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Apple Investigates Commercial Bribery by Suppliers

2018-12-14 11:46 Friday

Apple Inc. has launched an investigation into misconduct by component suppliers, according to recent news reports.

As one of the world's largest technology companies, Apple works with numerous components suppliers from around the world. The same parts in Apple's phones are often supplied by several manufacturers, all of which serve as competitors. But fierce competition can also induce corruption.

Apple Investigates Commercial Bribery by Suppliers

Most of Apple's component suppliers are located in Asia, most notably in China, Japan and South Korea. Apple's maintains its relationship with suppliers primarily through employees who are sent to component manufacturers. Expatriate employees are often equipped by Apple with the power to choose suppliers, a situation that provides some with the opportunity to engage in commercial bribery.

Apple received a piece of information from a whistle-blower that implicated some of its suppliers and employees in bribes and kickbacks, according to Phone Arena. Apple has initiated an investigation of its suppliers for commercial misconduct and staff, a move that has made waves within the industry.

In a recent interview, an Apple spokesman told reporters that thus far, the company has not found any violations such as bribery or kickbacks from component suppliers in its investigation. In order to reduce procurement costs, Apple adopts a diversified competitive strategy in its supply chain, in which a single component is often supplied by several parts manufacturers. This strategy allows suppliers to compete with each other, thereby driving down Apple's costs.

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