Ethics Unwrapped: Apple Suppliers & Labor Practices

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Table of Contents

Introduction
Scenario Summary
Ethical Issues
Alternative Viewpoint
Responsible Culprits
Affected Stakeholders
Ethical Perspective
Conclusion
References

Introduction

Apple Inc. remains one of the most successful American companies that innovate, design, and market a wide range of consumer electronics. It is associated with a unique business model that resonates with the changing demands of its key partners while at the same time maximizing profits. The selected case for this discussion is “Ethics Unwrapped: Apple Suppliers & Labor Practices”. The analysis presents unique ideas and approaches for dealing with some of the emerging concerns in an effort to make the company more sustainable and profitable.

Scenario Summary

Being a reputable company at the global level, Apple identifies and partners with specific suppliers whose business models are capable of delivering positive results. This organization sources materials and liaises with firms in different parts of Asia to mass-produce and assemble some of its products. While the model is designed to work seamlessly to promote the most appropriate ethical standards, environmental protection measures, and work practices, some challenges have emerged that continue to cause criticism (Aljafari, 2016). For instance, the selected article has described how some of the raw materials are mined unethically in different parts of Indonesia. Specifically, some young children could be forced to work on deep cliffs while exposing themselves to imminent danger.

In light of these predicaments, Apple has always been on the frontline to defend most of its practices by asserting that it lacks the capacity to regulate each and every component or raw material. The complexity of the sourcing model allows the organization to deal with thousands of miners of tin and other materials. On top of these issues, the leaders at Apple have gone further to implement better strategies for improving the practices of labor and supply (Axon, 2020). Such measures are usually intended to make the company sustainable and eventually ensure that positive results are recorded. Unfortunately, the level of criticism has continued to exist since the company is pushed to the limits to meet the expanding demand for some of its products, including the iPhone and the iPad.

Ethical Issues

Human beings are always required to identify and address most of the ethical challenges affecting their relationships with each other and the surrounding environment. Players in the corporate world are usually expected to deal with the same challenges if they are to remain sustainable. Apple Inc. has found itself in the midst of an ethical crisis that it needs to address from an informed perspective.

The first ethical question at play in the selected case is the inclusion of underage children in labor practices. Specifically, the problem of child labor remains questionable malpractice that all stakeholders should be ready to address. The case describes how children below the age of 15 are compelled to work in tin mines (Axon, 2020). Such minerals are eventually used to produce Apple’s outstanding products. The second ethical concern is that of environmental sustainability whereby the company’s mining and manufacturing processes fail to promote conservation measures.

Alternative Viewpoint

The studied case reveals that Apple is an unethical organization that is incapable of meeting the demands of all key stakeholders. The fact that its business model does not remove suppliers who fail to meet the outlined standards makes the company guilty. However, a new perspective or viewpoint is possible for understanding the current case study and making the relevant interpretations. For instance, the leaders are Apple has indicated that most of the operations are monitored and analyzed to ensure that they are sustainable and capable of promoting the integrity of the natural environment (Zane et al., 2016). The company controls its suppliers to ensure that they engage in initiatives that are ethical and acceptable in nature.

To understand what could have happened, researchers can focus on the processes that Apple can control successfully. This approach means that Apple might not be in a position to monitor the operations and initiatives undertaken to produce tin in Indonesia and other Asian countries. Additionally, some middlemen can acquire the product and identify new ways to market it to Apple without any kind of suspicion (Axon, 2020). The end result is that Apple might not be in a position to control each and every mining activity. From this viewpoint, it is possible to acknowledge that Apple might still be an ethical company that ensures that most of the business procedures are sustainable and in line with the developed business model.

Responsible Culprits

The studied case study identifies Apple as the obvious culprit for promoting practices that are deemed inappropriate and unethical. However, analysts will acknowledge that there are other companies and stakeholders whose actions contribute to the nature of this problem. First, the suppliers and miners in Indonesia and other countries whereby Apple outsources some of its raw materials should be blamed (Heller, 2020). Specifically, such players fail to put proper mechanisms in place to ensure that tin is mined using procedures that are acceptable and sustainable in nature. Some of these suppliers fail to monitor the manner in which their smaller partners mine tin and achieve their business aims.

Second, specific systems are to blame in Indonesia and other countries for allowing this problem to exist. For instance, the governments have failed to formulate and implement superior policies for monitoring the nature of mining and the process of delivering the final metal products to the targeted customers, such as Apple. Without proper mechanisms and systems, chances are high that the company will eventually acquire raw materials that have been produced or mined using unethical and unacceptable methods (Heller, 2020). The presence of proper systems and monitoring procedures could have reduced the chances of recording this ethical dilemma.

Third, the affected countries could be blamed for failing to support or promote powerful institutions that can monitor the ethical engagements of local mining companies. Such organizations have also failed to implement proper mechanisms for monitoring such partners and ensuring that they promote practices that are acceptable in nature (Sonnemaker, 2020). Unless the governments in these Asian countries consider these issues, chances are high that the problem will continue to be recorded and affect the ethical position of this country.

Affected Stakeholders

The identified case study reveals that different stakeholders are affected by the unethical issues arising from Apple’s business engagements. These malpractices are capable of disorienting the lives of many people and affecting the overall integrity of the natural environment. The first group of stakeholders that this issue affects the most is of underage children. These individuals are exposed to dangerous working environments that could claim their lives (Sonnemaker, 2020). Such children are required to engage in economic activities at a time when they should be in school pursuing their educational goals (Zane et al., 2016). Without proper interventions, chances are high that these individuals will grow up to become unsuccessful citizens in their respective communities.

The second group is that of final customers. Although these individuals purchase Apple’s products with the aim of pursuing their goals, chances are high that the ethical malpractices have the potential to disorient the integrity of the natural environment. This development will eventually affect such stakeholders negatively since they will be compelled to encounter extreme weather conditions. For instance, all people are today facing the challenges of typhoons or increased global temperatures (Sonnemaker, 2020). These challenges will continue to affect the integrity of the natural environment and expose lives to unprecedented weather issues.

The third group of stakeholders that this ethical issue affects the most is the suppliers involved in the production and marketing of tin and other raw materials. While these companies expect to market their products at the international level, chances are high that they might be unable to attract new business partners (Heller, 2020). This outcome is possible since most companies at the global level would be unwilling to do business with such suppliers. The nature of these issues explains why there is a need for Apple to transform its model, address the recorded ethical concerns, and focus on the best ways to achieve its maximum potential.

Ethical Perspective

Ethical theories are powerful models for guiding companies to make informed decisions and consider how they can introduce meaningful changes. The most appropriate perspective that can help different partners understand the nature of this case is utilitarianism. Popularized and hypothesized by John Stuart Mill, this theory encourages firms to pursue actions and initiatives that have the potential to improve the outcomes and maximize the happiness for the greatest percentage of people.

The involved and affected stakeholders should be keen to analyze the nature of this problem and propose proper mechanisms to address the situation (Krummel & Siegfried, 2021). By applying the theory, it will be possible to understand how the decision to allow children in mining sites is inappropriate and unacceptable. Such a move makes it hard for them to complete their studies and eventually become successful members of their respective communities.

By applying this model to the case, analysts can identify some of the reasons why the current problem exists. They will go further to apply the utilitarian principle to address the recorded issues and ensure that most of the culprits transform their practices. Apple can rely on the model to improve its monitoring processes and identify additional partners who are acceptable and capable of promoting sustainable practices (Feng et al., 2016). These measures will make the organization more acceptable and ethical, thereby maximizing its chances of recording additional profits.

Conclusion

The completed case analysis has identified Apple as one of the successful companies in the international market. Unfortunately, the corporation continues to grapple with a number of ethical challenges that might affect its overall profitability. The analysis has presented powerful insights regarding the role of ethics in business and how it might affect performance or maximize profits. Unethical procedures are capable of affecting different stakeholders while making companies less attractive. In my future career, I will rely on these ideas to promote ethical procedures and strategies that can maximize profitability and improve the profitability of the companies I lead.

References

Aljafari, A. (2016). Apple Inc. industry analysis: Business policy and strategy. International Journal of Scientific & Engineering Research, 7(3), 406-441. Web.

Axon, S. (2020). Ex-Apple employees say the company ignored China’s labor-law violations. Ars Technica. Web.

Feng, Y., Yoon, Y., & He, Y. (2016). The impact of corporate social responsibility on brand value: An empirical study of top 100 global brands. International Journal of Business and Social Science, 7(10), 61-71. Web.

Heller, M. (2020). Apple rebukes suppliers for labor code violations. CFO. Web.

Krummel, D., & Siegfried, P. (2021). Child labor ethics through the prism of utilitarianism and deontology. Open Access Library Journal, 8(2), 1-14. Web.

Sonnemaker, T. (2020). Apple knew a supplier was using child labor but took 3 years to fully cut ties, despite the company’s promises to hold itself to the ‘highest standards,’ the report says. Business Insider. Web.

Zane, D., Irwin, J., & Reczek, R. W. (2016). Why companies are blind to child labor. Harvard Business Review. Web.

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