Like many other manufacturers, the world's biggest computer companies face a tough business environment. To cut costs, they outsource production to low-wage countries. Contract manufacturers in turn pass on the pressure to the component manufacturers and the workforce.

In 2004, the Catholic Agency for Overseas Development (CAFOD) put a human face on labor rights issues in the electronics industry, through interviews with electronics workers in Mexico, Thailand and China. Its report, "Clean Up Your Computer," documented instances of unsafe factories, compulsory overtime, wages below the legal minimum and degrading treatment.

Electronics workers in China's Pearl River Delta in China often face dangerous conditions from toxic chemicals, smoke from soldering, metal dust or noise, said the CAFOD report. Workers who test monitors can spend 11 hours a day in front of flashing screens. Researchers found that in Dongguan, few factories have a health and safety department or provide health and safety training.

Electronics workers in developing countries are rarely employed directly by the big brand name companies. In Guadalajara, Mexico, workers are hired through agencies that supply workers for contract manufacturers. The agencies often ask personal questions in interviews designed to screen out pregnant women and anyone likely to organize workers for better working conditions, according to CAFOD. Once recruited, workers live in fear of losing their jobs. Many are employed on consecutive short-term contracts lasting three months, making it easy for the agencies to fire them at will.

The CAFOD report was a wakeup call for many US computer makers and suppliers. It spurred Dell to develop a code of conduct on labor rights issues. Dell had heard about As You Sow's work with other companies on supply chain issues and sought input on key issues to consider as it developed its code. This included a face-to-face conversation with Dell CEO Michael Dell in Austin, Texas in June 2004.

HP developed a supplier code of conduct in 2002 but apparently did not enforce it until the CAFOD report was released. The company is ahead of competitors in auditing and monitoring its factories. HP did its first round of audits with 45 high priority suppliers in 2004 and summarized the results in the supply chain section of its 2005 Global Citizenship Report.

Hewlett Packard also reached out to competitors and suppliers to develop a common code of conduct for the electronics supply chain. The Electronics Industry Code of Conduct was launched in October 2004, by HP, Dell and IBM along with manufacturers Celestica, Flextronics, Jabil Circuit, Sanmina SCI, and Solectron. Later blue chip suppliers like Microsoft, Intel and Cisco Systems also signed on. It is unusual for competitors in an industry sector to work together to develop such a common code.

The Electronics Industry Code of Conduct is a welcome step in developing an industry approach to responsible practices in electronics supply chains. An EICC Implementation Group led by HP, Intel, Dell and Microsoft is now working to develop a common implementation approach to enforce the code. A common survey tool has been posted on the EICC website and auditing tools and a common auditing approach are being explored.

However, few outside stakeholders were involved in the design of the code. Some areas of the code are not as strong as they could be. As You Sow and ICCR were invited to present a critique of the code and did so in the fall of 2005. We look forward to working with EICC to strengthen the code and to develop common auditing procedures.