Business Ethics: Investigation and Evaluation of Apple's Unethical Practices

This report explores the concept of investigation and evaluates Apple's unethical practices through the perspective of normative and descriptive business ethics theories. It also discusses the stakeholder perspective of Apple's business behavior.

Business Ethics

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK ..............................................................................................................................................3
Part 1 ...............................................................................................................................................3
Define the concept of investigation ............................................................................................3
Part 2 ...............................................................................................................................................6
Investigation and evaluation of the approaches in the case through the perspective of
normative and descriptive business ethics theories ....................................................................6
Part 3................................................................................................................................................7
Stakeholder perspective of the business behaviour ....................................................................7
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10
Books and Journals...................................................................................................................10

INTRODUCTION
Business Ethics are termed as the value system as well as ethical policies and procedures
incorporated by a business institution in order to facilitate its business regulation in accordance
with the same (Davani, , 2020). Business Ethics is considered to be an important aspect of
organisational culture as it severely impacts upon the business practices and behaviours of the
employees within the organisational setting. The proposed report highlights upon the case study
of “Apple slowed down Iphone's” and facilitates the determination of concept of corporate
governance within the same. The concerned project report also involves the application of
business ethics approach in the given case study. The stockholder's viewpoint and perspective
about the business behaviour exhibited by its business firm in the respective case study is also
incorporated within the respective report.
TASK
Apple slowed down Iphone's
Part 1
Define the concept of investigation
Corporate governance can be characterised as a concept which reflects upon the laws, policies
and regulations according to which corporate organisations are required to operate in the
business environment. It can be defined as set principles or rules through which an organisation's
functions can be managed and controlled in an optimum way (Waweru, 2020). The board of
directors or the stakeholders of the company are responsible for the regulation of corporate
governance in their business firm. Corporate governance has a very wide scope and its involves
areas such as responsibility towards environment, ethical behaviour of employees, facilitation of
compensation ,management of uncertainties and risk etc. Every organisation in the market
environment is required to regulate corporate governance attributes and policies in an ethical
manner. This in turn helps to ensure that the business operations and practices of the firm comply
with the standard set for corporate governance (Trevino and Nelson, 2021). As per the the case
study, Apple was reported misleading its customers by slowing down the battery retention
among the Iphones. The reason for the same can be stated as the company wanting to slow down
the battery levels in old models order to persuade the customers to switch to the latest version of
Iphones in the market. The former practice led to the filing of lawsuits or legal complaints

against the respective business organisation. Although the company marked the incident as a
misunderstanding and apologized for the unethical means as well. It also lowered the prices for
battery replacements but the brand image and reputation of the company suffered within the
target market. From the given case study, it can be analysed that corporate governance is a very
integral component of business functioning. Apple is one of the leading business organisation in
the technology based industry. The company has been able to acquire a huge customer base in
the last few of years. Apple is a successful business organisation and enjoys a high percentage of
market share within its industry as well (Burton and Sinnicks, 2021). With great leverage, comes
great responsibility. The respective company should focus upon adding modifications to its
corporate governance policies in order to reduce the possibilities of getting its name involved in
unfair and unethical business policies. According to the United Kingdom's corporate governance
code, it is necessary for the business organisations to comply to five major principles in order
enhance the standard of corporate governance within the concerned business entity (Ciulla,
2020).
Leadership
It can be characterised as the first and foremost principle in United Kingdom's corporate
governance code.
 The respective principle lays concern over the fact that every given enterprise is required
to be effectively guided by its board members in a deliberate manner .
 The roles and duties of the staff members should be divided in a systematised manner in
order to reduce any further complications or misunderstanding pertaining to the same.
 The decision making power is required to be exercised by the authoritative party within
the firm and no other individual should interfere in the same ( Wolcott, 2020).
 It is the responsibility of the chairman running the organisation to ensure that advance
leadership practices are being regulated within the board.
As per the case study, it can be analysed that the board of Apple was not able exercise competent
leadership practices within the business organisation. The respective company was functioning in
an inappropriate manner by facilitating degradation in the older versions. The leaders of the
company were required to oversee the matter in a detailed manner and ensured that such
practices would have stopped right away in order to protect the company from unethical
procedures and practices.

Effectiveness
According to the respective principle, the board community of the business entity are required to
have an organised structure of skill and competence as well as necessary knowledge and
experience about the business firm (Nair, 2020).
 The former practice essential for the company as it will facilitate the same in the
execution of their day to day tasks and duties in an effective manner.
 In order to facilitate appointment of new director within the firm, company should lead
the hiring procedures in an official and transparent manner.
 The broad of director need to provide adequate focus and concentration towards the
company's operations as well.
 Orientation and induction should be provided to all the members of board in order to
enhance their awareness about the vision of the firm and its operations in the market
environment (Werhane,2021).
 The standard of performance delivered by the board authority should be evaluated in a
consistent manner in order to derive the effectiveness showcased by the same in relation
with company's operations and performance.
A per the case study, it can be evaluated that the regulatory board of Apple in the given incident
was not effective enough in its business approach. The performance exhibited by the board was
not up to the mark. The board members did not contribute sufficient time to the business process
of the company as well.
Accountability
Accountability is a very necessary principle that need to be incorporated by the business
enterprises as they are answerable to the society and their loyal customers as well. It is the
responsibility of the higher authority to ensure fair and just approach.
 The explanation of the degree of risk that the firm is ready to combat should be
determination an appropriate manner so as to meet the strategy of the firm in a more
effective and efficient manner.
 The board authority of business organisation are also required to design and develop a
prominent control system through which risk assessment as well as other uncertain
business conditions and factors can be managed sand controlled in an advance way.

As per the case study of Apple , it can be examined that the business firm should have
understood its accountability towards the customers. The company did mislead the customers
which can be termed as violation of the respective principle. Although, it did try to control the
damage by facilitating battery replacements at lower prices. But the former cannot take away
from the fact that the company did try to follow the unethical route in order to alleviate its sales
of the new version Iphones within the concerned market industry.
Remuneration
Remuneration is a corporate governance principle wherein transparent policies should be
implemented in the facilitation of remuneration to the board members of the company.
In the particular aspect, Apple has followed the principle in an effective manner and the
remuneration practices are regulated in fair and equal manner as well.
Relationship with Stakeholders
Shareholders are an important part of a business organisation. Hereby, it is necessary for the
business firm to ensure that mutual understanding and communication between the organisation
and its shareholders (Brink and Esselmann, 2020).
According to the Apple's case study, it can be stated that customers are also one of the
shareholders of the business company. Hence, it was the responsibility of Apple to lead
operations that do not lead to misunderstanding or confusion among the same. The unethical
procedures exhibited by Apple created a chaos within the shareholder of the company and also
affected and stained the relationship as well.
Part 2
Investigation and evaluation of the approaches in the case through the perspective of normative
and descriptive business ethics theories
Normative ethics theory focuses upon how an individual is required to behave and act in context
to moral values. The respective theory details about the moral behaviour expected out of
individuals. It promotes the ethical principles which regulate the individual's moral actions.
According to the normative theory, Apple was required to conduct its business operations in a
fair manner and should not have taken the route of unethical path in order to stimulate its sales
within the industry. The company should establish grater norms of corporate governance so as to
ensure that the practice exhibited by the same in the market are ethical in nature.

Descriptive theory concentrates upon the individual's personal beliefs and moral systems. It lays
concern over the concept relating to what individuals feel is right in terms of their moral values
and beliefs regarding a certain situation (Becker, 2020). As per the respective theory, it can be
stated that Apple firm adopted the unethical strategy as it found its to be ethical under its
moralistic concerns and suitable to the variable of its respective corporate governance polices
and procedures. Thus, it can be said that the company's decision to go ahead with the misleading
strategy was associated with its moralistic action and what company felt right at the given m of
time.
Hence, it can be stated that different theories of ethics have different derivations related to the
moralistic values. Individuals and Institutions following the same have a choice to make whether
they want to opt for the normative ethics or descriptive ethics.
As per the case study, the Apple opted for the normative approach and did not comply with the
standard set for the ethical practices and had to bear the consequences for the same. Hence, it can
be said that in order to lead constant growth and probability and to maintain a good brand image,
it is necessary for the firm to be able to understand the ethical process and how would it like to
comply with same.
Part 3
Stakeholder perspective of the business behaviour
Stakeholders can be characterised as the individuals or parties who play an important role in the
functioning of the business unit. Stakeholders are deeply impacted by the business behaviours of
the company. The stakeholders of Apple Firm and their perspective about the business behaviour
showcased by the Apple as per the case study are as follows :-
Investors
The investors of the firm were affected with the misconduct in Apple's business functions. They
must have been disappointed with the same Being an investor, an individual needs to think in all
the direction pertaining to how much return it will get through the successful operations of the
company. When law suits were filed against the company, they would have been contradicting
their decision to invest in a company that has been caught indulging in the unethical ways of
misleading the employees within the target market.
Customer

Customers are the most essential component of a business process as they contribute in the
success and profitability of the business enterprise. In order sustain in the long term, it very
necessary for the business institution to keep their customer happy and provide them with best
quality and premium services. In the respective case study, the unethical approach followed by
Apple lead to severe implications on the customer retention of the company. The engagement of
the customers reduced as well as their faith towards the company also got affected due to the
same. The fact that they filed lawsuit and cases against the firm can be determined as resown that
they felt cheated by the business firm. The image of the company within the market got
negatively affected as well ( Kreismann and Talaulicar, 2020). The customers may have thought
to switch to another company that conducts its operations in the ethical manner and has not been
indulged in unfair means. A severe backlash was faced by the company through the customers
as they wanted to stand up against the unethical procedures of the company and demand justice
against the same.
Employees
Employees can be characterised as the integral members of organisation who are responsible for
executing the daily work of the firm in a competent manner. The main objective of the
employees to achieve the target and goals of their business institution. The focus of employees is
to support the business firm in the facilitation of profit maximisation in the same. In the give case
scenario, employees were directed by their leaders and mangers. They need to follow the
instructions forwarded to them by the higher board authority and they need to oblige to the same
with best of their capability. It can be analysed that though employees were not in favour of the
concerned unethical practice, they had to become a part of it because it was their responsibility to
complete the work allotted to them in the best way possible. Hence, employees alone cannot be
blames for the unethical business behaviour of Apple towards its customers.
Communities
The prevailing communities mere against the Apple's business approach and stood in favour of
the customers and their right in the market. Various consumer service communities campaigned
against the business practices of Apple which impacted the mindset of the society towrads the
same as well.
Competitors

Competitors acquired a competitive advantage in the industry due to the unethical business
behaviour of Apple (Blunden, 2021). The competitors of Apple leveraged upon the fact that their
business operations are ethical and fair towards the costumers unlike Apple. They must used this
opportunity to best potential in order to lead a good share in the market as well as shift the
interest if the customers towards their products and offering in the the market as well.
CONCLUSION
From the above investigation, it can be summarises that the business behaviour and practices led
by Apple in the case study did not suit the ethical criterion and norms of the corporate
governance. The company's management's failure to meet up to the corporate governance
standard lead to disruptions in the image and reputation of the firm in its target market. In order
to ensure that the firm's name does not get associated with such critical incidents, it necessary for
the same to comply to the exciting corporate governance standards set for the operations of
business entities. With the regulation of effective corporate governance within the firm and the
incorporation of right set of ethics, the firm will able to achieve more success as well as
enhanced brand reputation in its respective industry.

REFERENCES
Books and Journals
Davani, M.R.E., 2020. Business ethics (pp. 182-199). De Gruyter Oldenbourg.
Waweru, N., 2020. Business ethics disclosure and corporate governance in Sub-Saharan Africa
(SSA). International Journal of Accounting & Information Management.
Trevino, L.K. and Nelson, K.A., 2021. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Burton, N. and Sinnicks, M., 2021. Quaker Business Ethics as MacIntyrean Tradition. Journal of
Business Ethics, pp.1-12.
Ciulla, J.B., 2020. Business ethics as moral imagination. In The Search for Ethics in Leadership,
Business, and Beyond (pp. 121-129). Springer, Cham.
Wolcott, G., 2020. A bar too high? On the use of practical wisdom in business ethics. Business
Ethics: A European Review.
Nair, L.B., 2020. From ‘Whodunit’to ‘How’: Detective Stories and Auditability in Qualitative
Business Ethics Research. Journal of Business Ethics, pp.1-15.
Werhane, P.H., 2021. The Blackwell Encyclopedia of Management Business Ethics. Blackwell
Publishers Ltd.
Brink, A. and Esselmann, F., 2020. Value Positioning and Business Ethics: Keeping Promises as
Business Legitimation. Handbook of Business Legitimacy: Responsibility, Ethics and
Society, pp.297-309.
Kreismann, D. and Talaulicar, T., 2020. Business Ethics Training in Human Resource
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p.1534484320983533.
Becker, C.U., 2020. Business Ethics Methods And Application.
Blunden, C., 2021. Between Market Failures and Justice Failures: Trade-Offs Between
Efficiency and Equality in Business Ethics. Journal of Business Ethics, pp.1-14.