APPLE’S Inc’s Ethical Success and Challenges

Introduction

This study discusses about how big brands like Apple exploits their stakeholders and what initiatives have been taken against these brands when they exploit and becomes illegal. This study discusses about how the concept of “Corporate Social Responsibility” have been evolved over the time and how big competitors are competing each other on the basis of CSR activities. In this study, you would also be reading about the role of massive people a market who opposes these big brands and how they are contributing their roles into the market. The market has become a complex place where lots of new factors have been introduced which plays the major role into the business market.

1. How Apple had handled the various ethical issues that it has faced in the past?

Apple is such a big company in size and in terms of its reputation worldwide, therefore it is also associated with the several ethical issues involved into its business practices which have been challenged by the competitors and other stakeholders so that corrective actions can be taken against the Apple if they are involved in the unethical business practices(Elliot, 2016). All of these unethical business practices have been discussed in consideration of the stakeholders in the following.

Consumer tracking ( Buyer Consideration ) of APPLE

Consumer tracking was the most unethical issue faced by the Apple in which its management used to be tracing down the data of iPhone user’s and analyze their trends and taste for what they consume and buy. This huge data was used by the Apple’s management to produce the market accordingly by exploiting their information and incentivized it into own monetary terms. When people came to know about this, it became the public issue as violation of the privacy and Apple’s management was also had the shock from public reaction(Felix, 2016). It was the clear violation of the privacy rights from the big company like Apple and the exploitation of their information only for the sake of own profits.

After having the immense pressure from public and institutions which started working against the Apple, its management ensured not to be tracking down the consumer’s record and in the next model of iPhone they introduced the option of choice whether keep the location on or off depends upon the user’s choice(Hein, 2013). Apple switched the location option off by default so that it is up to the consumer whether they want to put it on or off. This was the major unethical issue came in front by the customers means buyers who are the most important stakeholders of the Apple company because they are the one who contributes into making the Apple such a giant sized company.

Supply Chain Issues of Apple

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

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 Apple

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.

2. By explicit comparison with Apple’s approach, appraise how another company of your choice promotes sustainability and corporate social responsibility.

Google is the main competitor of the Apple; they have been engaged in several CSR activities which improves their credibility and brand identity in the market. They have been doing social projects to make the society a better place where prosperity is for everyone(Sin, 2016).

Better Workplace Environment of Apple

Google has been having the better reputation in terms of providing the better workplace environment to its employees and taking care of them. Google does not want to exploit its employees and workers because they are considered to be the most important stakeholder in place who directly contributes into the success of Google brand(Elliot, 2016). They have been hiring all those suppliers which meet the international standards of labor and they do not do bad exploitation with their labor. Google’s top management sends their people to check and verify whether their offshore labor is working under the proper conditions or not. This is how they have been managing the same for the all.

Google’s management is very much concerned about the fact that its offshore labor must be paid as per the international standards and also enjoying the all health & safety facilities which any other developed country offering. Google does not believe in labor exploitation either its foreign country like China or home country America(Felix, 2016). They have been placed well working practices and environment because they do not want to be losing the good reputation they have been built in the market. They are known for their good businesses practices and fulfilling the CSR in which Apple has not been succeeded yet. It is very important and critical for the big brands because customers and buyers have their buying decision on this basis which makes them buying for the branded products. Though, many people do not take it into the consideration and buying process(Kelly, 2019).

GoogleBuilding the Hospitals and Schools

Google has been building the several schools and hospitals in the society to contribute into the society because its people have been trust the Google brand for long time and spending their money on Google. It is their time to return through allocating the certain amount of profits for the society progress and betterment through contributing into their social welfare and progress. They have built several hospitals and still funding them because free treatment is provided to the patients who came there and visit the hospitals(Woiceshyn, 2016). Thousands of patients have been attended and recovered from the disease recovery and this is how they are doing the same. Therefore, things must be happened in the right direction and Google is doing the same.

After all, such big brands have been making the billions of dollars profits from the same society; this is their duty to give back to the society through building schools and hospitals. It is very good doing that because this is how things have been evolving over the time. They also have built the several schools where kids get the free education and parents do not have to be bearing the weight of kid’s education fees(Manner, 2016). This is the big relief coming from the Google built schools that have been doing the same. This is what makes the Google highly reputable brand because they are not exploiting the things for increasing their profit margins and also the market competition. Many big brands have been exploiting because they want to reduce the business expenditures so that cost of production is also reduced and they can generate more sales, higher market share and profits over the time period.

Diversity Initiatives of apple

Google has been engaged in diversity initiatives since its employees are diverse belong to the different race, religion and gender. It is not effective to introduce and implement the general initiatives since it is a matter of specific preferences, style, choices and work. Google understand this for the betterment of its diversified workforce and took the hard challenging initiative in doing the same(Elliot, 2016). It shows that how closely and intensely Google is looking for the betterment of its employees and protection. Even one of the largest organizations is like Alphabet, who senior executive employee wrote a blog about Google diversity initiatives and praised about that because it is not happening on the Google. On the next day, Alphabet Company fired him from the job. 

Data Security of Apple

Google is very much concerned about user’s data protection and its information not to be used for the market purposes. This is highly unethical concept committed by the Apple only because of its market development and increasing the profits margins. This is how they are not following the bad standards committed by their big competitors and rather they have been following the good code of conduct so that they do not dirty the market and it is not good at all(Hein, 2013). Data security of the users is very sensitive topic for the users as well and it is highly unethical when one company exploits the personal information of its users only because they want to use it for their personal advantages and benefits. Google’s management understands it well and not doing something illegal and unethical which involves something like this. They have established the strict rules and regulations if its employees get involved into this something like this as it is totally not acceptable by the management. These strict rules & regulations preventing the company employees and management to be indulged something like this.

3. Reflect upon your own experience assess the extent to which business ethics has importance.

According to my own experience, business ethics has so much importance in the industry and business fields because it is mainly concerned with the people and humans who are actually the users and consumers of the business products. The ethical aspect of any field or practice is more important than any other kind because it involves the emotions and humans discussed in the following.

Concerned to Humans, APPLE’S Inc’s Ethical Success and Challenges

Ethical aspect is more important because it is concerned to the humans and emotions. For Instance, when you are targeting the market on ethnic basis and raise the issue of ethnicity to exploit the market(Kell, 2019). This is totally unacceptable because it hurts the segment of people in the society as they have been hurt their emotions because targeted on their ethnic background. There are bad business practices which exploit the market only because they want to make profits by not showing the concern towards the ethical issues. For Example, exploiting the poor labor is also the ethical business concept which does not allow the managers to do the same only for the sake of own business profits and remain competitive in the market.

This is totally not acceptable because it is not good business are making good money and the labor involves in the production is not making good to meet its end needs. If it happens something like this then things are not going good into the right directions(Woiceshyn, 2016).

People like such brandsApple

As far as ethical activity is concerned in terms of development, it would not be wrong to say that this is also a development activity in the business and can also be concerned as the investment made by the management in the expectation of improving the brand identity and attracting the customers easily. It is studied that brands which invests in social activities and contributes into the society through building the schools and hospitals, enjoying the better reputation and good will in the market(Elliot, 2016). Studies show that customers are also more likely to be buying the products of those brands which actually invest in the welfare of the society and also taking care of their employees as well. People are also supporting those brands which have fulfilled their corporate social responsibility and not exploiting the poor labor or involved in any other unethical activity.

Therefore, it would not be wrong to say that this is also kind of investment where higher returns can be expected when people come to know your social activities. This is the reason such big brands and corporate do not hide their social activities and rather also market them so that more and more people knows how good you are doing for the society in return expecting from the customers show the support. In the return, people show their support in the form of preferring their brands and products over the competitors even they have lower quality which is something amazing concept in the market subject(Hein, 2013). People would never be buying low quality products at same price but only for the sake of supporting the brand which involves in social activities.

Value of Ethical Development apple Increasing

The value of ethical development has been increasing over the time and this is the new concept introduced in the market subject. Lots of big brands have been directly engaged in ethical activities and development because they have found that the returns are higher in this activity when you promote the brand as ethical brand. It enhances the sales at the higher growth rate and also improving the brand image at the same time. Ethical value development is the growing phenomena where taking the part in social activities is the best investment ever made by the big brands. Though, there is also the pressure coming from the government side but still corporate doing it for their own profits as well(Woiceshyn, 2016). 

In the every season, Corporate are looking for the opportunities and finding those areas for which people have the emotions and they show the care towards. In those areas, corporate invest too much and tries to fix the things for them. For Example, these big corporate have been building the homes for homeless is and funding them to live the better life(Elliot, 2016). This would make the massive people emotionally attached with the brand and they would prefer going for their products and not for other products. This is how they have been playing by the emotions of the massive people for the sake of own profits. But there is also a benefit attached with it as it really improves the society and increases the welfare into the society.

Conclusion on APPLE’S Inc’s Ethical Success and Challenges

It is concluded that big brands have been engaged in “Corporate Social Responsibility” under the government pressure but also considering it the better way of improving brand image. In the modern times and society, the same pressure is also coming from the public to the Corporate that we would not be buying your products if you engage in unethical business practice and do not contribute into the society. This makes the brands and corporate under pressure for doing the good work and investing in the society. They also ensure discouraging the ethnicity, racism and discrimination for which otherwise they have been opposed by the massive people who do not want to become their market.

It is also concluded that these brands are only for the making of profits unless the institutions and public do not put the force they are not going to be working smoothly. This is not good for the business point of view.

References of APPLE’S Inc’s Ethical Success and Challenges

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Hein, P. (2013, April 30). Apple factories accused of exploiting Chinese workers. Retrieved April 09, 2019, from theguardian: https://www.theguardian.com/technology/2011/apr/30/apple-chinese-factory-workers-suicides-humiliation

Kell, G. (2019, January 29). Apple Issues iPhone FaceTime Security Warning. Retrieved April 09, 2019, from Forbes: https://www.forbes.com/sites/gordonkelly/2019/01/29/apple-ios-12-1-3-release-iphone-xs-max-xr-problem-facetime-problem-video-calls-audio-calls/#3d595f014020

Kelly, G. (2019, February 21). Apple Warned iPhones Have An Innovation Problem. Retrieved April 09, 2019, from Forbes: https://www.forbes.com/sites/gordonkelly/2019/02/21/apple-iphone-xs-max-xr-upgrade-price-cost-iphone-8-plus-huawei-qualcomm/#c6dfa69241f8

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Manner, J. (2016). Supply Chain Ethics: Using CSR and Sustainability to Create Competitive Advantage. New York City: Pearson.

Merchant, B. (2017, June 18). Life and death in Apple’s forbidden city. Retrieved April 09, 2019, from theguardian: https://www.theguardian.com/technology/2017/jun/18/foxconn-life-death-forbidden-city-longhua-suicide-apple-iphone-brian-merchant-one-device-extract

Sin, B. (2016, August 22). Latest Foxconn Worker Deaths Build Case For Apple To Move Operations From China. Retrieved April 09, 2019, from Forbes: https://www.forbes.com/sites/bensin/2016/08/22/the-real-cost-of-the-iphone-7-more-foxconn-worker-deaths/#68567f585560

Trevino, L. K. (2016). Managing Business Ethics. New York City: Pearson.

Winder, D. (2019, January 29). Apple Confirms iPhone FaceTime Eavesdropping Exploit -- Here's What To Do. Retrieved April 09, 2019, from Forbes: https://www.forbes.com/sites/daveywinder/2019/01/29/apple-confirms-iphone-facetime-eavesdropping-exploit-heres-what-to-do/#339a054e745b

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