I know. Like what would happen if I told Walmart that because they are a supplier of my household goods I was going to give them a list of rules that they should follow and I was going to post an auditor to verify they followed them. That would go over big.
Correct, because you would be a insignificantly tiny threat to Walmart if you decided to take your business elsewhere. Walmart wouldn't even notice if you did that starting today. Try it. Boycott Walmart for the next week and see if you get a call from Walmart worried about their relationship with you.
Now, if you were much/most of of Walmarts buyer revenue and you demanded changes or you would take that revenue elsehwere, do you think Walmart would react? Do you think
that would go over big?
Or more accurate if Walmart told GE how much they should pay their employees. Like that would happen. But since it's Apple and China, yeah tell them what to do.
It's not Apple and China. It's Apple and its manufacturers which happen to be in China. No one is telling all of China to change. Even Apple- the biggest of them all now- is not THAT big. But Apple could easily lay down a demand that if certain changes are not made (and, by the way, I don't think the main changes desired are about how much someone is paid) by XXX point in time, Apple will take all the revenues they flow to a company to some other company. Apple to their suppliers would not be like you (or me) to Walmart. Their suppliers would notice- even feel great pain- if Apple took their business elsewhere.
Note how Apple is simultaneously suing a key player like Samsung and working in partnership with them as a supplier. As many say, Samsung could just tell Apple to go jump in a lake and turn off the supplier partnership part in protest of the various legal actions. So why doesn't Samsung do that? The massive revenues Apple flows to Samsung are too important to Samsung. They put up with the lawsuit pain to keep a huge customer's revenues coming in.
Now, Foxconn is MASSIVE but there are many smaller suppliers that feed into the supply chain. Not all of them are Foxconn or Samsung-sized. In some cases, Apple might be MOST of their revenue stream. But even a Foxconn or Samsung cares enough about ongoing revenues streams from Apple to NOT want to see that business go somewhere else.
Besides, the issue is not about dictating how other companies should run their businesses. It's actually about PR spin vs. tangible action. No company should be able to dictate to another how that other's business should be run (Apple included). I don't perceive anyone is arguing that Apple should be given that power either. The main idea is that if some company doesn't approve of how a supplier is doing business, they can either spin it via PR messaging (and do nothing or little) or threaten- or even change- suppliers to (much more likely) motivate action.
What some read here is good PR. What some are not seeing is the "teeth" behind that PR. Apple's teeth are now bigger than anyone elses. Do they actually want to take a real bite out of this issue?