Dr. Hammad Elbedour
Apple is committed to the highest standards of social and environmental responsibility and ethical conduct. Apple’s suppliers are required to provide safe work conditions, treat workers with dignity and respect, act fairly and ethically and use environmentally responsible practices wherever they make products or perform services for Apple. Apple requires its suppliers to operate in accordance with the principles in this Apple Supplier Code of Conduct (“Code”) and in full compliance with all applicable laws and regulations. This code goes beyond mere compliance with the law by drawing upon internationally recognized standards to ...view middle of the document...
According to Apple, the labor of minor children is not a common event, but they are very open and aggressive about any incident they are aware of and very open about what they are doing to fix it. Apple provides the names of labor agents that are known for hiring minor children in order to prevent their suppliers from using those agencies. Furthermore, Apple is hoping that by publishing a list of their 200 top production suppliers, this too will help avoid the hiring of minor children into their workforce. Apple was the first in their industry to join the Fair Labor Association (FLA). The FLA launched an unprecedented audit of their largest final assembly supplier, Foxconn. The agency published their independent findings and progress reports on their website. Apple also requested the Institute of Public and Environmental (IPE) Affairs and other environmental groups to work with them on specialized audits. With the help of Verite, a non-governmental organization (NGO), Apple is focusing on guaranteeing reasonable working conditions and improving worker-management communication. (Apple, Inc., 2013, p. 5)
Impact of ethics and social responsibility violation
Apple released the follow statement to Forbes Magazine:
Apple is such a hugely popular company and the buzz around the new iPhone is go great, reports of continued worker abuse will not dampen the public’s enthusiasm for Apple products or affect the company stock price. But the media and labor advocacy groups will continue to scrutinize Foxconn’s labor practices. Customers do not like the idea that their products are being produced in abusive sweat shops. (Adams, 2012)
The riots at Apple supplier Foxconn involved as many as 1,000 individuals and shutdown of the facility. Here are two big questions traders have to ask themselves:
1. How is this going to affect Apple stock?
2. How is this going to affect the economic and political future of China?
With the release of the iPhone 5 and Apple customers being over the top with enthusiasm, they can’t afford to hamper the production of any of these phones. Lack of production for any reason would have a negative effect on the Apple stock. In regards to the future of China’s economic and political future, everyone will have to wait and see. It is too hard to anticipate what effects these riots are going to have on China. Just like anything, if the riots take a back seat in the public eye, then it would not appear to have a large impact, but if riots continue at Foxconn it could have a devastating effect on the future of Apple to include their stocks. (Reeves, 2012, p. 1)
Apple’s Suppliers adhere to Wage and Benefit Standards
There are multiple ways that Apple could ensure their suppliers adhere to the wage and benefit standards.
Two methods that Apple could use to ensure that its suppliers adhere to wage and benefit standards are as follows: 1.) Improve physical factory conditions to include better air filtration system,...