channels, including improvements to working hours, resignation processes, timing of bonuses, and the use of personal protective equipment (PPE). • Workplace satisfaction: In addition to interviews and grievance channels, we also engage with supplier employees to understand their overall workplace satisfaction. In 2021, we anonymously surveyed 264,963 supplier employees in 191 facilities across Greater China, India, Ireland, Malaysia, Philippines, Singapore, UK, U.S., and Vietnam about their workplace experiences — nearly double the number of supplier employees surveyed last fiscal year. As a result, suppliers took 3944 actions, including better commute options, increasing wages and bonuses, offering better food variety, and skill development opportunities for entry-level managers. Responsible labor recruitment Our Code and Standards, and the protections they provide, apply equally to all workers, regardless of a person’s job, geographic location, or how they enter our supply chain — and this commitment begins even before a worker ever enters our supply chain. This includes zero tolerance for forced labor. We implement strict policies and procedures with our suppliers to protect workers in our supply chain from forced labor. This includes selecting suppliers for assessments based on factors, such as their geographic location, which may put them at higher risk of forced labor violations, as well as their previous performance and/or history of violations or allegations. Suppliers may also receive additional specialized assessments based on the nature of their business or employee population, such as those that employ Foreign Contract Workers, and those located in higher risk migration corridors. Our Code and Standards also require that all supplier employees have an effective mechanism to report grievances. In addition, we provide third-party anonymous hotlines and the ability to contact the Apple Environment and Supply Chain Innovation (ESCI) team directly at any time and in any language. When an issue is raised, supplier management is required to promptly investigate and to resolve the issue in a timely manner. We strictly prohibit any form of involuntary labor throughout our worldwide supply chain and look for evidence of it in every supplier assessment we conduct, including unannounced assessments. Last year, we conducted more than 1100 assessments, and found no instances where anyone was forced to work in our supply chain. We did discover two cases in Taiwan in which people paid recruitment fees to secure their job, which is a violation of our Code. We required the supplier to directly repay their employees in full, and verified repayment through a third-party auditor. The payment of recruitment fees, withholding an employee’s passport or personal identity documents, or restricting an employee’s freedom of movement are Core Violations of our Code and Standards — the most serious level of Code violations. If we discover workers have paid recruitment fees at any point on their employment journey to an Apple supplier, we require supplier management to take prompt action to provide remedy to those affected by directly repaying their workers for any and all fees, even if the supplier was unaware that their employees had paid recruitment fees. From 2008 through fiscal year 2021, our suppliers have repaid $33.2 million in recruitment fees directly to 37,322 workers. Finally, in collaboration with the International Organization for Migration (IOM) and the Responsible Business Alliance (RBA), we expanded our Responsible Labor Recruitment Toolkit to more than 39 additional supplier facilities in 10 countries, reaching nearly 77,000 workers globally, with 66 percent of those working on Apple production lines. 23.6M supplier employees trained on their rights since 2008 352,589 supplier employees directly engaged about their workplace experiences, through interviews and satisfaction surveys 220,000 supplier employees reached by grievance hotline awareness campaign Appendix Governance Communities Suppliers Customers Our People Environment Introduction Apple’s 2022 ESG Report 41
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