Global Business Environment Challenges

Junior (College 3rd year) ・Business ・APA ・3 Sources

Apple is a multinational American corporation that works on designing and marketing consumer goods, software, and personal computers. data collection of Apple has fundamentally altered its code of conduct during the past ten years. A company's foundation is its ethical code of conduct since it sets the tone for discipline, motivation, and direction. An examination of the modifications to Apple's code of conduct is provided below. The labor and human rights code is a scenario whereby suppliers should ensure that there is a lack of discrimination in matters relating to employment regarding things such as sexual orientation, race or people's origin. According to the code, the suppliers should not hire underage workers; they should be fair in the treatment, provide benefits and incentives, and consider the employees' working hours so as to avoid strain and demotivation. The wages and salaries should also be fair to the employees according to the amount of labor they provide. An example of a case where this ethical practice was violated is the Foxconn Empire where 12 employees who felt their rights were being violated by being given little time for resting terminated their lives by jumping from a building (Watch & Qiang, 2011).

Another ethical issue of concern is the impact of the firm’s activity on the environment. The suppliers should take permission from the government when dealing with something that requires permission. The disposal of waste is also an ethical issue of concern as waste should be properly disposed of. The air and water released should be purified to avoid the destruction of the environment. The toxic and hazardous substances should not be released into the environment as it may cause the destruction of the aquatic life (Carlton and Jim, 1997).

Besides, health and safety is another key ethical issue of concern. Workers should not be required to carry out operations deemed to cause risks to their health and security. The workers should be well fed. Besides, they should be provided with modernized shelters. Those working should also be provided with protective gears such as gloves, eye and ear protectors among others. An example of a case where this ethical practice got violated is the Foxconn Company where around 20 people were prevented from committing suicide. Their reason was that they were getting exposed to poor working conditions.

Antidiscrimination is also a key ethical issue of concern. Suppliers shall not discriminate against any worker based on race, color, age, gender, sexual orientation, ethnicity, disability, marital status, national origin, political affiliation among others. Pregnant women will not get discriminated by asking for pregnancy test unless where the laws and regulations demand so (Watch & Qiang, 2011).

Community engagement is also a key ethical issue. The suppliers are required to engage the community to help foster social and economic development. Protection of intellectual right is also another key component whereby suppliers should safeguard customer information. The management system should also get designed in such a way that it comply with laws and regulations (Carlton & Jim, 1997). There should also be periodic self-evaluation to ensure the supplier is complying with the applicable laws and regulations. Besides, the supplier should have processes for creation of documents and records to ensure conformity with the applicable code.

Advancement in training and communication is also another area where Apple has posted ethical changes. Suppliers should have a program in place to train the managers and workers to implement policies and procedures. Suppliers should also have a process for communicating clear and accurate information about their performance practice. There should also be a process of obtaining feedback from the workers. A corrective action process is also necessary for timely correction of any deficiencies identified.

Finally. There is a need for ethics whereby there the highest form of ethical conduct is required of the suppliers when dealing with workers and customers. Corruption, extortion, and embezzlement are strictly prohibited. The providers, therefore, should not give any form of bribe to obtain an advantage over others. Disclosure of information ethic requires that suppliers must accurately record and disclose information regarding their business activities, structure, financial situation, and performance.

Apple’s Supplier Responsibility

Apple’s supplier responsibility includes the following; helping suppliers meet the highest standards in the industry. That is by forming close partnerships to help the providers develop knowledge and skills they need to operate responsibly. Year over year progress through partnership is another responsibility. By working closely with the supplier, the number of high-performing providers rose significantly.

Another Apple’s supplier responsibility is by being on the forefront on environment matters and helping the partners keep pace. It is through water conservation, minimizing carbon emissions, eliminating land waste and replacing hazardous chemicals. There is also efforts to switch to renewable energy entirely.

Apple is also investing in people by training workers on their rights as employees. It also offers the people working in its supply chain with a wide variety of educational and training program. Finally, Apple is committed to ensuring responsible sourcing that goes well beneath the surface. It is through smelting and refining. That will make sure that the planet does not stop at manufacturing but instead goes to the smelter level.

Apple’s Stance on the following issue is as follows

On empowering the workers, Apple offers training to its employees so that they remain up to date with the required skills. Apple also encourages employees to move within and across teams. In fact, the workers are allowed to try an entirely different role for six months to see if the roles suit them and the company. Also, the employees get better remunerations of at least $12 per hour (Duhigg & Barboza, 2012).

With regards to labor and human rights, Apple has ensured that they do not discriminate laborers by things like sexual orientation, race or one's origin. At no case shall the company hire underage workers, they should be fair in the treatment, provide benefits and incentives and finally consider the employees working hours so as to avoid strain and demotivation.

On the issue of health and safety, Apple ensures that workers do not carry out operations deemed to cause risks to the health and security of them. The workers are well fed. Besides, the employees have been provided with modernized shelters. Those working should have been provided with protective gears such as gloves, eye and ear protectors among others so as to ensure they are safe when carrying out their daily activities.

On environment matters, Apple ensures it obtains permission from the government when dealing with an operation that requires permits. On the disposal of waste, air and water released are purified to avoid the destruction of the environment. The toxic and hazardous substances are not released into the environment as they cause the destruction of life. Since Apple uses paper in the packaging box of its product, it has partnered with World Wildlife Fund, and it aims at creating a renewable forest.

Finally, on the issue of accountability, Apple has ensured accountability by employing millions of people around the globe. It is an indication of its commitment to providing transparency. Also, Apple strictly prohibits any form of corruption, extortion, and embezzlement. There should not be an issuance of bribe to obtain an advantage over others. The audit team also ensures that they thoroughly scrutinize the accounts so as to ensure transparency.

Ways that Apple’s Progress report has changed

Apple now has 98% compliance with its 60-hour maximum work mandate. It is a 1% rise as compared to the previous year. Through increasing the number of suppliers taking part in efficient energy program, it has been able to achieve a reduction of carbon emissions, hence reducing pollution

Apple has also had waste reduction programs, clean water initiatives and an increase in responsible sourcing efforts. Apple has partnered with various non-governmental organizations in driving for positive change on the ground. There is also a pact that aims at ensuring the provision of essential health and safety training.

Finally, the company has removed three of its total suppliers for failing to meet its labor and human rights, environmental standards and health and safety codes. The crackdown majorly fell on the mineral suppliers for carrying out controversial operations. That is a move to ensure there are accountability and full adherence to the stipulated code of conduct. Apple also continues to undertake an Annual Supplier Responsibility report and audit. That provides smooth operation of the company and attaining of the organization's objective.


Carlton, J. (1997). Apple: The inside story of intrigue, egomania, and business blunders. New York: Crown Business.

Duhigg, C., & Barboza, D. (2012). In China, human costs are built into an iPad. New York Times, 25.

Watch, C. L., & Qiang, L. (2011). Keeping Pressure on Apple to Promote Real Changes at Apple and Foxconn.

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