Analysis of Apple's Ethical Issues: iPhone Battery Scandal Report

This report examines the ethical issues surrounding Apple's iPhone battery scandal, where the company intentionally slowed down older iPhones due to battery performance issues. The report begins with an executive summary and table of contents, followed by an introduction that defines ethics and outlines the report's scope. Part 1 delves into the ethical issues, including how the company handled them and the impact on customer trust and goodwill. Part 2 applies normative and descriptive ethical theories, such as deontology, virtue ethics, ethical egoism, utilitarianism, and situational factors, to analyze the situation. Part 3 explores ethical and unethical practices affecting internal and external stakeholders. The report concludes with recommendations for rebuilding trust and references relevant sources.

Report

EXECUTIVE SUMMARY
This report covers the scandal of Apple slowed down the sale of iPhone because of poor
performance of batteries. This affect the goodwill and thus decline the profit of business
enterprise and reduce the productivity in a competitive era. This report covers various ethical
issues and methods of handling them so that it can rebuild the trust of customers. Also, this
report comprises of descriptive and normative theories that consist of various moral actions and
obligations in a society. It includes several ethical and unethical practices that affect the
operations of stakeholders.

Table of Contents
Contents
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................1
Part 1................................................................................................................................................1
Discuss ethical issue behind the selected case.............................................................................1
How the company handles this ethical issue...............................................................................1
Part 2................................................................................................................................................3
Apply Normative and Descriptive theories.................................................................................3
Part 3................................................................................................................................................5
Several Ethical practices affect the internal and external stakeholders.......................................5
Unethical practices affecting stakeholders..................................................................................6
CONCLUSION................................................................................................................................6
RECOMMENDATIONS.................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The word ethics refers to a character, ideals or standards in which all individuals are accountable
to community for their behaviour (Azevedo and Ferreira, 2019). It also tells what is right and
wrong, fair and unfair, moral and immoral human action. In simple words, it is described as code
of conduct or norms that are followed by an organisation in order to pursue goals with the
possibility of success. This report is based scandal of Apple which is slowing down due to the
poor performance of batteries that affect the sales operation. This report also comprises of
various ethical issues and ways of handling them with the help of descriptive and normative
theories. This report consists of ethical and unethical practices that affect the internal and
external stakeholders.
Part 1
Discuss ethical issue behind the selected case
In this report, the case study is about Apple that has decrease the sales of iPhone due to
the reason of decaying batteries and also it faces lot of ethical issue (Culiberg and Mihelič,
2016). In 2017, this result in decline in value of share of Apple and affect the operation. One of
the major issues is that the batteries of Apple are fixed as it leads to slower peak performance as
there is an unexpected shutdown for iPhone 6 and 6S model. Due to this, Apple faces a lot of
criticism and result in decline of the goodwill of the company. The respective company is sued
by Terrence Zehrer as old iPhone that is going to closed. This not just affect the sale operation
but also decline the profits of the company.
How the company handles this ethical issue
The senior management of company has admitted the claim that this ethical issue is due
to ageing batteries as a result there is decline in prices of iPhones. Also, it admitted that its major
priority is to build the trust of customer and to develop customer loyalty and trust among them.
Because of diminishing battery performances, the respective firm has brought a lot of changes in
the iOS operating system. The senior officer of firm has apologized for the inconvenience and
offer $29 for the purpose of battery replacement in the year (Swenson III and et.al., 2016). As it
assures to its customers that it would come up with new additional features and an excellent
battery health in 2018. The CEO in 2017 admitted that it would come with change in
performance of battery system like CPU and GPU so as to prevent these unexpected shutdowns.
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AS Apple is considered as one of the renowned brands in California that aim to deliver best
services to their customers.
Corporate Social Responsibility
Corporate Social Responsibility is defined as a form of self-regulation that is divided into an
appropriate business model. In other words, it is defined as an ethical concept that describes the
welfare of human and focuses on improving the quality of human life (Werhane, 2019). CSR is
considered as a multi dimensional approach that allows business to behave ethically and also aids
in economic development of the country by improving the quality of workforce as well as their
families and society at large. It is regarded as a combination of legal and moral responsibilities of
a company within the context of a totality of a business.
Carroll’s Pyramid model
This model provides framework that describe that how an organisation should take the
responsibilities towards the society and it focus on practical application of business. In the
context of Apple, the four components are described as follows:
Economic responsibility: In this, company is responsible for rendering goods or services that
provide high level of satisfaction to society and to make profit (Kagan, 2018). This approach is
towards the achievement of long term objectives by supporting society. The motive of Apple is
to provide excellent goods and services to generate more sales and thus increase the profitability.
Legal responsibility: This is associated with complying all the rules and regulations of a
firm in a fair and efficient manner so that there is no misconduct or fraud in a corporation. The
management of Apple has paid penalty for the purpose of battery replacement in year 2017.
Ethical responsibility: this means conducting the activities in such a manner that meet the
expectations of society and recognise ethical standards by eliminating unfair practices. The
management of Apple provide to their customers with new operating iOS system and bring
excellent battery performance in their iPhones.
Philanthropic responsibility: In this, business uses different methods such as donations, gifts,
community development and so on as it helps in meeting the needs of community (Hammer,
2016). The owner of concerned firm is a good example for this as millions has been donated by
them.
Apple is highly committed towards the responsibility of society that provide safe
environment to their workers and treat them with dignity and respect. The main goal is to
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decrease the impact of environment hazards and also reduce the carbon footprints so as to
provide sustainability in a long run with fewer packaging. The respective firm make best use of
technology and develop long term vision and strategies to build customer loyalty with innovative
challenges. One most important fact is that the firm uses renewable sources of energy in its
operations such as solar energy, biogas and deal with hydro projects.
The organisation is consistent with claimed values as it takes a significant part in solving
the queries of customers and develop a sense of sustainability in a long run. The firm makes
optimum utilisation of resources by investing in charitable projects that promote the growth and
ensure success in future. With innovative designs, the respective firm provides high quality
products so as to ensure maximum customer satisfaction from different parts of the country.
Part 2
Apply Normative and Descriptive theories
Ethical theories describe rules and regulations so as to explain fact of ethics and
principles of morality that are used in a business. In other words, it tells what is right and wrong
through which human actions are determined in a best possible manner. In context of Apple,
Normative and descriptive theories are described beneath:
Normative Theories: Normative theories provide answer related to specific moral questions
concerning what people should do or believe (Davies and Gutsche, 2016). In addition to this, it
provides guidelines regarding the moral standards that define right or wrong. For example: the
manager of Apple understood the reason behind the slow sale of iPhones due to ageing battery
and assure its customers by finding an effective solution of improving the performance of
operating system. In the context of this case study, the various theories are given as follows:
Deontology: This is considered as an ethical theory that describe the moral duty of an
action whether the action is right or wrong and it is based on set of rules or regulations instead of
consequences of action. This theory does not consider much about the results of human welfare
as it provides details regarding duties and obligations of action and implement universal rules in
accordance with an appropriate reason. In addition to this, it is considered as a strong model for
public relations and follow a path that determine the right and wrong is conducted on the basis of
action which is done by acting itself.
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Virtue Ethics: This theory emphasises on virtues instead of rules and regulations as it is
considered as the basic element of ethical thinking ( Dutelle and Taylor, 2017). The main aim of
this theory is that all human should live a happy life and fulfil their ambitions. It also helps in
accomplishment of goals in a proper period of time so that there is no virtues and no rules and
consequences. This theory describes the nature of moral obligation and also provide explanation
regarding the fact that how virtues are acquired and how they can be applied in real life
situations as it is regarded as moral of wisdom. One of the drawbacks is that this theory does not
provide guidance or principles that can be affected by several factors in an organisation.
Ethical Egoism: This theory suggests that moral agents that ought to be act in a self-
interest as this concept claims that the management of company has to act in other’s interest. In
other words, it is essential that one must satisfy their own interest and then it should preserve the
interest of others. This theory explains the facts regarding the human nature and promote a good
sense of interest by judging the behaviour of people so that they could work hard and lead to
achievement of task in an appropriate manner.
Descriptive theories: This deal with presentation of facts related to the actions of an individuals
or an organisation. the focus of this theory is on learning whatever is occurring from the real
behaviour, actions, policies and practices of an organisation and it describes the various code of
conduct that involve various ethical systems ( Palaiologou, 2016). The senior manager of Apple
provides proper presentation of information to their colleagues by accepting various facts so that
there is no confusion among them. With reference to Apple, the management applied various
types of descriptive theories which are given below:
Utilitarianism: It is a moral based theory that provides the overall happiness and does not
consider the action that promote unhappiness. This help in taking various decisions related to
social, economic, political aspects with an aim to improve the betterment of society. The goal is
to do good for people so that it successful help in achieving a great path in their career and
promote a good standard of living in the society. The main focus is on human lives and to
accelerates utility and also it describes various consequences that tells what is right or wrong in a
society.
Individual Factors: These are defined as a set behaviour of pattern and living standard of
people in a society. In other words, it describes the unique characteristics that group of
individuals possess on the basis of their age, qualification, attitude and gender (Wright, Hassan
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and Park, 2016). Thus, it is important that a person should follow the moral obligations so that it
can accomplish the task in a proper period of time. The role of an individual whether moral or
immoral, right or wrong determine the standards and moral duties in a society and it reflect in the
form of various consequences.
Situational Factors: This theory determine the particular situation on the basis of several
factors such as rewards, authority, working roles, bureaucracy and so on. It is considered as
necessary due to the reason that moral intensity helps in taking a best decision as it influence the
group of individuals on the basis of ethical or unethical decisions. This could arise from the
environment through appropriate mode of guidance rather than universal code of conduct.
Part 3
Several Ethical practices affect the internal and external stakeholders
Ethics plays an important role within the modern business which impacts the brand image
and public perception towards the employee productivity and overall profitability of an
organisation. In this context by considering the scandal which is done by apple by slowing down
their phone in terms of increasing their sales and profitability. In relation with this apple also
apologized in terms of saying misunderstanding by offering to cell battery replacement for $29
instead of usual $79 as they replaced batteries speed up the phone. In this context some ethical
practices which impact the reputation of company and its stakeholders who belongs from internal
and external environment.
 Develop prominent ethical standard by formalizing the Expectations that lead to clear
regarding the behavior of company and also helps in analyzing that it is acceptable in
terms of law or not. Under the standard company need to create a proper code of ethics
under the section of employee handbook which describe the proper business conduct and
their guidelines (Crane and et. al., 2019). In this context it leads to eliminate any kind of
confusion and ambiguity regarding the ethical practices of an organization by keeping
their employees at the same level.
 Another one is that the leaders and stakeholders of Apple need to exhibit proper behavior
that tickles down from top to bottom within an organization and also termed as of
structure that is followed by company to communicate with their subordinates and
supervisors (Dierksmeier and Seele, 2018). Describe that the leaders act more virtually by
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serving their services to their staff and also demonstrate the managers regarding their
ethical behavior. In relation with this stakeholder plays an important role in order to
analyze the proper functioning and working of organization which is useful in
smoothening of company without facing any ethical issue.
Unethical practices affecting stakeholders
By considering the case study of Apple it is analyzed that company has done some unethical
practices regarding their product that impact the overall definition of company in terms of
stakeholders belongs from both external and internal environment. In this context business world
is full with many scandals and some of them are caught and face public disgrace that leads to
decreases their profitability and sales and because of this company face glory for their and
professional accomplished success. In this context some unethical practices which impact the
reputation of company are discussed as under:
 The prominent unethical consideration what is concluded by analyzing the case study of
Apple is company misleads the information of their product in front of their customers
Cothat leads to harm the environment and customers. Because of this unethical
consideration company also face disappointment and laws of trust and Faith from the side
of their customers (Trevino and Nelson, 2016). In relation with misleading the
information of product please to impact functioning of company within the market and
slow down their sales and profitability. Therefore, from the ages company has
exaggerated on its qualities of their products that downgrade the features to increase their
sales. As this practice please to continue until the customers does not notice and start
questioning the authenticity of the information.
CONCLUSION
From the above information, it can be summarised that ethics play an important role to
cultivate strong teamwork and productivity in an organisation. It has been analysed that it
also aids in avoiding criminal acts and manage proper values by training all personnel about
the policies and procedures. This maintain cordial relations and govern various business
activities in relation to the society so that a strong image is maintained with the greatest
honour and integrity. It is vital to prevent malpractices by using proper code of conduct in a
workplace as it helps in making business decisions which are just, fair and efficient.
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RECOMMENDATIONS
It can be recommended that the sale and profitability of Apple slow down due to the
reason of ageing battery in 2017. The senior management of respective firm has provided
assurance regarding the fact that it would improve the performance of iOS operating system
and bring excellent changes in battery replacement system so as to avoid a decline in sales.
The main motive is to deliver best and efficient services to their customer with its new and
innovative designs as this would increase more profits and thus improve the overall
productivity of an organisation.
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REFERENCES
Books and Journals
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practices using fuzzy cognitive mapping. Operational Research. 19(3). pp.679-700.
Crane, A., and et. al., 2019. Business ethics: Managing corporate citizenship and sustainability
in the age of globalization. Oxford University Press, USA.
Culiberg, B. and Mihelič, K.K., 2016. Three ethical frames of reference: insights into M
illennials' ethical judgements and intentions in the workplace. Business Ethics: A
European Review. 25(1). pp.94-111.
Davies, I.A. and Gutsche, S., 2016. Consumer motivations for mainstream “ethical”
consumption. European Journal of Marketing.
Dierksmeier, C. and Seele, P., 2018. Cryptocurrencies and business ethics. Journal of Business
Ethics. 152(1). pp.1-14.
Dutelle, A.W. and Taylor, R.S., 2017. Ethics for the public service professional. Crc Press.
Hammer, L.M., 2016. A Foucauldian approach to international law: Descriptive thoughts for
normative issues. Routledge.
Kagan, S., 2018. Normative ethics. Routledge.
Palaiologou, I.O.A.N.N.A., 2016. Ethical issues associated with educational research. Doing
research in education: Theory and practice, pp.37-58.
Swenson III and et.al., 2016. The future is here: ethical practices of telemental health. Journal of
Psychology and Christianity, 35(4), p.310.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Werhane, P.H., 2019. The normative/descriptive distinction in methodologies of business ethics.
In Systems Thinking and Moral Imagination (pp. 21-25). Springer, Cham.
Wright, B.E., Hassan, S. and Park, J., 2016. Does a public service ethic encourage ethical
behaviour? Public service motivation, ethical leadership and the willingness to report
ethical problems. Public Administration. 94(3). pp.647-663.
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