As part of integral system to society corporate has responsibility towards community and also part of corporate self-regulation integrated with into business. In some models, a firm’s implementation of CARS goes beyond compliance and engages in “actions that appear to further some social good, beyond the interests of the firm and that which is required by law. Corporate Responsibility aims to embrace responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.
Marketing strategy is kind of goal for increasing sales and achieving a sustainable advantage. Marketing strategy includes all basic and long-term activities in the field of marketing that deal with the analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies and therefore contribute to the goals of the company and its marketing objectives. Overview of Apple Apple is one of the biggest company/organization on the earth.
Any corporate or organization final aim is to make profit and grow bigger. However, only profitable incept make organization leads to fail and due to failure of looking towards employee or co-partners also fail. If any company only concentrate on profit or business, it’s likely to be failed. This would be really good if company will start thinking about social responsibility and ethical towards its employee, society, and rest of the world. Company should also think more towards doing ethical work and more responsive towards ideal society.
Apple’s Ethical and Social Responsibilities Ethical Responsibilities During recent time Apple come under observation due to ethical and social accessibility adherence and violations and extended hours working strategies. Apple is very famous for its product, innovation and services, as we all know Apple is industry leader in Mobile, laptop and pad industries. Apple has even gained a reputation as a good employer from critics also. Yet, despite all of this, due to all evidences against Apple has not able to avoid shortfalls in its ethical and social responsibilities.
Social Responsibilities Apple is the biggest technology company on earth and is seen as the most innovative in Mobile and tablet industries. Despite of that, few months ago wrought media it’s comes out that Apple’s suppliers are treating their employees with unethical treatment of workers in factories and suppliers overseas, particularly in China. According to Apple’s recent website, it believes that “every worker has the right to a safe and healthy work environment”.
As per recent report it also mentioned that – To address the shortage of qualified environment, health, and safety (SHE) personnel, we launched the Apple Supplier SHE Academy ? a formal, 18-month program we believe to be one of the most comprehensive SHE training and education programs in any supply chain. In 2013, over 240 actors personnel representing factories with more than 270,000 employees enrolled in this program, which will raise the standard for SHE management in our supply chain.
Also it indicates that it’s “suppliers must treat workers fairly and ethically at all times,” and that the company “goes deep into its supply chains to enforce our standards and correct problems” (Apple website, 2014). Impact of Ethical and Social Responsibilities Violation Above statement is specified into Apple’s website states, however that is little bit far from the truth as per reports says, and also it does not apply to all suppliers and factories. As per media sources its comes out that Apple suppliers in China are using child labor to accomplish its works in factory.
Also it comes out that “they are forcing employee to work overtime with less pay’ (Disregarding, 2013). Due to extremely poor condition at supplier places, and factories, Apple decided to set the values and policies for supplier. Apple also mentioned that it was hidden from company’s internals that due to lot of issues for child labor and other issues at supplier’s side, it was not producing any report as such. As per Apple’s recent report Conducted 451 audits at all levels of our supply chain, a 51 recent increase from 298 audits in 2012.
Apple also released, for the first time, publicly released more than 100 pages of comprehensive requirements behind our Supplier Responsibility Standards for the first time (Apple website, 2014). Impact of Ethical Responsibilities Violations As proved that ethical and social responsibility violations have been published, also lot of social activist and media also involved to get this coverage. Due to this Apple has very bad time and their image got heart very badly. In this case not only in the way that it is now conducting business, but also on
Apple’s reputation. In the past, Apple has been considered as very advance Technology Company and work on cutting edge technology with innovations, social responsibilities and going green with environmental responsibility and ethical and social responsibility to its workers. As we know Apple is really good in advertisement and showing outside world that image of innocence and very honest company. While this was the popular view on the company, “when it comes to business ethics, Apple is a follower, not an innovator” (Hawthorne, 2012).
As per recent report The Apple Supplier Code of Conduct incorporates he following areas: labor and human rights, health and safety, environmental impact, ethics, all with management commitment as the foundation. It is great that Apple released this report, especially of their own volition. However, although their transparency is good, the findings of the report aren’t so good. Unfortunate findings include: underage labor, air emissions, and bribes, to name a few. (For details, please see the report. To fix some of its supplier problems, Apple has a corrective action process cycle which includes an audit and a review of any violations. Afterward, it develops a corrective action plan and implements that very plan. Lastly, the company verifies completion of corrective actions, and the whole cycle starts again with another audit. In some instances, Apple works with the facility to make things better. In others, it severed business relationships. Child labor is something that we frown upon. Surprisingly, 49 underage workers were found across 9 facilities.
With these facilities, Apple “required the suppliers to support the young workers’ return to school and to improve their management systems?such as labor recruitment practices and GE-verification procedures?to prevent recurrences. ” Furthermore, in another facility, 42 underage workers were discovered. Although Apple required the similar corrective action, it was deemed that management of the facility was acting in bad faith. The facility choose to overlook the issue and not address the problem.
In this case, Apple terminated business with this facility (Trepidation, 2012). But there’s a human cost to outsourcing to countries with lax or non- existent labor laws. Suppliers often hire and fire thousands of people at a moment’s notice to meet production quotas, press them to work excessive overtime that leaves workers exhausted and clinically depressed, and skirt around health, safety and environmental concerns. All of which leaves an ugly stain on the corporate social responsibility credentials of the companies that use their services.
Impact of Social Responsibilities Violations As per media report its comes out publicly that Apple is doing violations into his social responsibilities towards society and employee, suppliers workers. Numerous cases of suicide at Foxing have raised public awareness of the social responsibility Apple should bear as a huge mufti-national corporation ND a highly popular brand. In response to criticisms made by Nags and the mass media, Apple published the Global Suppliers Responsibility 2011 Progress Report. In this post, we would like to summarize Apple’s report and take a look at how Apple presents its social responsibility. Phone project, 2011) Apple claimed “social responsibility is fundamental to their way of doing business”. Regarding suppliers, it said all of them are required to “provide safe working conditions”, ‘treat workers with dignity and respect” and “use environmentally and responsible manufacturing processes”. The Apple Supplier Code of Conduct involves five areas: Labor and human right, health and safety, the environment, ethics and management commitment. Apple said it would monitor the social responsibility performance of its supplier and terminate business with those who fails to meet Apple’s expectation consistently.
Methods for Wage and Benefits Standards Adherence Independent/Contracted Auditing Company Apple could take few strategies like implement equal opportunity and equal wages and benefits to suppliers and their employees. I do feel that as per first strategies that they should get or contract independent auditing company which has reputation and clean image in industries.. Also they will provide the real reports to Apple on how and what needs to improve as per their current condition or current implementations.
This would allow independent auditor to provide the clear and base report to independent company to make sure Apple do follow the clean and clear approach to do this auditing process. Survey of supplier’s employee – Second suggestion I would like to share is Apple should take the survey from different supplier’s and factory worker or employee and not like reconfirmed r scheduled, they should take it randomly and also while taking survey they should tell each participant guarantee that their names will not be disclose and no impact on their jobs.
So while giving the opinion employee will be not any pressure from managements or any other sources. The workers would fill out anonymous survey forms and hand them directly to Apple auditors so that the employees can feel comfortable that it is confidential. I would feel using this two different strategies Apple can improve their conditions on suppliers. Customers’ Willingness to Pay More As of current situations for Apple’s supplier’s conditions, need to be improve, also their factories and employees conditions need to be improved. The fact that Apple needs to improve its conditions in its supplier’s factories conditions.
To improve the overall functionality at supplier’s place, company will be needing few millions of dollars to do. Despite of it, Apple is already one of the most expensive brands in US and all over world. When it comes to the price of its Smart phone where Apple dominate the market, yes they are the most expensive one even if used or old Phone. Same way it is very expensive for pads compare to other tablets available into market as of now. Same way I would say for Imax or Mac book, when it comes to PC or laptop. Apple has even found a way to charge for customer service phone calls, something than most other companies do not charge for.
Being an apple customer is very pricey. Still feel that Apple should not raise any price for the product. I still feel due to this second reason that Apple would not be able to charge more for its products and services is because the company is already one of the most profitable companies in US. When many posts profits of over $13 to 14 billion, world will not believe or accept that the company is really in need of money to increase its prices in order to pay for mandatory upgrades and to provide better wages and working conditions for its supplier’s employees.
I think even making those small changes will not cost around 10 to 15 million over all, by Apple. This means the company would still have enough profit annually. So I do feel this is not a case where Apple should increase the price of any of their product as their profit margin is already high compare to competitor products. Apple’s Marketing Strategy loud say to succeed any business, marketing strategy play a significant role to sale the product or market it. Similar way Apple is doing very well in his marketing strategy, and due to its unique marketing strategy and tech tics.
Majority of apple product like its computers to the pod, the Phone, and the pad. As we know Steve Jobs was dropped from Apple, the company he started. He had revolutionized personal computing and created an iconic brand – only to be forced out of the company he had built into a billion-dollar colossus. “l was out and very publicly out,” he recalled in a commencement speech at Stanford University. “What had been the focus of my entire adult life was gone, and it was devastating. ” He added, “l was a very public failure. As per (Forbes website, 2013) When Apple, Inc. (then Apple Computer, Inc. ) incorporated in January 1977, its investor/advisor, Mike Markup, assembled a 3-point marketing philosophy. Amazingly, thirty-five years later, this philosophy remains at the core of what makes Apple so effective at creating and profiting from loyal customers. This, in my view, is the definition of a strong marketing capability. Here are Apple’s original three points: 1. Empathy 2. Focus 3. Impute. If you think you have seen Apple advertising their Phone products you are mistaken.
What you have actually seen is some other company advertising Apple’s products for them. Apple are so clever that they have actually managed to get other companies (mainly mobile phone operators) to pay for, and execute advertising for them. Apple Phone ads are in fact paid for by a network operators who want to advertise that they sell the Phone. When operators want to tell the world that they sell the phones, not only do they pay the bill but Apple slaps a fat stack of trick branding restrictions on the operators that dictated how the ad must look and what information it can contain.
Hence why all ads for Apple products look the same. (businesswoman’s, 201 3) You might think that mobile operators are stupid for what is effectively paying for Apple’s advertising but what choice do the networks have? Apple is the bestselling smartened year after year. If an operator wants to get a bigger slice of the ‘Apple’ pie, they need to advertise that they have it. And they can’t advertise Apple’s trademark without conforming to Apple’s branding guidelines.
Recommendations to Improve Competitive Advantage Continue Innovation and expand their field to Medical and research – I recommended that Apple should continue to focus on their innovation and product to bring to the industry with more innovative and socialistic message. Apple should focus on the individual, Apple should incorporate the fact that it is working hard to be a good corporate to provide their employee and supplier’s employee a good life they deserve. This will expand on the value of not just the products, but on the value of the company as a whole.
Also Apple should do ore responsible on social and ethical values towards their employee, towards their suppliers and social responsibilities towards society. Apple should make sure that they would be able to tackle two hurdles with one campaign. Another suggestion I would like to give Apple that they should lower the price and provide the product quality with same way they are maintaining. This will allow lot more people in society to get good product in good price which can improve their life. Lower the Price and Take Best Product to Society – This way Apple can help communities and society for good will.
I would suggest that Apple should make their product cheaper, so majority of the people in the world can take that advantage and can use best technology and innovation to their daily life. This can only happen if Apple reduce their price to meet the majority people’s requirement while reducing the price. Also Apple should give fare price competition to the other product line also. I recommend that they should also invest into medical research and take their perfection to those professions also so more and more customer can take the advantage of using best products available into market. Conclusion
As we know that Apple fail to follow the ethical and social responsibility with their supplier and factories. Apple suppliers, particularly in China have not been up meet the standard requirement which supposed to maintain as per social and ethical responsibility towards employees and suppliers and their factories. Since this news has come to light, there has been response and comments from the media, civil activists, and consumers, social activists. Despite of facts that now Apple in this position, and have an opportunity to address the issue head on and ensure that conditions improve and keep improving in feature.
Apple should be more active towards their social and ethical responsibility towards their supplier and employees and factories to meet the criteria towards social goal. Also if they decrease the price and try to invest into few professions like medical and research it would be really good returns to community also.
