Apple eventually investigated the iPhone supply chain in China, but found no evidence of incorrect use

According to a report in today's Wall Street Journal, earlier this year, Apple investigated its supply chain and sought for fraud among its suppliers. The US-based tech giant pulled up its suppliers in China by looking for evidence of repayments and bribes. The survey also shook Apple's own employees in China, since some indications of incorrect execution could have involved the company's own employees.

Suppliers who were in Apple's cross hair still supplied technical giant with parts that were in Apple's best interests. Finding a new iPhone component supplier at such short notice would be difficult to do. As it turned out, no supplier had to be dropped; Apple told Journal that there was no sign of backgammon or bribery. Nevertheless, an Apple leader who was involved in the purchase of parts and two junior members of the Supply Management Team in China left the company in May. According to people familiar with Apple's probe, it was about the same time that Apple began to sniff around a vendor and asked for possible repayments to Apple employees.

Back in 201[ads1]0, an Apple Global Supply Administrator named Paul Shin Devine was accused of receiving over $ 1 million in setbacks from six Apple vendors in Asia. In the United States he was arrested, and after being granted permission to receive the money from the suppliers, he was sentenced to one year in prison. He was also ordered to pay $ 4.5 million in repayment.

Apple's internal rules prevent employees from receiving gifts and meals from suppliers. Apple also has a code of conduct for vendors posted online. It determines the company's positions on a number of issues from how suppliers treat their workforce (no discrimination and harassment is allowed) and notes that Apple is coming down hard on suppliers who use underwork and overwork and underpay employees. In addition, Apple writes that vendors should not engage in corruption, extortion, in vain or bribery to get an unfair or unfair advantage. Nevertheless, with the amount of money at stake, Apple has to wonder if temptation is too much for some vendors and employees.

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