Role of Business in Society

This essay examines Apple Inc.'s role in society, focusing on its sustainability approach and the challenges it faces. It analyzes the company's CSR initiatives, strengths, weaknesses, and opportunities for future growth. The essay also explores relevant models and theories, including the Carroll Model of CSR, to provide a comprehensive understanding of Apple's impact on the business environment.

ROLE OF BUSINESS IN
SOCIETY

Table of Contents
INTRODUCTION ..........................................................................................................................1
1. Analysis..............................................................................................................................1
2. Business approach of Apple Inc. in respect to sustainability.............................................3
3. Critically evaluation on weaknesses, challenges and approaches which may impact on
future growth of Apple Inc.....................................................................................................6
4. Relevant Models/Theories................................................................................................10
RECOMMENDATION.................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCE.................................................................................................................................15

INTRODUCTION
Business refers as engine behind development of society and growth of economy. Today,
businessmen have a great influence on society, employment, governmental policies and politics
as well. They conduct a business in order to improve living standard of people and maximize
value for society (Muratovski, 2015). This report is based on analysis the approaches and
challenges that companies should take for conducting business in ethical manner. This would
help in giving more contribution towards sustainability of society. In this regard, Apple Inc. is
taken to make a justification if this company is socially responsible or not. This American
multinational technology- design, develop and sells electronic product, software, hardware and
online services to customers. The present assignment is going to highlight weaknesses,
approaches and challenges that may impact on future growth of this company. To hold this
argument, some relevant models, internal and external examples etc. is being discussed in further
part also.
1. Analysis
According to Garlord Nelson, “ The test of man's conscience reflect that his willingness
to sacrifice something in present will aid to fulfill need of future generation”. In context with
business organizations, in order to win competition from marketplace and and enhance growth of
business, they offer products on low cost by sacrificing their profitability. It aids them to enhance
base line of customers and get retention for long term sustainability.
From a view of 20th century, it has evaluated that today, main purpose of business
organization is to maximize value for society and shareholders. For this purpose, enterprises
produce high innovative products in order to satisfy desires of customers by concerning what
they actually want. In emerging market of worldwide, thousand of companies are working with
common motive i.e. to lift millions of human beings out of poverty. Therefore, they transform
their business for upliftment of society and make investment for development as well rather than
to increase sales volume. This type of transition is actually being driven by market-based
activism and responsibility of companies in place of government regulation.
According to opinion of Oakley (2016), Apple Inc. which is one of the largest
corporations, has made a large contribution in CSR (Corporate Social Responsibility). It includes
promoting education, gender equality, women empowerment, healthcare and ensuring
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environmental sustainability. Under applicable items as per CSR requirement in Schedule VII,
this multinational company provide disaster relief and financial assistance to reputable NGOs
(Non-Governmental Organization). For example: Education to children of low income
communities, this CSR activity has launched in beginning of May 2015. Under this program,
Apple Inc. make collaboration with NGOs and through funding and proper resources, conduct
these activities in appropriate manner (Rosenberg, 2015). It includes delivery of high quality
education to poor children, addressing environmental issues and problems in local communities,
enhance co-curriculum activities and more. For conducting these programs in ethical manner,
this corporation is going to spend 2% of annually average net profit (Apple Corporate Social
Responsibility (CSR), 2018). Along with this, it also takes some major steps to ensure that any
type of surpluses which are arise out from CSR activities will be set aside for further purpose.
For monitoring such type of project and programs, Apple Inc. give responsibility a separately
designated CSR committee which consists two board of directors. They oversee the whole
process and under direction of them, other members associated with CSR programs prepare
report. Further this report provides detail to relevant stakeholders so that they can review policies
on periodic basis as well as update the same if necessary.
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(Role of Apple Inc. in society development, 2017)
Therefore, these type of activities reflect that in today's business environment, Apple Inc.
performs its major responsibilities towards development of society. It has made a large
investment in order to resolve issues at local communities and uplift standard of living of local
people by installing electrification devices in rural areas.
2. Business approach of Apple Inc. in respect to sustainability
Sustainability approach refers to a development process which meets the present need of
organization without compromising the future demand (Audretsch, 2014). In terms of business, it
can be defined as managing three aspects of company that are- a process to manage social,
environmental and financial risk; opportunities and obligations. Sustainability assist a firm to
adhere business laws and policies with principles of sustainable development. Along with this,
for industrial development to be sustainable, it is necessary for enterprises to address major
issues like economical efficiency (prosperity, productivity and innovation), environmental
accountability (biodiversity, climatic change, usage of resources) and social equity (human
rights, poverty, community).
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Illustration 1: Role of Apple Inc. in society development

Today in modern world, more than 90% owners of companies state that sustainability is
essential for success of business. To attain this success, they develop effective sustainable
strategies, products and services as well as publish sustainability reports for stakeholders and
public. For changing the way of conducting a business, it is essential for a company to address
the challenges related to environmental degradation. Market is considered as the most powerful
institution on earth and business as an entity within it. Therefore, sustainability in business
represents a market shift. Any changes in code of conducting a business will affect society and
environment surround them (Veblen, 2017). So, it seems that sustainability is like business threat
in which changes in market expectations and technological advancement, will arise opportunity
for one company and challenges for others. For example: When a company apply sustainability
pressure on business then it becomes an issue for risk management. Similarly, when financial
institution apply the same then sustainability arise problems for capital acquisition.
In context with Apple Inc., it strive to serve products which are best from other telecom
and software companies. The current business approach of this firm is its continual progress
towards priorities of environment. For example- Powering all facilities of Apple with 100%
renewable energy. It includes offices, data centres and retail stores etc. are all powered by clean
and green energy. This company focuses more on reducing emission of greenhouse gases like
Nitrous Oxide, Chlorofluorocarbons (CFCs), Hydrofluorocarbons and more, which contribute to
exert pressure on climatic condition. Along with this, Apple Inc. making great progress in
measuring and minimising carbon footprint in manufacturing process. For all these processes,
this corporation makes investment on developing own solar, wind, water and biogas fuel
projects. As per survey, from 2011 to till, this company has gained success to reduce emission of
carbon gases and prevent earth from such harmful gases which consists near about 2.1 million
metric tonnes of CO2. Moreover, in 2017 it also analysed that due to continual progression, this
firm has got success in reducing approximate 590,000 metric tonnes of CO2 gas (Producing
renewable energy to meet our own needs. 2018).
To create sustainability in business with development of environment and society, Apple
Inc. design products of each generation as energy efficient as possible. As energy is used more in
process of turning raw materials into finished products (Berry and Wilcox, 2018). It uses lower-
carbon materials in manufacturing process and build a partnership with suppliers to help them in
reducing amount of energy they use. Corporation of this company with its suppliers, help in
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transforming manufacturing process into dramatically reduce emissions of harmful gases. It
includes process of finding ways to minimise consumption of energy like replacing inefficient
cooling, heating and lightening system, recovering waste heat and recovering compressed air
leaks. Along with this, to spur the procurement and development of renewable energy, efforts of
Apple Inc. go beyond energy efficiencies. It invest in other projects also which are related to
renewable energy for addressing upstream emissions. For this purpose, recently Apple has
installed 485 Megawatt of solar and wind projects to help suppliers to develop their own project
model. It helps in reducing consumption of energy and minimise carbon footprint from
industries.
(Source:Reduction in Co2 gases, 2018)
As per this graph, it has evaluated that emission of Co2 gas per product of Apple has been
consistently reducing during last five years. Along with this, in 2016, it offers near about 550
electric vehicles to employees. It helps in encouraging others to use such vehicles so that
consumption of petrol can be reduced.
Apple's main mission is to change the world and protect nature from harmful effects so, it
design products accordingly. As per concern with 11th annual Environmental Responsibility
Report, products of Apple Inc. are much innovative and doesn't effect environment much from
harmful radiations. This report highlights what Apple has made contribution in sustainability of
environment (Chen and et. al., 2014). Yet challenges are more complex, but philosophy under
the same is simple i.e. apply innovation in products which bring efficiencies. This company
focus on three main priorities that are-
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Illustration 2: Reduction in Co2 gases

 Climate-change: Reduce impact of production process of business on climate change.
For this purpose, Apple use renewable energy source and drive energy efficiencies in
products.
 Resource: Protect and conserve precious resources for future use.
 Safer materials: Use safer materials in manufacturing process and product.
Therefore, it has analysed that products of Apple are highly innovative and creative.
Along with this, programs run by Apply Inc. reflect that this company contributes an important
role in developing sustainability in business and market as well. In context with sustainable
development at society, this company run various CSR programs and initiatives. In 2011, this
enterprise has run a 'Global Volunteer Program' for encouraging its workers to volunteer in local
communities. For this process, it has donated more that 78 billion USD to charities and non-
profit organisation (Apple SWOT Analysis, 2018). Moreover, Apple has also run waste reduction
and recycling program in near about all countries where it operate business. In 2015, approx.
99% of products of this company are packaged with recycled paper. This company also works
with near about 160 organisations around the world in order to collect e-waste products.
Apple Inc. has planted near about 9000 drought-tolerant trees in areas of Cupertino.
Moreover, in 2017, this company has donated 1 million USD to Southern California Wildfire
Recovery Efforts. Therefore, all these reports states that for bringing sustainability in business,
Apple Inc. concern on environmental and society development also.
3. Critically evaluation on weaknesses, challenges and approaches which may impact on future
growth of Apple Inc.
According to Audretsch (2014), Today business environment of organization has become
more dynamic, where changes are done in working system on continual basis. The reason behind
this is just to win competition at marketplace and retain customers with products or services. For
this purpose, company concern more on bringing innovation in products and make them more
beneficial for customers. In context with Apple, which is a multinational corporation, famous for
its highly innovative products. This firm offers a wide range of iPhone series at marketplace
which fulfill high satisfaction of customers (Lawrence and Weber, 2014). It has made life of
people more easy and comfortable. But apart from all these, to become the world's biggest IT
company, Apple faces a lot of issues and problems also. It may create a large impact on future
growth and profitability of this company. As per basis of internal analysis, it has evaluated that
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this enterprise use a strong strategy for promoting business. For this process, it uses direct sales
channels instead of online procedures. But due to availability of stores or direct sale locations in
13 countries only, this firm face less sales performance also. Moreover, other weak point of this
company is its dependency on iPod and iPhone which contribute a major proportion in sales
performance. Along with this, its other hardware products like Apple Watch, HomePod, AirPods
and more, are only supported with iOS. So, it brings difficulty for customers to use where
products of other companies are android. Furthermore, services and products of Apple Inc. are
much expensive therefore, it is far behind purchasing power of ordinary man. So, it also shows
major weakness of this company in terms of bringing profitability in business.
(Source: Sales volume of products of Apple Inc., 2017)
As shown in illustrated figure- A comparison of products of Apple with one of its rivalry
Mac is made. It states that average sale price of iPhone and iPod products are more than USD
400 in last years from 2012 to 2017. While in place of this, selling price of Mac products are
more i.e. near about USD 1150 in same period. In addition to this, iPhone X is considered as one
of the most expensive handset so, it is beyond purchasing power of common people. Customers
who are technological lovers or belong to high status, only buy such type of products. Apart from
this, mentioned graph also shows dependency of Apple on single product range. It reflects that
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Illustration 3: Sales volume of products of Apple Inc.

series of iPhone is accounted as majority of total sales for this company (Sigurjonsson, Vaiman
and Arnardottir, 2014). Therefore, this situation of Apple can be assessed as one of the major
weakness due to decline in product life-cycle. So, this condition is going to create a negative
implication on future growth and competitiveness of Apple.
Along with above weaknesses, there are many factors present at business environment
which give challenges to Apple for further expansion. It includes aggressive competition,
imitation, rising labor cost and ethical consideration in business. According to Bendell (2017),
demand of sustainability and development of society, assist this company to concern more on
environmental issues while developing products. Therefore, Apple focuses on using green and
clear energy in manufacturing process in order to protect ecosystem from harmful radiations.
Apart from this, another factor which creates a challenge for present company is presence of
competitors. In this regard, companies like Samsung, VIVO, Sony and so on, produce much
innovative products to customers. These firms offer a large variety of commodities like smart
android phones, tablets, music system and more, on much less price. So, it helps them to avail
large market share and enhance sales volume. Thus, to face this challenge, Apple needs to adopt
effective marketing strategies for maintaining and giving a tough competition to others. Further,
threat of imitation is also a major factor which impact on sales volume of this corporation. As
products of Apple are innovative and high in demand so, to gain competition over it, rival
companies imitate the design and features. They also offer imitate products on much low cost to
customers having less purchasing power.
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(Source: Sales performance of Apple vs. Samsung, 2015)
From this illustration, it has shown that products of Samsung give a tough competition to
Apple. Therefore, this company requires to pay an attention and develop strategies by which it
can face challenge and grab high attention of customers (Goodman, Bamford and Saynor, 2016).
Other than this, because of rising competition, Apple also faces heavy employee turnover. As
competitor firms offer workers more salaries and accommodations in order to get their
contribution in business success. So, it also assist this enterprise to give benefits to employees so
that retention of them can be gained for long profitability. Rising labor cost is another threat
which involves contract manufacturers, for Apple. So, it reduces profit margin as well as push
selling price of products more higher.
In terms of approaches, development of new product lines, higher sales volume on the
basis of rising demand and expansion of distribution network etc. are some opportunities for
Apple Inc. It helps this firm in coping up from weaknesses as discussed in above parts. As per
views of Urry (2016), it is evaluated that Apple has lack of distribution network therefore, this
company needs to create modification. It will help in enhancing and improving sales volume as
well as expand business at global level. By expanding distribution network, Apple can offer its
products in global market and attract more customers. Moreover, through aggressive marketing,
this company gains opportunity to enhance its sales performance. This kind of approach is
directly linked with rising demand of people for mobile products and accessories. Along with
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Illustration 4: Sales performance of Apple vs. Samsung

this, present firm also has chance to explore its products lines through which dependency on
single commodity can be reduced. Apple Smart Watch, iTunes media player, HomePod and
more, are some illustrations of innovation and creativity of Apple. It support this corporation to
expand business in international market and gain more profitability. Thus, all these approaches
indicated that there are many opportunities present at marketplace, by which Apple can achieve
high growth in business.
4. Relevant Models/Theories
As from above mentioned arguments, it has interpreted that concept of CSR activities and
sustainability are related with each other. Therefore, Apple has made a large contribution in
development of society (Ward, 2016). Any innovation in its products convey that this firm
majorly concern on ethical and environmental issues and bring creativity in production
accordingly. There are various approaches of CSR are available which integrate corporate
activity into business model of organization. In this regard, business of Apple ensures its
adherence to ethical standards, law and international social norms. All these processes shows
continual commitment of businesses to give contribution in sustainable economic, environmental
and society development (CSR in Apple Inc., 2017). Along with this, they behave ethically while
uplifting quality of life of workers, their family ones and local communities. Thus, in context
with Apple, this company has given commitment to-
 Support technological development which helps in measuring social changes. As
technology aids in fighting with diseases, improving education, distributing food,
enhance living standard of local communities and more. So, all these things shows that
Apple is a leader in this era.
 Give support dissemination of credible and worldwide information related to social
concern. For example- innovation of iTunes is considered as world's important source for
social programs.
 Provide support to innovative design as Apple applies to products for social change. It
uses green and clear energy to manufacture products for developing sustainability. For
example- It promotes electronic vehicles as alternative for those transportation which
consumes much fuel.
Apart from these, conducting business by considering ethical standards, prevent
environment from pollution, contribution towards development of social health and education
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etc., shows responsibilities of Apple towards society. Furthermore, adhere business with
regulatory laws and legislations, regular payment of taxes, give cooperation to Government for
improving economical condition and more, prove that Apple has performed its legal duties also.
This company also perform its major duties towards employees by giving them healthy and safe
working environment, fair wages and welfare services, training and development facilities, etc.
All are these some illustrations that prove that Apple is a market leader which concern more on
enhancing quality of life of people and developing societies.
CSR Carroll Model:-
According to A Carroll (1991), this model consists a range of models and theories which
summarised into four type of social obligations (Laszlo and Cescau, 2017). It includes economic,
legal, ethical and philanthropic responsibilities. In this regard, first and foremost duty of a
company is to perform philanthropic duties i.e. corporations should contribute their role in
improving quality of life and developing societies. It will lead to accomplish a ultimate goal of
being a good citizen. Ethical responsibilities is another norms where people expected from
companies to conduct business in ethical manner and avoid harm. Similarly, in same context,
legal obligations is the third thing, which assists organizations to obey laws of environment,
society and government. The last but not least is economical responsibilities, it states main
responsibility of entities. This factor assists a company to satisfy needs of society, stakeholders
and investors for further expansion of business.
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(Source: Carroll Model of CSR, 2017)
In context with Apple Inc., it has been argued that this corporation have performed major
duties towards development of society. It has also taken entire responsibilities related to provide
benefits to employees, stakeholders, investors and communities (Crane and Matten, 2016). The
main reason for conducting CSR activities by this company is its mission statement, 'To prevent
environment and reduce carbon footprints by using green energy in production'. Apple Inc.
concern more on protecting human rights and global communities instead of pursuing
profitability. The three main aspects that prove that this corporation has invested a lot for
sustainable development are- Company's code of conduct, it supplies responsibility progress
report and online report with respect to CSR activities. In this regard, code of conduct of Apple
Inc. deals with corporate governance, environmental health and safety, information disclosure
and more. The Apple Supplier Responsibility i.e. SRP progress report shows audit result of
human and labour rights, ethics, management system, worker health and safety etc. This
company also assists its suppliers to provide safe and healthy working environment to workers
and treat them with respect and dignity. It has provided proper training to employees so that they
can understand their responsibilities towards manufacturing process.
Along with this, different approaches used by Apple Inc. to overcome from its
weaknesses also entails that this company has performed its business in profitability manner.
Therefore, commitment to contribute some part of its profitability and revenues in development
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Illustration 5: Carroll Model of CSR

of society can be easily fulfilled. It has faced various challenges to run CSR activities and
business in ethical manner. But apart from this, it has gained success to overcome from these
difficulties and help in preventing nature from harmful effects of manufacturing process.
RECOMMENDATION
From this project it has recommended to all corporations to pay a huge attention on
societal and environmental issues. They must operate business in ethical manner by concerning
on those factors which may harm nature and ecosystem. They have to adopt measures by which
any activity of their business could not impact on sustainability of marketplace. As it has
evaluated that Apple Inc. has concerned a lot on improving living standard of local communities
by conducting various CSR activities. But still, this company is required to perform in consistent
manner with expectation of societal, governmental and ethical norms. Its managers and workers
are required to actively participate in voluntary and charitable activities within local
communities. These activities are related to enhance quality of life. Apple is required to make
contribution in other field also by which development of society can be achieved. It includes
investment in government and private project for education related programs; women
empowerment and upliftment of societies. Along with this, Apple should concern on creating
diversification in products also. It needs to manufacture some more innovative products and
adopt high distribution channels. It will help in grabbing attention of more customers and
enhancing sales volume as well.
CONCLUSION
It has concluded from this mentioned project that today every business entities concern
on developing societies. They have made a large contribution in development of society. They
also use measures by which ecosystem can be prevented from harmful effects of manufacturing
products. This report shows various activities like CSR programs that are conducted by
companies in order to uplift local communities and improve quality of life. Along with this,
different kind of procedures by which a company can face major challenges like how to compete
with rivalries, way to overcome from weaknesses and opportunities for enhancing future growth
of business are also explained in further parts of this assignment. So, it is necessary for
organizations to obey such recommendation for enhancing profitability and revenues. It helps
them in giving more contribution towards enhancement of society and sustainable development.
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REFERENCE
Books and Journals
Audretsch, D. B., 2014. From the entrepreneurial university to the university for the
entrepreneurial society. The Journal of Technology Transfer. 39(3). pp.313-321.
Bendell, J., 2017. Terms for endearment: Business, NGOs and sustainable development.
Routledge.
Berry, J. M. and Wilcox, C., 2018. The interest group society. Routledge.
Chen, Y., and et. al., 2014. IT capability and organizational performance: the roles of business
process agility and environmental factors. European Journal of Information Systems.
23(3). pp.326-342.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Goodman, E., Bamford, J. and Saynor, P., 2016. Small firms and industrial districts in Italy.
Routledge.
Laszlo, C. and Cescau, P., 2017. Sustainable value: How the world's leading companies are
doing well by doing good. Routledge.
Lawrence, A.T. and Weber, J., 2014. Business and society: Stakeholders, ethics, public policy.
Tata McGraw-Hill Education.
Muratovski, G., 2015. Paradigm shift: Report on the new role of design in business and society.
She Ji: The Journal of Design, Economics, and Innovation. 1(2). pp.118-139.
Oakley, A., 2016. Sex, gender and society. Routledge.
Rosenberg, M., 2015. Society and the adolescent self-image. Princeton university press.
Sigurjonsson, T. O., Vaiman, V. and Arnardottir, A. A., 2014. The role of business schools in
ethics education in Iceland: The managers’ perspective. Journal of Business Ethics.
122(1). pp.25-38.
Urry, J., 2016. Mobilities: new perspectives on transport and society. Routledge.
Veblen, T., 2017. Absentee Ownership: Business Enterprise in Recent Times-The Case of
America. Routledge.
Ward, J., 2016. Keeping the family business healthy: How to plan for continuing growth,
profitability, and family leadership. Springer.
Online
Producing renewable energy to meet our own needs.2018. [Online] Available Through:
<https://www.apple.com/in/environment/climate-change/>.
Apple Corporate Social Responsibility (CSR). 2018. [Online] Available Through
<https://research-methodology.net/apple-corporate-social-responsibility-csr/>.
Apple SWOT Analysis. 2018. [Online] Available Through
<https://research-methodology.net/apple-swot-analysis/>
CSR in Apple Inc. 2017. [Online] Available Through <https://lawaspect.com/csr-apple-inc/>.
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