Business Law Case Study: Apple Supplier and Labor Practices - BCO125

This case study examines Apple's supplier and labor practices, focusing on the ethical and legal implications of its global supply chain. The analysis addresses key questions, including the relevant facts, applicable laws, and potential litigation issues arising from the case. The study explores the perspectives of both the claimant and defendant, outlining arguments and defenses related to worker safety, working conditions, and ethical sourcing. Furthermore, it draws comparisons with the Walmart Stores Inc. vs. Dukes et al. case, highlighting similarities and differences in addressing labor and discrimination issues. The case study underscores the complexities of corporate social responsibility and the importance of ethical considerations in global business operations, particularly in the context of consumer electronics manufacturing. The assignment also explores the relevant facts, laws, and litigation issues, and provides a comparison with another case study.

0Running head : APPLE SUPPLIER AND LABOR PRACTICES
APPLE SUPPLIER AND LABOR PRACTICES
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APPLE SUPPLIER AND LABOR PRACTICES
Answer to question 1
The apple has cult with the exceedingly coveted line of consumer electronics among the
loyal customers. 74.5 million of apple during 2014 were sold. Thus apple makes over $52 billion
profit in the year 2015, the highest annual profit generated from the operations of the company.
Despite having consistency in financial conduct over the year the profit margin of apple hides a
completed set of commercial ethics (Miller and Maxwell, R 2016). The apple does not
manufacture products domestically similar to the products sold in the United States. Most of the
component sourcing in addition to the production of the factory is done worldwide in the
conditions that critics raise the argument that the method of production in the Apple industry is
detrimental and hazardous to the workers. Apple defends the same by holding that it has strict
controlling measures in regulating and monitoring the component sources (Pun et al. 2016). The
company raises its justification by upraising that it is a complicated procedure with ten thousand
of miners selling them through middlemen. The apple in the effort of transparency released the
annual report that laid a description of their work with the labor practices and suppliers (Clarke
and Boersma 2017). It has been revealed from the recent inquiry that improvement to the
working condition of the suppliers' apple continues to face disparagement as the demand of
consumers for iPhone and other goods continues to develop.

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Answer to question 2
The legislation governing employees Apple company is labor and human rights by which
the company of apple supposed that all the employees in the supply chain are entitled to get the
ethical and fair working place. The employees in the apple company should be treated with the
highest standard of respect and dignity (Chan, Pun and Selden 2015. Furthermore, the suppliers
of apple should uphold the utmost human rights. Article 6 of the Russian laws on Equality and
Anti-discrimination laid down that there should be any sort of disparity against the accused
individuals and suspects on the ground of nationality, sex, race, property, origin, language or any
other circumstances. The workers in the apple company conduct that are free from abuse and
harassment (Anner 2017). The workers are also entitled to the legislation governing the
prevention of human trafficking and involuntary labor, health and safety, safety management and
occupational health, living and working conditions (Talailo 2015). The legislation governing
apple company is employment and labor law, 2019.
Answer to Question 3
The litigation issues developed by the parties in this scenario are whether the factory
production or component sourcing is done in the environment that harmful and dangerous for
both the environment and the workers. Another issue involved is whether the business of apple
company involves unfair labor practice and whether it is ethically sound.
Answer to question 4
If the issue is the view from the perspective of the claimant then it can be alleged that
there should be a respectful and safe working environment for all employees. That implies the
suppliers should treat the employees in the working place with respect and dignity. There should

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be fair working hours, a safe working place and the working environment that is devoid of any
sort of discriminatory practice. On the contrary, if it is the view from the perspective of the
defendant, the company can raise the defence that it has adequate control over the regulating and
monitoring of the component sources. The company also validates the practicing sources by
holding that it is a complicated procedure with ten thousand mineworkers selling tin through
middlemen.it can also be argued by the Apple company that the working environment is healthy
and beneficial for all the employees and they also acted in pursuance of employment legislation.
Apple is dedicated to the highest level of environmental and social accountability and also
ethical behavior. The suppliers of apple provide harmless conditions of work, treat the
employees with respect and dignity and also conduct ethically and fairly (Jorgenson and Vu
2016). The Apple also conduct in pursuance to the guidelines of Apple Supplier Code of
Conduct and also in obedience to rules and legislations.
Answer to question 5
In the case study of Walmart Stores Inc. vs. Dukes et al, the case is heard by the court of
the United States. The plaintiff, in this case, raises the allegation that the female workers in
Walmart and Sam’s Club retail stores were victimized of discriminatory practices on the ground
of gender. The Walmart formulate the court of conduct suppliers standards that concentrates on
standards of quality for suppliers. Although Walmart did not comply with the Global
Responsibility Report it had targets that are measurable on audits. For example, Walmart needs
its suppliers to deliver toys in China to sign up for the process of ICTI CARE. Furthermore,
Walmart functioned audits that are internally validated by the ethical sourcing group of
Walmart.these validation guarantees the process of ICTI CARE is implemented properly and it

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attains the standards for the suppliers in Walmart. Thus the case of Walmart differentiates the
apple case of suppliers and labor practices.
References
Anner, M., 2017. Monitoring workers’ rights: The limits of voluntary social compliance
initiatives in labor repressive regimes. Global Policy, 8, pp.56-65.
Chan, J., Pun, N. and Selden, M., 2015. Interns or workers? China’s student labor regime. Asian
Studies, 1(1), pp.69-98.
Clarke, T. and Boersma, M., 2017. The governance of global value chains: Unresolved human
rights, environmental and ethical dilemmas in the apple supply chain. Journal of Business
Ethics, 143(1), pp.111-131.
Jorgenson, D.W. and Vu, K.M., 2016. The ICT revolution, world economic growth, and policy
issues. Telecommunications Policy, 40(5), pp.383-397.
Miller, T. and Maxwell, R., 2016. Apple. In Global Media Giants (pp. 383-396). Routledge.
Pun, N., Shen, Y., Guo, Y., Lu, H., Chan, J. and Selden, M., 2016. Apple, Foxconn, and Chinese
workers’ struggles from a global labor perspective. Inter-Asia Cultural Studies, 17(2), pp.166-
185.

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Talailo, K., 2015. Analysis of the implementation of the Supplier Code of Conduct. Case:
Company X, Russia.