Apple Corporation is one of the leading technological corporations in the world. It owes its success to its passionate leadership. Steve Job has been the pioneer of the corporation, and it is due to his commitment that the corporation has grown to become one of the renowned companies in the universe. The company has been on the top with the likes of Microsoft, and Google, who present the most competition for the company. It has however been the culture of the corporation to advocate for hard work and integrity through the creation of new products that have seen the organization rise to the ranks of the best mobile devise providers in the globe. Being a multinational corporation in the world, various aspects such as ethics, the organization structure and legal issue ought to be the main challenges that they face in their daily business operation. (Ferrell, Odies C., and John Fraedrich, 17), the issues mentioned earlier are the most common factors that any organization has to look at to keep on functioning successfully. The essay will majorly look into the ethical issues that the organization has been facing and the challenges that they encounter. The cultural and leadership qualities of the organization will also be a significant reference.
Ethics creates the required structure for growth and development through which business operations operate and conduct their activities. Companies like Apple Corporation could quickly lose their reputation because of misconduct from the employees and even their leaders. The various ethical concerns surrounding the corporation include the following;
Quality of product is the primary factor that has defined the success of Apple Corporation. It is an area that demands significant oversight because a slight mistake could gravely impact the organization. Because the technological industry is one that sees a constant introduction of new products in the market, the company must look simple misconduct that might impact its image in the market economy. The main virtue that the company advocates for is integrity, and therefore, the company has to be vigilant that their brand is not broken because this would create a grave impact on the sale of their products.
Privacy is one of the significant ethical concern that has been a considerable challenge over the years. In 2011, the company had to disclose that certain features of their mobile devices collected information on the location of their consumers. It becomes an ethical concern both to the consumers and the government because it was a breach of privacy. (Kularski, Curtis, 21), the company had to announce to its customers that it was made possible for them to disable such features that disclosed their location and other private data that is not supposed to be revealed. Privacy concerns are one of the significant challenges that the organization has been facing.
Operating in an environment-friendly zone is an ethical concern that every organization is supposed to look at in their operations. Apple has been introducing environmentally friendly practices. The company admitted to a lot of emissions that come from their factories. It is a challenge that the organization need to look at because it dramatically influences their nature of operation in the global scope. However, the company has since indulged in manufacturing their products in environmentally friendly ways. The company is making its products by using material which is recyclable for encouraging recycling older versions of their iPods and iPhones for later use.
Some of the social responsibility programs that the company has engaged in to promote an environmentally friendly production are through giving a 10% discount on those people who buy their new version products. It is an initiative that significantly helps in keeping the environment clean by recycling their products. The company has also eliminated the use of cathode-ray tubes which contain Lead. Lead is a toxic substance which has a dangerous impact on the environment. The company move to reduce the use of Lead in its production helps keep the environment safer.
Philosophy and Cultural Aspect of the Company
The philosophy and cultural aspect of the company has been the driving factor towards which the company handles ethical issues in the following ways:
The culture of Apple's organization is grounded on the four main attributes of integrity. They include respect, honesty, compliance and confidentiality. In this view, Apple has created a code of code of conduct which accommodates all its employees and the business operations. The company also has enacted policies that are on their websites, which dictate the laws of behaviours at any time and place. The company has employed programs that help in the managing of ethical concerns in the organizations. (Clarke, Thomas, and Martijn Boersm, 8), such programs include the facilitation of a Conduct Line where the employees are supposed to make the conduct of any offence committed by the finance and audit committee.
In some countries where the company operates, it has been faced with legal issues concerning a low labour cost, which significantly threatens misconduct and brand due to conflicts with the labour standards set by the federal government. The company has since tackled such legal issue by committing their suppliers to sign a "Supplier Code of Conduct" and also a factory audit which is periodically done to ensure that compliance is followed to the latter. The company also performs an annual report known as "Apple Supplier Responsibility Report" which is meant to commit their suppliers in the various industries to avoid any violations of the law.
The competitiveness in Apple's industry poses a challenge to the organization because of the introduction of new products and the change in technology. Apple faces a stiff competition between the other technologies such as Microsoft and Google, which has been in introducing new products in the market. Apple needs to observe such trends because they are a challenge which can be dangerous to the organization itself. Change in technology and continuous introduction of new products in the market industry sets a very stiff competition for Apple, and therefore the organization needs to be proactive in their operation to ensure that they can handle such challenges as they come.
I would defend the introduction of Supplier Code of Conduct because it is a move that will see the organization better organize its operation by setting rules which define their supplier's mode of operation. Such supplier conduct will allow the organization to deviate from any legal disputes in the cases of labour costs. The other program of having a conducting line to enable the employees of the company to report any instances if misco9nductby the finance and audit committee is a recommendable initiative that will see the organization progress positively in their operations.
The company has had a significant issue in operating in a pollution-free environment. The emissions that emerge from the factories emit results in a huge environmental problem. I would recommend that the organization employs using pollution-free products. The most efficient program and as highlighted above would be through recycling of their products since they are continuously updating their products. It is through recycling that the company would minimize pollution in their factories but also cut on the costs of material and production at large. Environmental concern is a social responsibility that the organization has to observe and therefore, to take on such as recycling would do great in eradicating pollution.
The other recommendation I would suggest is that the organization should take a keen look at the competition in the industry. Apple is closely competing with giant technological firms such as Microsoft and Google. (Chikhale, Mayur M., and Mo Mansouri, 25), the company should ensure that they match the level of production and market sensitization as their competitors. It would be a significant step to accord them a competitive edge over their rivals, thereby allowing it to further grow and expand in its revenues. Failure to observe such a stiff competition can come as a risk to the organization.
I would also recommend that the organization sensitize their employees to observe the various ethical concerns that define their conduct in the organizations. The leaders, employees and stakeholders should ensure that they keep the moral values of the firm because violating them posses a significant risk to the brand, and this might be a risk in the market environment. Initiatives such as having the employees report an individual who violates the codes of conduct is a great initiative that can see the growth of the organization in all fields of operation.
Although Apple is a significant player in the technological industry, it also has significant concerns and challenges that they encounter daily. Ethical issues have been a considerable challenge for the organization, and this has seen the organization put up specific measures which are steps that are geared towards ensuring the success of the organization. The company faces stiff competition from similar corporations such as Microsoft which are a giant player in the industry. The organization has been proactive in ensuring that they are at an edge over their competitors through the production of new products in the market. Any organization in the technology industry needs to observe all the factors that may result in risks, such as pollution and legal matters.
Chikhale, Mayur M., and Mo Mansouri. "An agile and collaborative framework for effective governance to enhance management in large-scale enterprise business systems: The case of Apple Inc." Global Journal of Flexible Systems Management 16.3 (2015): 283-293.
Clarke, Thomas, and Martijn Boersma. "The governance of global value chains: Unresolved human rights, environmental and ethical dilemmas in the apple supply chain." Journal of Business Ethics 143.1 (2017): 111-131.
Ferrell, Odies C., and John Fraedrich. Business ethics: Ethical decision making & cases. Nelson Education, 2015.
Kularski, Curtis. "4 May 2016 Ethics of Public Policy Final Seminar Paper." Ethics (2016).
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