Good Example Of Essay On Corporate Integrity

Corporate integrity is a key factor of success for all major global companies and therefore it is difficult to say which company best projects an image of corporate integrity. Most ratings that can be found on the internet include such companies as Microsoft, BMW, Google or Apple. In my opinion, Apple is a very good example of how corporate integrity should be reached. It has good relationships with primary and secondary stakeholders. Every year, Apple publishes supplier responsibility reports in which one can see that the company is really interested in maintaining a high level of corporate integrity. Additionally, Apple’s core values are important in sales and marketing. Therefore, although there is sometimes criticism in mass media that is concerned with bad working conditions or pollution of environment, Apple is definitely a leader in terms of corporate integrity and corporate social responsibility.
Apple did not use to be a charitable organization, but now, under management of Tim Cook, the company is trying to show customers that they care about employees and community. Apple donates money to hospitals and universities, audits suppliers, increases sustainability standards, cares about diversity in the headquarters and communicates with customers. What is more, Apple uses such values as innovativeness, personalization, difference, simplicity for developing and promoting products. For a lot of consumers these values are vital. As a result, there customers are very loyal to Apple.
First and foremost, Apple constantly improves quality of products and regularly launches new models of products in order to address the needs of customers. In terms of employees, Apple offers good compensation and career opportunities. Workers of factories that do not belong to Apple also have many opportunities for improving their skills, being socially protected, etc. The next group of stakeholders is investors. In order to satisfy them, Apple strives to achieve excellent financial performance and high profit margins. There are also many secondary stakeholders that Apple works with. For example, Apples participates in public policy discussions and is a member of many trade associations.
Apple provides a lot of information in the form of reports, press-releases, information at the corporate website that shows best corporate governance practices. For example, in order to show suppliers what Apple expects from them, there is a Code of Conduct with regulations and regular annual progress reports with examples of successful implementation of projects targeted at protection of workers, improvement of safety, cooperation with local universities, introduction of environmentally friendly business practices, etc. Additionally, a second goal of progress reports is to show improvement in comparison with the previous years. Thus, Apples shows that managers of the company and suppliers are always focused on development and adhering to declared corporate values.
Apple faces many internal and external risks due to the scope of company’s business activity. So in order to manage risks effectively, Apple’s goal is to introduce high standards that employees and suppliers will follow. At the same time, it is important to make sure that key stakeholders, in particular employees, have enough freedom so that innovation processes would not be at risk. Secondly, Apple inspects suppliers and terminates contracts with those companies that do not comply with Apple’s rules. Now there are several large suppliers with which Apple has reliable relationships. In Form 10-K, Apple mentions all potential risks that include failures related to technology, financial risks, reputational risks, etc. In order to limit the negative impact, Apple analyzes data that is collected from around the world. In terms of financial risks, Apple uses traditional financial methods in order to address fluctuations in currency rates and macro-economic changes in different parts of the world.