Apple also had to face the
ethical issues in its supply chain management. Majority of the production for
Apple products have been taken place in China and this is still happening. Few
years back, people came to know that labor in china had been exploiting by the
Apple’s management who were engaged in producing Apple’s products. There are no
such proper working conditions provided by the Apple’s suppliers where labor
could be working in good environment for Apple. Moreover, another unethical issue
was low wages by the Apple to exploit them more (Sin 2016). This is such an
unethical concept considered by the public and all institutions who have been
supposed to be taking care of this.
Therefore, public reaction was
very aggressive against the Apple Company in America because Americans are very
much concerned about the human rights especially when as an employees and
workers. There is no way companies could be exploiting its labor because they
are poor and Apple had been alleged for the same. Therefore, its management
introduced new “Code of Suppliers” in which they were contracting their
suppliers to be working under the international standards and ensure labor has
not been exploited but also providing with the proper working conditions (Woiceshyn
2016).
This was the immense pressure coming from the public not to exploit its labor
in China otherwise we would not be buying the Apple’s products anymore. This
was the immense pressure which made the Apple to follow the international
standards of the labor. The world has become fully aware through the media and
they come to know the latest happenings, the competitors also raise the issues
if exploitation is made, therefore no corporate can exploit the people.
Price Fixing of APPLE’S Inc’s
Ethical Success and Challenges
Apple had made the arrangements
with the publishers to be publishing their E-Books on their iPad under the
fixed prices so that the profits margins would be higher and 30 percentage of
the proceeds would be enjoyed by the Apple as an agent (Elliot 2016). This practice was
not as per the market ethical standards because it involved the unfair fixing
between the five big publishers and Apple which is not creating the open market
environment and reducing the competitiveness in the market. Fixing prices was
not good in terms of market competition and Apple was doing the same which is
really unethical move. The court decided that it was highly unethical from the
Apple side and when public came to know that they also showed the negative
reaction against the Apple because they were creating the monopoly of few publishers.
Apple was actually being engaged
in preventing the new publishers to be coming into the market because majority
of the readers using the iPad for e-books, Apple was making the monopoly system
with those five publishers who were also big in size. They should not have
created the monopolistic market which is not the right phenomena (Felix 2016).
Rioting of APPLE’S Inc’s Ethical
Success and Challenges
On the launch of iPhone 4s, there
was a huge crowd waiting outside the Apple’s outlets in China Beijing which
turned into the Riot. Apple outlets management decided to shut down the outlet
because of Riots which could become the threat for its employees. Crowd was the
one standing in long line for 48 hours to become the first customer. Five thousand
Chinese police officers tried to control the situation which resulted as more
chaos and some people died too from the crowd. The world sees it as the
unethical move made by the Apple in terms of how they dealt the situation (Hein 2013). It was very
disturbing for them that Apple could be handling the situation for their
valuable customers in the better manner. It raised the questions on the Apple’s
ethical area as how they perceive their customers nothing at all and they
called the police for handling the situation. Apple also should have held the
better business strategy as selling the online instead they wanted to create
the news out of the Riot so that the whole world came to recognize that some
special product came out from the Apple’s side which needs to be followed. This
was the dirty strategy made by the Apple’s management which should have been
discouraged by the massive public and make it an issue for the company.
References of APPLE’S Inc’s
Ethical Success and Challenges
Elliot, Jay. 2016. The Steve Jobs Way: ILeadership
for a New Generation. London: Wiley.
Felix,
Noe. 2016. FBI unethically hacks iPhone. April 04. Accessed April 04,
2019. http://www.sonomastatestar.com/opinion/2016/4/4/fbi-unethically-hacks-iphone.
Hein,
Peter. 2013. Apple factories accused of exploiting Chinese workers.
April 30. Accessed April 09, 2019.
https://www.theguardian.com/technology/2011/apr/30/apple-chinese-factory-workers-suicides-humiliation.