1. Pegatron violates Apple's supplier code of conduct, which clearly stipulates that suppliers can hire minors over the applicable legal minimum age but under 18 to do jobs that do not endanger their health, safety or morality, but they are not required to work overtime or night shifts. Suppliers should properly keep student files, conduct strict due diligence on educational partners, protect students' rights according to laws and regulations, and properly manage student workers. The supplier shall provide all student workers with appropriate support and training. It is reported that Apple's two companies in Shanghai and Kunshan illegally use student workers. During the internship, these student workers worked overtime, worked night shifts and engaged in jobs unrelated to their majors, and tried to forge documents to cover up violations. Apple has a strict examination and approval process for students' works, and Heshuo just violated this regulation. Therefore, Apple suspended its cooperation with Heshuo's new business and placed Heshuo in the observation period until Heshuo completed the rectification.
Two. Heshuo takes measures to suspend cooperation with Apple. Heshuo, an enterprise in Taiwan Province Province, China, is one of Apple's main agents in China. The two companies involved, Changshuo Technology (Shanghai) Co., Ltd. and Shi Shuo Electronics (Kunshan) Co., Ltd., have dismissed the senior management of the project. Pegatron headquarters immediately removed these employees from the production line after discovering violations, and cooperated with customers and third-party professional organizations to properly resettle these student workers. Assist them to return to their homes or schools, provide reasonable remuneration and necessary support and care, and take necessary measures to abide by the code of conduct of responsible business alliances. Through cooperation with external auditors, the compliance process is strengthened, and the evaluation of code of conduct is listed as one of the key performance indicators of senior executives.
I have to admit that Apple is very strict with supplier management. Every year, Apple updates its supplier responsibility report in official website, aiming at improving the requirements for suppliers, taking their business to a higher level and attaching great importance to employees' rights and interests. It requires suppliers to conduct induction training for new employees and understand international labor standards. Employees can also directly contact Apple's supplier responsibility team through an anonymous hotline of an external third party, and conduct a detailed investigation after receiving the report. Moreover, Apple will interview the supplier's employees, complete the supplier evaluation, and later contact the employees who participated in the evaluation whether they have been retaliated. Apple's actions are to ensure that every employee in the supply chain is protected and respected, which is one of the secrets of Apple's success.