...The Gap Inc.: The CSR Evaluation of Gap Inc. Outline of the notable ethical decisions made by Gap Inc. and their impacts on the company In 2003, Gap Inc. was sued for its usage of child labor and sweatshop factories in its subsidiary in Saipan. The decision to use child labor and sweatshop in Saipan was made by the management of Gap Inc. that could either be seen as egoism or utilitarianism (Smith, 2004). On one hand, on the egoism perspective, Gap Inc. could have decided to use child and sweatshop labor to cut its costs and maximize its profits. On the other hand, on the utilitarianism perspective, Gap’s decision to use child and sweatshop labor, cruel and ethical as it might seem, provided the people in Saipan a source of employment and income. As a poor, third world country, Saipan could not create enough jobs to sustain the livelihood of all its citizens, so it the citizens could choose between starving to death and making a difficult living in Gap’s sweatshops, the sweatshop is apparently a better option. Hence from the utilitarianism approach, Gap’s unethical behavior was actually better than its doing nothing at all. However, this decision gave Gap an international lawsuit over ethical treatment of labor, which does not cost Gap considerable fortune and energy, but also severely harmed its international reputation as an ethical player in the apparel industry (Smith, 2004). It turned out that the public citizens and the media prefer to use the Kantianism when...
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...the Corporate Social Responsibility (CSR) of the chosen organization in according to the two given ethics theory, which is Shareholder Value Theory, and Stakeholder Theory. Nike Inc., the chosen company had implement the CSR practices in many of its business activities especially in its product design. Nike Inc. had preserved some serious ways of processing and promoting the CSR as they appreciate about the importance and the benefits of it. Nike Inc. had implement the business theory of shareholder value theory in, allowing the company’s shareholders been satisfied by the performance of the company and at the same time being the customers favorites which clearly indicates that the organization heading towards the right path. And at the same time, the Nike also implement the stakeholder theory whereby, the company includes the element of moral and values in its organization management in very healthy and innovative ways. This report also identifies how serious does Nike desirably tend to implement both of these theories in the company business practices. This reports also discussed few recommendations that can be implemented by the Nike Inc. in its practices to enlarge the CSR influence in its business practices. Improve labor practices, uses better and more nature resources and also emphasizing more on safety and healthy concern are few of the proposition that been highlighted in this report. This report clearly classifies that Nike Inc. had accomplish many achievement in...
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...all, a basic definition of corporate social responsibility (CSR) will be presented and followed by comparison of the most important CSR initiatives divided according to the stakeholders, groups having a stake in an organization, that are most affected by the particular activities. These activities will then be discussed from the employees’ and management’s point of view. The essay will finish by outlining whether CSR initiatives are meant seriously. Corporate responsibility can be described as accepting, managing and being aware of the consequences of corporate decisions, and as stressing public good instead of private gain (Boddy, 2008: 689, 156). Social responsibility is based on the mutual dependence of society, environment and organisations (Mullins, 2007: 803). Several authors (Boddy, 2008: 149; Buchanan and Huczynski, 2010: 52) agree that corporate social responsibility belongs to the domain of ethics, which is between the domain of codified law and the domain of free choice. FTSE4Good Index Series have been created as an objective measurement of companies’ performance concerning CSR (FTSE, n. d.). First, in order to keep shareholders informed, both companies hold general meetings where investors are briefed about the development of the company and discuss various issues. Moreover, they are continuously working on providing both their customers and shareholders with the best possible value for money. (Apple Inc., n. d. a; Samsung Electronics, 2012: 18) Second, with customer...
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...corporate self-regulation integrated with into business. Increasingly, companies are putting a public face on their corporate social responsibility (CSR) activity, but is it driving customer trial, purchase and loyalty and ultimately brand equity? Too frequently these activities are unconnected or, worst of all, go in opposite directions, which for certain types of companies become catastrophes. The authors describe three different approaches for incorporating their CSR activities with their marketing activities. The current CSR debate is clear evidence of missed opportunities to leverage CSR in brand-building activities. More money than ever is being invested in CSR and companies are making wide-reaching organizational changes to support it. Most now have CSR departments reporting to the chief executive, publishing CSR reports and developing CSR strategies and plans. However, despite this intense investment activity, results are few and far between. Instead of bolstering the brand and bottom line, CSR efforts have come under fire both from investors, who cry misuse of shareholders’ money, and from consumers and interest groups who criticize companies for promising more than they deliver. Shell, the Coca-Cola Company, and British American Tobacco are just some of the latest organizations to have experienced backlash for their CSR efforts. Overview of Apple Apple is one of the biggest company/organization on the earth. Any corporate or organization final aim is to make profit...
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...objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. In contrast, Japanese companies prefer to focus on areas where their contributions can be statistically measured. Interest in social aspects of CSR is significantly less pronounced than in other industrialized countries.4 In Japan there are no specific provisions regulating CSR. However, the 1988 law that promotes specific non-profit activities is of major...
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...objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. In contrast, Japanese companies prefer to focus on areas where their contributions can be statistically measured. Interest in social aspects of CSR is significantly less pronounced than in other industrialized countries.4 In Japan there are no specific provisions regulating CSR. However, the 1988 law that promotes specific non-profit activities is of major...
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...CORPORATE RESPONSIBILITY AND MARKETING STRATEGIES Tanika Fuentes BUS 508 Contemporary Business Dr. Jacob The Apple Corporation has become one of the largest corporations in the world. There are a lot of companies that would like to be mentioned in the same breath as Apple. Many companies want to emulate their success. In this paper I will examine Apple current position and reputation, regarding ethical and social responsibility. According to Crane and Matten (2013) “One of the basic tenets of the Corporate Social Responsibility (CSR) movement in business has been it being voluntary and meeting social expectations above and beyond the law.” The Apple Corporation has been publishing its CSR report on its website since 2007. On Apples website it states “Workers everywhere should have the right to safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continual cycle of inspections, improvement plans, and verification, we work with our suppliers to make sure they comply with our Code of Conduct and live up to these ideals”. Living up to the previous statement concerning apples commitment to ethical and social responsibility has not been an easy one. My position on whether Apple has met their responsibilities would be no because with their brand being the world’s best global brand, they should be held to a higher standard. When you are the leader in your field other corporations are looking...
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...Report: Gap Inc. and Business Ethics Depestel Caroline Milijana Zlatic s0101027 s0100470 Professor S. Hughes Year: 2012-2013 3th Bachelor Applied Economics 1. Executive Summary The topic of this paper is business ethics within Gap Inc., a multinational retail – clothing company. The foundation of its corporate ethical approach is summarized in the Code of Conduct . This paper outlines the ethical problems Gap Inc. faced in the last years and more important, the solutions they found in order to remain a successful company. It shows how large companies deal with common issues like child labour and sweatshops. In the first place, this report points out several examples of the problems had to deal with. These points, among which an important lawsuit and documentary, illustrate that their Code of Conduct is not sufficient enough to name Gap Inc. a model corporation in terms of business ethics. Secondly, it is essential to make an overview of the resolutions for the problems that Gap created over the years. In answer to the critics on child labour and employee abuse, they launched a campaign in which they support several organizations. Furthermore, Gap increased its corporate responsibilty by creating several multi-stakeholder initiatives. The quick solutions Gap came up with show that a big company can limit its economic damage when ethical issues occur. To maintain this positive ethical image that Gap pursues, it could publish...
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...Corporate Responsibility and Marketing Strategies Tara Traeger Strayer University Professor Christopher Hase BUSS 508 October 21, 2014 The Apple Corporation has become one of the largest corporations in the world. There are a lot of companies that would like to be mentioned in the same breath as Apple. Many companies want to emulate their success. In this paper I will examine Apple current position and reputation, regarding ethical and social responsibility. According to Crane and Matten (2013) “One of the basic tenets of the Corporate Social Responsibility (CSR) movement in business has been it being voluntary and meeting social expectations above and beyond the law.” The Apple Corporation has been publishing its CSR report on its website since 2007. On Apples website it states “Workers everywhere should have the right to safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continual cycle of inspections, improvement plans, and verification, we work with our suppliers to make sure they comply with our Code of Conduct and live up to these ideals”. Living up to the previous statement concerning apples commitment to ethical and social responsibility has not been an easy one. My position on whether Apple has met their responsibilities would be no because with their brand being the world’s best global brand, they should be held to a higher standard. When you are the leader in your field other corporations are...
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...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....
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.................................................................................................................. 7 The Bel cheese Factory: strategies used and their link with the Mary Parker Follett’s Theories. ............................................................................................................................ 9 Existing link between Follett’s theory and Bel Company’s behaviour. ................................ 10 Concepts and strategies currently used in Bel Company. ......................................................... 12 Strategies which could be used and recommendations...
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...New Balance Athletic Shoe, Inc. is an American athletic footwear manufacturer based in Boston, Massachusetts. The company was founded in 1906 as the "New Balance Arch Support Company" by William J. Riley and is now one of the world's top athletic footwear manufacturers. William Riley started out developing arch supports designed to improve shoe fit. His first product, a flexible arch. The company now boasts of manufacturing various athletic shoes and apparel. New balance is the second largest manufacture of athletic shoes in the United States and it is currently the number four largest manufacture of athletic shoes in the world. The company has over 4000 employees worldwide. The company was the only global footwear manufacturer with production in the United States. Sales for its products were estimated to be over $2.0 billion. The company prides itself as the only footwear manufactures to with production factories on US soil. The current CEO is Robert De Martini. New-Balance athletic company still remains a privately owned company. The company owns five factories in the Unites states. Two in Massachusetts and three in Maine. What makes New-Balance company rise above other companies in terms of CSR, is the current owners James and Anne Davis; continued commitment being socially responsible and “giving back” to stakeholders. Under The stewardship of the Davies, New-Balance Company had always strongly braced corporate philanthropy, encouraged employee volunteering and ensured compliance...
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...Responsibility (CSR) and its Importance: 1.1 Definition of CSR: What does Corporate Social Responsibility or CSR mean? The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts, used the following definition: Corporate Social Responsibility is the continuing commitment by business to behave ethically and to contribute to economic development while improving the quality of life of the workforce and their families, as well as of the local community and society at large. Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities. This model tends to be more sustainable because : • Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximise the value of wealth creation to society. • When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise that is peripheral to the main business, it will always be the first thing to go when push comes to shove. Different organisations have different definitions of CSR- although...
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...International Operations Management Strategies of Apple Inc. Introduction Apple is an American multinational technology corporation which has been highly regarded for its innovative products for a long time. Apple is recognised by customers for its hardware products including iPhone, iPad, iMac, iPod and Apple Watch, which ingeniously combine advanced features, unparalleled user experience and attention to small details in design (University Alliance, 2016). As an multinational company, Apple has its well-appointed retailing system with 475 retail stores in 17 countries (MacRumors, 2016), as well as online Apple stores and iTunes Stores of different regions. According to Forbes Lists, the market Cap of Apple is $741.8 billion in May 2015, which was identified as the most valuable brand (worth $145.3 billions) in the world (Forbes.com, 2015). For the first fiscal quarter 2016 ended December 26, 2015, Apple reported quarterly revenue of $75.9 billion with a net income of $18.4 billion (Apple Reports Record First Quarter Results, 2016). $65.5 billion of the revenue was driven by the sales of iPhone, iPad and Mac; $6.05 billion was contributed by the sales of services including Internet Services, AppleCare, Apple Pay and other services; other ptoducts like Apple TV and Apple watch brought $4.35 billion of revenue to this quarter (See Appendix I). Apple Corporation was founded by Steve Jobs, Ronald Wayne and Steve Wozniak in 1976 to sell personal computers (Richardson,...
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...global organisations in implementing corporate CSR policies Prepared for John Toth Prepared by Emma Wimhurst 10 November 2013 Contents Section Page 1 Introduction 3 2 Definition of Corporate Social Responsibility 3 2.1 Carroll’s pyramid of CSR 3 2.2 Theoretical clusters 4 2.2.1 Instrumental theories 4 2.2.2 Integrative/Political theories 4 2.2.3 Ethical Theories 4 3 Implementation of CSR 5 4 The Body Shop: core purpose 5 5 Balancing act 6 6 Heightened awareness 6 7 Cost Implications 7 8 New Look: Stakeholder’s conflict 8 9 Challenges 8 9.1 Increased responsibility 8 9.2 Daily implementation challenges 8 10 Recommendations 9 11 Conclusion 10 12 Appendix one: The Body Shop 12 13 Appendix two: New Look 14 14 Appendix three: Carroll’s Pyramid 17 15 Appendix four: Schwartz and Caroll Venn diagram 18 16 Appendix five: Ethical Trading Initiative 20 17 Bibliography 21-24 1. Introduction This report identifies the key challenges faced by organisations with a global supply chain in implementing Corporate Social Responsibility (CSR) policies. The Body Shop (appendix 1) and New Look (appendix 2) are UK based companies, with a global trading presence and both depend on a global supply chain for the purchase of their products. In 2013 both companies remain committed to CSR and ethical trading. These companies have been...
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