The mobile phone companies are huge multi-national enterprises with a lot of financial clout. Their technical and marketing competence is remarkable. However, their approach to workers and the well being of the community is disappointing.

The Mobile Phone Industry’s Major Players:

• Nokia
• Samsung
• Motorola
• Sony Ericsson
• LG

These are called ‘Original Equipment Manufacturers’ (OEMs). OEMs are supported by Electronics Manufacturing Services (EMSs) such as Flextronics, Foxconn, Elcoteq and Jabil. Component suppliers like Aspocomp, Perlos and Salcomp are also part of the supply chain.

How the Indian Government supports these Companies:

State and Central Governments have provided incentives for these companies. For example, the government of Tamil Nadu has exempted Nokia and other companies from paying sales tax, purchase tax, surcharge and resale tax, etc.

The land for these factories was acquired by government agencies – displacing thousands of farmers, farm workers and artisans.

When incentives are provided to companies, the government foregoes a significant amount of revenue, which could be used for better roads, schools, hospitals and other public services.

Cividep-India asks:

• Are these companies returning at least a fraction of their profit to communities and governments, and providing decent jobs to local people?
• Are they concerned about the career and skill-enhancement of young workers, paying living wages, ensuring that their health is not affected by the toxic material that they handle?
• Have these companies assessed their impact on the environment due to toxic waste?
• Do the thousands of rural people who lost their land where factories have been set up have a sustainable livelihood today?
• How seriously do the companies implement Social Corporate Responsibility (CSR) policies, where they commit to local and international laws as well as social and environmental standards?