We show the complex functioning of the production network, who are the key actors, and how consumers – especially public administrations – can cope with the labour violations that occur in the electronics supply chain.
The report highlights the role played by both the electronics industry and the potential of public procurement in improving working conditions in the sector.
This research examines the ICT expenditure made by public buyers and which are the most purchased products. What influence can be derived from these data and the information provided by companies in their financial reports, which are the leading electronics companies, both in terms of brands and the companies to which they subcontract production, which are increasingly influential, and where do the major brands and their suppliers operate? And most importantly, what are the most important labour problems in these countries?
→ Made by Electronics Watch.
→ In collaboration with Red Good Electronics. English translation of the executive summary of SETEM Catalunya.
Major brands dominate the sector
ICT supply chains are characterized by a web of interrelated business relationships. All major brands in the sector subcontract production to a few companies, which, at the same time, try to diversify their commercial activity by maintaining relationships with several of these major brands.
In terms of income, there are a few big brands that dominate the sector. The report shows that these electronics companies are spread around the world, but they are concentrated mainly in Japan (9) and the US (7). Next, we find South Korea (4), China (3), Taiwan (2) and Western Europe (with companies domiciled in the Netherlands, Sweden, Finland and Germany, respectively).
The great challenge: traceability
Overcoming the lack of information on the lower levels of the supply chain is a key challenge for labour rights defenders in the electronics industry. In general, large brands or audit companies limit themselves to controlling the first link in the supply chain, that is, the production factories. The Electronic Industry Citizenship Coalition (EICC) understands that the big brands should not be responsible for controlling that the rest of the suppliers respect the code of conduct of the organization, but that this corresponds to the companies of the first link.
