1. Examine Apple’s current position on the company’s ethical and social responsibilities, and determine whether or not the company has met these responsibilities. Provide two (2) examples that support your position.
Answer:
Apple has accepted there ethical and social and ethical responsibility as it relates to health and safety standards. They have implemented health and safety standards that they expect their manufactures to follow. Their health and safety reforms include short work weeks, a training course on safe manufacturing practices as well as informing workers of their rights (Apple Health and Safety). Apple publically displays this initiative on their website in order to inform the public of their social and ethical competency. As I was reading though the reforms that Apple has implemented I did see room for improvement although there initiates do meet basic responsibilities. The section that explains a maximum 60 hour work week could be improved. This section could include a clause stating that every hour past 40 hours the employees are paid over time and then after 50 hours they are then paid double over time. This might encourage Apple’s suppliers to stray away from the higher end of the maximum work week limit.
Apple is has worked to encourage opportunities for their workers to advance themselves. The company offers educational opportunities including free college courses, classes in language skills as well as classes in computer skills. Employees are also encouraged to use their free classes until they earn a bachelor’s degree (Apple empowering workers). This allows employees to advance within the Apple Corporation. I believe that Apple has gone above and beyond their ethical and social responsibility as it relates to empowering their workers. They are investing in their employee’s success as well as their own. Lastly, they are taking on a responsibility that they do not have to. 2. Determine the impact that the publication of ethics and social responsibilities violations made by Apple’s suppliers has had on Apple’s reputation. Support your response with examples of the impact in question.

Answer:
It has had a minor effect on Apples reputation, but there sales are still doing well. Although Apple received a lot of criticism they acted quickly to salvage their reputation. The acted quickly and learned from Nike’s mistakes. Nike had a similar incident with their Chinese manufactures in 1998 (Emerson). They quickly hired their own FLA to inspect the supplier factories; they also engaged the public quickly letting them know that Apple was taking the situation quickly. They made it their personal responsibility to investigate as well as dictate. They used their cooperate power to let the supplier know that Apple will not have their products created at a site that treats their workers badly.
Apple’s rapid action has benefited the company. The new initiatives that they have implemented let the public know that they care about the working and living conditions at their overseas supplier factories. Apple has a very conscious and caring demographic. The most recent sales reports that Apple’s profits are soaring (Goldman). Apple has taken control of the controversy . By taking a step back and giving a plan to the public instead of trying to hide the situation has impressed loyal as well as new customers. I hardly hear about this scandal in the media or on television. In the age of cooperate corruption and greed. The Apple customer may find comforts in knowing that their products are created with a conscious. Apple will be able to continue their good image if they work to enforce all of their new initiatives. 3. Suggest two (2) methods that Apple can utilize to ensure that its suppliers adhere to wage and benefits standards going forward. Justify your response.
Answer:
Method 1:
Apple can threaten to take their business away from unethical suppliers. Apple is a large cooperation that can easily form lines that wrap around buildings for their products. This can be their bargaining tool to ensure that suppliers adhere to their standards. It would not be smart to pull business all at once, but slowly overtime. For example, each violation of their standards could equate to a drop in orders that Apple places. In addition violation can lead to suspension of orders that could hurt the business, but not lose the entire relationship. For instance, a maximum overtime hour’s violation could lead to a 10% drop in orders placed for one quarter. This would not hurt Apple as much, as long as they are not releasing a new product during that time period. The manufacture would receive longer suspensions and larger percentages reduced for the severity of the violation as well as the frequency.
Method 2:
They could model their course of action after what Nike did in 1998. Nike raised the wage of the workers at the factory as well as set a standard for future wages (Cushman). This would allow Apple to look like a decent company with good values. Minimum wage is a western concept that makes companies look fair and just. If Apple set a decent minimum wage for its overseas workers American may connect with the concept and actually buy more items form the brand. The modern day consumer thinks a little before they buy. They don’t want the thought of slave labor to appear in their mind as they show off their new gadget. Consumers care what people think about them and the things that they buy. Western Society often associates products and consumers as having the same attitude. 4. Determine whether or not you believe that Apple’s customers would be willing to pay more for its products if Apple had to increase selling prices in order to provide better wages and benefits for suppliers’ workers. Provide a rationale for your position.
Answer:
No, Apples customers would not pay more if Apple created a minimum wage at their supplier’s factories. Apple’s products already have a high price tag. People often complain about the current prices and people are often overstretched when purchasing items from the brand. Furthermore, Apple has competition those overs similar products for much lower prices. The loyal Apple customer has already bought into the idea of a premium product for a premium price, but they are already familiarized with a clean brand image. The customer expects Apple to be social conscious and reliable. If Apple claims that higher prices will lead to better pay for workers these customers may begin to question the brands image. America is also going through a period of reflection. Apple has high profit margins for their products as is Consumers may begin to question whether or not Apple is being greedy or selfish. Consumers may decide to pay more if Apple donates part of the increase to some sort of charitable cause. For example, Apple could give 5% to a charity. This could decrease their corporate tax rate as well as impress their customers. As previously stated the modern consumer is a conscious consumer. Many brands increase their profits by using the Susan G Coleman logo. Apple could sell a special Pink IPad the increased sales may help to cover the cost of increasing the minimum wage of workers. 5. Analyze Apple’s current overall marketing strategy. Recommend two (2) actions that Apple can take in order to improve its competitive advantage in the global marketplace. Support your response with examples of instances where your recommendations yielded the desired results.
Answer:
Apple could offer sales in order to strengthen their marketing strategy. Consumers love to feel like they have received a bargain. Sale on a limited number of products has been the business model of black Friday for years. If Apple advertises that 4 IPad will be half at each store on their 30th anniversary people will line up at the store. Once inside Apple can offer smaller discounts on other products in order to keep customers around. This will help lower income consumers feel more connected to the company as a whole. They will be happy to have a great product for a good price and they may even be more motivated to buy a future product at full price.
Apple could offer more Colors of products that are known to sell. The more choices consumers have the more they want to buy the product (Janet). People want to feel like the item they are buying is somewhat unique to them. The basic white and black may be sleek but cheetah or cameo may help Apple tap into a new demographics. When the IPhone 5C came out many new consumers were excited. Online color conversion kits for their products are sold by other companies. Apple should take advantage of this trend and offer colors for IPad and other devices that are currently offered in basic black and white. It would be best doing implement this plan right when a product launches.

Works Cited 1. Inc., Apple. "Apple - Supplier Responsibility - Health & Safety." Apple - Supplier Responsibility - Health & Safety. Apple Inc., 01 Jan. 2014. Web. 02 Nov. 2014. 2. Inc., Apple. "Apple - Supplier Responsibility - Empowering Workers." Apple - Supplier Responsibility - Empowering Workers. Apple Inc., 01 Jan. 2014. Web. 02 Nov. 2014. 3. Emerson, Ramona. "Apple Supplier Factory Controversy Gives Company Opportunity to Learn From Nike's Mistakes." The Huffington Post. TheHuffingtonPost.com, 06 Mar. 2012. Web. 03 Nov. 2014. 4. Cushman, John H. "Nike Pledges to End Child Labor and Apply U.S. Rules Abroad." The New York Times. The New York Times, 12 May 1998. Web. 03 Nov. 2014. 5. Janet, Bob. "The Four Things Every Employee Can Do To Increase Sales And Profits." National Association of Sales Professionals (NASP). National Association of Sales Professionals (NASP), 01 Jan. 2014. Web. 03 Nov. 2014.