Smartphone Supply Chain Ethics: Who Actually Passes the Test?
Five billion smartphones are in active use worldwide. Every one of them contains cobalt from the Democratic Republic of Congo, rare earth elements processed in China, and components assembled across Vietnam, India, and Indonesia. The companies whose logos sit on the box publish annual supplier responsibility reports claiming progress and oversight.
Court filings, criminal investigations, and independent audits tell a different story.
We scored seven major companies in the smartphone and consumer electronics ecosystem across 11 ethical dimensions using only independently verifiable public records. No corporate self-assessments. No sustainability questionnaires. Just cited evidence. The two dimensions most relevant here: Fair Trade & Ethical Sourcing and Fair Pay & Worker Respect.
One company scored positive on sourcing. None scored positive on worker rights.
The Scores
These seven companies span the smartphone ecosystem -- device makers, chip designers, and infrastructure providers. All depend on global supply chains for minerals, components, and assembly.
| Company | Fair Trade & Ethical Sourcing | Fair Pay & Worker Respect | Combined | Overall Avg |
|---|---|---|---|---|
| Intel (INTC) | +10 | 0 | +10 | +10.5 |
| Apple (AAPL) | 0 | -30 | -30 | +9.5 |
| Microsoft (MSFT) | -20 | -20 | -40 | +5.5 |
| Dell (DELL) | -30 | -20 | -50 | +3.6 |
| Google (GOOGL) | -20 | -30 | -50 | +2.3 |
| Nokia (NOA3) | -30 | -20 | -50 | -6.4 |
| Qualcomm (QCOM) | -30 | -20 | -50 | -10.0 |
The company with the second-highest overall average -- Apple -- carries one of the worst worker rights scores in the group. The only company with a positive sourcing score, Intel, is also the only one to avoid a negative on worker respect.
Fair Trade & Ethical Sourcing: One Positive Among Seven
Fair Trade & Ethical Sourcing captures conflict mineral due diligence, supplier audit depth, forced labour prevention, and supply chain transparency. In an industry built on minerals from conflict-affected regions, this dimension separates genuine traceability from published policies.
Intel: +10
Intel scored +10 on our methodology -- the only positive result in the group. A 2023 supply chain survey covering 91 suppliers identified 226 smelter and refiner facilities, with 99% either conformant to a responsible mineral assurance programme or participating in one. Intel has invested in conflict-free smelter programmes that exceed minimum regulatory requirements.
A +10 is modest. But when every other major player scores zero or negative, it demonstrates that positive sourcing outcomes are achievable at scale. The negative scores elsewhere are not inevitable.
Apple: 0
Apple presents the most complicated picture in the group. The company has achieved 100% participation in third-party audit programmes for smelters and refiners since 2015. Its Supplier Code of Conduct resulted in $33.2 million repaid to employees in recruitment fees by 2021. Over 800 independent third-party assessments were conducted in 2022, with 214 unannounced.
Against that: Apple faces a criminal investigation in Belgium for allegedly sourcing conflict minerals from the DRC. Reports indicate a three-year delay in severing ties with a supplier found to be using underage workers. Past instances of child labour have been documented in Apple supplier factories.
A score of 0 reflects genuine tension. One of the most extensive audit programmes in the industry, paired with some of the most serious sourcing allegations. Both are independently documented.
Google: -20
Google scored -20. Its hardware operations have expanded significantly with Pixel and Nest products, and 99% of identified smelters in its supply chain are compliant with the Responsible Minerals Assurance Process. The company participates in blockchain-based mineral traceability initiatives.
The negative score reflects documented gaps between these programmes and verified outcomes. External assessments have identified areas where oversight has not kept pace with hardware growth.
Microsoft, Dell, Qualcomm, Nokia: -20 to -30
Microsoft (-20) maintains a Supplier Code prohibiting forced labour and has identified 342 smelters and refiners in its supply chain. Independent assessments have flagged enforcement gaps in lower tiers, particularly for Xbox and Surface manufacturing.
Dell (-30) conducts supplier audits under the Responsible Business Alliance Code, but the complexity of its consumer and enterprise hardware supply chains creates persistent blind spots. Independent investigations have documented labour rights concerns at supplier factories that Dell's programmes did not catch promptly.
Qualcomm (-30) reports 100% of primary semiconductor suppliers completed the RBA Self-Assessment Questionnaire and were rated low-risk. KnowTheChain's 2022-2023 benchmark gave Qualcomm 20 out of 100 for addressing forced labour -- a figure that raises questions about what self-assessment tools actually capture.
Nokia (-30) has achieved 90% conflict-free status for tantalum, tin, tungsten, and gold, and conducted 606 supplier audits in 2024. Those audits identified 23 findings related to labour rights and ethical sourcing, demonstrating that even extensive monitoring uncovers ongoing problems.
Fair Pay & Worker Respect: Nobody Scores Positive
Fair Pay & Worker Respect measures wage practices, working conditions, union rights, anti-discrimination enforcement, and supply chain labour standards. The results are uniformly negative or neutral.
Apple: -30
Apple scored -30 on our methodology for worker respect -- the joint lowest in the group. The documented evidence is extensive.
Apple has faced accusations of stifling employee discussions on pay. Female workers have alleged systematic underpayment. The company reached a $25 million settlement with the U.S. Department of Justice over discrimination based on citizenship status. The NLRB has issued complaints for anti-union practices and denying benefits to unionised workers. Employees at a Maryland store authorised a strike over wages.
In the supply chain, independent investigations have documented labour violations at Foxconn facilities in India and Pegatron factories in China, including excessive overtime and workplace harassment. Apple states it assesses 100% of active suppliers against its labour standards. The persistent violations documented by government agencies and labour boards suggest a gap between that claim and conditions on the ground.
View Apple's full score breakdown -->
Google: -30
Google also scored -30. The company settled a racial bias lawsuit for $50 million, alleging systemic bias against Black employees. A separate $28 million settlement addressed claims of favouritism affecting over 6,600 workers. The NLRB has documented complaints related to worker organising and retaliation.
Microsoft, Dell, Qualcomm, Nokia: -20
These four companies all scored -20 on worker respect. Each has documented pay equity or labour disputes, but the severity and frequency fall below Apple's and Google's levels. Microsoft stands out within this sub-group for labour neutrality agreements with unions, particularly the Communications Workers of America -- though these are offset by documented concerns about contractor practices.
Intel: 0
Intel scored 0 on worker respect. Our analysis found insufficient independently verifiable evidence to assign a positive or negative score. This is not an endorsement. It reflects a gap in available public data, not a confirmed absence of issues.
The Full Picture: All 11 Dimensions
Supply chain metrics tell only part of the story. Here is how these companies compare across every dimension Mashinii measures.
| Dimension | AAPL | GOOGL | MSFT | DELL | INTC | NOA3 | QCOM |
|---|---|---|---|---|---|---|---|
| Better Health | +30 | +30 | +30 | +30 | +10 | 0 | +20 |
| Communities | +25 | +25 | +50 | +50 | +25 | +10 | +10 |
| Honest Business | -20 | -40 | +10 | +40 | +60 | +20 | -30 |
| Kind to Animals | +10 | +20 | +10 | 0 | +10 | 0 | 0 |
| No War | -20 | -30 | -60 | -30 | -30 | -30 | -20 |
| Planet-Friendly | +40 | +40 | +30 | -30 | -30 | -10 | -30 |
| Safe & Smart Tech | +20 | -30 | -30 | +20 | +30 | -10 | +10 |
| Zero Waste | +50 | +40 | +30 | +30 | +30 | 0 | -20 |
| Economic Opportunity | 0 | +20 | +30 | -20 | 0 | 0 | 0 |
| Fair Trade | 0 | -20 | -20 | -30 | +10 | -30 | -30 |
| Worker Respect | -30 | -30 | -20 | -20 | 0 | -20 | -20 |
| Average | +9.5 | +2.3 | +5.5 | +3.6 | +10.5 | -6.4 | -10.0 |
Three patterns stand out.
Strong overall scores mask supply chain failures. Apple averages +9.5 across all dimensions, buoyed by +50 on Zero Waste and +40 on Planet-Friendly Business. Its supply chain scores drag in the opposite direction. Intel leads overall at +10.5 with a +60 on Honest & Fair Business -- the highest individual score in the group -- and also carries the best supply chain profile.
Defence exposure is universal. Every company scores negatively on No War, No Weapons. Microsoft's -60 is the most severe, driven by military cloud computing and AI contracts. The rest range from -20 to -30.
Environmental performance divides the group cleanly. Apple, Google, and Microsoft score positively on Planet-Friendly Business. Dell, Intel, Nokia, and Qualcomm score negatively. The split roughly tracks with renewable energy investment and Scope 3 emissions transparency.
What This Means If You Own These Stocks
If you hold index funds, you almost certainly own several of these companies. Apple alone appears in virtually every major equity index. The supply chain ethics of these holdings are part of your portfolio's ethical profile whether you have examined them or not.
Three things the data makes clear.
Supply chain scores and overall company scores are not correlated. Apple has the second-highest overall average but one of the worst supply chain profiles. You cannot use a single headline rating as a shortcut. Dimension-level data matters.
No company in this group has solved worker rights. Not one scores positive on Fair Pay & Worker Respect. This reflects structural conditions in an industry dependent on low-cost manufacturing in countries with limited labour enforcement. But the gap between 0 and -30 is meaningful, and some companies manage these risks measurably better than others.
Audit programmes do not guarantee outcomes. Apple runs over 800 supplier assessments per year. Nokia conducted 606 audits in 2024. Both score negatively on at least one supply chain dimension. Monitoring infrastructure is not the same as verified ethical performance.
How Mashinii Scores Companies
Mashinii scores companies across 11 ethical dimensions using court filings, regulatory actions, investigative journalism, and NGO reports. Scores range from -100 to +100. Every score is backed by cited sources. We do not use corporate self-assessments.
Learn how our methodology works -->
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