Corporate Social Responsibility in the ICT Hardware Sector
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DescriptionPresentation SOMO – Centre for Research on Multinational Companies.SOMO is a centre for research on multinational corporations. In 1973 SOMO was founded to provide campaigning organizations with knowledge on the structure and organization of Multinational Corporations by conducting independent research. SOMO's activities and research on corporations and their international context focus on sustainable economic and social development and on the structural eradication of poverty, exploitation, and inequality. The current trends and dynamics of outsourcing in the ICT hardware sector.Keywords of today’s ICT hardware sector are outsourcing and globalized production networks. The well known brands like HP, IBM and Dell increasingly concentrate on their core competencies, such as R&D, sales marketing and branding. The actual production of these products is sourced out to the Contract Manufacturers which supply flexible production operations, predominantly in low wage countries. A description will be given of different kinds of Contract Manufacturers: the EMS companies, the ODM companies and the emerging OBM companies.The division of labour throughout the world.What started as subcontracting of simple production and mechanical parts has developed into services and highly qualified R&D activities. The ‘end-to-end services’ supplied by Contract Manufacturers like Flextronics, Sanmina-SCI and others, nowadays include design, engineering, logistics and post-manufacturing services. Contract Manufacturers want to offer the same end-to-end services near every important end-market in the world: they want to have a ‘Global Footprint’ and to become a ‘Global one-stop shop’ for the customer. Supply chain responsibility in the ICT Hardware sector.In the production facilities that produce or assembly computer parts appalling working conditions and environmental degradation occur. Through research that was done by SOMO within its CSR research programme a picture emerges of predominantly women workers working up to 72 hours a week, with overtime being compulsory, insecure working contracts, unsafe factories and workers not being adequately protected to work with hazardous materials, wages that are not enough to live on, suppression of union rights and degrading treatments. Conditions that up until a few years ago were mostly associated with the garment industry. However, as several reports in the last years made clear, the computer manufacturing industry should take up Corporate Social Responsibility very seriously.Internationally, there are various initiatives and campaigns to improve the conditions in the ICT supply chain. reguired facilities: beamer.
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