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Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements

Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements by Andreas Manhart & Rainer Grießhammer ERSCP 07, 21 st of June 2007. → Various social trouble spots in the life cycle of ICT products. → Growing consumer concerns. BMBF: Case study computer &

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Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements

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  1. Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements by Andreas Manhart & Rainer Grießhammer ERSCP 07, 21st of June 2007

  2. → Various social trouble spots in the life cycle of ICT products → Growing consumer concerns

  3. BMBF: Case study computer & Methodology development to integrate social aspects into LCA

  4. L i f e C y c l e o f C o m p u t e r s Resource Extraction Hardware Manufacturing Use Disposal & Recycling • WSIS • World Bank • FIAN • FFI • CAFOD • SOMO • Corporate data • EMPA • StEP • Greenpeace The Computer‘s Life Cycle → Focusing on social aspects

  5. The Notebook Industry: Brandname-Companies

  6. The Notebook Industry: Assembly-Companies

  7. Battery-block assembly: company headquarter production Simplo Taiwan PR China GLW Taiwan PR China Battery-cell manufacturing: New Sun Hong Kong PR China company headquarter production sites market-share Gold Peak Hong Kong PR China Sanyo Japan Japan 28% Jingyou PR China PR China Sony Japan Japan, PR China 15% Samsung SDI South-Korea South-Korea 12% Vina PR China PR China MBI Panasonic Japan Japan 12% Strongwill Hong Kong PR China LG Chem South-Korea South-Korea, PR China 7% Sanger Hong Kong PR China The Notebook Industry: Supplier-Structure

  8. Developing Social Indicators C. Society C.1 Public commitments to sustainability issues C.2 Prevention of unjustifiable risks C.3 Employment creation C.4 Vocational training C.5 Anti-corruption efforts C.6 Social & environmental minimum standards for suppliers and co-operation partners C.7 Non-interference in sensitive political issues C.8 Contribution to the national economic development C.9 Prevention & mitigation of armed conflicts C.10 Transparent business information C.11 Protection of intellectual property rights • Employees • A.1 Safe & healthy working conditions • A.2 Freedom of association, right to • collective bargaining & workers‘ • participation • A.3 Equality of opportunity and • treatment & fair interaction • A.4 Abolition of forced labour • A.5 Abolition of child labour • A.6 Adequate remuneration • A.7 Adequate working time • A.8 Employment security • A.9 Social security • A.10 Professional development • A.11 Job satisfaction D. Users / Consumers … B. Local Community B.1 Safe & healthy living conditions B.2 Respect of human rights B.3 Respect of indigenous rights B.4 Community engagement B.5 Maintaining & improving social and economic opportunities

  9. Quantitative & Qualitative Indicators Quantitative and qualitative information of various sources →Companies →Labour rights activists →Internet-sources →Expert judgements →…

  10. Social Indicators (for Chinese Factories) Workers: Remuneration: 690 RMB (= 69 Euro) per month Working hours: 196 hours / months officially, about 290 hours unofficially Child labour: no major problem Forced labour: no major problem Freedom of association: not guaranteed Social insurances: basic (legal obligations) Housing: Dormitories (8 persons per room) Discrimination: Young women preferred Health & safety: Partly hazardous work in component manufacturing On product level: Remuneration: 1.0 – 2.0 Euro per notebook (assembly only) Working hours: 2.5 – 3.0 hours per notebook (assembly only)

  11. Measures towards FAIR electronics: IMPROVE the handling of critical production processes (chemicals) ALLOWindependent reporting on working conditions (e.g. SA 8000) ESTABLISHdurable and trustful business relations between brandname-companies, suppliers and sub-suppliers (→investments in social and environmental standards should not lead to disadvantages) ENCOURAGE workers to organise and participate TRAIN workers and management in labour rights issues (→ national labour law, international standards (ILO)) COMMUNICATE with the consumers (→ positive marketing of fair and sustainable products)

  12. THANK YOU FOR YOUR ATTENTION ! Contact: Dr. Rainer Grießhammer +49 (0)761 – 45295 50 r.griesshammer@oeko.de Andreas Manhart +49 (0)761 – 45295 44 a.manhart@oeko.de

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