For example, in June 2014, Apple found that iPhone chargers in 37 European countries were overheating. GAP is the largest clothing company in the world. The company's first product was Apple I, a personal computer hand-built by Steve Wozniak (see Figure 1 below). The book shows families that dont get along well coming together. The company, which specializes in e-commerce, cloud computing, and artificial intelligence, is worth more than $700 billion. It has received criticism over the years for its use of exploitative and unstable labor. Readers are advised to take the information on this page with a pinch of salt. Additionally, labor rights organizations do not independently monitor their factories. Apple is making a concrete difference Apple understands this, and is always quick act on problems as early as they can. Apples Anti-Corruption Policy details our commitment to complying with anti-corruption laws. That would be easy for us to do and would certainly shield us from criticism. How would you like to learn this content? Web Accessibility, Copyright 2023 Ethics Unwrapped - McCombs School of Business The University of Texas at Austin, Being Your Best Self, Part 1: Moral Awareness, Being Your Best Self, Part 2: Moral Decision Making, Being Your Best Self, Part 3: Moral Intent, Being Your Best Self, Part 4: Moral Action, Ethical Leadership, Part 1: Perilous at the Top, Ethical Leadership, Part 2: Best Practices, Financial Conflicts of Interest in Research, Curbing Corruption: GlaxoSmithKline in China, http://www.bbc.com/news/business-30532463, http://money.cnn.com/2015/07/17/technology/apple-earnings-2015/, http://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/, http://www.theverge.com/2015/2/12/8024895/apple-slave-labor-working-conditions-2015, https://www.apple.com/supplier-responsibility/progress-report/. The external helpline is available 24/7, and provides a multilingual reporting service with local, toll-free numbers. For example, in last years report Apple cited 11 factories with child laborers, with 107 active cases and 70 historical cases. This essay could be plagiarized. However, if you take a closer look at the implications, it becomes clear that it is nothing but a cunning marketing ploy. Some loyal customers might view Apple now as a terrible and unethical company and therefore buy other brands of computers, phones, and so on. This means less money for the owners, and less money in the pockets of shareholders as well. Just days before the first iPhone was released, executives called in to change iPhone screens from plastic to glass. Apple has a big brand name and any journalist that criticizes or exposes practices at Apple is likely to get more attention. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Apples industry is one of the most competitive industries. In some cases, the managers may press the employees to reach the target, and they may pass on the idea that the results matter more than the means of getting there (Trevino and Nelson 24). Apple Incorporated: How Is Apple Resolving Ethical Issues? It is mandatory to procure user consent prior to running these cookies on your website. Unethical behavior is an action that deviates from what is morally right or acceptable for a person, a profession, or an industry. WebOne of the most important aspects is the companys ethical decision making. Eight short videos present the 7 principles of values-driven leadership from Gentile's Giving Voice to Values. Apple has also been accused of hiring cheap labor, which in itself is unethical. For example, iPhones are produced with consideration for social responsibility, yet Apple has previously faced accusations of human rights violations, creating e-waste, and tax avoidance. Why or why not? Upload unlimited documents and save them online. Apple had tracked weekly work hours for over one million workers throughout their supply chain since 2007. 3. Technology is nothing. WebOne of the most important aspects is the companys ethical decision making. The Health and Safety Executive also received complaints from employees regarding dangerous working conditions. Some of these businesses take advantage of their customers, cheating them out of their money or selling unsafe food. Apple outsources its production to the Foxconn factory in China. With focused efforts on the stakeholders, Apple is able to make the work/life balance more manageable. Some companies, such as Nike, Coca-Cola, and Apple, have even lobbied against U.S. legislation that would force them to restrict their exposure to Xinjiang. For instance, the ethical issue facing the companys product, the iPhone 4, might have been because of the intense competition in the industry. Apple has faced intense criticism recently amid reports that it relies on. THANK YOU The Daily Punch: June 29, 2023 on Apple Podcasts https://www.apple.com/supplier-responsibility/progress-report/, Web Privacy Policy Just talk to our smart assistant Amy and she'll connect you with the best This product issue did not stop millions of consumers from purchasing the iPhone 4, but it does reiterate the great care Apple must take regarding product quality. Apple now releases a yearly sustainability reports to track instances of child labor, sustainable sourcing of materials, and labor hours. However, all they needed were more hands on deck to meet production schedules. Apple similarly refused to cut ties with Biel Crystal, one of its two suppliers of glass iPhone screens despite a consistently poor workplace safety record, Apple employees' own concerns, and Biel executives explicitly admitting that improving safety wasn't worth it because doing so had actually led to less business from Apple because cutting ties would have left Apple with less financial leverage over its remaining supplier, Lens Technology, according to The Information. It employs millions of workers from all over the world to keep up with its production quotas. Amazon is one of the largest corporations in the world. What is more, the company's revenue is constantly growing. Identify your study strength and weaknesses. Satisfactory Essays 1114 Words 4 Pages Open Document Introduction As large corporations sales and operations are becoming global than ever before, Apple has found ways to maximize its net income and increase shareholder value in todays global competitive environment. There are no exceptions. Amazon is also responsible for the pollution of the environment, as it was revealed that it uses almost all petroleum and steel to ship products within its warehouses. Situations like these have been triggers for workers to commit suicide. Apple handles ethical issues by introducing a business conduct guide for all employees and partners to follow. It is apparently not uncommon for stock to disappear altogether with other merchandise being deliberately damaged. Apple has a strong ethical code of conduct that represents the company as being ethical in all decisions being made. Most of the component sourcing and factory production is done overseas in conditions that critics have argued are dangerous to workers and harmful to the environment. Apple's 2019 Environmental Responsibility report included only one dated and quantified future environmental target which was generating or procuring at least 4 gigawatts of clean energy in its supply chain by 2020. of the users don't pass the Apple Ethical Issues quiz! As a company, Apple believes that all employees should act properly in all situations, regardless of their position or status in the company. Practice But unethical behavior is likely to lose your customers or business partners trust; they will view your actions with suspicion. The several ethical issues of Apple Inc. mentioned above reflect on how the corporation follows ethical principles set in its business conduct and keeps up with its standards of social responsibility. Apples journey to success has not been Apple This transparency is one aspect of Hard Trust implemented by Apple towards building of an ethical culture. Apple vs. apples: The tech giant is fighting to trademark the fruit. The case describes how Apple is using the success of the iPod to reemerge as a serious competitor in the computer industry. For Foxconn to kill its competitors, product parts were sold at zero-profit to one of its main customers, Apple. Similar to many products sold in the U.S., Apple does not manufacture most its goods domestically. labours Lets not forget that Foxconn also produces other gadgets for technology companies like Sony. WebIntroduction Companies should not sacrifice ethics for the sake of profits, instead; ethics should drive business towards profitability. Apples latest covered 1.6 million workers- but it employs more Thousands of individuals working conditions unexamined Bonded labour fluctuating back UN as These cookies do not store any personal information. Ethical Issues of Apple Inc In 2010, Toyota committed a significant ethical breach when they essentially broke their corporate pledge by ignoring safety concerns and postponing recall investigations so they could make save money. Eradicated illegal practices, looks into its supply Apple Suppliers & Labor Practices - Ethics Unwrapped The Ethical Behavior Of Apple Inc It built retail stores when competitors were moving to direct sales and distribution models, and its products were rarely first to market. Well, Apple owns the trademark for that logo, meaning they have the exclusive right to use it. This way, the company does not have to pay taxes in the country where it operates. According to Ethical Consumer's rating for environmental reporting, in 2019, Apple received the ___ rating. The company has faced a number of controversies in the past, which include complaints that its retail chain employees are forced to work unpaid overtime and do not receive benefits. It has a presence on almost every continent. In the discussions below, we discuss two reports of unethical practice on information systems. In an illustration of just how intertwined Apple has become with unethical labor practices, The Washington Post reported earlier this week that Lens Technology itself relies on forced labor from thousands of Uyghurs that the Chinese government has displaced from their homes in Xinjiang. Nike is an Oregon-based company that manufactures athletic footwear, apparel, and equipment. WebApples: Ethical or Unethical Practices? Apple is a multinational company dealing with electronic and software devices, and its The main ethical issues with Apple are poor working conditions, child labour, and poor environmental reporting. creating learning opportunities, ensuring health and safety, and protecting the environment. WebSuch method of raising workers efficiency is unethical in the eyes of many. Apples brand hinges upon product quality, so mistakes can create serious ethical dilemmas. however, this is a game of whack-a- Despite declaring its honesty, respect, confidentiality, compliance and commitment to society, Apple does not entirely accomplish its promises. Public relations experts have criticized Apple for appearing to minimize the problem rather than reacting quickly to remedy it. WebThere are many unethical companies out there, but this list is going to examine the ethical issues on the top 20 worst ones. This hasincreased the level of competition in the industry. Unethical ( Apple Company : Unethical ( Apple Company ) In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers and labor practices. Your Conscience Calling (shown here) was a graphic used in a February 2011 Wired Magazine 94% of StudySmarter users achieve better grades. Should Apple continue to work with the Any slip in quality now would show up as a bad thing for Apple.When companies lead, and not react, the trust is truly there. According to Ethical Consumer's rating for environmental reporting, in 2019, Apple received the worst rating. unexamined Apple Anti (Apple took issue with that claim, telling The Times that it "did not lobby against" the bill but rather had "constructive discussions" with congressional staffers). It is also the largest private employer with about 2.3 million employees. A perfect summary so you can easily remember everything. Apple caught this by not simply having a contract in place with this supplier, but also by having regular audits to enforce compliance. As mentioned earlier, Apple is very quick to solve the problem of their products without any convenience to their stakeholders (here customers). Simply put, the Apple Way was a set of principles with a deep commitment to great products and services at, Apples Beethoven This case focuses on Steve Jobs, current (and former) CEO of Apple Computer. Additionally, the report included sections on the use of potentially hazardous chemicals. Environmental Health Officers served a closure order on Tescos store in Prussia Street, Dublin, the day after they inspected it, for a number of breaches of Food Hygiene Regulations. It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1975 in Cupertino, California, United States. This is evidenced by the long working hours its employees have to perform their tasks. However, due to the competitive business environment, some manager may be tempted to engage in unethical business activities in order to reduce operational Sign up for notifications from Insider! 2. This attitude can be attributed to the influences of Steve Job and the change to a flatter organization. So they decided to exchange the affected power adapter for a new one. While the company pretends to pay them six figures, they are only paid through temp agencies and receive no benefits. WebGlobal business environment can created challenges for companies that are found to be linked to unethical business practices. Bean at that time, great. A woman already contracted a deadly infection before the batch was reclaimed. Some of the companys products are manufactured in Taiwan, where the employees work in abusive conditions (Leonard). The company, like its competitor, has been known to employ children and sweatshops to produce goods at low costs, which helped it grow into the multinational company that it is today. This sparked a political reaction that led to the Grab Your Wallet movement, which urged its supporters to boycott the company. They may end up taking action that is questionable just so that they can ensure that their business survives (Ferrell at al. http://www.theverge.com/2015/2/12/8024895/apple-slave-labor-working-conditions-2015, Reports Supplier Responsibility Apple ASDA do not grant their staff decent pay, while sixty-one percent believe supermarkets damage local communities because of their market dominance. Apple is determined to work within the boundaries of normative ethics, expecting its suppliers to act with honesty and morality. Despite its ethical issues, Apple does not seem to suffer the consequences. 2023 Explain. Another area of improvement is more time off for workers. Unethical Apple is using unethical business practices despite of being such a renowned company.Apple is using slave labour and harmful chemicals which are harmful for their employees, 8 Reasons Which Makes Apple So Successful and Standout. Do you think Apple should be responsible for ethical lapses made by individuals further down its supply chain? Practices How do you think Apple has handled the various ethical issues that it has faced in the past?I think that Apple has responded well to a majority of the ethical claims brought against it. How many things can go wrong, in spite of best intentions and best practices, out of sheer randomness? In addition, long hours are a big problem in the electronics world, Apple has chosen to instill a 60-hour workweek that requires every worker to have one day off per week. 4. (i.e. WebIntroduction Companies should not sacrifice ethics for the sake of profits, instead; ethics should drive business towards profitability. WebApple continues to commit Anti-Consumer practices. What are some practices Apple undertakes to commit to a society in a positive way? Businesses do this so that they can offer cheap prices to the consumers. If you quit purchasing L.L. Apple Supplier responsibility Living together in crowded dorms and exposure Ethical Practices in Apple Inc (Report Shein is not open about its impact on the environment or the welfare of animals in addition to being a fast-fashion retailer that lacks sustainability. Ethics Assignment: Apple Unethical Labor Practices As it turned out, by 2019 Apple had a tax gap of $100 billion for the decade and consequently lost a whole mark in the Ethical Consumer tax avoidance category. In 2019, Ranking Digital Rights (RDR) Corporate Accountability Index, which rates companies on "commitments and policies, based on international human rights standards", gave Apple a score of Apple received Ethical Consumer's worst rating for its pollution and toxics policy. Most of the things that people use today have become automated, and people have changed their lifestyles. Arun Have all your study materials in one place. The Cupertino, California-based firm said improvements include a reduction in major violations of its code of conduct and no cases of child labor. Apple reports New York Times, Labour In this years report Apple cited 8 factories, with 11 active cases and 12 historical cases. This is a blatant example of the response Apple had to its Foxconn child laborer incident. The discovery that Nike uses Uyhgar for forced labor has intensified the outcry and boycott against the company. Apple reports that it has driven suppliers to support the 60-hour-workweek. This category only includes cookies that ensures basic functionalities and security features of the website. Apple still haunt apple Nonetheless, Coke is the leading polluter of the environment due to weak waste disposal mechanisms, higher water consumption, and increased production of non-recycled packaging tools. A reason for the low score was Apple's. It is showing you how to take those conflicts and figure out what exactly is causing them. This makes it a bit harder to analyze Apples ethics in a fair and ethical way! There arent simple standards and tests for ethical behavior, nor are you as likely to be called into court for acting unethically. These processes have harmed local ecosystems over time and polluted the rivers. While more recent investigations have shown some improvements to suppliers working conditions, Apple continues to face criticism as consumer demand for iPhones and other products continues to grow. This shows that all they seem to care about is profits. When the employees are pressured to meet these goals, they can result to using unethical means of achieving the goals. mole that no other company even attempts with WebApple Values Apple Values + Accessibility; Education; Environment; Inclusion and Diversity; Privacy; Racial Equity and Justice; Supplier Responsibility There are also some practices Apple undertakes to commit to society in a positive way. Apple Trading Standards in Birmingham brought the case stating that 1.99 strawberries on sale in Sheldon, Birmingham, had not been for sale at 3.99 long enough. WebApples: Ethical or Unethical Practices? The earth slipping from up there to the bottom. It is known for its hardware and software products, such as the iPhone and iPad. Apple recognized the need to protect its workers, although they are technically Foxconn and not Apple employees, Apple ethics reach down to all inputs for its products and it felt the need to monitor them all. Explain with examples. Many companies have realized this, and they are developing products to meet this need. Ltd. Apple inc. Strategic Case Analysis Presentation, Factors contributing success of apple inc, Apple inc. latest 2019 data Presentation B.VOC Retail management, China Labor Watch Report: Pegatron (Apple Supplier), Critical situation in an organization and managerial solution, Apples Treatment of Chinese Workers and bribery and corruption, Role of Digital Marketing in Promoting Events (SIP), Consumer attitude towards consumer behaviour, Environmental Threat Opportunity Profile (ETOP), Business Ethics Corporations are clearly legal They can enter.docx. These parents were seeking damages and compensation for the death or serious injury of their children who, as they claimed, were working in cobalt mines in Apple's supply chain. Virtue Theory deals with the dialectic between community and individual, certain behaviors are championed others disappointing, humans are social beings thus have to practice ethics, Apple may have let the problems at Foxconn fester for too long, which led to losing trust from some Apple customers. It is apparently not uncommon for stock to disappear altogether with other merchandise being deliberately damaged. Will you pass the quiz? The Walt Disney Company is a global entertainment business that has risen to become one of the largest media companies in the world. In a federal suit filed in Chicago, five customers claim Apple is engaging in deceptive, immoral and unethical practices in violation of consumer protection laws, the Chicago Sun Times reported. Through these business conduct policies, the company has been able to cultivate ethical procurement and supply chain professionals consequently eradicating unethical behavior in the supply chain sourcing practices. As a privacy leader in the technology space, Apple knows this well and has benefited from a strong reputation as a data steward. The definition of ethical is something that adheres to moral principles. This shows that their customer service is really poor. The condemnation of Apple contains contentions of unethical business practices such as anti- competitive performance, rash litigation, dubious tax campaig ns, It has also been accused of discriminating against children, women, and the elderly. For example, when iOS 8.0 was released, customers were angered with the slow download speeds and glitches of the software. However, this is far from preventing all unethical practices such as child labour, e-waste, or unsafe working environments that still exist in certain parts of the world. Not only was it abusive, but also illegal. the Democratic Republic of the Congo (DRC). It was discovered that workers in Amazon warehouses put in an average of 55 hours per week and 10 hours per day, were required to pack about 300 products every hour, and faced harassment, reprimands, or termination if they fell short of their goals. KFC is an acronym for Kentucky Fried Chicken. Although Apple is ethical overall, there are certain ethical issues that still remain. repeat violations. Its 100% free. It has only focused on the financial aspects of its business, and it has ignored the personal data privacy of its users. Apple unethical labor practices Globalization has in effect been the driver in the world economies, as companies outsource skills and resources from other countries across the globe. WebThe purpose of this report on KFC unethical issues was to provide an in-depth analysis of the fast food industry through two contrary ideas; the moral and legal obligations that KFC has adhered to and also the ethical misgivings that the company has engaged in too. This is mainly because of its high levels of caffeine, which is a psycho-stimulant and a diuretic. Experience unreasonable workload 40, loc. It is known for its innovative designs and high-quality products. However, for Apple, this meant caring about the quality of the product and meeting the expectations of the users. Adidas is a German company that manufactures athletic shoes, clothing, and accessories. From 108.2 billion dollars in 2011, it grew up to 365.82 billion dollars in 2021.