A Cell Phone Free from Human Rights Violations? ...Do You Know 'Fairphone'? [Juhyung Lim's Tech Talk]

Smartphones Reducing Human Rights Issues Like Conflict Minerals and Worker Exploitation
Netherlands' Fairphone Produced via Crowdfunding
Over 200,000 Units Sold by Last Year
CEO Bas van Abel Aims to Create an 'Ethical Smartphone Industry'
"We Must Prove Consumer Interest in 'Good Products'"

The Dutch social enterprise 'Fairphone' recently unveiled its new product, the 'Fairphone 4' smartphone / Photo by Fairphone Official Website

[Asia Economy Reporter Lim Juhyung] Today, half of the world's population uses smartphones. From simple calls to internet access and electronic payments, smartphones have deeply permeated our daily lives.

However, smartphones do not come without drawbacks. The rare earth resources and labor consumed to mass-produce billions of devices are enormous, and during this process, human rights violations such as worker exploitation and illegal child labor can occur.

To address this issue, the world's first 'human rights violation-free' smartphone has emerged. It is the Dutch social enterprise 'Fairphone,' which has been steadily manufacturing new products since 2015.

◆Dutch Social Smartphone Manufacturer 'Fairphone'

Fairphone is a company established in Amsterdam, the capital of the Netherlands. The products it offers are limited to smartphones under the brand name 'Fairphone,' which shares the company's name, and spare parts needed for product repairs.

Fairphone is not a company that sells hundreds of millions of phones annually like global giants such as Apple or Samsung. Due to its small scale, it produces a limited quantity and sells them through a pre-order, then manufacture system.

The production quantity of Fairphone is limited, so most of the manufacturing and sales are conducted through a pre-order production method. / Photo by Fairphone YouTube capture

It is not highly profitable either. In fact, the company's first product, 'Fairphone 1,' was barely completed through crowdfunding from consumers. Nevertheless, Fairphone has steadily developed products over the past six years without going bankrupt, and this year introduced its latest model, the Fairphone 4.

◆The World's First Smartphone Free from Concerns about 'Conflict Minerals' and Worker Exploitation

Its performance is not outstanding, nor is its design particularly attractive. The price is about 579 euros (approximately 770,000 KRW) for the new model, similar to other mid-range smartphones. So why does Fairphone receive steady love calls from some consumers?

It attracts some consumers' interest by making an 'ethical' phone that does not purchase 'conflict minerals' or cooperate with companies that exploit workers.

Conflict minerals refer to minerals produced in conflict regions such as some African countries. Tin, gold, manganese iron, and coltan are representative conflict minerals. Among these, coltan and gold are partially included in electronic products like smartphones.

A mining site in the Democratic Republic of Congo, Africa, a production area of 'conflict minerals' / Photo by European Parliament TV YouTube capture

These conflict minerals are known to cause many human rights issues, such as using child laborers or unfair treatment of workers during the mining process. The U.S. financial regulation law enacted in 2010, the 'Dodd-Frank Act,' includes regulations on the import and use of such conflict minerals.

Fairphone transparently shares the supply chain of mineral resources used in its smartphones with the public, visits mines directly, and regularly monitors labor conditions to prevent human rights violations. Additionally, in the manufacturing process, it takes various measures to guarantee rights such as △freedom to organize labor unions and △the right to receive fair wages for workers in developing countries subcontracted for production.

◆Bas van Abel, CEO "More Consumers Wanting Ethical Products Are Needed to Change the Industry"

According to data released in June by the global market research firm 'Strategy Analytics,' about 50.3% (3.95 billion people) of the world's population currently own smartphones. Global companies release over 1 billion new smartphones annually into the market.

To maintain such a massive manufacturing base, companies form dense supply chains across dozens of countries. The number and types range widely from resource suppliers providing raw materials to subcontractors assembling parts or finished products.

However, detecting and managing unfair treatment and human rights violations of workers in the complex subcontracting process is very difficult. In fact, in 2010, the Chinese company 'Foxconn,' responsible for producing Apple's iPhone, shocked the world when workers suffering from excessive workloads committed a series of suicides.

In May 2011, workers belonging to the electronics contract manufacturer 'Foxconn' held a protest against labor conditions. / Photo by Yonhap News

Fairphone is a small movement to help workers who are consumed as mere 'parts' to achieve innovation and mass production goals.

Last year, Fairphone founder and CEO Bas van Abel stated in an interview with the U.S. tech media 'TechCrunch,' "So far, Fairphone has sold nearly 200,000 units and is now close to profitability." This means that consumers interested in human rights issues in the electronics manufacturing process are gradually increasing.

CEO van Abel wants to show that even in the smartphone business, which is at the 'peak of innovation,' ethics and human rights can be sufficiently protected.

He emphasized, "Our goal is to sell as many Fairphones as possible. That way, we can prove to others that there are actually many consumers who want 'ethical smartphones.' If that happens, the entire industry can move in a more ethical direction."