Introduction
This paper is an analysis of Apple’s Corporate Social responsibility and Stakeholder relations process. It will analyze the environment within which Apple discharges these activities and how it is affected by the actions of Apple in recent times. This will begin by examining the nature of Apple’s business and operations. This will culminate in the evaluation of Apple’s external environment and stakeholders. From there, the corporate social responsibility concerns of the company will be evaluated.
Nature, Structure and Products of Apple
Apple is an international technology company that has its headquarters in California. It is a major technological company in the world and produces some of the most sought-after products in the world including consumer electronics, software and other online services. Apple’s products are of a high quality and are popular throughout the world. The company started in 1976 by Steve Jobs and his associates. They began by producing personal computers. However, Apple’s competitive advantage is in innovation. This has culminated in the major product – iPhone and iPad which are brands of smartphone and tablet computers respectively. The company also produces Mac personal computers, iPod and many other consumer electronic products that are popular around the world.
Apple is the largest technology company in the world by way of revenue and assets. It is ran by a board of directors and a management team. The company has some 115,000 employees and it has retail stores through which it sells its products in about 17 countries around the globe.
Key Factors in Apple’s External Environment
The analysis of the external environment can be done by reviewing and assessing the PESTEL framework which examines the political, economic, social, technological, environmental and legal aspects of the operations of a company. This can lead to a scan which will culminate in the identification of the most important variables that defines the elements of a particular organization.
Secondly, Apple has a problem with the economic element of the PESTEL framework. This is because Apple is known to be a company that does a lot of things to reduce its tax burden. And due to that, Apple is able to pay the least tax with little or no impact on its earnings. This is seen as an unfair process through which Apple avoids paying its fair share of taxes. Due to this, the owners retain more profits and the society they work within is deprived of their exorbitant prices and rates. Apple is technically legal in the process of reducing its tax burden. However, Apple becomes a bad corporate citizen by avoiding to pay and contribute to the upkeep of a proper and successful modern society.
Primary Stakeholders’ Influence on Financial Performance
Stakeholders are persons who affect and/or are affected by the activities of a company. Based on the pointers raised above, the main stakeholders of finance that can be identified include:
Product developers: These are the researchers who develop new products for Apple. Apple is a company that thrives on innovation. Thus these workers are important and vital for the company’s success. Their ability to meet objectives and develop products that solve real problems helps Apple to attain optimal results and gain the best in its activities and processes.
Employees: These are the workers of Apple who carry out instructions of management. They act as a link between the consumers of Apple and the company. These people play an important role in the company’s activities, growth and enhancement. This is an important stakeholder class because they are in charge of most of the company’s processes and procedures and their success is Apple’s success.
Tax authorities: These are groups and entities that are appointed by government to draft Tax laws for countries where Apple operates. Apple has to obey tax laws to gain the power to operate legally in the company. This is something that Apple seek to reduce as such, they study their actions and processes and ensure they are at the right side of the company. Thus, they influence financial performance by creating comprehensive laws that can limit the earning capacity of Apple.
Financial Intermediaries: These are the banks and other entities that look after the money of Apple and also help Apple to deal with their processes and procedures. They are entities that provide loans to Apple and monitor the inflow of funds to Apple’s financial systems. This is something that is necessary for the survival of Apple. Their credits and charges can affect Apple significantly.
Pressure groups and welfare based movements: These are the groups that go after Apple in case they do anything that is worthy of action by the community. Thus, it includes entities like those that provide information and other things to stakeholders in Apple and other entities. Apple will have to take action in order to maintain its reputation by preventing the issue from becoming a scandal.
Corporate Social Responsibility Concern
Apple’s core corporate social responsibility concern has to do with its tax reduction and tax avoidance systems and schemes. Apple has been accused in the US and around the world for avoiding taxes. Apple moved to Ireland to avoid paying taxes to the US and other governments. Thus, it has been able to avoid taxes and provided products to people in different parts of the world paying the minimum in taxes.
Apple was recently ordered by the European Union to pay about $15 billion in back taxes that it had avoided by maintaining its operation in Ireland. This is a major issue that Apple is fighting. However, it presents Apple as a bad corporate citizen and this does not help the company’s image and reputation.
References
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Isaacson, W. (2012, September 30). How Steve Jobs' Love of Simplicity Fueled A Design Revolution. Retrieved from Smithsonian Magazine: http://www.smithsonianmag.com/arts-culture/how-steve-jobs-love-of-simplicity-fueled-a-design-revolution-23868877/?no-ist
