety training. Ongoing workers rights abuses at electronics supplier Workers explained that the high turnover rate in their departments Foxconn (October 2010) was due to unsafe and unhealthy working conditions. When A joint press release, published on the SOMO website (www. workers resigned, the report found that Foxconn did not arrange somo.nl) and dated 11 October 2010, by GoodElectronics, for health examinations, which was a breach of Article 32 of Students & Scholars Against Corporate Misbehaviour (SACOM), the law on Prevention and Treatment of Occupational Diseases. Bread For All, Make IT Fair and the International Metalworkers’ (ref: 80) Federation (IMF) detailed the workers’ rights abuses still occurring at electronics manufacturer Foxconn. Since the spate of worker Supply Chain Management suicides at the factory in 2010, according to these organisations, Worst ECRA rating for supply chain management (August working conditions still had not improved. Foxconn supplied 2013) mainstream electronics companies, including Nokia. In August 2013 Ethical Consumer rated Nokia’s supply chain management. The company was given Ethical Consumer’s worst rating for the following reasons. The press release summarised the findings of the SACOM The company was found to have a rudimentary supply chain policy. investigative report entitled ‘Workers as machines; Military This contained adequate clauses on child labour, forced labour, Management in Foxconn,’ which was released on 12 October and working hours and discrimination. However the clauses on 2010. freedom of association and pay were weak and sub-contractors were not monitored directly. Despite the wage increase promised on 1 October 2010 by Foxconn, There was some evidence of stakeholder engagement but only workers in Shenzen had, at the time of the SACOM report, still around the issue of mineral sourcing with company involved received no formal notification about this development. The in the Public-Private Alliance for Responsible Minerals Trade report discovered that workers had been losing out on subsidies, (PPA), the solutions for hope project, Conflict Free Smelter allowances and bonuses and that Foxconn had not spoken about initiative, Conflict Free Tin Initiative and EICC-GeSI Conflict- increasing wages in regions that had not been hit by suicides. Free Sourcing Initiative. There was some evidence of auditing but reporting of findings After the suicides, Foxconn set the monthly overtime limit to was scarce, with only a few examples given in the company 80 hours - well over the legal minimum of 36 hours. Workers report. There was also no public schedual for reporting beyond interviewed for the SACOM report said that these new overtime the claim that new suppliers must complete self assessments 21 before trading with Nokia. There was also no information on Stephen Elop, President and CEO received a total pay of audit costs or remediation. €4,334,421 No difficult issues were discussed in any of the material. (ref: Timo Ihamuotila, EVP, Chief Financial Officer had been paid a 81) total of €1,576,644 Arms & Military Supply Jo Harlow, EVP, Smart Devices had been paid a total of Supply to the military (2013) €1,315,397 According to the Nokia Siemens website viewed by ECRA in Mary T. McDowell, Former EVP of Mobile Phones was paid a September 2013 “Nokia Siemens Networks Next Generation total of €1,570,777 Military Network (Mil NGN) solutions are purpose-built to Niklas Savander, Former EVP of Markets was paid a total of provide defense agencies with robust voice, video and data €1,621,558 communications in the face of all conceivable security threats...”. Ethical Consumer deemed sums of above £1 million, which these It was given approved status to supply the US Dept of Defense figures were in excess of, to be excessive. (ref: 86) in 2011. (ref: 82) Supply to the military (January 2010) The Nokia website, viewed by ECRA in January 2010, had several Samsung mobile phones products including the Nokia THR880i TETRA radio, that were Owned by Samsung Electronics Co Ltd marketed towards the military. (ref: 83) Samsung Electronics Co Ltd, 416 Maetan3-Dong,, Yeongtong-Gu, Politics 442600 Suwon-Shi 442600, South Korea Political Activities Samsung Electronics Co Ltd is owned by Samsung Group Donations and Lobbying (2012) Samsung Group, 1320 - 10 Seocho 2-Dong, Seocho-Gu, 137965 According to the Open secrets website, viewed by Ethical Seoul 137965 Seoul, South Korea, South Korea Consumer in Spetember 2013, in 2012 Nokia donated a total of $18,675 to individual election candidates from both Republican Environment and Democrat partes in the US. The company also spent $570,000 Environmental Reporting on lobbying in the same country. (ref: 84) Best ECRA rating for environmental report (2013) Member of WBCSD (2013) In August 2013 Ethical Consumer sent Samsung a questionnaire According to the organisation’s website www.wbcsd.org, viewed requesting a copy of the company’s environmental policy. by ECRA in September 2013, in 2013 Nokia was a member of The company responded with an email containing a link to the World Business Council for Sustainable Development. This the Corporate Social Responsibility section of the company’s was regarded by ECRA as an international corporate lobby group website. The company’s 2013 CSR report was downloaded which exerted undue corporate influence on policy-makers in and the environmental section of the company’s website, www. favour of market solutions that were potentially detrimental to originus.samsung.com, was viewed by Ethical Consumer in the environment and human rights. (ref: 83) August 2013. Member of ERT lobby group (2013) The climate section of the website and the CSR report provided According to the organisation’s website www.ert.be, viewed by more than two dated and quantified targets. The website stated ECRA in September 2013, an executive from Nokia sat on the that “Samsung planned to reduce its GHG emissions intensity European Round Table of Industrialists. This was considered by normalized by sales (metric tonnes of CO2 per KRW 100 million) ECRA to be a high level corporate lobby group which exerted by 50% until 2013 based on the level of 2008. The company also undue corporate influence, to the potential detriment of the planned to reduce the GHG emissions by 24% compared to BAU environment and human and animal rights. (ref: 85) (business as usual) by 2015 to meet the Korean government’s mid- term GHG reduction target and policy.” The website went on to Anti-Social Finance discuss the company’s performance in terms of GHG emissions Worst ECRA rating for likely use of tax avoidance across its supply chain. strategies (September 2013) In September 2013, Ethical Consumer viewed Hoovers website The CSR report presented several more dated and quantified for Nokia Oyj’s family tree. Hoovers listed serveral holding future targets. These included ‘increasing rates of recycling to subsidaries; Nokia Solutions and Networks Holdings Singapore 95% by 2015’, Ltd, Nokia (H.K.) Limited; and internal finance companies The company discussed water use, recycling, packaging, take Nokia Finance International BV, Haarlem, succursale de Lancy back systems, its handling of chemical substances hazardous to près Genève, Nokia Siemens Networks Finance B.V., Haarlem, humans and the environment, and described how it was voluntarily succursale de Lancy, près de Genève belonging to Nokia Oyj. phasing out its use of polyvinyl chloride (PVC) and brominated These types of companies were considered by Ethical Consumer flame retardants (BFRs) in electronic products. The company to be highly likely to be involved in tax avoidance strategies. briefly mentioned the importance of biodiversity and healthy Switzerland, Hong Kong and Singapore were on Ethical ecosystems, discussed how the company tried to minimise its Consumer’s tax haven list at the time of writing. impact on natural ecosystems. Due to the fact the Nokia Oyj had two or more subsidaries The report was independently verified by Samil considered to be high-risk of being involved in tax avoidance PricewaterhouseCoopers strategies, it received a worst Ethical Consumer rating in this Due to the fact that the company’s environmental report was dated category. (ref: 16) within the last two years, had two dated, quantified targets for (See also ‘Tax officials raid Indian factory’ in Human reducing its environmental impacts, had demonstrated a reasonable Rights above.) understanding of its environmental impacts and was independently Excessive directors’ remuneration (2012) verified, Ethical Consumer gave the Samsung Group a best rating In September 2013, Nokia’s 2012 Annual Report was downloaded. for its environmental reporting. (ref: 87) The Summary Compensation Table stated that in 2012:

22 Nuclear Power of products containing toxic chemicals and in the climate change Involvement in Nuclear project (2012) category. (ref: 2) According to NEI magazine (www.neimagazine.com) Samsung No policy on recycling products (2008) was part of a consortium that was constructing a new nuclear According to an E-mail from Electronics Takeback Coalition in power plant in the UAE in 2012. The article stated that “KEPCO’s 2008 entitled ‘Samsung - Official E-Waste of the Superbowl’ scope of supply includes engineering, procurement, construction, Samsung had taken no action to ensure that the hazardous waste nuclear fuel and operations and maintenance support with the its electrical products produced during manufacturing was recycled assistance of other Korean members of the KEPCO team, including responsibly. (ref: 90) Samsung...” (ref: 88) Pollution & Toxics Climate Change Admits to sourcing tin linked to coral reef destruction Manufactured aircraft engines (December 2009) (April 2013) According to the Samsung Techwin website (www.samsungtechwin. The Guardian website, www.guardian.co.uk, reported in April com) viewed by ECRA in December 2009 the company 2013, that Samsung had admitted to using tin sourced from manufactured aircraft engines, ECRA considered aviation to be Indonesia’s Bangka Island, where an investigation in 2012 by the a high impact sector. (ref: 89) Guardian and Friends of the Earth (FoE) had found that unregulated Ranking in Greenpeace greener electronics study tin mining depends on child labour, wrecks the environment and (November 2012) kills an estimated 150 miners every year. The latest version of Greenpeace’s Guide to Greener Electronics The admission follows pressure from customers and FoE who (version 18) was released November 2012. The guide ranked the had contacted Samsung demanding the company investigate the 16 top manufacturers of personal computers, mobile phones, TV’s human and environmental cost of its tin sourcing. Samsung stated and games consoles according to their policies on Energy and ‘While we do not have a direct relationship with tin suppliers Climate, Greener Products, and Sustainable Operations. from Bangka Island, we do know that some of the tin that we use for manufacturing our products does originate from this area’. Samsung had moved up to 7th position, with 4.2 points/10 in Samsung continued by stating it was ‘undertaking a thorough the 2012 Greenpeace Guide to Greener Electronics. Samsung investigation of our supply chain in the region to better understand was close to achieving a revised goal of eliminating some of the what is happening and what part we play’. (ref: 91) most hazardous substances from its products. Although progress Samsung campaign: compensation for ill workers was being made, this revised commitment only covered some (September 2013) product groups; TVs and household appliances were no longer The Sum of Us website, www.action.sumofus.org, was viewed included. in Septmeber 2013. A petition had started, calling for Samsung “to stop denying that illnesses [occurring within its South Korean factories] are industrial accidents, and to properly compensate Samsung did reasonably well on other Products criteria. The the victims and their families”. company was one of the leaders on product life cycle, as it provided warranties and spare parts information as well as details Numerous cases had been reported of current or former Samsung of innovations to extend product lifetimes. Samsung was quite factory workers developing lymphoma, brain tumours and close to scoring maximum points on energy efficiency. Samsung’s leukaemia. Sum of Us stated that “more than 137 cases of illness, chemicals policy set out ways to identify future substances of and 53 deaths, have been reported by former workers in Samsung’s concern, but the company continued to lack a restricted substances semiconductor factories, where employees were required to work list for manufacturing. with toxic chemicals”. According to the report ‘Toxics in the Clean Rooms’, the South Korean situation presented ‘striking similarities to patterns of Samsung’s Energy score increased due to progress on reporting illness seen at semiconductor plants in the United States and greenhouse gas (GHG) emissions information, including supply elsewhere in decades past’. chain data. Samsung failed to score additional points with its carbon intensity target of 24% by 2015, especially as its intensity Samsung had refused to accept that the illnesses were related to emissions grew 9% (by revenue) in 2011 alone. Samsung’s the workers’ jobs and continued to fight the accusations in court. renewable energy use stayed low at 0.2% of global electricity However, after 6 years of pressure, the company had finally agreed use. An absolute reduction target of at least 30% by 2015, as well to sit down and discuss the issues with Banollim and affected as the ambitious 100% renewable energy by 2020, would earn workers. Banollim was a group dedicated to promoting the health the company more points. Samsung got 1 point for supporting and human rights of workers in the semiconductor industry. GHG emission cuts by industrialised countries of at least 30% The company therefore lost a mark for the provision of an as a group by 2020. inedequate working environment and a mark for pollution and toxics. (ref: 92) Samsung scored most of its points for Sustainable Operations, (See also ‘Ranking in Greenpeace greener electronics due to its relatively good e-waste take-back programme and study’ in Climate Change above.) information. The company needed to extend this programme to Habitats & Resources cover its entire product range. It had extend its reported recycling (See also ‘Admits to sourcing tin linked to coral reef rate beyond South Korea, starting with India. Samsung had pledged destruction’ in Pollution & Toxics above.) to sign a compliance agreement with its suppliers that would Links to human rights abuses and unfair mining practices prohibits the use of conflict minerals, and it needs to publicly map in DR Congo (August 2012) its smelters or suppliers. Samsung scored a point for reporting on In the Enough Project’s 2012 Conflict Minerals ratings of its paper use and aimed to increase the use of FSC paper. It needed 24 companies, Samsung scored 27% in its progress towards to develop a paper procurement policy which excludes suppliers responsible sourcing of conflict minerals - the 3Tgs of tin, tungsten, that are involved in deforestation and illegal logging. tantalum and gold. The company therefore scored a negative mark for the manufacture It had taken some steps to investigate their supply chains, and 23 are members of industry-wide efforts. But more commitment and died of leukemia in 2009 at age 29. A panel of three judges said action on tracing, auditing, certification, and legislative efforts Friday that a “considerable causal relationship” existed between is required of them. Kim Kyung-mi’s leukemia and her five years of work at a Samsung Samsung was a middle tier company and came joint 14th from memory chip factory, dipping wafers in chemicals. the top with 27%. The top score was 60%. Samsung had: The judges said Kim must have been exposed to more toxic Participated in the Conflict-free Smelter program, but did not chemicals than safety studies said existed at Samsung’s factories. adopt a policy requiring its suppliers to use only conflict-free Samsung has cited studies that found no dangerous level of smelters when available. benzene, formaldehyde or other carcinogens to ease public concerns about workplace hazards. But the studies did not evaluate Did not join the Public Private Alliance or participate in a program exposure to chemicals during maintenance work, blackouts, to source clean minerals from Congo. gas leaks or other incidents when the level of toxic gas goes up Samsung can improve its score by taking the first step to find sharply, the judges said. The court ordered the Korea Workers’ out who the smelters are in its supply chain and publishing this Compensations & Welfare Service, a government agency, to pay information, requiring its suppliers to use only audited conflict- compensation to Kim’s family. free smelters when enough are available and enforcing this policy through audits, joining the Early Adopters program, joining the Public Private Alliance, joining a clean minerals sourcing The latest ruling is the second case in South Korea in which a project from Congo, piloting the OECD guidance, and by fully court recognised a link between leukemia and working conditions supporting and implementing Section 1502 regulations issued by at Samsung memory chip factories. Kim worked at Samsung’s the Securities and Exchange Commission. chip factory in Giheung between 1999 and 2004 on “Line 2”, which was one of the three oldest chip manufacturing lines at The company therefore lost marks on the Ethical Consumer Samsung. The two other workers who died of leukemia and won rankings table for involvement in a project linked to human rights compensation from the government agency worked on these three abuses, operations in an oppressive regime and under the habitats lines, all of which were built during the 1980s. and resources category. (ref: 4)

People The judges said there was a “high probability” that benzene, Human Rights formaldehyde or other leukemia-causing materials were contained (See also ‘Links to human rights abuses and unfair mining in the chemicals Kim used, or created during the manufacturing practices in DR Congo’ in Habitats & Resources above.) process. But it said it was not possible to further determine Criticised for sponsorship of Chinese Olympics (15 April Kim’s exposure to carcinogens partly because Samsung hadn’t 2008) cooperated. “Samsung Electronics, which did not preserve In April 2008 the article “China: Olympic Flame Turns Up Heat information of chemical materials used during Kim’s work and on Sponsors” was published on Human Rights Watch, www.hrw. did not disclose some data citing trade secrets, is partly a cause,” org. It criticised the 12 TOP sponsors (“The Olympic Partner”), of the ruling said. (ref: 95) the Olympics for failing to speak out about human rights abuses (See also ‘Samsung campaign: compensation for ill in China in the lead up to the 2008 Olympic Games, despite their workers’ in Pollution & Toxics above.) “publicized commitments to the principles of corporate social Brazilian worker abuses (August 2013) responsibility and human rights”. It stated that Human Rights On 14th August 2013 it was reported on the Businesses Spectator Watch had documented an increase in human rights abuses website, www.businessspectator.com.au, that Brazil had filed directly related to preparations for the Games. They were said to a lawsuit against Korean electronics manufacturer Samsung, include ongoing violations of media freedom and intensification alleging poor working conditions at a factory in the Amazon. of persecution of Chinese human rights defenders who spoke out The Brazilian government was said to be demanding 250 million publicly about the Games, as well as the continuing crackdown in Reals in “collective moral damages”. The company was said Tibetan areas. China was on Ethical Consumer’s list of oppressive to already be facing approximately 1,200 legal complaints by regimes at the time of writing. Samsung was named as a TOP workers at Manaus plant, one of the largest of Samsung’s 25 sponsor. (ref: 93) factories worldwide, which employed 6,000 workers. Operations in 8 oppressive regimes (2012) The Brazilian Ministry of Labor said that employees at the factory The Samsung company’s website, www.samsung.com, was worked up to 15 hours a day, including 10 hours on their feet, viewed by ECRA in August 2013, and the company’s 2012 Annual sometimes for 27 days straight. It claimed that the company Report was downloaded. The report stated that the company had “subjects its employees to the risk of illness from repetitive activity subsidiaries in the following countries: Israel, Pakistan, China, and the intense pace of work on the assembly line”. (ref: 96) India, Thailand, Philippines, Bangladesh and Vietnam, These Supply Chain Management countries were considered to be oppressive regimes by Ethical Worst ECRA rating for supply chain management (August Consumer at the time of writing. (ref: 94) 2013) Workers’ Rights In August 2013 Ethical Consumer searched the Samsung company Failure to fully examine workplace hazards and co-operate website for any supply chain management documents. Some with court proceedings (October 2013) information was found but the company received ECRA’s worst According to the article ‘Studies of Samsung factories fail to rating for supply chain management for the following reasons. fully examine workplace health hazards’, published October The company was found to subscribe to the Eletronic Industry 23rd 2013, a South Korean court had said studies conducted to code of conduct (EICC) supply chain code which covers child evaluate safety at Samsung chip factories failed to fully examine labour (to a limited extent), forced labour and anti discrimination. workplace health hazards, undermining the company’s efforts to However it did not mention a living wage and was inadequate on distance itself from claims that its manufacturing plants caused fatal working hours (under 48 with 12 hrs over time) and freedom of cancers. The finding by the Seoul Administrative Court was part association and it did cover the whole supply chain. Therefore of a ruling in the case of a Samsung Electronics Co. worker who ECRA considered it to be a rudimentary supply chain policy. 24 There was little information on stakeholder engagement. It was corporate lobby group which exerted undue corporate influence on stated that yearly audits were carried out and it did mention policy-makers in favour of market solutions that were potentially financial rewards for companies that completed audits ina detrimental to the environment and human rights. (ref: 101) satisfactory manner. However no information was given about Anti-Social Finance the results of these. Worst ECRA rating for likely use of tax avoidance No difficult issues were addressed. (ref: 97) strategies (September 2013) Irresponsible Marketing In September 2013, Ethical Consumer viewed Hoovers website Misleading Ethical Claims (July 2013) for Samsung Group’s family tree. Hoovers listed several holding In August 2013 China Labour Watch reported The public subsidiaries based in jurisdictions that Ethical Consumer prosecutor’s department of Bobigny in Paris, France had decided considered to be tax havens at the time of writing. to open an investigation on a complaint lodged against Samsung Samsung Asia Pte. Ltd - based in Singapore had two subsidiaries France by three organizations: Peuples Solidaires, Sherpa, and based in Japan and the Philippines. Indecosa-CGT. Samsung Electronics H.K. Company, Limited based in Hong The complaint accused Samsung France of advertising misleading Kong had three subsidiaries based in China. commercial practices by promoting a code of conduct for the This company structure showed that the company was not likely treatment of the workers who make Samsung’s products that to be serving the local population. Given that the company types Samsung does not necessarily enforce. were considered likely to be used for tax avoidance purposes, by This was the first investigation of its kind in Europe and the Ethical Consumer, Samsung Group received a worst rating for first time that a public prosecutor has begun an inquiry on the likely use of tax avoidance strategies. (ref: 16) gap between the ethical commitments of a company and its Allegations of £108m slush fund (4 April 2008) contradicting practices. (ref: 98) According to the BBC News website (http://news.bbc.co.uk/) Arms & Military Supply the chairman of the Samsung Group was questioned by special Supplier to the defence industry (2011) prosecutors over allegations of corruption at the firm. Samsung The 2011 Jane’s International Defence Directory listed Samsung was accused of operating a 200bn won ($215m; £108m) slush Semiconductor as supplying semiconductors to the defence fund to bribe prosecutors, judges and civil servants. The company industry. (ref: 60) and chairman denied the accusations. (ref: 102) Supplier to defence industry (2011) Chairman charged with tax evasion, bribery network Samsung Thales was listed in the 2011 International Defence (2008) Directory as supplying: According to CSR Asia Weekly Vol.4 Week 17 Samsung’s chairman had been indicted on charges of tax evasion. Samsung “C4i systems, surveillance and reconnaissance weapon systems had claimed that Lee and his closest aides had kept vast and naval weapon systems”. (ref: 60) amounts of money in slush funds, embezzled from subsidiaries Sale of weapons systems (December 2012) and hidden in stock and bank accounts opened in the name of When viewed by Ethical Consumer in December 2012, the various executives. It has also been asserted that Samsung ran a Samsung Techwin website, www.samsungtechwin.com, displayed bribery network, offering cash gifts to prosecutors, officials and military equipment for sale, including howitzers and tanks. (ref: politicians. (ref: 103) 99) Politics Sony Xperia smartphone Political Activities Owned by Sony Mobile Communications AB Donations and lobbying (September 2012) Sony Mobile Communications AB, Sony Mobile House, 202 According to the Open Secrets website, viewed by Ethical Hammersmith Rd, London, W6 7DN, United Kingdom Consumer in September 2013, Samsung Group spent a total of Sony Mobile Communications AB is owned by Sony Corp $900,000 on lobbying in 2012 and dontated $3000 to US candidates from both the Republican and Democrat parties. (ref: 84) Sony Corp, 7-1, Konan, 1-Chome, Minato-Ku, Tokyo, 108-0075, Japan Lobbying via the International Chamber of Commerce (September 2013) The website of the International Chamber of Commerce Environment (www.iccwbo.org), viewed by ECRA on in September 2013, Environmental Reporting listed Samsung as a member. According to the ICC, “Through Best ECRA rating for environmental reporting (August membership of ICC, companies shape rules and policies that 2013) stimulate international trade and investment.” ECRA noted that Ethical Consumer viewed Sony’s CSR review 2012 on its website the activity of lobby groups such as the ICC often meant that in August 2013. business interests were protected at the expense of the environment As part of its long term ‘Road to Zero’ global environment plan to and human rights. For example, the ICC were included in the achieve a zero environmental footprint throughout the life cycle Basel Action Network’s “Hall of Shame” for lobbying against of its products and business activities by 2050, Sony set some mid the Basel Convention, within which was a ban on transporting term targets for 2015. The targets were based on climate change, hazardous waste from the wealthiest to less wealthy countries, resource conservation, management of chemical substances and due to those countries demonstrably not having the infrastructure biodiversity - across all product life cycle stages. to minimise risk from the waste. (ref: 100) There were more than two targets and an assessment of how the Member of WBCSD (April 2013) company had performed in 2011. The report was independently According to the organisation’s website www.wbcsd.org, viewed verified by Bureau Veritas. by Ethical Consumer in April 2013. Samsung Group was a member Sony therefore received our best rating for environmental of the World Business Council for Sustainable Development. reporting. (ref: 104) This was regarded by Ethical Consumer as an international 25 Climate Change Rated for pollution in China (November 2010) Greenpeace rating for energy, products and operations In April 2010, a coalition (Friends of Nature, Green Beagle and (November 2012) the Institute of Public and Environmental Affairs) published its The latest version of Greenpeace’s Guide to Greener Electronics 1st report on water pollution and IT companies in China. The (version 18) was released November 2012. The guide ranks the coalition reported on evidence of heavy metal pollution from the 16 top manufacturers of personal computers, mobile phones, TV’s IT supply chain and also evidence that the named suppliers who and games consoles according to their policies on Energy and were causing the pollution were supplying well-known IT brands, Climate, Greener Products, and Sustainable Operations. amongst them Sony. The coalition had presented this evidence to Sony was in 8th position with a score of 4.1 out of 10. the brands and asked them to take action on the issues. It was a top scorer in the Greenpeace Guide to Greener Electronics This report listed copper, chromium, nickel, nickel compounds 2011 but has lost significant points for not continuing its energy and lead as the pollutants discharged by the IT industry, and policy advocacy work for tougher greenhouse gas (GHG) also listed many specific incidents of discharges from the named reduction targets. suppliers. On other Energy criteria, Sony gets maximum points for third- Sony was mentioned as one company that “performed negatively” party verified disclosure of its reducing GHG emissions, and for and there were expectations that there would be difficulties for its progress reducing them. Sony aims to reduce GHG emissions them to make progress “in mending the gaps in their supply chain by an absolute value of 30% from the fiscal year 2000 level by management.” (ref: 38) 2015. Having already met this goal, it should now set a secondary Habitats & Resources goal. Sony has not set a target for renewable energy use. Sony’s (See also ‘Irresponsible sourcing of tin’ in Pollution & strategy for reducing GHG emissions includes energy efficiency Toxics above.) and increasing its use of renewable energy, which currently Policy on sourcing minerals from the Congo (August 2012) accounts for 10% of the total amount of electricity that Sony In the Enough Project’s 2012 Conflict Minerals company ratings, purchases globally each year. Sony scored 27% in its progress towards responsible sourcing of On products, Sony receives top marks for energy efficiency, with conflict minerals - tin, tungsten, tantalum and gold (the 3Tgs). all of its TVs meeting or exceeding the latest Energy Star standards. It has taken some steps to investigate its supply chains, and is The company uses approximately 8,500 tonnes of post-consumer a member of industry-wide efforts. But more commitment and recycled plastic annually, and has a goal to “reduce utilisation action on tracing, auditing, certification, and legislative efforts ratio of virgin oil-based plastics in products by 5% from the fiscal is required of them. 2008 level” by 2015. Sony fails to report on the length of warranty 13 of the 24 companies scored higher than Sony. The top score and spare parts availability for its main product lines. Although was 60%. Only 7 companies scored lower. Sony was a second it has phased out polyvinyl chloride plastic (PVC) from many tier company. of its products, the scope of its phase-out of brominated flame Sony significantly improved its efforts by surveying its suppliers, retardants (BFRs) is limited. piloting due diligence, and joining the smelter audit program. Sony’s performance on Sustainable Operations has improved since Sony led a partnership to get Japanese electronics companies last year. Sony escapes a penalty point for instituting a global paper more involved on conflict minerals, shepherding a process procurement policy, citing the importance of forest conservation that led Japan’s tech association to sign a memorandum of in purchasing decisions. Sony should immediately and publicly understanding, or MOU, with the U.S.-based EICC to participate commit to stop sourcing any paper or packaging from Asia Pulp in the smelter audit program. And it is helping Congo develop and Paper. Sony has started to identify certain minerals used in a clean minerals trade by joining the Public Private Alliance on Sony products and in its supply chain, and will identify measures Responsible Minerals. to eliminate such conflict minerals as far as possible. Sony bases its chemicals management on the precautionary principle, but its But it has not identified all of the smelters in its supply chain. Sony programme does not fully implement the principle in practice. can improve its score by taking the first step to find out who the Sony’s inheritance of Sony Ericsson’s mobile recycling programme smelters are in its supply chain and publishing that information, greatly improves its take-back programme. Sony reports on its requiring its suppliers to source from only conflict-free smelters compliance with India’s new e-waste rule, and provides data on when enough are available and enforcing this policy through audits, the quantities of e-waste collected. piloting the OECD guidance, joining a clean minerals sourcing project from Congo, and fully supporting and implementing the company therefore lost marks in the climate change (secondary section 1502 regulations issued by the Securities and Exchange criticism) and manufacture of products containing toxic chemicals Commission. (ref: 4) categories. (ref: 2) Pollution & Toxics People Irresponsible sourcing of tin (July 2013) Human Rights In August 2013, Ethical Consumer viewed a Press Release by (See also ‘Policy on sourcing minerals from the Congo’ in Friends of The Earth (FOE). It stated that Nokia, Sony, Blackberry, Habitats & Resources above.) Motorola and LG Electronics had publicly accepted that their Operations in 5 oppressive regimes (August 2013) phones were likely to contain tin sourced from Bangka island, The Hoovers Family Tree for Sony Corp, accessed on its website, Indonesia, and that they were committed to tackling the issues www.hoovers.com, by Ethical Consumer in August 2013, stated associated with tin mining. FOE reported that approximately one that the company had subsidiaries in the following countries: third of the world’s tin was mined from Bangka, and that this had Thailand, China, Russia, India and the Philippines. All of these huge consequences for both the environment and the communities countries were considered by Ethical Consumer to be oppressive of Indonesia. Previous investigations by FOE exposed reports of regimes at the time of writing. (ref: 16) child labour, unsafe working conditions, damage to farmland and Workers’ rights abuse criticisms in Chinese factories marine ecosystems. (ref: 14) (December 2008) (See also ‘Greenpeace rating for energy, products and The Ecologist reported in December 2008, that a report by operations’ in Climate Change above.) Make IT Fair had found that handset components for a number 26 of companies, including Sony Ericsson, were made by workers paid below a living wage and forced to work long overtime hours. After the suicides, Foxconn set the monthly overtime limit to The report found that workers in one factory had been expected 80 hours - well over the legal minimum of 36 hours. Workers to work weekends, and that there was a case of staff who had interviewed for the SACOM report said that these new overtime not fulfilled production quotas working ‘voluntary’ overtime restrictions had resulted in overtime records being falsified, without premiums. It was reported that there was evidence of meaning that overtime did take place, but was not recorded or unjust wage deductions in the Chinese factories - such as fining paid as overtime. Foxconn workers also said they were kept in workers for making mistakes or falling asleep on their 13 hour compulsory meetings for about an hour a day, which they were shift. Furthermore, it was also found that safety protocols were not paid for at all. Time spent in training was also not fully paid. often ignored. The companies concerned had promised to inspect As a result, workers were not earning any more than before the the factories as a result of the research. (ref: 40) June 2010 wage increase. Workers’ Rights Continuing workers rights issues at Chinese supplier In the aftermath of the suicide trauma, Foxconn announced that (February 2011) it was to relocate to central, western and northern China, where In 2008, the makeITfair project researched working conditions the minimum wage was lower. This would make the Shenzen at four factories operating in the Guangdong province in China, wage increase irrelevant. It was clear to workers that they could namely Celestica Technology, Flextronics International (incl. either relocate, or accept dismissal. Vista Point Technologies/Multek), and Hong Fu Jin Precision of Foxconn. They manufacture or deliver components to portable music player, multimedia phone and video game console According to the report, trade unions existed, but totally lacked companies. any credibility. The chairperson of the Federation of Foxconn Technology Group in Longhua was also PR manager and secretary A follow-up report, ‘Game console and music player production in to Foxconn’s CEO. The Hangzhou factory had a trade union, China: A follow-up report on four suppliers’ published in February but this shared offices with the company’s human resources 2011 re-examined working conditions at these four factories two department. Workers who felt wronged were asked to deposit years after the first research. In total, over 100 workers were complaints directly with the management. SACOM found that interviewed in mid-2010 by the project. workers did not fully enjoy the freedom to organise as stipulated It found that Multek produced LCD screens for Sony. by Chinese Trade Union Law. Although there had been improvements at the factory, the report noted these remaining to address according to workers The press release also mentioned the fact that Foxconn took on interviewed: school students as interns. SACOM found that in some cases, * Delays of resignations during peak season. between 35-50% of the labour force were students. Governent * Basic wages are legal but insufi cient for a decent living in regulations stipulate that interns’ work should be in line with Shenzhen. their school curriculum and learning targets and that working * Difi culties in getting a permission not to perform overtime. hours should not exceed 8 hours a day. The SACOM report described how students were deployed as ordinary production * Lack of awareness of, and trust in, trade union line workers and could not be exempted from overtime work. * Many worker regulations involving disciplinary measures. Moreover, placement was not voluntary – students were placed * No food allowance provided, food cost increased. by their schools. * Workers must clean dormitory rooms by themselves. (ref: 69) The SACOM report also found evidence of lacking personal Ongoing workers rights abuses at electronics supplier personal protective equipment and inadequate safety training. Foxconn (October 2010) Workers explained that the high turnover rate in their departments A joint press release, published on the SOMO website (www. was due to unsafe and unhealthy working conditions. When somo.nl) and dated 11 October 2010, by GoodElectronics, workers resigned, the report found that Foxconn did not arrange Students & Scholars Against Corporate Misbehaviour (SACOM), for health examinations, which was a breach of Article 32 of Bread For All, Make IT Fair and the International Metalworkers’ the law on Prevention and Treatment of Occupational Diseases. Federation (IMF) detailed the workers’ rights abuses still occurring (ref: 80) at electronics manufacturer Foxconn. Since the spate of worker Workers’ rights abuse allegations at Chinese supplier suicides at the factory in 2010, according to these organisations, (2009) working conditions still had not improved. Foxconn supplied In March 2009 the makeITfair campaign published the report mainstream electronics companies, including Sony and Sony “Playing with Labour Rights - Music player and game console Ericsson. manufacturing in China”. The report gave details of labour rights abuses that had allegedly occurred at the Vistapoint Technologies/ The press release summarised the findings of the SACOM Flextronics International factory in the company’s Shenzhen investigative report entitled ‘Workers as machines; Military production facility in Henggang town. Flextronics was reported to Management in Foxconn,’ which was released on 12 October be a major manufacturer of Sony’s liquid crystal displays (LCDs) 2010. for its MP3 players. The research for the report was carried out by MakeITfair’s Hong Kong-based partner Students and Scholars Against Corporate Misbehavior (SACOM) in mid-2008. Despite the wage increase promised on 1 October 2010 by Foxconn, The following findings were said to have been made: job applicants workers in Shenzen had, at the time of the SACOM report, still were required to undergo medical screenings for highly contagious received no formal notification about this development. The diseases; workers were not allowed to resign when a replacement report discovered that workers had been losing out on subsidies, could not be found; mandatory day and night shifts including three allowances and bonuses and that Foxconn had not spoken about hours’ overtime during peak production season, which in sum, increasing wages in regions that had not been hit by suicides. 27 contravened Article 36 of the Chinese Labour Law; workers had and said that anyone noticing such occurrences should unplug the to justify to their supervisors their refusal to do overtime. The power cable and stop using the set immediately. (ref: 107) report claimed this discouraged workers from refusing to work overtime; wages given to workers were said to be below those Politics needed to provide a decent standard of living and consequently Political Activities led to workers choosing to do overtime to compensate; unhealthy Political lobbying (2012) working conditions existed which lead to health problems, such as In September 2013 the website for the Centre for Responsive standing for entire shifts, inhaling toxic fumes; and disciplinary Politics, www.opensecrets.org, reported that a total of $3,258,000 wage reductions were made against workers who were judged had been spent by Sony Corp on lobbying in 2012. The specific to have committed minor infringements such as time caught lobbying issues identified included; Trade, Consumer Product dozing off. (ref: 105) Safety, Copyright, Patent & trademark, Taxes and Radio & TV Supply Chain Management Broadcasting. Middle ECRA rating for supply chain management (March The website also reported that the company contributed $809,691 2013) to political parties in the US in the same year. (ref: 29) In March 2013 ECRA searched the Sony company website for Disproportionate power over global economy (October a supply chain management document. Some information was 2011) found but the company still received ECRA’s worst rating for New Scientist ran an article ‘Revealed – the capitalist network supply chain management for the following reasons. that runs the world ‘ published on its website, www.newscientist. The company was found to have a policy similar to the Electronic com, October 24th 2011, which detailed research conducted by Industry Citizenship Coalition (EICC) code, an industry body. the Swiss Federal Institute of Technology in Zurich involving It covered child labour (to a limited extent), forced labour and an analysis of the relationships between 43,000 transnational anti discrimination. However the living wage, working hours and corporations. The research identified a relatively small group of freedom of association clauses were not adequate. Therefore ECRA companies, mainly banks, with disproportionate power over the considered it to be a rudimentary supply chain policy. global economy. The researchers looked at the 43,060 TNCs and For stakeholder engagement, Sony stated: “the EICC holds the share ownerships linking them and from that constructed a discussions periodically with NGOs, socially responsible investors model of which companies controlled others through shareholding and other stakeholders, in which Sony is also participating” but networks, coupled with each company’s operating revenues, to no details of who these ngos were was given. It therefore received map the structure of economic power. The research revealed a a rudimentary rating for stakeholder engagement. core of a of 1318 companies with interlocking ownerships. The For auditing and reporting: “As of March 31, 2011, assessments researchers further untangled the web of ownership and found had been conducted in all but a few of areas where Sony has much of it tracked back to a “super-entity” of 147 even more suppliers and Sony had received the results of assessments from tightly linked companies which controlled 40 per cent of the total almost all of its suppliers worldwide. wealth in the network. They found that less than one per cent of the companies were able to control 40 per cent of the entire The EICC has also established a framework for third-party supplier network. Most were financial institutions. Sony Corp (CNCE) audits based on the EICC Code of Conduct. This framework was ranked 37th on the list. (ref: 108) encompasses the certification of third-party auditors, as well as the provision of necessary auditing tools, including manuals and Member of WBCSD (March 2013) audit checklists. These audits focused on suppliers in regions where According to the organisation’s website www.wbcsd.org, viewed member companies consider the risk of violation to be high. by Ethical Consumer on 20/3/13, Sony was a member of the World Business Council for Sustainable Development. This was Sony’s suppliers have also undergone audits based on EICC regarded by Ethical Consumer as an international corporate lobby standards through the EICC’s shared audit program.” group which exerted undue corporate influence on policy-makers However, there was no mention of disclosure of audit reports, in favour of market solutions that were potentially detrimental to schedule, whole supply chain or costs. Sony did mention that it the environment and human rights. (ref: 8) had a policy for non-compliance with its code. It received a poor rating for auditing and reporting. Anti-Social Finance Worst ECRA rating for likely use of tax avoidance For difficult issues, it does adress the sourcing of conflict minerals strategies (September 2013) so received a rudimentary rating here. In September 2013 Ethical Consumer viewed Hoovers website Overall, Sony received a middle rating for its supply chain for Sony Corporations family tree. management. (ref: 106) The family tree for Sony Corporation showed that the company Irresponsible Marketing had several holding companies based in tax havens which Ethical Faulty TV sets overheated and ‘smoked’ (October 2011) Consumer considered to be likely to be used for tax avoidance According to an article on the BBC News website, www.bbc. strategies. co.uk, ‘Sony offers to check ‘smoking’ TV models, dated 12th The holding companies included: October Sony was to offer free safety checks on several of its Sony Computer Entertainment Hong Kong Limited TV models after a number of sets started smoking but had not issued a full recall. The company warned that a component used Sony Digital Reading Platform SARL - Luxembourg in eight different versions of its Bravia televisions may be faulty Sony Corporation of Hong Kong Limited and could, in rare cases, overheat. Sony said that anyone who was SONY ELECTRONICS (SINGAPORE) PTE. LTD. concerned could request an engineer come to their home for free to Sony Music Entertainment China Holdings Limited - Hong inspect their TV. 1.6 million of the TVs had been sold worldwide; Kong 630,000 in Europe. Reports of overheating sets to date had all come from Japan. The company said that the televisions were not Given that the company had two or more high risk subsidaries at risk while they were switched off. It warned owners to be aware based in jurisdictions which Ethical Consumer consdiered to be of any unusual noises, smells or smoking coming from their set tax havens at the time of writing, Sony received a worst rating for likely use of tax avoidance strategies. (ref: 16) 28 Excessive Directors’ remuneration (September 2013) 18 - CNet News:Apple iOS 6 devices get nod for U.S. military In September 2013, Sony Corp’s Annual Report was downloaded use (9 September 2013) (1334137) from the US Securities Exchange Commission’s website, www. 19 - Open secrets website:blackberry (9 September 2013) sec.gov. Ryoji Chubachi, Sony Corporation’s Former Director, (1334156) 20 - Thomson Reuters:Class action claims RIM misled investors was paid a total of 194 million Yen. This was equivalent to (27 May 2011) (557805) £1,256,428.73. Ethical Consumer deemed sums of above £1 21 - New York Times:http://www.nytimes.com/2008/04/10/ million to be excessive. (ref: 109) business/worldbusiness/10iht-rusoil.4.11873112.html?_r=1 Olympus prosecuted (September 2013) (25 Octob (548467) In September 2013 the BBC reported that Japanese camera 22 - Doro AB Corporate Communications:http://www.doro.com/ and medical equipment maker Olympus and its UK subsidiary Corporate/Doro-Group/ (12 August 2013) (1333404) 23 - Doro AB Corporate Communications:www.doro.com (5 Gyrus Group were to be prosecuted by the UK’s Serious Fraud January 2010) (538582) Office. 24 - Doro AB Corporate Communications:sustainable operations They were charged with providing “misleading, false or deceptive” (28 August 2013) (1333823) material in accounts for Gyrus Group. 25 - Fairphone Corporate Communications:www.fairphone.com (27 August 2013) (1333768) In Japan three former executives were given suspended jail 26 - High Tech Computer Corp (HTC) Corporate terms over the $1.7bn (£1.1bn) accounting scandal which came Communications:2012 CSR report (21 August 2013) to light in 2011. (1333676) Former chairman Tsuyoshi Kikukawa and executives Hisashi 27 - High Tech Computer Corp (HTC) Corporate Mori and Hideo Yamada were sentenced for their role, after Communications:corporate responsibility (10 September 2013) (1334180) pleading guilty last year to charges of falsifying accounts to cover 28 - High Tech Computer Corp (HTC) Corporate up losses of $1.7bn. Communications:code of conduct (28 August 2013) The company’s takeover of UK firm Gyrus was wrapped up in (1333810) the false accounting, and the Serious Fraud Office was brought 29 - Open secrets website:Sony (9 September 2013) (1334162) in to investigate after whistleblower Michael Woodford raised 30 - Huawei Investment & Holding Co. Ltd Corporate Communications:2012 Sustainability report (27 August the alarm, challenging suspiciously large payments related to 2013) (1333772) acquisitions. (ref: 110) 31 - Huawei Investment & Holding Co. Ltd Corporate Communications:supply chain management (9 September 2013) (1334132) 32 - Wall Street Journal:Chinese Tech Giant Aids Iran (27 References October 2011) (565381) 1 - Acer Inc. Corporate Communications:www.acer-group. 33 - Open secrets website:Huawei (9 September 2013) com/public/Sustainability/environment/products-5.htm (21 (1334167) August 2013) (1333684) 34 - Apple Inc Corporate Communications:Proxy Statement 2 - Greenpeace’s Guide to Greener Electronics:Version 18 2013 (27 March 2013) (1329554) - November 2012 (12 March 2013) (1329062) 35 - Greenpeace:How clean is your cloud? (17 April 2012) 3 - Acer Inc. Corporate Communications:2012 Annual Report (923171) (12 August 2013) (1333385) 36 - Climate Counts - www.climatecounts.org:2012 Scorecard 4 - Enough! - Center for American Progress:Taking Conflict Out (2012) (1329212) of Consumer Gadgets: Company Rankings on Conflict 37 - BBC News Website www.bbc.co.uk:Apple defends itself Minerals 2012 (2012) (1329060) after pollution allegations (1 September 2011) (561334) 5 - National Labor Committee:China’s Youth Meet Microsoft (13 38 - Friends of Nature:Green choice consumers urge the IT April 2010) (561643) brands to break their silence (August 2010) (549585) 6 - MakeITfair:Configuring Labour Rights Labour Conditions 39 - Guardian Unlimited / Guardian website www.guardian. in the Production of Computer Parts in the Philippines ( co.uk:http://www.guardian.co.uk/commentisfree/2011/ (535518) sep/12/thinktanks-crushing-democracy-pr-agenices (13 Ju 7 - Acer Inc. Corporate Communications:supply chain pages (28 (555829) August 2013) (1333812) 40 - Ecologist, The:Dec/Jan 09 (1 December 2008) (532401) 8 - World Business Council for Sustainable Development 41 - BBC News Website www.bbc.co.uk:http://www.cityam. (WBCSD) www.wbcsd.org:List of members January 2012 com/blog/apple-supplier-china-accused-86-labour-rights- (19 January 2012) (567058) violations (29 July 2013) (1333249) 9 - TCL Corporation Corporate Communications:http://www.tcl. 42 - SACOM (Students and Scholars Against Corporate com/en.php/Social/Green_Manufacturing.html (21 August Misbehaviour) :iPad Mini-mizes Labour Rights (23 October 2013) (1333693) 2012) (1326829) 10 - China Labor Watch:Chinese Electronics Factory Hiring 43 - SACOM (Students and Scholars Against Corporate Child Labor (13 August 2013) (1334301) Misbehaviour) :Poisoned Workers Demand Steve Jobs 11 - Audioline GmbH Corporate Communications:www.audioline. Successor to Live Up to CSR (26 August 2011) (561635) de (6 September 2013) (1334037) 44 - Apple Inc Corporate Communications:http://www.apple. 12 - Audioline GmbH Corporate Communications:http:// com/supplierresponsibility/ (12 January 2011) (549735) amplicomms.com/index.php?en_impressum (6 September 45 - Centre for Responsive Politics:Lobbying report Apple Inc 2013) (1334034) (2010) (549695) 13 - BlackBerry Limited Corporate Communications:2012 46 - Dirt Diggers Digest newsletter:corporate americas paid Annual Report (7 August 2013) (1333341) holiday (27 June 2011) (556823) 14 - Friends of the Earth UK:Mobile industry tackles tin 47 - American Chamber of Commerce (Amcham) EU www. problems (July 2013) (1333318) amchameu.be:Members List (30 January 2012) (920027) 15 - BlackBerry Limited Corporate Communications:Corporate 48 - Apple Inc Corporate Communications:itunes receipt (24 Responsibility Report 2010 (2011) (557753) July 2013) (1333156) 16 - Hoovers 2013:Generic 2013 Hoovers ref (2 January 2013) 49 - BBC News Website www.bbc.co.uk:Apple ‘among largest (1327212) tax avoiders in US’ - Senate committee (21 May 2013) 17 - BlackBerry Limited Corporate Communications:supply (1330913) chain (28 August 2013) (1333801) 50 - BBC News Website www.bbc.co.uk:Apple paid only 2% corporation tax outside US (5 November 2012) (1326663) 29 51 - LG Corp Corporate Communications:www.lg.com/global/ Report (20 August 2013) (1333626) sustainability/environment (21 August 2013) (1333665) 88 - Nuclear Engineering International Buyers Guide to Nuclear 52 - OCI:LG corp (10 September 2013) (1334205) Power:Building Barakah (10 September 2013) (1334200) 53 - LG International Corp Corporate Communications:www. 89 - Samsung Group Corporate Communications:ann rep 2007 lgicorp.com (16 September 2011) (562142) (6 January 2009) (529799) 54 - Hoovers 2011 www.hoovers.com:Hoovers 2011 (2011) 90 - Electronics Takeback Coalition:3 June 2008 (524178) (560693) 91 - Guardian, The:Samsung admits its phones may contain tin 55 - LG Life Sciences Corporate Communications:home page from area mined by children (25 April 2013) (1330240) (27 October 2009) (537631) 92 - Sum Of Us:3 September 2013 (1333947) 56 - Bank Track www.banktrack.org:Lafayette mine Rapu Rapu 93 - Human Rights Watch:China: Olympic Flame Turns Up Heat island (5 August 2007) (508315) on Sponsors (5 April 2008) (534228) 57 - MakeITfair:Mobile Phone Production in China (December 94 - Samsung Group Corporate Communications:2012 Annual 2010) (538706) Report (7 August 2013) (1333339) 58 - LG Corp Corporate Communications:CSR info (28 August 95 - The Republic:Studies of Samsung factories fail to fully 2013) (1333807) examine workplace health hazards (23 October 2013) 59 - Guardian, The:American shoppers misled by greenwash, (1335185) Congress told (21 June 2009) (562160) 96 - Businesses Spectator:Brazil to sue Samsung over working 60 - International Defence Directory:IDD (2011) (1331630) conditions (14 August 2013) (1333528) 61 - Centre for Responsive Politics:Lobbying report LG 97 - Samsung Group Corporate Communications:supply chain Electronics (2008) (549724) info (28 August 2013) (1333799) 62 - International Chamber of Commerce ICC www.iccwbo.org: 98 - China Labor Watch:Preliminary inquiry opened on a Members list (6 August 2009) (535551) complaint lodged against Samsung France (11 September 63 - Google Inc Corporate Communications:10-K (2013) 2013) (1334249) (1328736) 99 - Samsung Techwin Corporate Communications:Product: 64 - Greenpeace:Make IT Green - Cloud Computing and its Artillery system (11 December 2012) (1327079) Contribution to Climate Change (March 2010) (541223) 100 - International Chamber of Commerce ICC www.iccwbo.org: 65 - Motorola Mobility Holdings Inc Corporate Communications: ICC members list (30 November 2010) (548889) supply chain (28 August 2013) (1333806) 101 - World Business Council for Sustainable Development 66 - Mercy for Animals website:Letter sent to You Tube (29 April (WBCSD) www.wbcsd.org:List of members (3 April 2013) 2011) (559903) (1329672) 67 - Independent, The:Google: Gmail users can’t expect privacy 102 - BBC News Website www.bbc.co.uk:Prosecutors question when sending emails (14 August 2013) (1333524) Samsung boss (4 April 2008) (521922) 68 - computerweekly.com:Google claims it is not subject to UK 103 - CSR Asia Weekly:Vol.4 Week 17 (23 April 2008) (524794) privacy laws (19 August 2013) (1333642) 104 - Sony Corp Corporate Communications:Annual Report 69 - MakeITfair:Game console and music player production in 2012 Business and CSR Review (2012) (1329113) China (February 2011) (557043) 105 - MakeITfair:Playing with Labour Rights (March 2009) 70 - Consumer Watchdog’s Inside Google insidegoogle.com: (532463) Google and Facebook lobby expense reports likely to set 106 - Sony Corp Corporate Communications:sony.net new records Wednesday (18 July 2011) (559947) (November 2010) (548733) 71 - Business & Human Rights Resource Centre:http://www. 107 - BBC News Website www.bbc.co.uk:Sony offers to check business-humanrights.org/Categories/Individualcompanies/ ‘smoking’ TV models (12 October 2011) (563242) G/Google?sort_on=publication&batc (1329243) 108 - New Scientist website www.newscientist.com:Revealed 72 - Open secrets website:Google (9 September 2013) – the capitalist network that runs the world (24 October (1334160) 2011) (566702) 73 - Open Democracy:Open Democracy (23 July 2013) 109 - Sony Corp Corporate Communications:2013 Annual (1333150) Report (2 September 2013) (1333923) 74 - Reuters www.reuters.com:Special Report - How Google UK 110 - BBC News Website www.bbc.co.uk:olympus prosecuted clouds its tax liabilities (1 May 2013) (1330264) by the FSO (5 September 2013) (1333999) 75 - Nokia Oyj Corporate Communications:2012 Sustainability Report (21 August 2013) (1333640) 76 - Bloomberg News:Torture in Bahrain Becomes Routine With Help From Nokia Siemens (22 August 2011) (561156) 77 - BBC News Website www.bbc.co.uk:Nokia’s India factory raided by tax officials (9 January 2013) (1327356) 78 - Telegraph (India - Calcutta):Woman crushed in Nokia factory (16 November 2010) (548217) 79 - SACOM (Students and Scholars Against Corporate Misbehaviour) :Foxconn and Apple Fail to Fuifill Promises: Predicaments of Workers after the Suicides (6 May 2011) (556140) 80 - SOMO website www.somo.nl:Foxconn suicides forgotten, back to business as usual? New SACOM report released. (11 October 2010) (549567) 81 - Nokia Oyj Corporate Communications:supply chain info (27 August 2013) (1333762) 82 - Nokia Solutions and Networks Corporate Communications:2012 Sustainability Report (27 August 2013) (1333776) 83 - Nokia Oyj Corporate Communications:www.nokia.com (July 2013) (538548) 84 - Open secrets website:nokia (9 September 2013) (1334151) 85 - European Round Table of Industrialists (ERT) www.ert.be: Members A-Z (17 July 2009) (535187) 86 - Nokia Oyj Corporate Communications:2012 Annual Report (2 September 2013) (1333905) 87 - Samsung Group Corporate Communications:2013 CSR 30