Business Ethics at Apple

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Business Ethics at Apple
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Introduction
Apple was founded on 1st April 1976 by Steve Jobs, Ronald Wayne and Steve Wozniak
to develop and sell computers. Its headquarters is located in 1 Apple Park Way, Cupertino,
California. As of 2018, Apple had a total of 500 retail stores. Apple, Inc. was formerly known as
Apple Computer Company from 1976 to 1977 and Apple Computer, Inc. from 1977 to 2007.
Apple went into the market in 1980. Today, Apple develops designs and sells computer software,
online services and consumer electronics. The company’s transition from computer to an
electronic company is unprecedented.
Apple is considered one of the big four alongside with Facebook, Google and Amazon.
Apple, Inc. is among the most admired companies in the World. It has millions of users all over
the World. It has also earned first place in the Fortune Magazine over the last four years
(Heracleous and Papachroni 2016). The brand is valued at more than $153 billion. Most people
love this brand because it embodies innovation, prestige and quality. Apple, Inc. has experienced
a lot of challenges over the years. In 1997 the Apple, Inc. share price was $3.30 but in 2011 its
share price was $339.87. Apple has a unique business model which most companies have tried
to discover but failed.
A lot of people believe that Apple, Inc. success is as a result of remarkable leadership
skills of Steve Jobs, innovation, corporate culture and high tech products (Mallin 2004). The first
of Apple’s product was very different from the products that apple products today. The Apple 1
which was constructed by Apple’s co-founder Steve Wozniak lacked a graphic user interface.
Here are some of the products and services available at Apple, Inc. Macintosh, iPod, iPhone,
iPod, Apple Watch, Apple TV, HomePod, macOS, Ios, watchOS, tvOS, iLife, iwork, Final Cut

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Pro, Logic Pro, GarageBand, Apple Pay, Apple Store, iTunes, App Store, Mac App Store,
iBooks Store, iCloud and Apple Music. The Chairman, CEO, CFO, COO AND CDO of Apple,
Inc. are Arthur D. Levinson, Tim Cook, Luca Maestri, Jeff Williams and Jony Ive respectively.
Apple’s Ethics
Apple’s success is based on its ability to create innovative high-quality products and
services and displaying integrity in every business interaction. Apple has experienced various
ethical issues for the last 42 years. Apple ensures that its employees display appropriate conduct
at work. It also demonstrates integrity in every business interaction. Here are some of the four
principles that contribute to integrity at Apple; confidentiality, honesty, compliance and respect
(Thomas, Duessel and Meier 2017).
Apple has a drafted code of business conduct that is used to conduct all its operations
both at its home base and overseas. It also has more policies and principles regarding director
conflict of interest, guidelines on how to report questionable conduct and corporate governance
(Dienhart 2000). They also provide their employees with a Business Conduct Helpline that they
can use to report any inappropriate behavior. Apple components are manufactured in countries
with low Labor costs so that they can reduce the total production cost. This opens floodgates to
potential misconducts due to different Labor standards in different countries and less direct
oversight. So, as a result, Apple makes sure that each of its supplies signs its Supplier Code of
Conduct and ensures compliance. If a supplier does not comply with these rules, Apple makes
sure that it does not do business with that supplier.
Ethical Issues at Apple
Price fixing

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Apple Company was accused of conspiring with various publishers that include
Lagardere SCA’s Hachette Book Group Inc, News Corp’s HarperCollins Publishers LLC,
Penguin Group Inc, CBS Corp’s Simon & Schuster Inc and Verlasgsgruppe George Von
Holtzbrinck GmbH’s Macmillan. Apple along with these companies conspired to increase the
prices of e-books. It is alluded that officials of the mentioned companies would meet in private
meetings in New York restaurants. Apple Company denied the allegations and were subjected to
a lawsuit. Apple handled the issue by parting with 450 million dollars as settlement after a court
ruling in which Apple was found liable for playing a critical role (Mushtaq, Gafoor and Dad
2008). Apple handled the issue inspired by deontology theory which suggests that people need
comply with their obligations and responsibilities which are involved in decision making. As a
result, Apple was forced to pay 450 million because it is considered to be ethically correct for
their role in price fixing. According to the Judge who handled the case, Apple is said to have
played a critical role thus violated the antitrust laws.
Rioting
Ethical issues with respect to rioting involves a case in France where a riot broke out and
more than 125,000 individuals took to the streets. The protesters were protesting increased
taxation at a time where the wages were considered to be low. It was not established why the
store was targeted although Apple company had been frequently accused for tax evasion by the
French Media. Apple handled the problem by reaching an agreement with France to pay
undeclared amount considered to be backdated tax (Martin 2015). In this regard, Utilitarian
theory was used in handling the matter where the greatest benefits that is considered ethically
correct was to pay the taxes (Posner 1979). This is because utilitarian theory is characterized