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Bus 508 Assignment 1

1647 words - 7 pages

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.
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 ...view middle of the document...

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.

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.
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...

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