Apple’s iPhone: A Costly Ethical Dilemma

The latest Apple iPhone is hitting the shelves soon, accompanied by a comprehensive promotional campaign. With a suite of new features and a sleek design, Apple aims to entice consumers into purchasing the newest model. However, a growing movement is calling for a boycott of Apple and its products, advocating for the use of second-hand devices instead. Similar boycotts have previously impacted companies like Starbucks, which saw a notable 10% drop in share value to around $80, its lowest point since July 2022. Activists worldwide are spotlighting ethical issues related to these companies as reasons for their protests. Demanding accountability and transparency from the supply chains that provide their products.

Apple, in particular, faces criticism over a range of ethical concerns related to its production, use, and disposal practices. The company has been accused of labor exploitation, environmental impact, and human rights violations. Reports have highlighted issues such as long working hours, low wages, and unsafe working conditions in Apple’s supply chain. A major supplier, Foxconn, faced intense scrutiny in 2010 when at least 14 workers committed suicide, drawing global attention and highlight a need for better working conditions within Apples supply chain. More recently, Pegatron, another major supplier, has been criticized for excessive overtime, unsafe working conditions, and the use of underage workers. Although Apple has conducted audits and reported improvements in labor practices, problems such as excessive overtime and poor working conditions persist.

One of the most concerning ethical issues for Apple involves the Democratic Republic of Congo (DRC), a major source of cobalt, a key component in lithium batteries used in Apple products. Amnesty International has reported that children in the DRC work up to twelve hours a day in mines, earning just one or two dollars per day. UNICEF estimates that approximately 40,000 children are involved in mining activities in the DRC. These workers endure harsh conditions, lacking proper safety gear and facing health risks from dust, toxic chemicals, and poor sanitation, which can lead to skin diseases, respiratory problems, and other health issues.Amnesty International suggests that these harsh working conditions, combined with poor living environments, will likely shorten their lifespan. The lack of effective oversight from government authorities exacerbates these problems, allowing the mining industry to perpetuate these grave abuses.

Reports indicate that minerals from the DRC are sometimes smuggled through illicit means, often involving groups that commit severe human rights abuses, including summary executions, sexual violence, and abductions. These smuggled minerals are reportedly laundered through Rwanda before entering the global supply chain. The 2023 UN Secretary-General’s Annual Report on Children and Armed Conflict highlighted the DRC as having the highest number of reported violations, followed by Israel and Palestine. This ongoing smuggling has also intensified tensions between Rwanda and the DRC, with the latter citing significant tax revenue losses as a major point of contention. Critics argue that, despite the difficulties in tracking these resources, it is Apple’s responsibility to ensure that its supply chain is managed ethically and responsibly. Apple acknowledges the immense challenge of this task but has attempted to address it by instituting audits and implementing standards throughout its supply chain.

Beyond human rights concerns, activists also highlight the environmental impact of Apple’s products. Despite the company’s efforts to reduce its carbon footprint, critics argue that its global supply chain and manufacturing processes contribute significantly to greenhouse gas emissions. Apple has introduced recycling programs, offering credits for old phones, but critics question the effectiveness of these programs relative to the overall environmental impact of the company’s operations.

The sourcing of materials for Apple’s products also leads to significant environmental impacts such as habitat destruction, deforestation, and pollution. For example, the tin used in Apple electronics is sourced from Indonesia, where mining practices have been linked to severe environmental damage. On Bangka-Belitung Island, extensive deforestation has led to significant biodiversity loss, including the endangerment of local species such as the Sumatran tiger. Illegal and poorly regulated mining activities exacerbate these problems, often going unmonitored by the government and placing additional responsibility on consumers and the supply chain.

Despite these ethical and environmental concerns, Apple has continued to achieve substantial growth and revenue, reinforcing its status as one of the world’s leading technology companies. The company’s market capitalization exceeded $2.5 trillion as of 2024, driven by the success of its flagship products and a robust services sector, including the App Store, iCloud, and Apple Music. However, similar to Starbucks, Apple may be struggling to fully address the rising trend of ethical consumerism. Modern consumers increasingly demand transparency regarding the origins and supply chains of their products. If Apple does not adequately address these demands for greater corporate responsibility and ethical practices, it risks facing significant damage to their reputation and a potential decrease in its market value.