Apple Inc. - Corporate Social Responsibility

1. Summary

Apple Inc. is one of the companies that has the best Corporate Social Responsibility (CSR) reputations. However , this multinational technology company is accused for violation of their worker’s labour rights with their suppliers, The Foxconn and The Pegatron, and is still undergoing a series of questioning and examination from the mass. The Foxconn, allegedly had one worker who committed suicide due mislaying of a prototype of the iPhone 4—one of the company’s products, and a year after, several workers attempted to commit suicide, and a few others lost their lives within the premises of the company’s manufacturing facilities. On the other hand, the Pegatron—another supplier of Apple, incurred violations wherein 3 out of their 86 factories violated regulations, including the use of juvenile workforce, women’s rights, excessive working hours and other environmental issues as well as contributing to pollution. Furthermore, at the rise of Apple, they garnered a lot of critics which, unfortunately, scrutinized every movement of the company. It increased pressure on the part of Apple and its suppliers. And because of this, the company had to face the different allegations of the critics.

1. Statement of the problem

How will Apple solve the socially irresponsible actions of its suppliers to ensure fair and safe working conditions of its employees?

1. Objectives

• To be able to perform corporate social responsibility (CSR) among themselves, their suppliers and their employees.
• To be able to maintain and improve their title as having the Best in CSR reputation in the Forbes list.
• To be able to have its suppliers follow and practice labour rights
• To be able promote fair  and safe working conditions of the suppliers’ employees

1. Areas of consideration

SWOT ANALYSIS (Strengths, Weaknesses, Opportunities and Threats)

Strengths

• The company earns at a high profit margin.
• The company is large enough to make decisions among their suppliers.
• The company has the power to give rules to suppliers.

Weakness

• Language barriers among the company’s personnel and the suppliers workplace.
• Cultural difference may cause misunderstanding.

Opportunity

• The company and has an organizational structure to follow.
• The company has loyal customers.
• The company earns a lot.

Threats

• Critics.
• Control in the contractual agreement.

1. Alternative courses of action

Alternative 1: Bring Manufacturing back in states.

• Advantage: Management can oversee everything from lower management to employees.
• Disadvantage:  Costly in terms of shipping and additional equipment   and employees will have to work overtime since the employees of Apple cannot produce the materials needed in their production right away.

Alternative 2: Working with Non-Government offices and transnational organizations.  

• Advantage: Improve communications among other organizations.
• Disadvantage: Organizations are different from each other and the company, with this there might me incompatibility problems and legal papers are not easy to process.

Alternative 3: Monitoring and changing how suppliers work directly from the company’s personnel.

• Advantage: Improves management and how they deal with managing employees of the Suppliers Company, interaction among the Apple company and its suppliers will be better making them have a better relationship and communication.
• Disadvantage: Costly fair for the chosen personnel in going back and forth from the company and the supplier. Language barrier is expected which may lead to miscommunication. 

1. Recommendation

The group highly recommends the third alternative in which Apple will monitor and change how suppliers work with the company’s personnel directly.