SECTION A [30 Marks] Read the Case Study below and answer the questions that follow: Apple Inc. Corporate Social Respons
Posted: Thu May 05, 2022 9:00 am
SECTION A [30 Marks] Read the Case Study below and answer the
questions that follow: Apple Inc. Corporate Social Responsibility
Apple’s CSR policies and reporting: As required by the SEC
(Securities Exchange Commission) Apple has made the Form 10-K
annual report available on its website. The Form 10-K contains –
amongst other things – information on Apple’s business strategy and
organisation, the company’s risk factors, legal proceedings and
financial data. It also includes the business conduct policy of
Apple: ‘Apple conducts business ethically, honestly and in full
compliance with all laws and regulations. This applies to every
business decision in every area of the company worldwide’.
Furthermore, the business conducts deal with corporate governance,
information disclosure, non-corruption and bribery, environmental
health and safety. Apple has considered the GRI G3.1 indices
relating to the economy, the environment, human rights, society and
labour for its publication on Governance, Product Environmental
Reports, Recycling and Facilities Environmental Report and Supplier
Responsibility. For Supplier Responsibility, Apple, for example,
has taken into account the indicator which reports on measures it
has taken to contribute to the elimination of child labour. With
regard to Product Environmental Reports, Apple has used the EN26
performance indicator, and sets out initiatives to lessen the
environmental impact of its products. Apple designs its products
with the aim of being as energy efficient as possible, and it is
the only company that can claim all electronic goods are Energy
Star qualified. Apple’s products have become more powerful while,
at the same time, fewer materials are used and fewer carbon
emissions are generated. Almost all of Apple’s products are
outsourced for manufacturing overseas. On its Supplier
Responsibility website Apple states: ‘Apple is committed to the
highest standards of social responsibility across our worldwide
supply chain. We insist that all of our suppliers provide safe
working conditions, treat workers with dignity and respect, and use
environmentally responsible manufacturing processes. Our actions –
from thorough site audits to industryleading training programs –
demonstrate this commitment’. The Supplier Code of Conduct
(Supplier Code) outlines Apple’s expectations for the suppliers it
does business with. As a condition for doing business with Apple,
suppliers have to commit to the Supplier Code. For the Supplier
Code, Apple has adopted the Electronics Industry Code of Conduct
(EICC),119 the guidelines and standards for the electronics sector.
Through onsite audits Apple ensures that suppliers comply with the
Supplier Code. The final assembly manufactures are audited every
year and the components suppliers are audited arbitrarily. Apple
obliges its suppliers to respect the human rights of its workers,
to inform the workers of their rights, and to treat them with
dignity and respect. Apple requires from its suppliers that they
prevent discrimination, involuntary and underage labour, excessive
working hours and that they pay workers with wages and benefits in
accordance with the applicable laws and regulations. Labour and
Human rights A well-known conflict involving Apple’s suppliers are
the suicides at Foxconn. It is the largest contracted electronics
manufacturer in the world, with dealings involving Dell and Sony.
Foxconn is the manufacturer of iPhones and iPads and employs over
900,000 workers, of whom 420,000 employees work at the Foxconn
Shenzhen plant. This plant covers 15 factories, including
dormitories, a hospital, a bank, a grocery store and restaurants.
The workers live and work inside the complex. In 2006 the Chinese
local press reported on the excessively long working hours and the
discrimination of mainland Chinese workers by Taiwanese superiors.
In May 2010 several media sources reported several cases of suicide
at Foxconn. From 2009 to 2010 a total of 13 workers had committed
suicide. The first worker, Sun Danyong, committed suicide after he
had been interrogated on the loss of an iPhone 4 prototype that he
had in his possession. When the former CEO Steve Jobs was asked
about the suicides at Foxconn, he responded: ‘Foxconn is not a
sweatshop.’ During an undercover investigation it was discovered
that the reason for the multiple suicides was related to internal
management. ‘The facilities of Foxconn are fine, but the management
is poor,’ revealed Zhu Guangbing, who organized the investigation.
According to Audrey Tsui, a professor at the National University of
Singapore Business School, Foxconn maintains a military-style
management approach. The workers were not allowed to interact with
each other. Workers who violated the rule were penalized with a
fine or were held to be in contempt by the manager. The weekly
working hours of workers were up to 70 hours, ten hours above the
maximum hours set by Apple’s Supplier Code. The Foxconn factory has
good facilities. The workers have access to swimming pools and
tennis courts. Foxconn organizes activities such as chess clubs,
mountain climbing or fishing expeditions. But with a 70-hour
workweek, employees did not have any time to enjoy these
facilities. However, interviews with several Foxconn workers by
DreamWorks China revealed that not all the employees were
dissatisfied. Some believed that the working conditions at smaller
factories are worse. One of Foxconn’s workers stated that employees
at Foxconn thought the media had exaggerated the suicides regarding
their connection to Foxconn and that possibly some suicides had a
sentimental or romantic cause. In February 2011, the media reported
the child labour issues had worsened at the suppliers for
computers, iPods and iPhones. Apple’s Supplier Responsibility
Report 2011 revealed 91 underage workers at the suppliers. (Source:
https://www.utrechtlawreview.org › download// date accessed 20th
July 2021)
Answer ALL the questions in this section.
Question 1 (6 Marks) Apple's contracted manufacturer Foxxconn
has been in conflict with Apple because of it's so called unethical
policies. Do you think that impacted on Apples's statement of
"doing business ethically"? Comment critically, using examples from
Foxxconn to support your answer.
Question 2 (15 Marks) Critically examine the evolving idea of
Corporate Social Responsibility in your own words citing relevant
examples.
Question 3 (9 Marks) Examine the concept of Reputation Indexes,
Mandated Actions and Social Responsiveness in your own words
questions that follow: Apple Inc. Corporate Social Responsibility
Apple’s CSR policies and reporting: As required by the SEC
(Securities Exchange Commission) Apple has made the Form 10-K
annual report available on its website. The Form 10-K contains –
amongst other things – information on Apple’s business strategy and
organisation, the company’s risk factors, legal proceedings and
financial data. It also includes the business conduct policy of
Apple: ‘Apple conducts business ethically, honestly and in full
compliance with all laws and regulations. This applies to every
business decision in every area of the company worldwide’.
Furthermore, the business conducts deal with corporate governance,
information disclosure, non-corruption and bribery, environmental
health and safety. Apple has considered the GRI G3.1 indices
relating to the economy, the environment, human rights, society and
labour for its publication on Governance, Product Environmental
Reports, Recycling and Facilities Environmental Report and Supplier
Responsibility. For Supplier Responsibility, Apple, for example,
has taken into account the indicator which reports on measures it
has taken to contribute to the elimination of child labour. With
regard to Product Environmental Reports, Apple has used the EN26
performance indicator, and sets out initiatives to lessen the
environmental impact of its products. Apple designs its products
with the aim of being as energy efficient as possible, and it is
the only company that can claim all electronic goods are Energy
Star qualified. Apple’s products have become more powerful while,
at the same time, fewer materials are used and fewer carbon
emissions are generated. Almost all of Apple’s products are
outsourced for manufacturing overseas. On its Supplier
Responsibility website Apple states: ‘Apple is committed to the
highest standards of social responsibility across our worldwide
supply chain. We insist that all of our suppliers provide safe
working conditions, treat workers with dignity and respect, and use
environmentally responsible manufacturing processes. Our actions –
from thorough site audits to industryleading training programs –
demonstrate this commitment’. The Supplier Code of Conduct
(Supplier Code) outlines Apple’s expectations for the suppliers it
does business with. As a condition for doing business with Apple,
suppliers have to commit to the Supplier Code. For the Supplier
Code, Apple has adopted the Electronics Industry Code of Conduct
(EICC),119 the guidelines and standards for the electronics sector.
Through onsite audits Apple ensures that suppliers comply with the
Supplier Code. The final assembly manufactures are audited every
year and the components suppliers are audited arbitrarily. Apple
obliges its suppliers to respect the human rights of its workers,
to inform the workers of their rights, and to treat them with
dignity and respect. Apple requires from its suppliers that they
prevent discrimination, involuntary and underage labour, excessive
working hours and that they pay workers with wages and benefits in
accordance with the applicable laws and regulations. Labour and
Human rights A well-known conflict involving Apple’s suppliers are
the suicides at Foxconn. It is the largest contracted electronics
manufacturer in the world, with dealings involving Dell and Sony.
Foxconn is the manufacturer of iPhones and iPads and employs over
900,000 workers, of whom 420,000 employees work at the Foxconn
Shenzhen plant. This plant covers 15 factories, including
dormitories, a hospital, a bank, a grocery store and restaurants.
The workers live and work inside the complex. In 2006 the Chinese
local press reported on the excessively long working hours and the
discrimination of mainland Chinese workers by Taiwanese superiors.
In May 2010 several media sources reported several cases of suicide
at Foxconn. From 2009 to 2010 a total of 13 workers had committed
suicide. The first worker, Sun Danyong, committed suicide after he
had been interrogated on the loss of an iPhone 4 prototype that he
had in his possession. When the former CEO Steve Jobs was asked
about the suicides at Foxconn, he responded: ‘Foxconn is not a
sweatshop.’ During an undercover investigation it was discovered
that the reason for the multiple suicides was related to internal
management. ‘The facilities of Foxconn are fine, but the management
is poor,’ revealed Zhu Guangbing, who organized the investigation.
According to Audrey Tsui, a professor at the National University of
Singapore Business School, Foxconn maintains a military-style
management approach. The workers were not allowed to interact with
each other. Workers who violated the rule were penalized with a
fine or were held to be in contempt by the manager. The weekly
working hours of workers were up to 70 hours, ten hours above the
maximum hours set by Apple’s Supplier Code. The Foxconn factory has
good facilities. The workers have access to swimming pools and
tennis courts. Foxconn organizes activities such as chess clubs,
mountain climbing or fishing expeditions. But with a 70-hour
workweek, employees did not have any time to enjoy these
facilities. However, interviews with several Foxconn workers by
DreamWorks China revealed that not all the employees were
dissatisfied. Some believed that the working conditions at smaller
factories are worse. One of Foxconn’s workers stated that employees
at Foxconn thought the media had exaggerated the suicides regarding
their connection to Foxconn and that possibly some suicides had a
sentimental or romantic cause. In February 2011, the media reported
the child labour issues had worsened at the suppliers for
computers, iPods and iPhones. Apple’s Supplier Responsibility
Report 2011 revealed 91 underage workers at the suppliers. (Source:
https://www.utrechtlawreview.org › download// date accessed 20th
July 2021)
Answer ALL the questions in this section.
Question 1 (6 Marks) Apple's contracted manufacturer Foxxconn
has been in conflict with Apple because of it's so called unethical
policies. Do you think that impacted on Apples's statement of
"doing business ethically"? Comment critically, using examples from
Foxxconn to support your answer.
Question 2 (15 Marks) Critically examine the evolving idea of
Corporate Social Responsibility in your own words citing relevant
examples.
Question 3 (9 Marks) Examine the concept of Reputation Indexes,
Mandated Actions and Social Responsiveness in your own words