Table of Contents INTRODUCTION...........................................................................................................................1 Overview of Apple Inc.................................................................................................................1 TASKS.............................................................................................................................................1 1. Ethical issues handled by Apple. Perspectives of different stakeholders with the application of Normative and descriptive theories of ethics..........................................................................1 2. Comparison between Apple's approach with another company's approach in terms of sustainability and corporate social responsibility........................................................................4 3. Importance of Business ethics.................................................................................................7 CONCLUSION................................................................................................................................9 REFERENCES..............................................................................................................................10
INTRODUCTION Business Ethics refers to the term which is related to the morale of employees and business. It is a part of business code of conduct. Basically business ethics tell about what is right & what is wrong and what is acceptable behaviour & what is not. Corporate social responsibility refers to the responsibility of business towards societies and environment for their betterment. It helps business to maintain sustainability for the longer time in the competitive environment (Crowther and Seifi, 2018). This report will highlight the various ethical issues which apple handled in the past. It will also do comparison between apple's approach and another company's approach towards sustainability and corporate social responsibility. It will also describe the importance of business ethics for the workplace. Overview of Apple Inc. Apple Inc. is a multinational company who is running its business in various kinds of industries. It is a public company whose headquarters is in California, United State (U.S.). Background- It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in year 1976. Currently its key people are Arthur D. Levinson who is chairman, Tim Cook who is Chief Executive Officer, Luca Maestri (Chief Financial Officer), Jeff Williams (Chief Operations Officer) and Jony Ive (Chief Design Officer). It is serving its products and services at worldwide level (Li, 2016). Operations –It has 500+ retail stores. It gives employment to around 132000 employees. Its product portfolio consists of Macintosh, iPod, iPhone, iPad, Apple watch, Apple TV, iOS, iLife, iWork, macOS and Logic Pro etc. Its service portfolio consists of App store, Apple Card, Apple Music, Apple News+, Apple TV+, iCloud, iTunes Store and Mac Apple Store etc. (Kane, 2015). TASKS 1. Ethical issues handled by Apple. Perspectives of different stakeholders with the application of Normative and descriptive theories of ethics. Apple INC is one of the customer based and popular industries of the world which have offered the innovation to large number of customers in the form of developing iPhones. Apple products are known for their innovation which have provided variety of products from computer to its mew developed product which have amazed the people and provided the wireless technology ipods to customers (Clarke and Boersma, 2017). Although, Apple has constantly won
first place as the world's most admired organization. Apple Inc. experienced various different kinds of ethical issues in recent year which has impacted on the future growth and success of the organization. So this company has handled various ethical issues in a very interesting way. It can be now considered as one of the bigger strength of the organization.such that it helps in attracting lot of business man high class people. So various ethical issues are described below:
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Privacy It is one of the major concern for the people as the customer uses the phone can be easily tracked by various networking sites or the devices can be easily hacked. However, Apple is considered as one of the most preferable and secured brand which offers a best security services to the customer. This firm gives the respect to the consumers privacy along with this, Apple company ensures the option of more customer which allows the organization to better understand the customer trends and market position more effectively. However, today's, google assistance had provided a smart feature of GPS that tracks the location of the the device as well as also collects the information from the phone. On the other hand, consumer privacy is one of the biggest concern for many government officials and this could bea great threat to the data privacy. Apple Inc has considered the privacy as one of the priority feature. Although many companies have provided the option to switch off the location but still it can be easily trapped by hackers via networking Ip address and various different gadgets. Moreover, Apple improved the privacy feature of iOS (Martin, 2015). This security feature up gradation includes the enhanced Wifi security and a policy in which the Location features are turned off by default. Price Fixing This is the another ethical issue for the Apple allegation of price fixing. It has been estimated that Apple conspired to fix prices on e-books. As per the allegations, Apple receives 30 percent of the total prices in order to set e-book prices according to Ipad. And those consumers who trade oldipods receives the 10 percent discounts on new versions. Retailers and publishers negotiate the prices as the competitor was found who was selling e-book for less. This is one of the best technique as a favoured nation clause which is generally used by companies to dominate the market by keeping competitors out. Intellectual property This is a key concern among all the ethical issues handled by the company as protecting the information from the other companies is one of the major concern (Mittelstadt and Floridi, 2018). Apple have filed a lawsuit against the franklin computer corporation as they are illegally matting the copies of Apple IT's operating system. Apple's lawsuit against Microsoft after apple licensed the technology of Microsoft. However, two other lawsuits that are more serious ethical
issues such that apple use of Domain name iTunes.co.uk which is already been registered since 2000. however apple get the right to use that domain name later. Sustainability Apple has also taken various steps to become greener which allows the company to reduce the environmental impact so apple company have concentrated on the manufacturing and recycling of the product. It reduces the emission to 33.8 million matrix tons. Despite of the recycling products, Apple Rejoined the EPEAT rating system which enables feedback as a indicator that dropping the system was a mistake and therefore this way the sustainability issue is being handled. This anticipated the Apple for the implementation of the similar changes in the future. In addition to this there are various stakeholders which saw the Apple' action as a deceptive way to get around the negotiation procedure. As the organization considers the interests and concern of number of key stakeholders in its policies and programs that corporates the social responsibility. Stakeholder group of the Apple Inc generally impose varying demands in different aspect of business. In this organization, one of the most important stakeholders are thecustomerswhoappreciatestheproductslaunchedbytheindustryperiodicallyand participates in consumption of new services (Rooksbym and et.al., 2016). Some of the important stakeholders of the Apple Inc Includes Employees, investors, various suppliers and distributors. The perceptions of various stakeholders within company are as follows: Customer:The company prioritize the customers as its top stakeholders in devising the corporate social responsibility. However the customers of the Apple industry are satisfied with the production and features of the iphones as this is most secured iphone which provides confidentiality to the data of the users. Employees:They are the second prioritize stakeholders who contributes the firm towards the main objective of the firm (Rooksbym and et.al., 2016). The employees of the firm are aimed at career development. So their perceptions about the company is that Apple's corporate social responsibility efforts satisfies the concerns and interest of the customers as a major stakeholder group. Investors:The perception of the investors in determining the corporate social responsibility includes the satisfaction and huge profitability as they invest in the compamy.
2.ComparisonbetweenApple'sapproachwithanothercompany'sapproachintermsof sustainability and corporate social responsibility ComparisonbetweenApple'sapproachwithSamsung'sapproachintermsof Sustainability and Corporate Social Responsibility are as follows - APPLE's APPROACH Apple approach towards CSR is done by Apple environmental initiatives departments. Their CSR focus areas are as follows - Environment Apple mainly focuses on the environmental sustainability which is fulfilled by following programs, initiatives and activities - Energy Consumption by Apple Apple make products which use less power energy. Apple are focusing on the power consumption which is decreasing. Apple's clean energy index is 100%. Apple uses technologies which can reuse the consumed energy. It also initiates to bring 4 gigawatts of renewable power technology (Alvarado-Herrera and et.al., 2017). Water Consumption by Apple Company has started launching clean water programs and through that program, they are able to save consumable water from wastage. Their cooling system are manufactured in that way which can reuse the water up to 35 times. Carbon Emissions by Apple Apple provides its employees electronic vehicles rather than fuel based vehicles. Apples started making products which can use less CO2 emissions. Apple started using paper packages which can be make by recycled wood fibre which reduce the consumption of polythen (Dowling, 2016). Communities Apple after environmental sustainability, focus on the development of communities by doing various CSR activities and programs which are as follows - Apple and Gender Equality Apple focuses on the equality related to the employees. They pay equal amounts to all the employees who are working at the same level, whether that employees are men or women. It
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doesn't matter to the Apple Company. Apple also not discriminate any of its employees on the basis of 9 protected characteristics which are given in equality act. Apple and Labour & Human Rights Apple's code of conduct is considered to be the toughest policy which is need to be followed by every members of the company. Apple take care of the employees and labours and their rights regarding working hours and working places (Etzioni, 2018). Apple and Employee Health & Safety Apple focuses on the employees' health and safety and for that they run 18 months program in which they do various activities to improve the health of employees and give training them to provide knowledge about the safety, its tools and technologies (Unit, 2015). SAMSUNG APPROACH Samsung approach towards CSR is done by Samsung CSR committee. The company publishes CSR policy reports every year which includes the details of CSR activities, programs and initiatives. Their CSR focus areas are as follows - Education Samsung believes that every students of world should get proper education. Thus, Samsung provide education to the students by doing various initiatives such as - Building Libraries Samsung is focusing on building libraries so that students can achieve good learning environment which should be clean, safe and healthy. Book Donation Samsung donates various kinds of books to the students who can not afford to buy books by money or by rent. Smart Class Samsung providesstudents Samsung'stechnologies, services and expertiseso that students can have greater access to education and learning (Choi and et.al., 2018). Employment Samsung provides various employment and career opportunities by following initiatives and programs, which are as follows - Technical Schools
Samsung opens various technical schools where men, women are graduates are being teaching and acquiring technical skills so that they can earn and live the life. Job Experience Programs Samsung provides middle school students about the experiences in corporate life and helps them to choose career and career exploration. They also provide career counseling to the job seekers. Health Care Samsung is worried about the increasingly numbers of health related issues. Thus, Samsung is doing various CSR activities, programs and imitatives which are as follows - Smart Health Care Samsung focuses on advanced health care by providing advanced medical technologies and equipment to the hospitals. Blood Donation Drives Samsung organizes blood donation programs daily at different locations in order to provide blood to the hospitals and encourages its employees to do donate their bloods. Ergonomic Applications Samsung promotes and supports employees' health and safety by making ergonomic applications in the working place environment (Chang, Zhang and Xiong, 2019). Community Samsungdovariousactivities,programsandinitiativesfortheimprovementand betterment of communities. These activities, programs and initiatives are as follows - Water of Life Samsung is aiming on the cleaning and safety of the water. For that they develop water treatment systems. Connection with Local Communities Samsung is visiting various villages all over the world in order to provide assistant to communities on various aspects such as farming, fishing and hand-crafting etc. Solve for Tomorrow It is a program which is initate by Samsung in order to support communities in solving various social issues. COMPARISON BETWEEN SAMSUNG AND APPLE
From the above written CSR policies of both companies, it has been understood that Apple is more focused on Environmental Sustainability and Samsung is more focused on Community, Employees and Environmental sustainability. Also, their initiatives are different due to their objectives (Park, 2016). 3. Importance of Business ethics Business ethics should be taken seriously by the business and include in following aspects of the organization such as - ï‚·Fair dealing by keeping price fair for every clients ï‚·Policy should be equal for all the employees and every levels of managers. ï‚·In case of violation of ethics, immediate action should be taken by company whether the violation is done by any members of the organisation. ï‚·The business ethics policy should be based on legal framework governed by government. The success of a company depends on many factors which are more deep and beyond the financial statements and financial profitability. It depends on business ethics, management philosophy of the company towards ethics and its organizational culture. If company wants long- term success, then they should keep in mind that business ethics can take their business success beyond the organization's profitability, industry and size level. Business Ethics plays an important role in business which are as follows - I have experience that business ethics helps me to take those decisions which were not good for business, but they were good for community. These decisions are taken by business ethics policy in which employees are allowed to take those decisions which should be good for communities whether good for organisation or not, doesn't matter. I have experience that business ethics teaches me about how to behave with customers. A well behaviours of employees attract the customers towards business and can make them loyal customers too which is beneficial for the company's products and services' sales and it increases the profitability of the business. I have experience that where business ethics are followed by organisation strictly, in that organisation, employees and employers both share good relationship which creates good working environment and employees are satisfied which improve their work productivity. Also, it helps in building employer brand where employees are willing to work.
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I have experience that due to good business ethics policy, company's profitability and revenue are good. Thus, it attracts more investors to invest their money in business which helps company to expand its business and gain growth opportunities. This also keeps company's share price high. It also helps current investors to keep trust on the business with their money. I have experience that A company who work within its business moral framework, guidelines and policy is also less face to legal actions and fines for poor behaviour of its members and their risks for violation of all the major laws which is related to the organisational and employees behaviour are less. I have experience that Reputation / goodwill is the most important for any organisation. Once it is build so it is difficult for the organisation to maintain its goodwill for the long time. Unethical policy or unethical behaviour or unethical activities can damage the reputation of business and make less attracting for its stakeholders and customers. `I have experience that business ethics teaches employees to respect the values, cultures, religions and perceptions of the different backgrounds of employees. This lead to protect the society in a better way rather than the legal system adopted by government. This lead to reduce the conflicts between various communities and societies. I have experience that when organisation's management team decide that how the whole company operates on a day-to-day basis and their approach is based on ethical practices and behaviour, their decisions and activities are always beneficial for the employees, company and societies. Also, business ethics focuses on the healthy competition between various companies which is beneficial for the personal and professional growth of the employees and company's contribution towards nation's economy is positive. I have experience that business ethics encourages business to have started more and more initiatives in the area of corporate social responsibility and ethical investment responsibility which gain communities and societies trusts for the company forever and strong.Also, it helps organisation to solve various social issues which is beneficial for the company's employees and societies. CONCLUSION From the above study, it has been summarized that business ethics is an important part of organization. Ignorance of business ethics not only give birth to ethical issues but it also creates a negative impact on the company's brand image. Business ethics must be clear and followed by all
employees. Corporate Social responsibilities (CSR) is an important aspect for any business. In today's competitive environment, its importance are increasingly day by day. It not only enhance thegoodwillofbusiness,butalsohelpsbusinessinmaintainthesustainabilityofthe organization forthelongertime in competitiveenvironment. Businessethicsand Social corporate society are interrelated to and different from each other. These two terms help business to attract its stakeholders and win their trust. These two terms help business to earn profit and maintain its business in legally framework where they can run their business peacefully.
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