Premium Essay

Apple Finds Human Rights Violation in Supply Chain

In:

Submitted By federicostand
Words 2627
Pages 11
Business Ethics Case Analysis: Apple Finds Human Rights Violation In Supply Chain.
Using the 7-step model of Hartman & DesJardins, which helps examining the Impact of individual characteristics and organisational policies on ethical decisions. I will review an article written by the journalist Chilton Tippin on February 17, 2011, discussing the situation that many employees are experiencing, when working with organisations, where their moral rights are not met.
According to the article, Surprisingly 8 months after the scandal suicides at Foxxcon’s Shenzhen factory in China, apple continues finding events where human rights are violated. For the first instance “Human rights violations”, would be the main ethical issue surrounding the case, “however”, I consider indispensable starting the research by firstly giving a clear definition on ethics and the importance of its application in business. Besides from identifying the problem of the case and knowing who is fighting against whom, an analysis of the stakeholders is going to be completed to understand what does the organisation mean for the stakeholder and vice versa. Next process would be weighing the options and finding the available alternative routes of action, while searching how they might affect the stakeholders, this with the use of ethical theories to support each of my arguments. Seek guidance would be the next process on the decision making model, which consist in identifying rules and norms setting initiatives on the issue. Base on the factors analysed, I will hopefully be able to identify an ethical decision and create my own judgments and conclusions about the case.
Richard T. De George, philosophy professor specialized in the research of ethics and applied ethics, sees ethics as concerned with the study of morality. Describes morality as “the practices and activities that considered being important

Similar Documents

Premium Essay

Manufacturing Essay

...One of the most renowned companies in the technology word today is Apple. Created by Steve Jobs, Apple revolutionized the computer in 1976 with the release of the Apple 1. From that point on Apple has always been on the top of the market with its products. Presently they lead the market in Smart Phones, Tablets and Personal Computers. With the huge demand for their products, there comes an enormous responsibility for manufacturing the devices in a quick and cost effective matter. With the rapidly growing market of Apple computers and the technology/electronic industry as a whole, Apple eventually had to rethink how they manufactured their products to create the most efficient outcome; the highest revenue with the lowest cost. The competitive nature of the technology industry causes companies to look for a competitive advantage, which will make them much more profitable than their competitors. For the majority of the company’s history, they have been known to manufacture their products in the USA and even prided themselves with building the Macintosh computer which Steve Jobs described as “a machine that is made in America”. In 2004, when the company was not nearly as financially profitable as they are today, they decided their best option was to start manufacturing their products in other countries. The company, who is now a leader in foreign manufacturing, was lagging behind many American companies in terms of manufacturing abroad at that point in time. The majority of...

Words: 1270 - Pages: 6

Premium Essay

Apple Corporate Social

...Introduction Apple dedicates its social corporate responsibilities in regards to a plethora of policies and governance in regards to: labor practices that builds the dynamics of employment and labor relations, employee benefits and workplace safety; supply chain management, strategic management regarding customer, legal compliance Apple defines the employment governance structure in the Supplier Code of Conduct and Ethics covering labor and human rights, health and safety, the environment, and ethics and management systems. Apple obliges its suppliers to respect the human rights of its workers, to inform the workers of their rights, and to treat them with dignity and respect. Apple requires from its suppliers that they prevent discrimination, involuntary and underage labor, excessive working hours and that they pay workers with wages and benefits in accordance with the applicable laws and regulations. Apple implemented and enforced a strict Suppliers Code of Conduct to regulates and aligns suppliers internal operations; Apple have created a uniformed standard aimed at ensuring that suppliers maintains the same level of principles and value that its holds dear and true across it 18 final assembly facilities, over 764 suppliers, components manufacturers and those that represents at least 97% of its raw material sourcing and procurement worldwide. Apple states that the company “conducts business ethically, honestly, and in full compliance with all laws and regulations....

Words: 2740 - Pages: 11

Premium Essay

Apple and Its Supply Chains

...Apple and its Supply Chains Background Apple Computers, Inc. was founded by Steve Wozniak and Steve Jobs in 1976. It was the first company to create and mass produce personal computers. The company has had its ups and downs in the past thirty eight years of operation. It has seen over five Chief Executive Officers since its creation, and has had to change its business approaches several times in order to keep up with an ever-advancing technological world. Apple’s first computer led the way to further computers production by many different companies. Over the years, Apple has branched out from personal computers, although they are still one of the leading companies in sales, and they have moved into areas such as music sales and online media. Some of their competitors include Microsoft, IBM, Samsung, HP and Alienware, and that is only a few of the many competitors of Apple. In order to remain as a leading competitor in such a saturated market Apple must be innovative and aggressive with its marketing campaigns. It must also maintain customer satisfaction by keeping up with the heavy inflow of orders. Apple products have been in high demand for several decades. In order to fulfill these demands they require factories full of hard-working people, and must have available resources to fulfill the public’s needs for their products. In the past, Apple has struggled to keep up with the demand for their products. In 1995, Apple had accumulated $1 billion in backorders and did...

Words: 1015 - Pages: 5

Free Essay

Cycle 3 Paper

...Foxconn suicides in 2010 to various violations of ethical and legal statures in Samsung’s Samkwang Science and Technology factory, China and corporations who outsource their manufacturing to Chinese factories, such as Apple and Samsung, still have a long way to go in reaching their optimal working conditions standards. Some of these violations include “military style drills, verbal abuse by superiors” and “excessively long working hours, exhausting rates of work, and more (CLW).” In order to mitigate the widespread problem of inadequate working conditions in China, several different solutions—individual solutions through different parties—must be synergized. Only through collaboration between several different parties can the condition of the workers be changed for the better. In 2012, Apple Inc. and its main manufacturer Foxconn collectively arranged inspections for Foxconn’s major Chinese factories due to pressure from the Fair Labor Association (“FLA”). What is the FLA? Who does it belong to etc. According to the Chicago Tribune, this was a “response to one of the largest investigations ever conducted of a U.S. company’s operations outside of America (Gupta).” In order to placate critics of Apple and Foxconn, the two companies were obligated to bow to the pressure from the Fair Labor Association (“FLA”) and go through with the probe. After inspecting three separate Foxconn plants and 35,000 workers, the FLA discovered several violations of labor law, most noticeably extreme...

Words: 2035 - Pages: 9

Premium Essay

Corporate Responsibility

...Marketing Strategies Apple Corporation is well known for employing technological masterminds. The company has undergone extreme successes and failures since its humble beginnings. One such failure was made known to the public in 1996 at the famous “MacWorld” Expo when Apple announced that it was taking a $68 million quarterly loss (Goodell, 1996). Fast forward to 2006, Apple finds itself in the hot seat for violations of worker rights, deaths and even suicides (Chun, 2011). What does all of this mean? Can a company produce a great product and literally get away with murder? Will society look away because we love our iPads and iPhones? This essay will exam Apple’s ethical and social obligations and the consequences of violating these obligations. It will also present processes that may be implemented to assist Apple in adhering to wage and benefits standards. It will address concerns in regards to passing costs of improving to customers and the customer’s willingness to pay more for the highly desired products. Finally, Apple’s marketing strategy will be observed in order to determine recommendations to improve its competitive advantage. Overview of Apple Apple Inc. is a global corporation, based in Cupertino, California, that produces technology ranging from computer servers to software. The name given on April 1, 1976 by founders Steve Jobs and Steve Wozniac was Apple Computer (Steinwart & Ziegler, 2014). The name was later changed to Apple Inc. The release...

Words: 1966 - Pages: 8

Premium Essay

Study

...Ethical Code and CSR activities: DEFINITION of 'Code of Ethics' A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional will be held. A guide of principles designed to help professionals conduct business honestly and with integrity. A code of ethics document may outline the mission and values of the business or organization, how professionals are supposed to approach problems, the ethical principles based on the organization's core values and the standards to which the professional will be held. Corporate social responsibility Corporate social responsibility (CSR, also called corporate conscience, corporate citizenship or responsible business) is a form of corporate self-regulation integrated into a business model. “By Mallen Baker” One of the most frequently asked questions at this site - and probably for all those individuals and organizations dealing with CSR issues is the obvious - just what does 'Corporate Social Responsibility' mean anyway? Is it a stalking horse for an anti-corporate agenda? Something which, like original sin, you can never escape? Or what? Different organizations have framed different definitions - although there is considerable common ground between them. My own definition is that CSR is about how companies manage the business processes to produce...

Words: 3955 - Pages: 16

Premium Essay

Corporate Responsibility

...Corporate Responsibility MGMT 430 Student Name Corporate Responsibility Apple is working diligently to uphold its commitment to reaching and maintaining a high level of ethical and social responsibility. Apple reaches deep into its supply chain to ensure human rights, respect, and equality are enforced globally. The company enlists a strict zero-tolerance underage labor policy with all of its suppliers. In 2014, Apple audited more than 1.6 million workers who identified 16 underage laborers (Supplier responsibility, 2015). If any of Apple’s suppliers is found to be in violation of the policy, the supplier is immediately placed on probation and is subject to follow each guideline set forth by Apple’s Underage Labor Remediation Program. This program requires the violator to arrange for the worker’s safe return home, in addition to covering all education expenses, wage continuation, and to extend a future job opportunity upon reaching a legal age of employment. Apple recognizes the total number of underage labor identified is very low, yet the company demonstrates its commitment by refusing to allow any unethical practice of this sort (Supplier responsibility, 2015). Environmental standards are also a significant focus for Apple. Over the past six years, the company has been successful in keeping 508 million pounds of electronic waste from being placed in landfills (Environmental responsibility, 2015). In addition, Apple has made it possible for many countries to have recycling programs...

Words: 1644 - Pages: 7

Free Essay

The Good Apple

...The Good Apple From one perspective, Apple's world could not be rosier and its future shinier. Rising from the rubble of a disintegrating company in 1997, Apple has reached the pinnacle of success in 15 short years. With a market capitalization of over $500 billion, Apple is amongst the most valuable and highly profitable companies in the world. Its remarkable success lies in the company's ability to create truly innovative products with vast customer appeal. Apple flouts the conventional wisdom of the consumer electronics industry, which emphasizes low cost, "me-too" products, and a continuously shortened product life. Instead, Apple has opted for constant and discrete product innovation, resulting in fanatic consumer loyalty and a high level of profitability. The Bad Apple So why does Apple treat its customers and workers by two different standards? When it comes to customers, Apple is a bold innovator that leads the industry into new directions and forces others to follow. However, when it comes to the management of its supply chain and treatment of workers in the Chinese factories that make its products, it hides behind the constraints of prevailing industry practices. What is even more disconcerting is the fact that these practices are in violation of not only local and national laws, but also of Apple's own voluntary self-imposed code of conduct. It is important to note that this voluntary code of conduct breaks no new ground. It is at best a modest attempt to ensure...

Words: 3028 - Pages: 13

Free Essay

Practices of the Apple Corporation

...disintegrating company in 1997, Apple has reached the pinnacle of success in 15 short years. With a market capitalization of over $500 billion, Apple is amongst the most valuable and highly profitable companies in the world. Its remarkable success lies in the company's ability to create truly innovative products with vast customer appeal. Apple flouts the conventional wisdom of the consumer electronics industry, which emphasizes low cost, "me-too" products, and a continuously shortened product life. Instead, Apple has opted for constant and discrete product innovation, resulting in fanatic consumer loyalty and a high level of profitability. The Bad Apple So why does Apple treat its customers and workers by two different standards? When it comes to customers, Apple is a bold innovator that leads the industry into new directions and forces others to follow. However, when it comes to the management of its supply chain and treatment of workers in the Chinese factories that make its products, it hides behind the constraints of prevailing industry practices. What is even more disconcerting is the fact that these practices are in violation of not only local and national laws, but also of Apple's own voluntary self-imposed code of conduct. It is important to note that this voluntary code of conduct breaks no new ground. It is at best a modest attempt to ensure that workers will be treated fairly and provided with a safe work environment. Yet the violations continue, despite years of...

Words: 3005 - Pages: 13

Premium Essay

Five Guys and Mommy

...Week 3, Assignment Three, Professor William Vasquez | | David Curtis Parson | 10/27/2013 | | Right things Right That's certainly the case with Five Guys. Five Guys is so successful because though it only sells burgers, it does that extremely well. "They don't try to be all things to all people". They sell to people who want a great burger. They've identified a market big enough that they can do that. But even more important than what's offered is the patron's experience, the owners believe. It has to meet expectations in terms of the price paid for the value they received. The research is quite clear that in terms of consumer expectations regarding a restaurant experience, food quality is No. 1. The ability to deliver a consistent taste and flavor sensation or a tailored taste and sensation is critical to the long-term success. That's why Five Guys doesn't comparison shop, says Murrell, to ensure the quality of their products is top-notch. They have many of the same vendors they did in 1986. Their fresh, made-to-order burgers and fries have been the recipe to their success. They don't plan on changing a formula that's worked for more than two decades, even if they could find products cheaper. For example, the company seeks quality, although more expensive products their bacon comes from Patrick Cudahy, a Wisconsin smokehouse that smokes with natural apple-wood chips. One of the hallmarks of some fast-casual operators is the ability to offer a freshly prepared product...

Words: 1117 - Pages: 5

Premium Essay

Corporate Responsibility & Marketing Strategies

...Jobs and Steve Wozniak has built this empire with great success and long term relationships. The violations that they have endured have strengthened their moral and ethical fundamentals. I have identified Apple’s current position and the background of this huge empire. The paper will also introduce the methods used for their success and overall advertising strategies: that has enhanced product sales. The loyalty of their customers and continued growth has factored in significantly increasing new product development. Apple’s contribution to this world has made them a well-known corporation. Introduction Apple Corporation Steve Job co-founder of Apple Computer alongside with Steve Wozniak pioneered a cycle of revolutionary technologies. In 1980, Apple Inc. had a market value of $1.2 billion during their first day of trading. Apple Inc., formerly Apple Computer, Inc., is a conglomerate corporation that creates consumer electronics, computer software, and commercial servers. Apple’s foundation lines are the iPad, iPhone, iPod music player, and Macintosh computer line-up. The founder’s s Steve Jobs and Steve Wozniak effectively created Apple Computer on April 1, 1976, with the release of the Apple I. On January 3 1977, they became incorporated, in Cupertino, California. Apple Computer mostly produced personal computers, which included the Apple II, Macintosh, and Power Mac lines, but it faced unsteady sales and low market share during the...

Words: 2194 - Pages: 9

Premium Essay

Apple Incorp

...Strategies 28 April 2014 Corporate Responsibility and Marketing Strategies Apple is a multinational corporation based out of Cupertino, California. Apple was founded in 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak. The Apple Corporation has very strong ethical and social responsibilities within the corporate world. They have also violated a lot of these ethical and social responsibilities which has caused it to hurt Apple Corporation’s reputation. One of the violations that will be discussed is the Wage and Benefits Standards. It is very important that Apple continues to follow these standard responsibilities. The other important factor to consider is keeping a price that will still keep Apple’s customers happy while paying their employees well. Apple has a lot to consider when dealing with their products, employees, customers, marketing, etc. This is a global business that needs to consider all types of culture throughout the world. On Apple’s website, it goes into full detail of the corporate responsibilities they follow. It is first quoted on the page, “All over the world, we’re expanding opportunities for workers and ensuring that they’re treated with respect and dignity.” (Apple 1) This shows that Apple cares about morals and standards within the company no matter the location. “If companies want to do business with us, they must uphold the highest commitment to human rights.” (Apple 1) It also gives a breakdown on the importance of furthering education to improve...

Words: 1143 - Pages: 5

Premium Essay

Corporate Responsibility and Marketing Strategies

...Steed 28 April 2014 Corporate Responsibility and Marketing Strategies The Apple Corporation has very strong ethical and social responsibilities within the corporate world. They have also violated a lot of these ethical and social responsibilities which has caused it to hurt Apple Corporation’s reputation. One of the violations that will be discussed is the Wage and Benefits Standards. It is very important that Apple continues to follow these standard responsibilities. The other important factor to consider is keeping a price that will still keep Apple’s customers happy while paying their employees well. Apple has a lot to consider when dealing with their products, employees, customers, marketing, etc. This is a global business that needs to consider all types of culture throughout the world. On Apple’s website, it goes into full detail of the corporate responsibilities they follow. It is first quoted on the page, “All over the world, we’re expanding opportunities for workers and ensuring that they’re treated with respect and dignity.” (Apple 1) This shows that Apple cares about morals and standards within the company no matter the location. “If companies want to do business with us, they must uphold the highest commitment to human rights.” (Apple 1) It also gives a breakdown on the importance of furthering education to improve workers lives and to help empower them. This is an example of how Apple really goes out of their way to help teach new skills and create better workers...

Words: 1125 - Pages: 5

Premium Essay

Bus 508 Ass 1

...Daniel Goldsmith Strayer University BUS508 10/25/2014 Corporate Responsibility and Market Strategy Ethical and Social Responsibility of Apple Apple is one of the giant companies in the United States and it is expected to take a firm stand on its commitment to ethical and social responsibilities. The company is committed to taking social and environmental responsibilities and conducting its business ethically. Apple suppliers ensure social and ethical responsibilities through different approaches. First, it provides safe and humanistic working condition for all the workers in the organization. To ensure this there are the set code for the company. There is the code on labor and human right, which states that all the workers in the apple group deserve to be treated fairly and ethically. They should also be treated with respect and utmost dignity ensuring maintenance of the highest standards of human right. The company educates the workers on their rights ensuring that they are aware of them and cannot be violated. On the issue of health and safety of workers, the Apple group considers the health and the safety of its workers important. In ensuring this scenario, a safe working environment is provided and safety practices adopted. The workers in the company have the right to oppose working if the working conditions are not safe. For instance, the company is supposed to give the worker with protective equipments. There is also constant education...

Words: 1798 - Pages: 8

Free Essay

Business

...Apple Incorporated was formed on April 1, 1976 and designs, manufactors and markets mobile and media devices, computers and digital music players. Apple also sells a range of related software, services and third party digital content and applications. Apples products and services include the iPhone, iPad, Mac, iPod and Apple TV, and a portfolio of consumer and professional software applications which include the iOS and OS X operating systems, iCloud, and a service and support offerings. Apple is the worlds second largest I.T company by revenue after Samsung electronics and the worlds second largest mobile phone maker after Samsung too. Apple shipped 153.4 million mobile phone units in 2013, compared to Samsungs 313.9 million units. This gave Apple a 15.3% markets share in the mobile phone market compared to Samsungs 31.3% market share. http://www.idc.com/getdoc.jsp?containerId=prUS24645514 Fortune magazine names Apple the most admired company in the United States in 2008, and in the world it was the most admired company from 2008 to 2012. http://archive.fortune.com/galleries/2008/fortune/0802/gallery.mostadmired_top20.fortune/index.html http://archive.fortune.com/magazines/fortune/most-admired/2012/snapshots/670.html?iid=splwinners In 2013 Apple became the worlds most valuable brand in the Omnicoms "best Global Brands" report, overtaking the likes of Coca-Cola and Google. This broke a thirteen year run by Coca-Cola being number one. The report extimates Apples brand to...

Words: 1795 - Pages: 8