Corporate Social Responsibility: A Case Study of Apple Incorporation

This paper discusses the importance of Corporate Social Responsibility (CSR) and how Apple Incorporation has worked towards developing a sustainable organisation for the future. It covers various aspects of sustainability, CSR policies, shortcomings, stakeholder theory, and CSR theory implications.

Corporate Social Responsibility 1 Apple Incorporation
Student Name
Course Name
University Name
15th-July-2018

Corporate Social Responsibility 2 Apple Incorporation
Abstract
The paper talks about various aspects of corporate social responsibility and how
organisations work for this space. The chosen organisation for analysis is Apple
Incorporation. The company is a technology giant and has done lot of work in space of CSR
recently. The organisation has drafter new sustainable practise policy recently which has
highlighted how the corporation is working towards developing a sustainable organisation
for the future. The paper talks about various aspects of sustainability and how Apple
Incorporation has worked in this regard. It is imperative to understand that the challenges
for the company in this space are real, and company has taken some major steps to
overcome such challenges in the CSR space.

Corporate Social Responsibility 3 Apple Incorporation
Contents
Contents.....................................................................................................................................3
Introduction to CSR and also to Apple Incorporation................................................................4
Apple and its brand equity and why CSR is important for them...............................................4
Focus on CSR and why it is so important...................................................................................5
Conceptual framework of CSR...................................................................................................6
Shortcomings in the current CSR practises of the company......................................................7
Stakeholder Theory and its application.....................................................................................7
CSR theory and its implication.................................................................................................10
Realisation of importance of CSR by Apple Incorporation......................................................11
New modes of reporting initiated by Apple Incorporation.....................................................12
CSR projects at Apple Incorporation........................................................................................13
Recent release of supplier responsibility report with focus on CSR by Apple Incorporation. 13
Recommendation for Apple in the long run............................................................................15
Conclusion................................................................................................................................17

Corporate Social Responsibility 4 Apple Incorporation
Introduction to CSR and also to Apple Incorporation
In modern day organisations, it is important that there is also a very strong focus on
Corporate Social Responsibility (CSR). The CSR policy and practise of organisations have
gained strong traction over the last two decades, as organisations have gained
understanding that being socially responsible is one of the key and important points in their
overall strategic goals. Apple Incorporation is an American multinational technical giant
which has a strong presence across the globe (Singh, BJR & Kaur, 2016). The company is one
of the largest players in the technology segment and has very strong presence across global
markets. In the year Apple Incorporation had $229 billion in revenue and net income of $48
billion. There were some $123,000 employees working for the company at the end of year
2017 (Research-methodology, 2018). The company has come a long way from where it
started in year 1976 by Steve Jobs and some of his friends out a garage. In most of the
segments where the company operate in, it has strong product and segment leadership. The
major line of hardware products offered by the company are iPhone smartphone, iPad in
tablet market, Mac in space of personal computer, iPod in portable music segment, Apple
watch in space of wearable, Apple TV in space of digital media player and MacBook in the
laptop segment (Carroll, RJ, Primo, DM & Richter, 2016). The brand positioning of the
company is in space of luxurious premium product, hence customer has very strong
attachment to the whole set of product lines offered.
Apple and its brand equity and why CSR is important for them
Apple Incorporation is globally famous for designing, making and production of best
qualities products in most of the segments where it is present. There are some online
software services in form of App Store, iTunes and iCloud services which are also offered by

Corporate Social Responsibility 5 Apple Incorporation
the company. In the smartphone market, Apple on terms of revenue is the second largest
player post Samsung Incorporation of Korea (Habel, Schons, LM, Alavi, & Wieseke, 2016).
The biggest USP of the company is the kind of brand Loyalty Company has been able to build
up among its consumers. The focus of this paper will be on exploring the Corporate Social
Responsibility side of Apple incorporation. The company is highly focussed on this objective
and has done some good work in this space. One of the important considerations to work
towards the CSR function of the company is to enhance its goodwill and bring forward a
positive aspect about the brand (Williams, 2018). It helps in establishing the company is
socially responsible brand and hence in turn helps in building sustainable future for the
company (Asgary, Li, 2016).
Focus on CSR and why it is so important
Apple Incorporation has very strong focus on CSR and hence has developed strong
plans and policies around this subject. For an organisation of this size it is very important
that CSR practises are embedded in the policies and culture of the company so that it can
function in a proper manner. The CSR policies of the company’s focus in providing secure
and socially responsible environment under which the corporation can operate. It is also
important to have aspects of giving it back to society in a responsible manner so that a
positive environment is developed along with operations of the company. The objective of
such policies developed by Apple Incorporation is to make effective plans for social and
environmental welfare (Kaymak, T. & Bektas, 2017). According to various industry experts, it
has been suggested that companies should have CSR agenda’s in their top strategic
priorities. CSR would help in goodwill enhancement and help in building brand for future. It
has been seen in the current world, which is so much socially connected it is not only profit

Corporate Social Responsibility 6 Apple Incorporation
and numbers which build future of companies. It is their willingness to give back to society,
how they are perceived as brands and various other intangible factors which go in making of
the brand. These factors and their impact are generally not quantifiable, but their impact is
certainly important and has power to go a long way in development of sustainable
corporations. Apple can also take some concrete steps by means of which they can develop
the brand further. Apple incorporations should work towards socially responsible reporting,
adopting GRI framework for reporting and focus on overall development of sustainable
organisation. Some considerations in product pricing for certain segment is very important,
considering that next set of growth for the company would only come from population
which are not so privileged (Larker, Tayan, 2015).
Conceptual framework of CSR
Some of the concepts on which the CSR policies are developed are to manage
reputational risk of the company, protecting and building brand equity of the corporation,
effective utilization of the resources which are in disposal and framing the company is
socially responsible corporation. It also helps if such image is developed in getting
government approval for operations (Gereffi, Lee, 2016).

Corporate Social Responsibility 7 Apple Incorporation
The Social equity angle which is created by such activities goes far into the whole
business strategy of the company. In last 10 years Apple Incorporation has done a lot to
build a very strong brand and some of it has also come by means of doing lot of work in
space of CSR. Since Apple is a big company, its duties and responsibilities towards social
objectives is very important (Tricker, R.B & Tricker, 2015). Some of the common risks which
Apple incorporation faces if CSR activities are not in place include maintaining challenges
related to labour and human rights. There have been many companies which have globally
lost lot of brand equity because there has been complain and rumours about these
companies being operating sweat shops in emerging or underdeveloped regions. CSR
activities also involve lot of positively enforced engagement with the stakeholders, so that
all of them feel involved in the whole process. It has been seen that there has been some
complains about Apple Incorporation not involving with environment related concerns and
socially impacted bottom work force (Chen, S., 2018). The CSR team has also seen some not
so important team members and hence there have been issues in carrying out things in

Corporate Social Responsibility 8 Apple Incorporation
systematic manner. It has been said by experts that Apple incorporation has dated approach
towards CSR and hence there are no holistic decisions taken by the company for the long
run in space of CSR.
Shortcomings in the current CSR practises of the company
There has been no sustainability report released by Apple Incorporation. GRI reports
are released globally which ranks global corporations in space of the activities done by the
company in space of CSR and governance. This kind of ranking determines the brands which
are working towards long term sustainability. Apple incorporation being such a large global
brand finds no place in such rankings. Apple incorporations also does not involve all other
stakeholders in the process and this is the prime reason why there is no details shared
about the suppliers or the supply chain of the company. The same is hidden in name of
trade secrets of the corporation; however it does not augment well about the company in
space of social responsibility (Tsutsui, K. & Lim, 2015).
Stakeholder Theory and its application
Stakeholder theory suggests that if one company follow all view of different
stakeholders in the company, then there would be no need of any other apparent policy for
a particular stakeholder. In this section we will try to focus on all stakeholders of the
company and explore from their perspective the kind of work done by the company in the
whole CSR space. Stakeholder management in one of the most important exercise which a
company does so that all stakeholders are in the right frame of mind and company is going
in the right direction.

Corporate Social Responsibility 9 Apple Incorporation
The stakeholders in turn help up framing the right strategy for CSR of the company
as they are hearing things about the brand and have best interest of the company in their
mind (Lampert, 2016). For an organisation of this size it is very important that CSR practises
are embedded in the policies and culture of the company so that it can function in a proper
manner. The CSR policies of the company’s focus in providing secure and socially
responsible environment under which the corporation can operate. It is also important to
have aspects of giving it back to society in a responsible manner so that a positive
environment is developed along with operations of the company. The objective of such
policies developed by Apple Incorporation is to make effective plans for social and
environmental welfare.
Employee: These are the set of people who makes the company. As part of CSR it is
important that Apple incorporation work in sync with the global best practises of labour
management and implement them in their factory. The safety standards of the corporation

Corporate Social Responsibility 10 Apple Incorporation
and work environment is of utmost importance along with the minimum work hours,
effective remuneration in line with the best practises globally and good strong HR practises.
In short it is important that strong HR practises are executed in the organisation so that
sustainable work environment is available in the company (Sodhi, 2015). Strong HR practises
go a long way in building effective environment for executing strong CSR practises of the
company. Apple incorporation has been facing some legal issues in space of violation of
labour and human rights. These set of problems dilute the image of the company (Fisher,
2014).
Suppliers: These are the set of people who provides the raw materials which are
used by the company for product development. For socially responsible corporations like
Apple, it is important that the whole value chain of the company grows along with them. If
these set of people are growing and are getting right treatment, then companies tend to get
whole set of advantage in their operations. Relation with suppliers is very important as it
helps in building right kind of brand equity. It is very important for companies to develop
partnership with suppliers and treat them in the right manner (Ali, A.J & Al-Ali, 2018).
Customers: For any company these are the set of people who are most important.
The complete focus of corporations is expected to be on them and their welfare. Apple
customers are generally happy bunch of people as they are treated very well by the
company, however the price tag associated with the brand is huge and hence there have
been concerns of the kind of responsibility Apple is delivering to its customers. The brand
image created by Apple Incorporation has a belief that product offered by company is only
for high class people and hence this disparity exhibited by the brand towards the customer
segment is not appreciated (Backer, 2018).

Corporate Social Responsibility 11 Apple Incorporation
CSR theory and its implication
It is also very important to understand that, CSR policies are also a function of the
geography in which the company is operating. In some countries, Government and
regulators force rules on company to do some activities in space of CSR (Apple, 2018). For
example, In India operating companies in the country need to spend 2% of the whole profit
earned in the region on CSR activities (Zadek, 2018).
Hence for Apple incorporation, apart from the global top level policy which defines
the terms under which they operate, there are certain local adaptations which the company
had to make so that they are following the law of the land and doing right work in the
process. Government of UK has strong rules in space of employee policies and their welfare
and hence Apple Incorporations had to make sure that employees get best of treatment in
this region so that no rules are flouted. In India, new government over the years have asked
companies to work with the whole supply chain and there are rules related to CSR spend,
local sourcing norms which the company need to follow. Apple incorporation has not been
able to open local manufacturing units in India as they are not ready to meet the sourcing

Corporate Social Responsibility 12 Apple Incorporation
norms (Graf, 2016). Since these products in India need to be imported, the prices are very
high and hence they are losing with the competition. This is a perfect example of how
companies lose in market share and success is limited, because of their down the line
strategy in CSR space. Apple incorporation has been in constant negotiation with Indian
Government to relax the local sourcing norms set by them. The local sourcing norms are in
line with the Government objective to develop socially responsible corporations and also
provide much needed thrust to global manufacturing industry (Day, 2014).
Realisation of importance of CSR by Apple Incorporation
Over the years Apple incorporation has realised the importance of CSR in their whole
policy making and this is one of the reason in why such mentions are coming in Apple
Keynote address over the years. There has been hint of environmental campaigns in the
product launch address and Apple incorporation has subtly started working towards
enhancing the brand image of the company. In its stated investor press conferences, Apple
has highlighted that sustainability is a very important goal which the company wants to
achieve over the years. The company has introduced strong new innovative technology by
means of which they are trying to be responsible in their product units toward the
environment (Gkatziaki, Papadopoulos, Diplaris & Kompatsiaris, 2017). The launch of new
operating system by the company promises to be more energy efficient which is again a
socially responsible decision by the company. The Apple incorporation annual reports
highlight that operating systems of Apple incorporations have reduced energy usage by 57%
between 2009 and 2015 (Williams, 2015).

Corporate Social Responsibility 13 Apple Incorporation
New modes of reporting initiated by Apple Incorporation
Apple incorporations has recently also reported that they don’t use any harmful
products in their product manufacturing process. This is also considered to be one good way
of working in responsible manner (Lawson, 2015). Apple incorporation has also included a
process to measure carbon usage while production and have efficiently reduced the usage
over the years. This is also considered to be an important factor in measuring the impact on
environment which company’s creating. The company has also been using soil and climate
measurement tool which helps in making orderly measurement and then work on doing
things efficiently. The company has also worked with employees and raise awareness within
the employee force to be environmentally responsible (Flammer, Kacperczyk &
A.L.E.K.S.A.N.D.R.A, 2015). They have urged employees to travel to office via carpool, bicycle
and promoted usage of bio-fuel buses. This kind of focus on environment has helped
corporations develop sustainable practises towards preservation of environment (Maon,
Lindgreen, 2015).
In last few years, Apple incorporation has worked toward the employee engagement
process and also worked on bringing salaries and offering at par with the industry standards.
This had some cost impact on the company but since the margins are very high in the space
which company operates it is in long term a movement towards sustainability. The company
has also worked closely with employees to develop training modules and enhance their
career opportunities. This in turn will help employees work closely with employer and better
trust schema would be established. Some of the common risks which Apple incorporation
faces if CSR activities are not in place include maintaining challenges related to labour and
human rights. There have been many companies which have globally lost lot of brand equity
because there has been complain and rumours about these companies being operating

Corporate Social Responsibility 14 Apple Incorporation
sweat shops in emerging or underdeveloped regions. CSR activities also involve lot of
positively enforced engagement with the stakeholders, so that all of them feel involved in
the whole process. It has been seen that there has been some complains about Apple
Incorporation not involving with environment related concerns and socially impacted
bottom work force
CSR projects at Apple Incorporation
Apple Incorporation has taken up many projects in space of CSR and these
programmes have gone a long way in development of the practises. All these projects fall in
certain set of categories like education, vocational skill development, environment
sustainability, promotion of gender equality, providing preventive healthcare solutions and
imparting information about the same, funding various technology incubators and working
with them as partners, relief to various communities and providing financial assistance to
various NGO’s and working closely with them. Some of the key projects which company has
worked upon include primary level education development in India, Supporting technology
incubators in Indonesia and India, special education in Caribbean region and also in India
(Carroll, Buchholtz, 2015).
Recent release of supplier responsibility report with focus on CSR by Apple Incorporation
In 2018, Apple has released supplier responsibility report which is first of its kind in
industry. Apple incorporation in this report has highlighted how they work closely with
suppliers and hence helping them in growth across the supply chain. The top down
development is very important and what work Apple has done in this space is highlighted in
this report. The company holds its suppliers to the highest standards and hence any work in
space to impart support and information will help in meeting proper requirements. The

Corporate Social Responsibility 15 Apple Incorporation
company has also talked about environment preservation in this report and it is considered
to be the central theme on which this reporting has been done. The company has also led
down strong supplier code of conduct which will help them in setting proper standards and
methods in which the work is done (Wheeler, 2015). As per current situation, there are
some more than 3 million people in the whole supply chain who in some way or the other
are impacted by the policy making at Apple Incorporation. There are some 14.7 million
supplier employees who have been trained by Apple since 2007 (Lee, 2017). The company
has also introduced various healthcare programs and the focus is on empowering women.
The outreach program focusses on women’s as they are the ones who can have impact to
more than 4 or 5 members in the family. This is the background on which Apple
incorporation has started empowering women in China (Williams, 2015). The company has
set a goal to bring health awareness among 1 million people by 2020 and work in
congruence with them. The company has also started Supplier Employee Education
development (SEED) program under which since 2008 some 3.1 million employees of
suppliers have participated and around 14.7 million employees across the supply chain has
been trained. There are some 12000 such employees who have also been given degree
which can help them in career development and progress. They also provide various
vocational and skill development training which also helps in making such people
employable across the value chain (Rühmkorf, 2017).
The company has also started responsible raw material sourcing program under
which responsible ways are used in sourcing minerals for production. The company mapped
its whole supply chain in 2010 from manufacturing to the ultimate raw material which is
sourced from a particular location. This kind of mapping helped company in identifying the

Corporate Social Responsibility 16 Apple Incorporation
kind of impact they are having on environment. Once this data was readily available, the
next step was to improve upon the sourcing policy and usage policy; this will help in
reduction of wastage and proper utilisation of resources at disposal (Sitnikov, Bocean,
2017).
Recommendation for Apple in the long run
In the long run, Apple incorporations can do a lot more towards their CSR practises.
Their products are industry leaders and encouragement towards usage of the same in under
privileged student community would help in developing future generations. Some
considerations in product pricing for certain segment is very important, considering that
next set of growth for the company would only come from population which are not so
privileged. One another problem area which Apple can focus on is development of
stakeholder involvement. Apple’s approach has been towards centralization of decision
making and hence any result making can upset many stakeholders in the company. This kind
of governance environment is not encouraged, and it is important that decision making
involves more stakeholders. The company need to adopt strong triple line foundations
which will help them in meeting the stakeholder requirements and will also involve them in
decision making process (Ryznar, Woody, 2014). Hence for Apple incorporation, apart from
the global top level policy which defines the terms under which they operate, there are
certain local adaptations which the company had to make so that they are following the law
of the land and doing right work in the process. Government of UK has strong rules in space
of employee policies and their welfare and hence Apple Incorporations had to make sure
that employees get best of treatment in this region so that no rules are flouted. In India,
new government over the years have asked companies to work with the whole supply chain

Corporate Social Responsibility 17 Apple Incorporation
and there are rules related to CSR spend, local sourcing norms which the company need to
follow. Apple incorporation has not been able to open local manufacturing units in India as
they are not ready to meet the sourcing norms (Graf, 2016). Since these products in India
need to be imported, the prices are very high and hence they are losing with the
competition.
According to various industry experts, it has been suggested that companies should
have CSR agenda’s in their top strategic priorities. CSR would help in goodwill enhancement
and help in building brand for future. It has been seen in the current world, which is so
much socially connected it is not only profit and numbers which build future of companies.
It is their willingness to give back to society, how they are perceived as brands and various
other intangible factors which go in making of the brand. These factors and their impact are
generally not quantifiable, but their impact is certainly important and has power to go a
long way in development of sustainable corporations. Apple can also take some concrete
steps by means of which they can develop the brand further. Apple incorporations should
work towards socially responsible reporting, adopting GRI framework for reporting and
focus on overall development of sustainable organisation. Some considerations in product
pricing for certain segment is very important, considering that next set of growth for the
company would only come from population which are not so privileged. One another
problem area which Apple can focus on is development of stakeholder involvement. Apple’s
approach has been towards centralization of decision making and hence any result making
can upset many stakeholders in the company. This kind of governance environment is not
encouraged, and it is important that decision making involves more stakeholders. The

Corporate Social Responsibility 18 Apple Incorporation
company need to adopt strong triple line foundations which will help them in meeting the
stakeholder requirements and will also involve them in decision making process.
Conclusion
In last few years, Apple incorporation has worked toward the employee engagement
process and also worked on bringing salaries and offering at par with the industry standards.
This had some cost impact on the company but since the margins are very high in the space
which company operates it is in long term a movement towards sustainability. The company
has also worked closely with employees to develop training modules and enhance their
career opportunities. This in turn will help employees work closely with employer and better
trust schema would be established. Some considerations in product pricing for certain
segment is very important, considering that next set of growth for the company would only
come from population which are not so privileged. One another problem area which Apple
can focus on is development of stakeholder involvement. Apple’s approach has been
towards centralization of decision making and hence any result making can upset many
stakeholders in the company. This kind of governance environment is not encouraged, and
it is important that decision making involves more stakeholders. Apple incorporation has
also included a process to measure carbon usage while production and have efficiently
reduced the usage over the years. This is also considered to be an important factor in
measuring the impact on environment which company’s creating. The company has also
been using soil and climate measurement tool which helps in making orderly measurement
and then work on doing things efficiently.

Corporate Social Responsibility 19 Apple Incorporation
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