Apple and Its Suppliers: Corporate Social Responsibility

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Table of Contents

Corporate Social Responsibility
Public Opinion
International Business
Labor Practices
The Road Ahead
References

“Apple and its Suppliers: Corporate Social Responsibility” is an article created to enlighten readers on research conducted in the Apple firm between 2013 and 2014. This is a case study designed to demonstrate the bad working conditions for Apple’s suppliers. Through these issues, the case analyzes the company’s social responsibility in the claims and public opinion on the matter and how it was managed.

The article’s key includes Apple and its offshore suppliers Foxconn and Pegatron, all of whom are headquartered in China. The case came to light after BBC and other news organizations reported on mistreatment and deaths of Pegatron employees. According to the reports, Pegatron employees “had to work excessive hours — up to 16 hours a day, which would sometimes continue for 18 consecutive days” (Lee et al., 2016, p. 3).

Corporate Social Responsibility is a term that means the legitimate concern that is given by a company to stewarding its business within the context of society, creating sustainable and healthy communities, and promoting human rights. In other words, it’s about using the business as an agent for change. CSR, especially in regards to employee treatment, is essential to businesses because a primary reason for businesses is to turn a profit. A cording to Park and Tran (2018), the way this happens is called the ‘internal negative feedback loop.’

Public Opinion

Apple is undoubtedly in the public spotlight all the time, likely due to its sheer magnitude, yet, the public’s reaction to the charges of terrible working conditions was not taken lightly. Apple was considered deceptive and dishonest regarding the appalling working circumstances, which included death and suicides, following repeated crimes after the business had already made several pledges to reform its policies. The headlines about Apple’s corporate social responsibility drew a lot of attention to the firm from people who have no idea what is going on in nations other than their own. This demonstrates the importance of the media in informing society, especially about injustices.

International Business

Apple’s corporate duties came under fire after allegations of poor labor treatment at manufacturing locations surfaced. Despite being independent firms, Foxconn and Pegatron were working under the mandate of an international organization, and it was responsible for the employees’ welfare. Unfortunately, Apple turned a blind eye to these injustices, which changed consumers’ perceptions of the corporation, forcing some to avoid purchasing its products.

Labor Practices

Labor practices in international business have both advantages and disadvantages. Therefore, it is always important to look at each potential option and assess its benefits and drawbacks.

Advantages

Cost: Labor costs can be lowered using freely available, low-cost foreign workers.

Resourcefulness: One benefit of using foreign workers is that businesses can tap into international markets to locate employees (Haleem et al., 2017). For example, a business looking for software engineers in Hawaii might find readily available and qualified talent in India or China.

Disadvantages

The local workforce may not be available or qualified for the job.

Workplace Safety: Safety problems can arise from having a foreign employee who might not understand or be familiar with needed safety procedures and regulations. Having a foreign employee who will have difficulty communicating with colleagues, supervisors, and clients is also a workplace safety challenge(Calveras & Ganuza, 2018). These problems can lead to workplace accidents and thus pose legal liability issues.

The Road Ahead

From what I have learned in this course, I believe Apple ought to have made a formal apology and demonstrated actions they are taking to resolve the problem. Lee et al. (2016) state: “Perhaps it could even go so far as to bring production in-house in an attempt to regain control” (p. 7). This would be an excellent strategy, and it would put consumers at rest. Unfortunately, I believe Apple will make no adjustments as long as it continues to earn money. Furthermore, the unfavorable responses of its Chinese clients could make such a move hard.

References

Calveras, A., & Ganuza, J. J. (2018). Corporate social responsibility and product quality. Journal of Economics & Management Strategy, 27(4), 804-829. Web.

Haleem, F., Farooq, S., & Wæhrens, B. V. (2017). Supplier corporate social responsibility practices and sourcing geography. Journal of cleaner production, 153, 92-103. Web.

Lee, Mallahi, Mol. (2016). Apple and its suppliers: Corporate Social Responsibility. Ivey School of Business Publishing.

Park, J. H., & Tran, T. B. H. (2018). Internal marketing, employee customer‐oriented behaviors, and customer behavioral responses. Psychology & Marketing, 35(6), 412-426. Web.

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