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Apple Supply Chain Analysis Oct 2013

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Apple was founded in 1976 as a personal computer company (1). Since first introducing the Apple 1 computer kit, the company has revolutionized the marketplace for electronics. With 2012 revenues topping $156B (2), they are currently the 2nd most profitable company in the world (3). As their products become hotter with each new each new release, an increasing visibility and scrutiny regarding their manufacturing partners and supply chain has gained momentum. All too frequently, the company has responded to reports of questionable factory conditions and employee treatment with a promise of improvement. Apple’s supply chain has come under fire for what can be considered unethical treatment of workers across their extensive supplier network. Since the launch of their iPhone product line, Apple executives have continually proclaimed to their extended stakeholders that their supply network is thoroughly audited and inspected via their Supplier Responsibility Program. As Max H. Bazerman and Ann E. Tenbrunsel note, “When we fail to notice that a decision has an ethical component, we are able to behave unethically while maintaining a positive self-image. No wonder, then, that our research shows that people consistently believe themselves to be more ethical than they are” (4). Setting aside its own view, Apple must focus their efforts on the economic, legal, ethical, and philanthropic responsibilities of not only improving the environment at their suppliers, but also the slow developing negative perception of the company. They must systematically review both the social responsibility and ethical decision making across their entire operational network as well their impact on the company’s stakeholders. Significant changes must be implemented to alter the corporate mindset that has been the foundation of the ignorance regarding Apple’s role in their suppliers’ operations.

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