Corporate Responsibility and Marketing Strategies
Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities. Provide two (2) examples that support your position. In addition to maximizing profits, one of the main objectives to many corporations today is to be well known for their responsible management and ethical performance. Apple is one of the most important companies throughout the world because of its size and their innovative products and services (Sanchez-Barajas, 2012). Nevertheless, innovation is what drives the sector development and the basis for the economic development. Furthermore, Apple has created about 514,000 jobs in 2011, which is an astronomical commitment to the economy (Sanchez-Barajas, 2012). Additionally, because of their business model focusing on outsourcing and their product characteristics, Apple could summarize material issues in two categories: environmental impact and supply chain management (Sanchez-Barajas, 2012). These issues seem to be the basis for understanding Apple’s corporate social responsibility. First, Apple products are designed to eliminate environmental impact, by using less energy consumption, small packages, and recycling methods (Sanchez-Barajas, 2012). However, there are criticisms with the danger of some materials used for IPads or IPhones, and the development of material for production. When it comes to supply chain, Apple’s ethical performance policy aligning with the entire supply chain is very well explained. This goes further than the Foxconn scandal. According to Tyson (2013), “Foxconn, which is a popular Apple contractor for Apple, had terrible working conditions, where employees would rather kill themselves than build an Apple product. The lack of effective corporate governance and forceful establishments in where they do business has added to the challenges of the control of several suppliers, and high risk for the company when it comes to abusive labor practices and not complying with the law (Sanchez-Barajas, 2012). Apple has the frameworks, and the information and understanding about their influence on society (Sanchez-Barajas, 2012). The main challenge depends heavily on the control of that impact. Nevertheless, Apple seems to be acting as a rational corporate citizen (Sanchez-Barajas, 2012). Apple’s ambition concerning supply chain management is essential for a responsible business. Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation. Support your response with examples of the impact in question. Apple developed their code of conduct in 2005 (Kaiser, 2012). It states “that working conditions in Apple’s supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible” (para. 3). Although their supplier code of conduct had great intentions, it was not being supported either by Apple or its major suppliers (Kaiser, 2012). For example, employees were complaining of working long hors in unsafe conditions with little pay (Kaiser, 2012). Foxconn, their supplier in Chengdu, China, was guilty in violating Apple’s supplier’s code of ethics. Many of the employees worked more than 60 hours per week. According to Kaiser (2012), sometimes there would be about 20 employees stuffed inside a three-bedroom apartment. Additionally, Foxconn were employing underage workers (Kaiser, 2012). Furthermore, the factories were poorly ventilated, and the factories were being flooded with aluminum dust from the machines that shines the casings for IPads Apple has been under fire since the Foxconn scandal. Neither the workers nor the factory leaders had much to say about the issue. Therefore, the problem lies with Apple. According to Karimova (2012), after checking Apple’s CSR policy there is more focus concerning the...
References: Business Dictionary. (2014). Brand loyalty. Retrieved January 22, 2014. From http://www.businessdictionary.com./definition/brand-loyalty.html.
Goodson, S. (2011). Is brand loyalty the core to Apple’s success? Retrieved January 22, 2014. From http://www.forbes.com/sites/marketshare//2011/11/27/is-brand-loyalty-the-core0to-apples-success-2/
Hays, J. (2013). Apple and Foxconn: Work conditions, problems and changes. Retrieved January 22, 2014. From http://factsanddetails.com/china/cat9/sub61/item2282.html.
Kaiser, T. (2012). Report: Apple’s suppliers continuously violate code of conduct, Apple does nothing to change it. Retrieved Januray 22, 2014. From http://dailytech.com/report+Apples+suppliers+continously+violate+code+of+conduct+Apple+does+nothing+to+change+it/article23867.htm.
Karimova, H. (2012). Apple’s road to innovation requires some sacrifice. Retrieved January 22, 2014. From http://eoi.es/blogs/hokumakarimova/2012/05/13/apple%/E2%80%99s-road-to-innovation-requires-some-sacrifice/
Moorman, C. (2012). Why Apple is a great marketer. Retrieved January 22, 2014. From http://www.forbes.com/sites/christinemoorman/2012/07/20/why-apple-is-a-great-marketer/2/
Sanchez-Barajas, D.P. (2012). Case study: Apple Inc. and the challenge of a social responsible management. Retrieved January 22, 2014. From http://eois.es/blogs/dianapatriciasanchez/2012/05/28/case-study-apple-inc-and-the-challenge-of-a-social-responsible-management/
Stark, K. & Stewart, B. (2012). 3 strategies to adopt from Apple. Retrieved January 22, 2014. From http://www.inc.com/karl-and-bill/3-strategies-to-adopt-from-apple.html
Supplier Responsibility. (2014). If companies want to do business with us, they must act fairly and ethically at all times. Retrieved January 22, 2014. From http://apple.com/supplierresponsibility/labor-and-human-rights.html.
Tyson, B. (2013). A look at Apple’s record of corporate social responsibility. Retrieved January 22, 2014. From http://www.insidebusiness360.com/index.php/a-look-at-apples-records-of-corporate-social-responsibility-2611/
Please join StudyMode to read the full document