Problem statement
Any company or individual planning to import any products or materials from overseas, use foreign manufacturers or outsource work from abroad, it is ethical recommended to consider the working conditions of people involved in the sourcing and production of the products and raw materials. There is increasing concern among customers on ethical practices involved in the production and importation process of products and services. Using the utilitarian view, this paper attempts to analyze the ethics of importing, purchasing, and using Apple iPhone 4S in Canada. The iPhone 4S has been marred with many problems including abhorrent working conditions at manufacturing factories, flaws in the device, and the fact that Apple sells directly to customers, which means that retailers are not able to purchase iPhones in bulk and Apple controls the prices and availability of iPhones.
Current conditions
There are ongoing protest and media reports regarding ethical violations and socially unbearable working conditions including:
Forcing workers to stand for long hours leading to leg swelling
Forcing workers to stay in crowded dormitories
Improper waste disposal
Child labor
Meager wages and
Multiple suicide attempts by workers.
A lawsuit has been filled against the company because Apple failed to disclose that the batteries of their iPhones could not be replaced by users. In addition, the batteries have a shorter lifespan and can be charged only 300 to 400 times.
Concerns of Key Stakeholders
Several stakeholders have aired their concern in relation to revelations of inhumane labor conditions and suicides among some workers in China who make Apple products. There have been ongoing protests from workers in making Apples products in China. The media have also reported several concerns regarding unbearable working conditions that workers in the company’s manufacturing plants undergo. Apple’s chief executive, Tim Cook has adamantly defended ethical standards following a series of media reports regarding the company’s practices. Chinese labor rights advocates have also aired their concerns and are working closely with Apple to come up with amicable solutions to these issues.
Strategic goal
Ensure that all people involved in the supply chain process work under decent labor standards.
Objectives
Speak to Apple to find out about ethical certifications
Conduct inspections of suppliers and factories
Employ people to check standards abroad
Analysis
Currently, Apple directly sells iPhones directly to customers thereby restricting the ability of retailers to control market prices and availability of iPhones. Apple should give retailers more freedom to retail iPhones directly to consumers without interference. Liaising with labor unions could help suppliers and manufacturers could help solve some of the problems experienced by workers at manufacturing plants. Also, consumers should be made aware of the flaws in the device in order to enhance purchase decision making process.
Alternatives
Import phones from another manufacturer
Import other Apple products with exception of iPhone 4S which has flaws in design and security
Persuade Apple to produce phones with batteries that can be replaced by users at a cheaper price
Evaluation of alternatives
Importing other Apple phones with the exception of iPhone 4S which many have confirmed that is marred with many flaws could prove viable because customers will not feel wasted. Talking Apple into making phones with batteries that can easily be replaced by consumers could help in avoiding the inconvenience of having to send phones to Apple to replace the batteries. Last, abandoning all Apple iPhones and going for other mobile manufacturers could provide a viable option because it will help in avoiding all the drama involved with the company’s products.
Recommendations
Importing products and services from companies with strong corporate social responsibility would prove as a viable option. This is so because importing Apple phones would not auger well with CSR objectives.
References:
Chakrabortty, A. (2012, April 23). Apple: why doesn't it employ more US workers? The Guardian. Retrieved from http://www.guardian.co.uk/technology/2012/apr/23/bad-apple-employ-more-us-workers
DesJardins, J. (2008). An introduction to business ethics. Toronto, Ontario: McGraw-Hill Humanities.
Mielach, D. (2012, February 3). Is it ethical to own an iPhone? Scientific America. Retrieved from http://www.scientificamerican.com/article.cfm?id=is-it-ethical-to-own-an-iphone
Moore, M. (2012, January 27). Apple 'attacking problems' at its factories in China. The Telegraph. Retrieved from http://www.telegraph.co.uk/technology/apple/9043924/Apple-attacking-problems-at-its-factories-in-China.html
