Most of the ongoing challenges that many organizations find themselves struggling with in the global environment emanates from unethical business practices. Some of the contributing factors to these challenges may include failure to invent or harness new technological advancements and stiff competition from other market competitors across the globe (Morrison, 2011). In a business context, exhibiting unethical behavior can be very detrimental in business operations since it may lead to the exploitation of the workers, customers or suppliers and even the general public at large. Unethical behavior in business denotes contradicting with the norms and standards that are set apart to ensure a smooth running of the business operations.
Rarely, an unethical business practice may originate from an individual who may fail to conform to the guidelines that act as the guiding principles of the organization. However, at other times, unethical business practices may result from the corporate culture at large in which case the entire business is corrupt down the hierarchy leading to suffering in the society. Hershfield, Cohen, and Thompson (2012) argue that many of the unethical business practices are illegal and may be related to the breaching of the contract thereby inviting law court interventions. Hershfield et al. (2012) add that both federal and state laws have the mandate of governing unethical business practices requiring organizations to provide accurate information about the product and services they offer to their clients. In a global context, companies whose operations are spread worldwide may encounter various challenges as the business environment across the globe may dictate. Thus, it becomes necessary to bridge any business niche that may be invented along the way to have a superior hand over the competitors: In this regard, the Apple Inc. The company becomes an organization of interest to lay focus on since it is susceptible to global challenges in the business operations such as competition and technological issues. Therefore, this paper discusses the ethical code of conduct of Apple Inc. Company and issues facing the company at large.
The Apple Inc. company started in 1977 with Steve Jobs, Steve Wozniak, and Ronald Wayne as the core founders. It started as a manufacturing, distribution, and selling company for computer products and then grew to include cell phones manufacturing. It has since then developed over the years and is capable of meeting customers demand across the globe (Morrison, 2011). As such, this has enabled the company to become the world’s largest information technology company based on the volume of revenue it generates and the second from Samsung regarding mobile phone manufacturing by volume. Consequently, this has motivated the company to invest in research and technology to increase the value of shareholding. To achieve its objective, the Apple Company has globalized its operations to more than ten different countries. As a result, this enables it to have a competitive advantage over its competitors making it flourish economically across the globe.
Currently, Apple Company has centralized its operations to the supplier code of conduct. To achieve this objective, the company sets high standards and expects the suppliers to comply with them. Compliance with the company’s code of conduct requires all the suppliers to have the specific requirements outlined in the Supplier Responsibility Standard (Apple Inc., 2017). As such, this means that the company emphasizes on the creation of safer working conditions and treating workers in a fair manner in addition to using the environment in the most economical way. The company uses audit strategy as an opportunity to improve suppliers’ code of conduct. Thus, there has been a four-stage process that is believed to help suppliers to adhere to the Code of Conduct. These stages include audit prioritization, onsite audit, addressing issues and verifying improvements.
The company uses a risk-based approach in the stage of audit prioritization to determine on which suppliers to audit. Under this stage, the main factors affecting the social and environmental relations as well as health and safety relations are well assessed (Apple Inc., 2017). Prioritization is then performed based on geographic and product risk as well as planned expenditure and prior audit performance. However, Apple staff is dispatched as soon as possible once the issue at hand is considered acute in nature.
The second type of Code of Conduct assessment for Apple Company involves the use of onsite audit. In this situation, the company uses third-party experts who are trained on auditing protocols. However, the company works together when interviewing workers and during reviewing of the payroll documents. Additionally, the company gets involved when assessing the physical health as well as the physical condition of the facilities and inspection of the environmental conditions (Thomas, 2014). It is quite significant to remark that, the Apple Company seeks zero tolerance while evaluating these facilities. It is from this point of view that the auditors in collaboration with the Apple Company engage in addressing the main issues found with their suppliers in which, those who are found not to be complying with the company’s requirements are followed in a duration lasting three months (Thomas, 2014). Verification is the last thing that is done to check on whether the suppliers are adjusting or not. If in any case, the suppliers may need extra support to comply with the Code of Conduct, Apple sends its clients to such suppliers as part of the partnership program (Apple Inc., 2017). As such, the program is important in the sense that it aids in facility improvement through refining business practices and management systems relating to labor, human rights, environment, and health and safety.
The Apple Company starts by evaluating an unethical practice from one of its suppliers known as Lens. The lens is a factory operating in China and acts as Apple’s main supplier providing it with glass covers for its phone products. From 2010 Apple’s audit report, it was realized that Lens was engaging in unethical business practices. The report noted that the company had about 57 unethical practices that were detrimental to the company. As such, this factory was violating the rights of labor and other human rights as outlined in the International Human Rights Act. The factory was also engaging in other malpractices such violating the environment within with business operations were taking place as well as health and safety measures (Elmer-DeWitt, 2010). Besides, there were also long working hours and discrimination at the place of work in addition to chemical and other dangerous materials that did not hit the expectations of the Apple Company. As a result, instead of the Apple Company punishing the factory for its misconduct, Apple choose to help the factory improve its conditions by lobbying with it together with its management to help improve even the conditions of 35,000 workers working within the factory. To help improve efficiency, Apple sent Nikko, an auditor, to implement new policies and procedures as well as tools necessary for driving internal improvement within the factory (Elmer-DeWitt, 2010). The main intention was to develop new ways of controlling the number of hours one would work and a new recruitment procedure as well as an improved labeling and storage of chemicals. Consequently, this audit helped the factory to improve by 29% and it has continued to improve over time.
The main objective of Apple Company was to establish its Code of Conduct to ensure that all suppliers followed the same standard. As such, the company regularly maintains checks and balances to maintain its accountability and at the same time to ensure that all of their suppliers have the required Code of Conduct which is acceptable internationally (Morrison, 2011)). From such attempts, the company has been able to control most of the challenges affecting business in the global environment. However, the company has been facing stiff competition from its competitors ethically and must work hard to rise above them. It has not always been easy for the company since it finds itself faced with the problem of unethical conduct from its suppliers. As a result, the company does not tolerate any unethical business conduct arising from its suppliers.
Indeed, as a fast growing industry and world’s largest company in information technology, Apple has made various steps to maintain its top spot. As such, it has encouraged its suppliers and customers to keep recycling their products rather than dumping them into the environment leading to environmental pollution. Besides, despite the challenges the company faced in embracing technology, the company have remained consistent in embracing every new bit of technology that is released in the market. It also has workers who are conversant with software development who work day and night to ensure they are the pioneers of technology advancements. As a result, through the various achievements the company has made over the years, it has continued to remain at the top of the bar as the leading technology company across the continent.
References
Apple Inc. (2017). Supplier Responsibility. Retrieved from https://www.apple.com/supplier-responsibility/
Elmer-DeWitt, P. (2010, February 13). Apple’s 10 biggest problems – update. Retrieved from http://fortune.com/2010/02/13/apples-10-biggest-problems-update/
Hershfield, H. E., Cohen, T. R., & Thompson, L. (2012). Short horizons and tempting situations: Lack of continuity to our future selves leads to unethical decision-making and behavior. Organizational Behavior and Human Decision Processes, 117(2), 298-310.
Morrison, J. (2011). The global business environment: Meeting the challenges (3rd ed.). Houndmills, Basingstoke, Hampshire: Palgrave Macmillan.
Thomas, C.S. (2014). Lobbying strategies and tactics. Retrieved from: http://www.britannica.com/EBchecked/topic/290136/interest-group/257771/Lobbying-strategies-and-tactics
