Introduction
For a long time, Apple was not so much involved in activities aligned with corporate social responsibilities. This is so because Steve Jobs, who was the CEO of the time, maintained that it was far much better to equip the members of the public with technology of the best quality rather than issuing financial grants to charity. However, a change in Apple’s vision under the leadership of Tim Cook saw them company change its vision. As such, the Apple Corporation has undertaken a number of ethical as well as corporate responsibilities. Additionally, the company has employed the use of several marketing strategies to ensure that they have a competitive edge over other players in the technology industry.
Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities
Apple is currently visionary about ethical and social responsibilities, and it has been able to take part in a number of them. Apple took part in Corporate Social Responsibility (CSR) when they got involved investigations related to child labor and other toxic conditions. This was especially so after the incident related to the teen suicides took place at the manufacturing Foxconn belonging to the Chinese in 2010. Another field where Apple has exuded ethical practices is when it comes to the supply of their products. According to the company’s management, they have made it their obligation to ensure that their suppliers provide working conditions that are safe (Gottschalk 48). Additionally, the suppliers ensure that they treat every worker with the utmost respect and dignity and make use of manufacturing processes that are considered to be environmentally responsible. Consequently, Apple has been able to put a stop to illegal practices by suppliers. This include stopping the practice of bribery that took place in one facility, putting an end to the ongoing practice of falsifying audit materials in four facilities and provide a safe working conditions in two facilities. Approximately 229 audits of suppliers was undertaken in 2011, and this was a major increase as it was 80% increase from that of 2010. Apple has observed its ethical responsibility through the program for supplier diversity that was established in 1993. This shows that the company does not exercise discrimination in the selection of personnel who will form part of its supply because both women and men are incorporated in the program.
In 2008, Apple took part in the initiative of promoting environmental sustainability as part of its CSR. They made this possible by its hardware components, which could not be recycled (Werther & David 80). Furthermore, they took part in removing toxic substances from the iPhone hardware in a bid to protect the environment. Apple has gone ahead to establish a recycling program so that its recyclable products can be used in reused in order to conserve the environment. It has been able to achieve this by offering gift cards to those consumers who manage to return Apple’s electronic products including the mobile phones. The fact that Greenpeace praised the company in 2010 for going beyond its 70% target of recycling means that the company has been able to provide a safe environment for the society around it.
Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation
Apple Company has over the years, experienced massive rebellion from various clients as a result its suppliers’ violation of their ethics and even social responsibilities. This has given a competitive advantage to its competitors who often use such issues as weaknesses coming from their competitors. Even though the company has spent much of its time consulting employees on its management practices. Through asking their employees on the management team’s progress the company is able to discover whether the growth is true or falsified. Due to interviewing workers on the management practices being carried out the Apple Company is in a position to recognize violation of ethics and social responsibilities (Drucker 78).
In the year 2012, the suppliers’ reports presented to Apple indicated that there were incidents of falsification. It was discovered that report included questionable recruitment processes as well as falsified payroll account records. The incident gave the Apple Company a shoddy reputation to both clients and its workers. Two of the involved contractors were terminated because they violated their responsibilities while the rest were ordered to perform a restorative action to all the accounts records presented. This move was backed by Foxconn who told the MacUser that major and positive initiatives were being implanted in China to avoid such violations. Some of these reforms involved employee’s wages, employee’s benefits and employee care which implied that the program was enhanced to ensure work is done effectively. Foxconn supplier has violated many ethical issues related to employees. For instance, employees were exposed to toxic materials which made their working environment unsafe for them. Moreover, Foxconn employees have had a common practice of committing suicide frequently than any other company due to the stressful working conditions surrounding them. These incidents considered ruining Apple’s reputation in that experienced employees avoid working for the company. By neglecting communities’ welfare, Apple has lost many of their clients as well as employees to biggest rivals or competitors.
Additionally, contractor staff are being paid poorly as much of the outrage concerning Apple Company was mainly centered on how Foxconn pay their employees considering that it employs over a million workers. Most of these employees usually earn a salary of about $6,000 annually which whereas those workers in china receives an annual salary of $4,500 which seems low compared to information which indicate that the minimum wage has increased by 100% over the last five years. It is pretty clear that Apple treats both their clients and workers in two different standards as portrayed on the process involving their supply chain as well as treatment of employees especially in China. These actions are not only violating the local law and national law but also it violates Apple’s code of conduct and voluntary self-imposed code of conduct. This has resulted to an increase in employees’ turnover which has greatly affected Apple’s productivity. Moreover, these violations have seen employees work under unfavorable working conditions which may result to health issues. However, it is clear that despite strict monitoring in companies which Apple has business relationships with, violation of ethics and social responsibilities hence running Apple’s reputation (Schlosser 100).
In order for Apple’s suppliers to fully adhere to the wage and benefits standards, there are certain aspects that must be considered. First, improving the wage will ensure that every employee receives reasonable wage for the task done. Moreover, increasing bonuses to employees would ensure effective execution duties and responsibilities. Improving the working conditions in order to ensure favorable and safe working conditions will attract as many employees as possible and thus producing quality products as well as increasing sales growth effectively. The Company can also increase prices of its products in order to be able to pay their employees more effectively. In addition, the Apple Company can reduce the excessive working hours in order to allow employees to rest and even spend time with their families. Paying for the overtime hours that employees work for at a competitive rate might ensure that employee’s motivation is acquired.
Determine whether or not you believe that Apple’s customers would be willing to pay more for its products if Apple had to increase selling prices in order to provide better wages and benefits for suppliers’ workers. Provide a rationale for your position.
Increasing the products prices in order to be able to pay employees a reasonable wage might be a good idea. A reasonable wage serves as motivation to the workforce which encourages them to also increase their productivity levels. If Apple Company increases its prices for the products it produces, it will be able to pay its employees amicably and hence increase their morale towards achieving their goals. Motivated employees usually brings creativity and innovation at the place of work which will enable the company to produce new as well as advanced products which will definitely outdo the rival company’s products in the market as it will be able to gain a competitive edge. Therefore, in producing quality products, Apple will be able to sell them at an increased price. Customers always go for quality products that suit their tastes and preferences regardless of its price hence making it easier for the Apple Company to pay reasonable wages to their workforce. Therefore, if Apple Company motivates their employees who in return may come up with a new invention aimed towards advancing the products offered to clients who are always willing to go for the best no matter the prices offered (Pride 16).
Analyze Apple’s current overall marketing strategy
Apple Company ranks the most leading as well as admired company that deals with appropriate products. The Company usually employs market mix and even market segmentation since it believes that it has high secrecy. This is because Apple fully comprehends all the aspects a customer needed to enhance their experiences and thus ensure that all the company’s brand touch points always reinforce its brand. The company usually advertises its product to ensure that all creative individuals are aware of the existing products. The company usually targets the middle and upper income professionals who are often under a tight schedule with an aim of assisting them coordinate their entire and hectic schedule at the same time communicating with their family, friends and even colleagues. In addition, Apple Company usually targets high school, college and also graduates are in dire need of one portable multifunction device. In its iPhone strategy, Apple ensures that it make the brand awareness effective, manual on how to use the product which make clients consider the product. The company has a tendency of keeping their secrecy prior to the launch of new or advanced products to avoid rival companies from copying their idea and proceed to launch a similar product before Apple does. Secrecy, innovation, product to product and branding provides the company with a competitive edge over the rival companies (Ferrell & Michael 16).
Conclusion
In a nutshell, Apple Company ethics and social responsibilities may make as well as ruin its reputation depending on its actions towards the employees, customers and even community in general. It is advisable for the company to ensure that its suppliers also adhere to the code of ethics and conduct hence discouraging violation of such. Apple should ensure favorable working conditions, reasonable wages, reduced working hours, provision of bonuses and paying reasonable overtime hours.
Work Cited
Drucker, Peter F. Concept of the Corporation. New Brunswick, N.J., U.S.A: Transaction Publishers, 2003. Internet resource.
Ferrell, O C, and Michael D. Hartline. Marketing Strategy: Text and Cases. Mason, OH: South-Western/Cengage Learning, 2014. Print.
Gottschalk, Petter. Corporate Social Responsibility, Governance and Corporate Reputation. Hackensack, NJ: World Scientific, 2011. Print.
Pride, William M, and O C. Ferrell. Marketing. Mason, Ohio: South-Western Cengage Learning, 2012. Print.
Schlosser, Eric. Fast Food Nation: The Dark Side of the All-American Meal. Boston: Mariner Books/Houghton Mifflin Harcourt, 2012. Print.
Werther, William B, and David Chandler. Strategic Corporate Social Responsibility: Stakeholders in a Global Environment. Los Angeles: SAGE, 2011. Print.
