Global Electronic Industry: Structures – Social Impacts – Mechanisms for
Improvements
Andreas Manharta & Dr. Rainer Grießhammerb
a
Öko-Institut e.V.,
Sustainable Products & Material Flows Division,
Merzhauserstr. 173,
79100 Freiburg,
Germany
Phone: ++49 (0)761-4529544
Fax: ++49 (0)761-4529588
Email: a.manhart@oeko.de
b
Öko-Institut e.V.,
Sustainable Products & Material Flows Division,
Merzhauserstr. 173,
79100 Freiburg,
Germany
Phone: ++49 (0)761-4529550
Fax: ++49 (0)761-4529588
Email: r.griesshammer@oeko.de
Submission for Conference Paper
Issue: Social Responsibility
Abstract
Goals
Within the last years numerous reports revealed considerable violations of international
recognized labour-standards in the mass production of consumer electronics (CAFOD [1]
Schipper & De Haan [2] Smith et al. [3]). According to the authors, the situation is worst in
export processing zones of emerging economies where workers are often compensated
below the legal minimum, are forced to work overtime and are frequently exposed to
hazardous substances. In a number of European countries, these reports set off a
considerable number of NGO-campaigns that are closely linked to the anti-globalisation
movement.
In this situation the Öko-Institut was commissioned by the German Federal Ministry of
Education and Research to carry out a Social Life Cycle Assessment (SLCA) as described in
the Institute’s PROSA-method (Product Sustainability Assessment). Thereby emphasis was
placed on testing the life cycle approach for social aspects in the complex supply chains of
the notebook industry. Furthermore it was aimed to identify feasible ways to improve the
situation for employees in the global supply chain and to reduce the negative impacts for
neighbouring communities.
Scope
In recent years, electronics production vastly migrated to mainland China, where now the
majority of consumer devices is assembled. Furthermore the manufacturing of parts like
microchips and printed circuit boards are also attracted by government subsidies, low labour
costs and the need to keep close ties with major customers. Therefore the study mainly
surveys the electronic industry located in the People’s Republic of China. It focuses on social
issues in electronics assembly, the manufacturing of parts and components and explores the
interactions with global market dynamics. Critical issues in the sourcing of raw materials are
raised where necessary.
The research resorts to the methodology of Product Sustainability Assessment by the ÖkoInstitut (Grießhammer et al. [4]) and is embedded in the development of a Social Life Cycle
Assessment (SLCA) as currently undertaken by a special UNEP/SETAC Task Force on
Integration of Social Aspects into LCA (UNEP-SETAC [5]). Thereby it is aimed to base the
findings on methods that are also applicable for other product groups and industries.
Conclusion
The study (Manhart & Grießhammer [6]) confirmed most reports on working conditions in the
notebook industry. In detail social “hot spots” were identified in the notebook-assembly, were
about 75000 mostly female migrant workers are employed. During this production step key
issues are excessive working hours, low compensation and the lack of union-like labour
committees. Further hot spots are associated with the manufacturing of parts where
employees are sometimes exposed to considerable health and safety risks. Nevertheless the
notebook-manufacturing plays an important role in the economic development of China and
helps to reduce extreme poverty - a fact often neglected by activists. On the other side, the
current relocation of industries threatens development gains in some emerging economies
like the Philippines and Mexico.
With respect to the methodological development, the research illustrates the need for further
standardisation as currently undertaken by the UNEP/SETAC Task Force Integration of
Social Aspects into LCA. Therefore the study makes suggestions how the established LCA
approach could be altered partly in order to fit to the needs of social analysis.
Furthermore two main mechanisms were identified that have the potential to significantly
improve social aspects in the value chains of electronics. The first are sound product policies
in major market areas: The European RoHS-directive that eliminates led, cadmium, mercury,
chromium-6 and the flame retardants PBB and PBDE in electronic appliances had an
impressive spill-over effect on electronics production worldwide. If such regulations are
successively expanded on further substances and implemented worldwide, some major
health and safety risks could be avoided in the future.
The second mechanism would be based on benchmark setting and certification: Consumers
are more and more aware of the social impacts triggered by their purchasing decisions.
Nevertheless, there is no guidance on responsible consumption for most product segments
so far. Although this does exist for some food products (fair labels), manufactured goods are
not yet covered by such schemes due to the complexity and non-transparency of its value
chains. Taking the example of notebook production, the Öko-Institut proposes a way how to
build up certification schemes that keep auditing efforts to a minimum without ignoring social
realities on the ground.
Keywords: electronic industry, social aspects, supply-chains, certification
Selected references
[1]
CAFOD: Clean up your Computer. Working conditions in the electronics sector.
London, 2003.
[2]
Schipper, I; De Haan, E.: CSR Issues in the ICT Hardware Manufacturing Sector.
SOMO ICT Sector Report. Amsterdam, 2005.
[3]
Smith, T; Sonnefeld, D.A; Pellow, D.N.: Challenging the Chip. Labour Rights and
Environmental Justice in the Global Electronics Industry. Philadelphia: Temple
University Press, 2006.
[4]
Grießhammer, R; Buchert, M; Ebinger, F; Gensch, C.O; Graulich, K; Henseling, C;
Hochfeld, C; Manhart, A.: PROSA – Product Sustainability Assessment. Freiburg, in
press.
[5]
UNEP-SETAC: Feasibility Study: Integration of social aspects into LCA. Freiburg,
2006.
[6]
Manhart, A; Grießhammer, R.: Social impacts of the production of notebook PCs Contribution to the development of a Product Sustainability Assessment (PROSA).
Freiburg, 2006.