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Apple investigates the issue of rebates and bribery in the Supply Chain: Involving the Chinese Market

May 12, 2022

Latest company news about Apple investigates the issue of rebates and bribery in the Supply Chain: Involving the Chinese Market

According to the US "Wall Street Journal" report, earlier this year, Apple began to investigate possible improper business practices in the supply chain, including potential kickbacks and bribery issues. The survey affected Apple's suppliers and employees in China.

 

According to people familiar with the matter, in May of this year, Apple learned from at least one supplier about the possibility of providing kickbacks to Apple employees.

 

An Apple spokesperson acknowledged the investigation and said the company did not find evidence of bribery or kickbacks.

 

The spokesperson said: "We have more than 2,300 employees in China. Although there are few problems with misconduct, we take any accusations very seriously and thoroughly investigate each accusation." He declined to say what prompted it. The investigation.

 

Within Apple, the Chinese supply management team responsible for the iPhone's non-electronic components has seen some staff adjustments this year. According to informed sources, in May of this year, a major purchasing person left Apple, and two low-level employees left. The reasons for their departure are unclear, and Apple declined to comment on the departure of these employees.

 

People familiar with the matter said the company under investigation is still serving Apple, as replacing key component suppliers could disrupt iPhone production. In addition, in this year's iPhone cycle, the survey has been uncomfortable for Apple employees and suppliers, mainly related to non-electronic components.

In China and the United States, Apple has thousands of suppliers and supply managers.

 

Apple's suppliers and former employees said that Apple has strict rules for dealing with employees and suppliers. Apple employees engaged in parts procurement cannot accept gifts from suppliers and cannot dine at high prices.

 

Apple also has rules for suppliers. According to the Supplier Code of Conduct on the Apple website, suppliers are “not allowed to engage in corruption, extortion, corruption or bribery in order to gain an unfair or improper advantage.”

 

Apple had a kickback scandal in 2010 involving global supply manager Paul Shin Devine. He was accused of receiving more than $1 million in rebates from Apple's six Asian suppliers. He was arrested in the United States, acknowledging the receipt of rebates from suppliers, and was sentenced to imprisonment for about a year and a fine of about $4.5 million.

 

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