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Www.oeko.de Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements by Andreas Manhart & Rainer Grießhammer ERSCP 07, 21.

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Social Impacts of the Production of Notebook PCs by Andreas Manhart & Rainer Grießhammer LCM 2007, Zürich, August

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Presentation on theme: "Www.oeko.de Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements by Andreas Manhart & Rainer Grießhammer ERSCP 07, 21."— Presentation transcript:

1 Global Electronics Industry: Structures – Social Impacts – Mechanisms for Improvements by Andreas Manhart & Rainer Grießhammer ERSCP 07, 21 st 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 The Computers Life Cycle L i f e C y c l e o f C o m p u t e r s WSIS EMPA StEP Greenpeace World Bank FIAN FFI CAFOD SOMO Corporate data Hardware Manufacturing Resource Extraction Use Disposal & Recycling Focusing on social aspects

5 The Notebook Industry: Brandname-Companies BrandnameHeadquarter DellUSANo own production Hewlett-PackardUSANo own production Lenovo (formerly IBM)China (formerly USA)No own production AcerTaiwanNo own production ToshibaJapanPartly own production Fujitsu-SiemensJapan & GermanyOwn production (high-end only) NECJapanNo own production SonyJapanOwn production (high-end only) AppleUSANo own production Asus (= Asustek)TaiwanOwn production

6 The Notebook Industry: Assembly-Companies CompanyHeadquarterProduction SitesProduction volume 2006 QuantaTaiwanPR China CompalTaiwanPR China WistronTaiwanPR China, Philippines InventecTaiwanPR China AsustekTaiwanPR China MitacTaiwanPR China UniwillTaiwanPR China FICTaiwanPR China ArimaTaiwanPR China – TwinheadTaiwanPR Chinaca ClevoTaiwanPR Chinaca

7 The Notebook Industry: Supplier-Structure PR ChinaHong KongSanger PR ChinaHong KongStrongwill PR China Vina PR China Jingyou PR ChinaHong KongGold Peak PR ChinaHong KongNew Sun PR ChinaTaiwanGLW PR ChinaTaiwanSimplo productionheadquartercompany Battery-block assembly: 7%South-Korea, PR ChinaSouth-KoreaLG Chem 12%Japan MBI Panasonic 12%South-Korea Samsung SDI 15%Japan, PR ChinaJapanSony 28%Japan Sanyo market-shareproduction sitesheadquartercompany Battery-cell manufacturing:

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

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 IMPROVE the handling of critical production processes (chemicals) Measures towards FAIR electronics: ALLOW independent reporting on working conditions (e.g. SA 8000) ESTABLISH durable 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 – Andreas Manhart +49 (0)761 –


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