Corporate Social Responsibility Of Apple Inc. In Sustainable Development

CSR Initiatives of Apple Inc.

Apple Inc. is an American technological company that designs, sells and develops consumer electronics, online services and computer software. The hardware products includes the iPhone line of smartphones, iPad tablet, mac personal computers and many more. The software includes the iOS operating systems, iTunes media player and Xcode. As a multinational and the biggest company in the world it has been tasked to provide corporate social responsibility as a best practice. Tim Cook, the current CEO, has elevated the standard of corporate social responsibility in Apple (Cheng,, Ioannou, & Serafeim, (2014). It wasn’t as though the company was socially irresponsible under the leadership of Steve Jobs the former CEO and founder. Apple cared about the environmental impact and reported this on a product level. Trust is the state of the subject’s inner world, determined by the desire for a relationship, characterized by the willingness to transfer certain rights and corresponding objects to other free subjects. The loss of trust in the market conditions characterizes doubt in the ability of the subject to meet the expectations (primarily economic) of counterparties.

Apple Inc. has invested large amounts of money since 2011 in ensuring that it is in the map in sustainability. This are some of the inititatives

• The company partnerd with conservation fund to protect more than 36,000 acres of sustainable forest cover in North Carolina. It has ensured that more than 13000 tones of wood has been harvested responsibly.
• In 2017, it donated 1 million dollars wildlife recovery efforts in southern California
• Raised more than 3 million dollars in support of the Hurricane Harvey in August 2017.
• Also support reduction in CO2 emission by providing portable electric car chargers to more than 550 employees.
• Supports gender equality and encourages empowerment of the marginalized groups
• Its 2013, clean water program has seen more than 8 billion gallons of water saved by suppliers.

Apple inc works with many stakeholders. They include the;

1. government in conservations through various government agencies like the forest services.
2. Charitable organizations like hurricane hurvey trusts
3. Other non governmental ogernizations

Apple Inc has a good internal culture that enable CSR within the organization. CSR, acting as an integral part of an organization’s anti-crisis strategy, ensures its sustainable development. In its normal operation, any organization (company, firm) has certain connections with customers, suppliers, personnel, etc. Moreover, if it falls into a crisis situation, then many of these ties, being fragile, will simply collapse. This happens because business partners and employees of the company no longer trust her, doubting her ability to emerge from a crisis, etc (Epstein, 2018).

For apple, The relationship of the organization with other economic actors, where the basis of socially oriented behavior are only economic motives. The relationship of the organization with other economic actors, where the basis of socially oriented behavior are only economic motives and the position of others, which, in turn, sets a certain character of interpersonal relationships, primarily in the framework of joint activities (Frynas, & Stephens, 2015).

Communication – the relationship of community, coherence. The links between the elements of the system can be rigid (they are usually in technology) and flexible, changing in the process of the system functioning (they are in living beings, in the economy, in society), as well as direct and indirect. If you stick to its position, then everything is quite clear: you and, accordingly, your company become economically unreliable in conditions of insolvency.

Importance of CSR in Modern Companies

Firstly, the implementation of CSR as the main goal of an organization involves not receiving and increasing profits, but preserving and developing one’s business in the public interest. Achieving this goal orients the manager not only to the state of the company’s internal environment, but also to the external one. So partners (consumers and suppliers), competitors are considered as people with whom the interaction is built on the principles of mutual assistance and mutual assistance (McWilliams, 2015). 

Secondly, for many companies including apple, the main reasons for implementing social projects today are improving the company’s reputation and, consequently, increasing sales and profits, however, these motives for implementing CSR are contradictory: improving reputation, increasing sales and profits are only a favorable consequence of socially responsible behavior. The impetus for the adoption and implementation of the concept of CSR should be the desire of owners and heads of organizations to develop the business begun, creating a benefit for society, and not seek ways to invest in the most profitable way.

Thirdly, the isolated development of the Apple Inc. today is almost impossible, since it is an open system. A modern entrepreneur should focus on the development of the business and infrastructure of the local community.

Sustainable development and corporate social responsibility have become the most important tools for managing the activities of modern companies. Indicators of sustainable development have wide practical application (Schwartz, 2017). . They are used to form a portfolio of socially responsible investment, financial instruments and products, identify leaders in the field of sustainable development, compare best practices of various companies, and assess the profitability of portfolios of socially responsible investment. Indicators and indices of sustainable development are calculated.

Under the Carrols CSR pyramid, Apple Inc. has a simple framework which helps in explaining why the organization should meet the societal responsibilities. According to Carrols pyramid, Apple Inc. CSR has the following characteristics

• CSR is built on the profit basis and profit must come first
• To ensure that the CSR complies with the regulations and laws when it comes to the core business of the company
• Ethical duties must be met first before the business goes to the philanthropic option.

Four responsibilities are displayed on the pyramid. They include; 

Economic

• It is the fundamental duty of any company to run a profitable business. it is the responsibility of Apple to be profitable
• Profitability is the only way that Apple can survive in the long term and benefit the organization in the long run.

Legal

• This is the responsibility of Apple to obey the rules and regulations in relation to the company undertakings
• They include, employment, competition, safety & Health

Ethical

• This is the responsibility of apple to act ethically and morally
• With the responsibility, the business should go above and beyond the requirements set by the law
• In ethical responsibility, it is also how the company treats its stakeholder like employees and suppliers.

Philanthropic

• This is the core CSR duty which is the responsibility to give back to the society.
• Although the responsibility is discretionary, it is still important
• Philanthropic duties include charitable donations, contributions to worthy courses and staff time on projects(McWilliams, 2015).

Strengths

• The model of CSR should be easy to understand. Apple Inc. has one of the of the most easiest CSR programs.
• The CSR should have a simple message – Csr has more than one element
• The CSR program emphasizes the importance of profits to an organization

Weaknesses

• Sometimes, CSR programs are perhaps too simplistic
• Ethical responsibilities and duties should not be at the top
• Businesses sometimes don’t do what they say and claim when it comes to CSR

Apples mission has always been to change the world. It is what inspires the innovations and manufacture of amazing products that are bought by hundreds of millions of people in the world. In 2017, the company unveiled its 11^th annual environmental impact report which highlights the impact of the company’s undertaking on the environmental objectivity(Tai, & Chuang, 2014).. The challenges that the company faces are complex, however, the philosophy behind it is very simple. The environmental impact will apply the same innovation that goes into making the apple products innovation. Apple Inc. and its stakeholders believe that there are three areas of priorities where apple can make the biggest impact

1. Climate change- using renewable energy and using product efficient energy in apple products, supply chain and facilities. The company aims at reducing the impact of climatic change on the environment.
2. Resources- it is the aim and the objective of the company to provide conservation of precious resources so we can thrive.
3. Safer material- Apple Inc. has set ambitious goals set but are measurable and develop smart solutions. Apples work in reduction of greenhouse gas emissions is a great example. It is the pioneer of safer use of materials, products and processes.

Methods Used to Measure CSR

Apple Inc. has used more than $2.5 billion dollars after the US withdrew from the paris agreement by issuing the $ 1 billion green bond for environmental conservation processes. The bond was oversubscribed and raked in $ 2.5 billion dollars.

Since the year 2008, the average energy consumed has reduced by 68% on apple products. The company continues to make advancements in the area of carbon reduction and creating more products that are energy less consuming(Tai, & Chuang, 2014).. The efficiency of the products manufactured by apple are consumes 96% less products compared to other products.  Example is the 12 inch MacBook that is energy efficient and uses less than 0.5 watt in sleep mode. Charge of iPhone X is 75% more efficient than other devices and that is the impact of carbon footprint really adds up.

Sustainable development and corporate social responsibility have become the most important tools for managing the activities of modern companies. Indicators of sustainable development have wide practical application (Schwartz, 2017). . They are used to form a portfolio of socially responsible investment, financial instruments and products, identify leaders in the field of sustainable development, compare best practices of various companies, and assess the profitability of portfolios of socially responsible investment. Indicators and indices of sustainable development are calculated.

For Apple, sustainability has been at the core of its objectivity. Environmental sustainability has been big and it has majored on reducing energy consumption by apple products and reducing greenhouse gas emission. environmental impact will apply the same innovation that goes into making the apple products innovation. Apple Inc. and its stakeholders believe that there are three areas of priorities where apple can make the biggest impact(McWilliams, 2015). 

The most popular method for assessing the level of sustainable development of the company using the Apple Sustainability Index (DJSI). The values ??of the index are published since 1999. It is calculated on the basis of a system of weights for various qualitative and quantitative indicators in three areas: 

• economic impact. The effectiveness of corporate governance, the development of the system of anti-crisis and risk management, compliance with the code of business ethics / counteraction to corruption;
• Impact on the environment. The quality of environmental reporting and reporting in the field of sustainable development is assessed; 

• social impact. The development of human capital, attracting and retaining talented employees, labor relations, corporate social responsibility and philanthropy, social reporting are assessed.

The methodology for assessing the Apple Sustainability Index provides for the following procedures: analysis of corporate records (financial, annual, environmental, social and other types of public reports); Investor relations – IR), an overview of media information and the collection of feedback from stakeholders on the company’s activities (Suliman, Al-Khatib, & Thomas, 2016).

• economic, taking into account capital and operating costs, taxes, dividends, social investments, profit;
• Indicators characterizing the environmental impact, such as: pollution, including pollution from the end products produced by the economic entity; change of landscape, impact on biodiversity, occurrence of interference (eg, smell, noise and visual impact), waste generation;
• Indicators of impact on society. For example, the social benefits of creating jobs, given the possible health and safety implications(Tai, & Chuang, 2014).

Conclusion

For Apple Inc. environmental sustainability is key to what the company stands for. Apple inc. has cared primary about the emission of carbon to the environment. Apple cared about the environmental impact and reported this on a product level. Trust is the state of the subject’s inner world, determined by the desire for a relationship, characterized by the willingness to transfer certain rights and corresponding objects to other free subjects. (Yakovleva, 2017). 

References

Cheng, B., Ioannou, I., & Serafeim, G. (2014). Corporate social responsibility and access to finance. Strategic management journal, 35(1), 1-23.

Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.

Frynas, J. G., & Stephens, S. (2015). Political corporate social responsibility: Reviewing theories and setting new agendas. International Journal of Management Reviews, 17(4), 483-509.

McWilliams, A. (2015). Corporate social responsibility. Wiley encyclopedia of management, 1-4.

Schwartz, M. S. (2017). Corporate social responsibility. Routledge.

Suliman, A. M., Al-Khatib, H. T., & Thomas, S. E. (2016). Corporate social responsibility. Corporate Social Performance: Reflecting on the Past and Investing in the Future, 15.

Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.

Yakovleva, N. (2017). Corporate social responsibility in the mining industries. Routledge.