Analysis of Apple Inc.'s Ethical and Labour Practices Case Study

This report presents a case study on Apple Inc.'s ethical and labor practices, focusing on the company's supplier relationships and the ethical implications of its sourcing of materials, particularly tin from Indonesian mines. The report begins with an executive summary and introduction, outlining the context of the case and the importance of ethical considerations in business decision-making. The main body delves into the background of the case, exploring the prevalence of child labor and unsafe working conditions in Apple's supply chain. It provides a brief history of the organization, discusses the case in detail, and presents arguments related to Apple's ethical responsibilities. The report also examines ethical decision-making approaches and theories. The analysis highlights the conflict between Apple's profitability and its ethical obligations, emphasizing the need for the company to address issues such as child labor and unsafe working conditions. The report concludes with a summary of findings and recommendations for improving Apple's ethical performance.

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Executive Summary
Ethical values are one of the most important values which helps to determine what is
right and what is wrong as per the situation. Organisation is required to consider ethical values in
decision making process. The file is based on the Apple Practises and the importance which they
give to their employees. File will have a discussion about the case “Apple Suppliers & Labour
Practising” where detail report will be presented that how company is performing. Brief history
has been explained about the organisation. Arguments is mentioned which has helps to discuss
the importance of case and according to that decision has been obtained in the file whether Apple
Inc. is performing their task as per requirement or not. The theory of ethical decision making was
main in decision making process.

Table of Contents
INTRODUCTION...........................................................................................................................2
MAIN BODY...................................................................................................................................2
Background of the case...............................................................................................................2
Where is the issue prevalent? Why is it important?....................................................................3
Brief history about the organisation............................................................................................3
Discussion of the case.................................................................................................................4
Arguments...................................................................................................................................4
Ethical Decision Making Approaches & Theories......................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
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INTRODUCTION
There are different cases which occurs on daily basis. It is needed to understand that
cases must be solved out by having the detail analysis about the situation so that situation can be
tackled easily. The chosen case study for this respective task is between “Apple Suppliers &
Labour Practising”. In respect of the file, the chosen case study is about Apple Suppliers and
their Labour Practices. The main issues is related with the products which they imports from
different part of the world to manufacture any of the apple products. The product which is being
used is bin which is imported from the mines of Indonesia. The issues has been directly prevalent
from the past activity where different age group of people are keeping their life in danger for the
purpose of surviving in this world.
MAIN BODY
Background of the case.
The background of the case simply explains about the Apple suppliers and Labour
Practices. There are thousand of loyal customers connected with Apple Inc. just because of cult
available in the organisation. Although, company has been earning huge profit since longer
period of time and even it can been seen from the states that in the year 2014 they sold 74.5
millions iPhone (Vonk, 2018). The overall profit of the company was around $52 billion.
Although, company was performing really well in the market but the main question which was
raised is all that whether they were performing according to ethical manner or not and if not. The
reason behind this issues that they doesn't manufacture goods domestically as number of
components were sourcing and production was being imported from outside. As there are
number of products which bring imported is harmful for workers as well as for environment too.
On of the major thing which they imports from other part of the world is 'Tin'. It is being
imported from the mines of Indonesia. The facts that has been found is that there are number of
children who been involved in mines which can be very dangerous for their life. The statement
was given on this respective points by Apple Inc. “To reduce the effect of criticism, they can
simply cancel the contract to not buy any of the tin from Indonesia (Apple Suppliers & Labor
Practices, 2017). But, this will not reduce any of the effect as middle man will have to suffer as
they will face difficulties to get the price for the work which they are doing on regular basis and
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even thousand of other people are involved in buying this tins”. But, having criticism on regular
basis the demand is not decreasing for Apple and they are able to earn huge amount of money.
Where is the issue prevalent? Why is it important?
The common issues which has been prevalent in this respective case is all about the child
labour which is being done in the mines of Indonesia (Kleine, 2014). The issue related to child
labour is common and it can be seen since longer period of time. Although, it has been not
affecting their growth but still it will be important to understand that in any of the situation they
must not try to involve any of the children in their work.
This is common that that number of organisation doesn't give important to child labour
which is taking place in frequent occasion. The thing which is required to be understand is that it
is ethical and legally wrong because in any of the situation company cannot involve children for
the production or manufacturing any of the unit. Here, any of the situation says that problem will
not occur upon apple as they are not the one who is dealing with those children who is involved
in mining work but they could have asked some of the question with the company because
directly or indirectly they have been involved in this illegal activity. Also, they have been
criticised for dealing again and again with the same company for the work which has been done
by the mining organisation of Indonesia. In short, it will be necessary for the organisation like
Apple to have a detail conversation on this respective case because there will be one moment
where they might have to suffer for this respective unethical issue (Zompras. and Siakas, 2015).
Brief history about the organisation.
Apple is a multinational organisation which has been dealing in different part of the
world. The headquarter of the organisation is located in Cupertino, California. The founder of
Apple was Steve Jobs, Steve Wozniak and Ronald Wayne where its date of incorporation is 1st
April, 1973. The current CEO of the company is Tim Cook. It is one of big four technology
company including Amazon, Google & Facebook (Apple Site Map, 2019).
The company is well known for its brand value and its size and revenue. In financial year
2018, its total revenue was around $265 billion which is far ahead from any of the technology
sector organisation. Also, it is the only U.S public whose value has touched or crossed more then
a $1 trillion. Although, it has a well developed brand value which is not being offer by any of the
other organisation but still they have been facing different issues which has a dirtect impact on
their overall performance. As, they have been facing issues regarding labour practices and even
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anti-competitive behaviour. It is found that they have been involved in environmental practises
and unethical business practices.
Talking about the current situation, they are known for the products which they supplies
within the market such as their Mobile series and their securities which they provide along with
products keep the product safe and secure (Klavenes. and Wisniewska, 2016). The Mac Book
which they distributed in the market is a great success for them as it helps to perform the task in
best possible manner in any of the situation.
Discussion of the case.
The major meaning which case is suggesting is all about the work and behaviour of
Apple Inc. towards their employees. There are number of situation where company is not giving
focus towards their employees and due to which they have been conducting those activities
which are totally unethical and even against the law. It will be important for them to look at the
situation of the case and according to that must bring changes.
After having the detail analysis on the case, it required to understand for company like
Apple that they are performing at a greater platform where they are needed to set standard for
accomplishing the goals. It was suggested in the case that organisation didn't mainly focused
upon ethical practises and legal legislation which means their major goals to earn profit and
delivery brand value to their customers. It addition, the statements which has been presents by
the organisation looking completely different where they are required to work because its their
responsibilities to work for the employees.
Arguments
Whenever any of this problem occurs, it requires to understand that company themselves
have to interfere for finding the best solution because it directly or indirectly affect the goodwill.
The above given case study suggest that the Apple Inc. never works for the benefit of their
employees which is completely wrong because they are the one who helps to accomplish the
goals in any of the situation (Cooke, 2018). There is the employment law which explains that in
any of the circumstances company is required to follow rules and regulation while performing
any of the business activity.
According to the case, Apple is responsible for ethical lapses because they must have the
knowledge regarding the employees who is engaged and helping the organisation to accomplish
their major targets. Although, in this respective case the issues was created from the side of
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mining company from where they purchases tin. But, it will be necessary for them to discuss
with the head of mining company because they have been affected from children who has been
involved in hazardous work.
The situation of the case says that, the problem which is being faced by Apple is just
because of the unethical practises being followed by supplier. But, this doesn't means that
company should stop making deal with those organisation because there are very chances for
company to sustain in the market after taking those decision (Lüthje. and Butollo, 2017). Here,
head member should try to find the way that how they can solve out the problem related to child
labour. This problem can remove the wording related to 'bad apple' for the organisation.
Any of the customers directly or indirectly depends upon the quality of product which is
being delivered by the organisation. But, they never focuses that how they are performing the
market. Whenever they will focus upon this respective situation then they will get the answer
that internal affairs should be consider. Even results should that Apple is the only public
company in US which has a revenue of $1 trillion which is itself an example that customers do
not consider any of the internal matter of the organisation. For changing the attitude of working
style of any organisation, it will be necessary for customers to check ethical track record of
organisation before purchasing any of the product. The technologies has been changing day by
day which simply explains that organisation can only perform well if they are working by
considering the ethical factor and environment (Hoque. and Rana, 2019). The problem which is
mainly seen is that not only Apple but there are other organisation as well who do not consider
this types of factor because their major motive is just to earn profit. But, it will be required to
understand that customers themselves to bring changes in it.
According to the Child Labour Act of Australia, it simply explains children are allowed
to work in some of the condition but they must be above the age of 15 years. The main thing
towards which law wants to focus is that any work should not be of hazardous in nature because
life is in danger in that respective circumstances. But, in case of Apple they have been not giving
any of the focus in it. The case related to child labour has taken place in Adidas as well where it
was discussed that they are not allow to force child labour to work for extra hours for personal
benefit. In this respective case, the legal action was taken against the organisation and they had
been penalised for the mistake which has been performed by them (Child labour scandal hits
Adidas, 2000). In this case, heave penalty was charged against the organisation.
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In the same manner, the above argument wants to explain that in any of the situation
actions can be taken against the company because directly or indirectly those children in
Indonesia has been performing for Apple. Even their management team knows about the
treatment which is being given to the worker who is working for them but still they are not
taking any of the action for the betterment of an organisation. Even in one of the investigation
conducted by BBC news in China clearly shows that employees were forced to work for extra
shift for the purpose of generating additional benefit. It is again the law but company denied that
they not involved in any of this activities and even employees where being treated equally
(Apple 'failing to protect Chinese factory workers', 2014).
Ethical Decision Making Approaches & Theories
There are different types of ethical theories and concepts which plays the crucial role at
the time of obtaining the goals of an organisation. There are altogether four different types of
decision making theories and they are deontology, utilitarianism, rights, and virtues. For the
purpose of finding out the solution in this respective case, Deontology ethical theory of decision
making has been used (Stein. and Hartmann, 2017). It is the decision making theory which states
that any of the people should adhere with their roles and responsibilities. It should be mainly
focused in that those respective situation where decision making involves code of ethics. The
ethical theory of deontologist simply means that any of the person will consider the law while
taking any of the business decision. It will not allow to develop any of those situation which can
create issues in future period of time.
The decision that Apple Inc. is not serious towards their employees has been concluded
from the ethical decision making theory of Deontology because it simply tells that any of the
decision should be taken by considering legal factors. The responsibilities should be based on the
capabilities but company just seeks for their benefits as they doesn't give any of the focus
towards their employees which is completely against the law and ethical values (Shao, 2018).
After having the knowledge regarding the situation of mining area in Indonesia they could have
tried something different for children so that they would not have to keep life of children in
danger but they just gave the negative statement on it which is quite wrong for the one who was
listening to it.
So, deontology ethical theory explained that the decision making policies and the reply
which was given by the head of Apple Inc. was completely against and it has created the
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negative impact on society. Here, it will be necessary for such a big organisation to take some of
the initiatives towards their employees because they are the one who is helping them out to
accomplish the goals(Oakey, 2013).
CONCLUSION
After having the detail analysis upon prepared report, it can be concluded that any of the
business organisation should understand that they must consider the ethical values while making
any of the decision for business organisation. Company like Apple has been performing really
well within the market but still there are some of the issues which is needed to be fix such as
considering ethical values in decision making process. Also, there are number of situation where
they doesn't give importance to their employees which is needed to be solved because that is one
of the problem which can create bigger issues for organisation like Apple in maintaining their
goodwill in the market.
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REFERENCES
Books & Journals
Cooke, P., 2018. Generative growth with ‘thin’globalization: Cambridge’s crossover model of
innovation.European Planning Studies.26(9). pp.1815-1834.
Hoque, I. and Rana, M .B., 2019. Buyer–supplier relationships from the perspective of working
environment and organisational performance: review and research agenda. Management
Review Quarterly. pp.1-50.
Klavenes, K. L. and Wisniewska, M., 2016. National context. The World Guide to Sustainable
Enterprise-Volume 3: Europe, p.188.
Kleine, D., 2014. Corporate social responsibility and development.The Companion to
Development Studies.7(1). p.195.
Lüthje, B. and Butollo, F., 2017. Why the Foxconn model does not die: Production networks and
labour relations in the IT industry in South China. Globalizations.14(2). pp.216-231.
Oakey, R. P., 2013. Open innovation and its relevance to industrial research and development:
The case of high-technology small firms.International Small Business Journal.31(3).
pp.319-336.
Shao, K., 2018. Neoliberal capitalism and China's strategic patent framework for the global
intellectual property regime.Queen Mary Journal of Intellectual Property.8(1). pp.15-
25.
Stein, S. and Hartmann, H., 2017. Land Degradation and Land-Use Strategies in China's
Northern Regions: Soil conservation, afforestation, water resource management.In
Routledge Handbook of Environmental Policy in China(pp. 144-160). Routledge.
Vonk, L., 2018. Paying attention to waste: Apple’s circular economy.Continuum.32(6). pp.745-
757.
Zompras, A. and Siakas, K., 2015. An investigation of ISO 26000 and social responsibility
practices applied in IT companies.International Journal of Human Capital and
Information Technology Professionals (IJHCITP).6(2). pp.33-48.
Online
Apple Site Map. 2019. [Online]. Available Through: <https://www.apple.com/sitemap/>
Child labour scandal hits Adidas. 2000. [Online]. Available Through:
<https://www.theguardian.com/uk/2000/nov/19/jasonburke.theobserver>
Apple 'failing to protect Chinese factory workers'. 2014. [Online]. Available Through:
<https://www.bbc.com/news/business-30532463>
Apple Suppliers & Labor Practices. 2017. [Online]. Available Through:
<http://ethicsunwrapped.utexas.edu/wp-content/uploads/2017/02/13-Apple-Suppliers-
Labor-Practices.pdf>
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