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Apple inc.: managing a global supply chain fraser p. johnson, ken mark
Apple inc.: managing a global supply chain fraser p. johnson, ken mark
Apple inc.: managing a global supply chain fraser p. johnson, ken mark
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Module 4 Option #1 Ethical Sourcing and the Supply Chain Any U. S. based company doing business oversees is faced with supply chain challenges. International businesses deal with various cultures, traditions and ethics. It is not always commonplace for an organization to include the CSR it practices at home, in its international dealings and supply chain selection. It would behoove any multinational corporation to consistently instill its CSR policies at home and abroad. This would include any supply chain the company includes in its operations. Apple is a prime example of why any organization disconnecting responsibility from its supply chain can end in disaster. Supply Chain Responsibility Any organization not taking responsibility for its supply chain abroad can end in a PR nightmare. The bad press will outweigh any cost savings made by a firm disassociating itself from its supply chain. For example, when the building where a supplier for H&M, Marks & Spencer and …show more content…
The company had been successful at creating a façade of strength and global responsibility when that was anything but the truth. Many of the workers in Apple’s supply chain were facing unsafe and unethical conditions such as: working excessive overtime – seven days a week at times, standing for long periods of time without a break and working with poisonous chemicals. Apple was truly concerned with high quality at the lowest cost available. The company ended up paying a much higher price as two of its factories had explosions killing four people and badly injuring 77. As a result of the tragic events, Apple faced some turbulent waters in its stock prices and was left with no alternative other than to face the issue head on. Whether or not the company truly intended to remedy the situation, remains to be seen to this
...ften times Apple will simply take the fine because it can afford to, and would rather pay the money then fairly open their trade secrets up to the world. This loophole in the law, if you will, is allowing for Apple to pay its way through anti-monopoly laws and regulations.
On my quest to explore Christianity, I met a gentleman whose family operates a Muscadine grape business. He happens to be my Sunday school teacher. He asked if I would be willing to sell them at my store. I was interested, and I started promoting the grapes, and the products through their seeds. I personally invested a lot of time in the product by exposing it to my customers. The product became a hot commodity, and over time, I placed regular, increasing phone orders, and I began investing heavily in advertising for the Muscadine products at my store. I sometimes pay my invoices 15 to 30 days late however, that never seems to be a problem as he never charged me any late fees. I wanted our business to be formal so, I typed up a contract to
Apple’s current position relating to Ethics and Social Responsibility in most recent cases is that Apple has been very proactive with their marketing strategies by being eco-environmental friendly. They’re current movement toward making their products greener toward change has created a positive effect toward our environment as it relates to technology. Apple has five manufacturing components and examines how much material goes into them. (Manufacturing, Transportation, Product Use, Recycling, Facilities). The manufacturing refers to how products are built and hoe much material goes into each one. The transportation is the segment and the engineering team strives to make their product as energy efficient as possible. Their facilities are “greener” oriented at most locations. Apple conducts business ethically, honestly, and in full compliance with all laws and regulations. Apple’s success is based on creating innovative, high-quality products and services that demonstrate integrity in every business interaction. Apple doesn’t tolerate any type of retaliation against any individual. Apple has a supplier code of Conduct to ensure that working conditions in Apple’s supply chain are safe, that worke...
“The people who are crazy enough to think they can change the world are the ones who do” (Isaacson). When the late Steve Jobs was a child he was abandoned by his real mother and adopted by the Jobs family. Steve was a stubborn rude man who was ruthless, however he was focused, crazy, and inspirational. His characteristics drove him to form one of the greatest companies today, Apple. The computer company revolutionized the world with a frontline of the greatest products the world has ever seen. Although facing many hardships, the company managed to change the music industry, computer industry, phone industry, design industry and created a tablet industry. Apple envisioned products that did not exist and it thrived from the reaction of its consumers. After becoming a fortune five hundred company, it has continued to develop its products and has remained one of Americans most pristine companies however has also been put in the spotlight on social and ethical responsibilities. Ethical businesses use principles and standards that determine if conduct in organizations is acceptable. The big question has arose, is Apple socially and ethically responsible with their suppliers, the economy, its workers, and its consumers? Is Apple responsible for its supplier chains? Does apple have programs through which they help solve social and ethical issues? Has apple made any financial contributions to address issues?
A company’s character traits can enable them to act in accordance with reason. Possessing good virtues is what makes a company or person moral and actions taken reflect those virtues. Apple has possessed some unmoral virtues that have caused them to do business with an unethical company. These traits can hurt their business and could cause the public to no longer purchase from them. Walmart is prime example, when people found out about how they were treating their employees. There are several people who choose not give them business. Apple is attempting to earn trust back from the public by doing what is necessary to turn things around with their suppliers. They have stated that will not tolerate inhumane working conditions or the use of child labor and are becoming more accountable.
Apple’s maintenance of its image in the global marketplace comes with a price on how ethnically Apple conducts business practices while promoting environmentally safe products for the consumer. Apples’ Code of Conduct, voluntarily executed, exemplifies to the global market, investors, regulators, that Apple’s standards and codes of environmental conduct are universal. To maintain Apples’ universal symbolism, systematic inspections into Apples’ supply chain, conducted regularly, are to expose violations of its work ethics not surpassing apples’ comprehensive standards established for its suppliers.
The new chief executive officer, Tim Cook, excelled, earning him the trust of Steve Jobs that in the world of procurement, manufacturing, and logistics. From proposal to retail store, Apple has constructed a closed ecosystem where it controls over every part of the supply chain. Due to its volume—and its occasional callousness—Apple receive huge discounts on spare parts, capacity of manufacturing, and air consignment.
For Zhang et al. (2014), CSR implies that companies should be responsible not only for their shareholders, but also for their stakeholders including suppliers, customers, and communities. Carroll (1979) identified four types of responsibilities that might be subsumed under CSR: economic, legal, ethical, and discretionary expectations. Economic responsibility means that companies are obligated to achieve profitability and satisfy customer needs. Legal responsibility indicates that companies must operate within the framework of legal regulations. Ethical responsibility includes some moral requirements. Discretionary expectation equals philanthropic responsibilities that contribute to society’s development and welfare. Wang and Juslin (2009) held that the western CSR concept does not fit the Chinese market and adopted the Chinese harmony approach to define CSR: enterprises should apply harmony to business and operate in a harmonious way between people and nature. The overall purpose of CSR should be cultivating humaneness, righteousness, ritual, wisdom, sincerity, and responsibility, and becoming a superior company. However, this concept is too abstract to conduct and few Chinese people can truly understand it without a deep understanding of Chinese culture. Many companies in China do not view CSR as an effective investment to improve organizational value unless CSR has considerable payoffs. In contrast to these misunderstandings, Stewart (2006) argued that companies and society actually have the same interests because enterprises cannot make profit in a corrupt, weak, poor society; and social progress can provide a healthy environment for company governance. As compared, Carroll’s (1979) definition emphasizes simultaneous achievement of a company’s economic, ethical, legal, and philanthropic responsibilities, which can be applicable to all countries. In this dissertation,
The workers that assembled Ipads and Iphones were working in a dangerous environment with terrible labor conditions, the accidents in the plants occurred because of the lack of safety conditions. The workers involved in an accident were often injured because of an explosion or sometimes it will cost their lives, they were working 7 days a week and often working overtime that they could hardly walk. The explosion that occurred in 2010, injured workers in Ipad factories when they were ordered to use a poisonous chemical to clean iphone screens, within 2 years, the explosion blasts killed four people and injured 77 people. Apple has been warned about the Hazardous conditions before the explosions occurred, after many accidents or suicidal, Apple did not planned to do anything about the safety conditions and labor conditions.
An organization’s Corporate Social Responsibility (CSR) drives them to look out for the different interests of society. Most business corporations undertake responsibility for the impact of their organizational pursuits and various activities on their customers, employees, shareholders, communities and the environment. With the high volume of general competition between different companies and organizations in varied fields, CSR has become a morally imperative commitment, more than one enforced by the law. Most organizations in the modern world willingly try to improve the general well-being of not only their employees, but also their families and the society as a whole.
As the world trends towards a more globalized marketplace, the need for a universal definition of suitable ethical standards and corporate social responsibility is imperative due to the recent upsurge in global welfare issues. If successful, every facet of the business and supply chain would concentrate on not only the maximization of wealth, but the well-being of all stakeholders. Until such time, many multinational corporations (MNCs) are continuing to encounter human rights issues resulting from unethical actions from overseas suppliers that conflict with their own code of conduct. These adverse engagements have been shown to cause significant damage and guilt by association to MNCs even though they do not directly oversee their suppliers’
Apple is dedicated to above average standards of social and environmental responsibility and ethical conduct. It is also necessary that Apple’s suppliers handle workers with dignity and respect, provide safe working conditions, act fairly and ethically, and use environmentally responsible practices wherever they make products or perform services for Apple. Apple requires employees to function and adhere within the principles of the Apple Code, Credo and comply with all pertinent laws and regulations. Apple goes above and beyond—instead of just being compliant with the law they also make it a point to draw upon internationally recognized standards to advance social
The results need to be given to management at the supplier firms and authorize them to try and put their operational policies in line with Apple’s, and those firms that do not choose to meet standards will face other punishments necessary such as lay-offs, new management, or closings. Managers should be taking steps such as assuring total quality management to help build learning organizations, promoting ethical standards and moral rights, and taking social responsibility and corporate social responsibility into
There are a number of issues that affect international business ethics. They include employment practices, human rights, environmental regulations, corruption, and moral obligation of multinational companies. Employment practice refers to the working conditions an employee must work under. This can be very difficult to gauge, because many times the working conditions of a host nation are inferior to those in an organizations home nation. Many organizations have had to fight with these regulations. A good example of this in the trouble Nike found themselves in during the 1990s. There were a number of news reports released about the working conditions of most of its subcontractors were very poor . The Nike Company was not breaking any laws but it did bring into question the ethics of using a sweatshop. After this incident it left a number of questions for the international marketplace. In recent years many companies have cut ties with organizations that use unsafe and unfair labor practice.
The Facts: Kermit Vandivier works for B.F. Goodrich. His job assignment was to write the qualifying report on the four disk brakes for LTV Aerospace Corporation. LTV purchased aircraft brakes from B.F. Goodrich for the Air Force. Goodrich desperately wanted the contract because it guaranteed a commitment from the Air Force on future brake purchases for the A7D from them, even if they lost money on the initial contract.