Global value chains for mobile phones: transparency and options for action

Background: A complex supply chain

The manufacture of mobile phones has repeatedly made negative headlines. For several years now, press reports and studies have mostly focused on a specific heavy metal that is essential to every modern mobile phone: tantalum. This metal is found in large quantities in the east of the Democratic Republic of the Congo. Over the past 15 years, militias there have financed their war by, amongst other things, levying taxes on the mining of the ore from which tantalum is extracted, or through direct trade in the metal itself.

However, tantalum is just one example of the problems along the mobile phone production chain. The extraction of other metals required for the manufacture of mobile phones – from aluminium and copper to gold – also leads to significant human rights and environmental problems in some mining regions.

The journey from these raw materials to mobile phones involves several stages. The final assembly of most mobile phones now takes place in China – where, in recent years, extremely poor working conditions in factories have been exposed on several occasions.

This brief summary already illustrates just how complex the production chain is. It is precisely this complexity that makes it difficult to identify those responsible for abuses: for example, are the operators of the factories in China responsible for poor working conditions, or are the technology companies that award their contracts to the cheapest suppliers? And who is responsible when tantalum is sourced from a mine controlled by militias and where working conditions are extremely poor?

Project objective and project outcome

The project aims to map out these complex interrelationships and present them clearly. This is intended to contribute to greater transparency in the mobile phone production chain. The aim of the study, which serves as the starting point and basis for further activities, is to map out the value chain from raw material extraction through production and sale to disposal. The central question is whether the share of value creation accruing to developing countries enables them to further develop their economies and societies.

Throughout the project period, ongoing debates regarding the extension of companies’ responsibility for their supply chains will be addressed and explored in depth: The aim is to provide information that can be used to raise awareness amongst companies of the need for transparency in their value chains. Approaches to addressing abuses along production chains will be discussed with the companies.

Policy-makers will also be provided with information to support them in establishing the legal framework for companies. Furthermore, they can draw conclusions from the debate on value chains to inform public procurement guidelines.

Ultimately, the aim is to create greater transparency for consumers. To disseminate knowledge about the value chain of mobile phones more widely, materials will be produced for both development education and schools.