Question:
Discuss about the Corporate Social Responsibility Policy of Apple.
Organisational ethics can be defined as a way in which organisation’s responds to external and internal environment. Various guidelines and principles are included in organisations workplaces that are decided by individuals or managers of the firm. Ethics can also be interpreted as a code of conduct followed by people working in an organisation. Making profits is the chief reason behind forming any company and to make money by unfair means is not permissible. For firms, individuals should be the first priority and no employee should be manipulated to get good results. Data modification is also taken as unethical conduct and is considered as theft in corporate world (MSG, 2017). In long run of organisation’s ethical dilemmas might take place in which perplexing situations among people takes place. The dilemmas mostly take place due to divergence in individual thoughts and fundamental nature. The confusing situations arising in workplaces are sometimes hard to justify and making necessary steps against it becomes difficult. In workplaces, dilemmas are happened quite often due to conflicts in ideology of employees and managers. The reason behind such dilemmas can be several like cultural differences, data infringements, child labour, incompetent payroll, incapable management, biased decisions, etc (Hewege, 2012). While unethical performance is made, it becomes duty of the management to look into the matter and undertake necessary steps against it. In this essay similar dilemma faced by one of the most renowned company’s manufacturing unit of Apple Company at Foxconn will be discussed (Dawn, 2016). In order to make detail examination of the situation, two theoretical concepts will be discussed along with making an evaluation of those theories and how they could influence managerial practice in Apple Company. To assist the managers, critical reflection will be made in conclusion so that leaders can make decisions ethically.
One of the most popular MNC is Apple whose headquarters is situated in America. It is also world’s second leading IT Company after Samsung ([Case Study]-Apple vs. Samsung: A Battle of Marketing Relevancy, 2017). The company specialises in developing and designing computer software and computers. Popular mobile phones such as iPods, iPhone, ipad, etc. are all manufactured under the brand of Apple. Presently the CEO of the company is Tim Cook who was appointed in the year 2012 by Steve Jobs (Rawlinson, 2017). The article recently reported that the CEO had made immense profits for the company with his expertise and firm dedication. The CEO is said to be creative and innovative and had added cash reserves of over 90 billion dollars in the company. Soon after the new CEO was appointed, an ethical dilemma happened in Chinese manufacturing sector of the company in which employees protested against working conditions. Few even committed suicides and others threatened for the same. Foxconn is one of the leading manufacturers of Apple who supplies finished Apple products for the company. The recent dilemma faced in factory premises where employees threatening attitude for suicide had made colossal situation for Tim Cook (Elmansy, 2017).
The workers at Foxconn faced unethical working conditions in the working areas of one of the biggest electronics manufacturing unit. Around 150 workers threatened to jump from the roof of the building if their inconsiderate working conditions were not improved. One of the Chinese Community party’s officials and managers were able to convince the workers to abort suicide and get down the roof for settlements. After two days of endeavour, the workers came down (Pierce, 2017). Apple is a global company and work pressure there seems to be high. The company was unable to give stress on Foxconn issue and the CEO focussed more on introducing its products and making profits (Vincente, 2015). To fulfil the demands of customers had been the prime target of Tim Cook and thus working hours were doubled for Foxconn factory in China. The company here lacked corporate social responsibility and tried to make profits against responsibility towards individuals. To show CSR only in company’s brochures is not enough and is considered vital for smooth running of business (Apple India Private Limited, 2016). Nowadays people are getting concerned regarding socio economical factors and hence avoiding conflicts has become important so that financial merits are not hampered. The situation at Foxconn is one of the examples which shows negligible CSR of companies and nevertheless managers pretends to assure their responsibility, many of them lacks social ethics. Tim Cook focussed more on its supply network to achieve the company’s goal but lacked to look over its manufacturing sectors. The investigations made by several newspapers were successful in highlighting the workers problem of Apple Company. The circumstances at Foxconn were not because of one reason or developed overnight but the problem had started since the year 2010. On that particular year more than eighteen employees committed suicide out of which fourteen died on spot (Brightkite, 2017). The main reasons behind such conditions, as told by employees working there, was low wages, inhuman treatment, long working hours and bias managers. The managers here are expected to take initiatives and embrace ethics.
The company’s shares increased and reputation of Apple reached high ends in around 2015 and company’s financial results were seen above expectations. The investigators focussed more on company’s merits rather than looking into other issues as a result the company’s profits were benefitted from cost of employee’s life and those working at Foxconn (The Telegraph, 2017). The success of Apple in terms of finance and product quality cannot be overlooked but the ethical deficiency carried by the company is also important to be looked at. The way managers of the company handled its ethics and employee’s welfare had been covered by social Medias recently that are influencing the perceptions about Apple Company which is also affecting the company’s economic success. However, New York Times magazine has identified that the Apple Company is working on taking initiatives towards preventive measures and reducing the working stress. The company made a report for its suppliers representing a portion of company’s supply chain. The company registered itself under Fair Labour association and became first IT Company for making such decision (Apple Inc., 2017). The company also made environmental groups and implemented labour rights while permitting its staff to work under fair conditions only. The incident that occurred in Foxconn factory gave company an opportunity to take preventive measures regarding social matters rather than financial issues. The CEO handled the situation very commendably and was able to deal with the issue professionally. Mr. Cook followed every protocol recommended to him and made advancement while dealing ethical dilemma at workplace (Dormehl, 2017). He evaluated the appropriate theories that could be applied to identify the root cause while making suitable decision. The CEO took steps in order to improve the working condition at Foxconn, as reported by the company. A non profit making organisation situated in America, The Fair Labour Association also claims that Apple Inc. had fulfilled all necessary working requirements in its factory premises of iPhones and iPods at Shenzhen and Chengdu (Background Of Case Study Apple Inc, 2015).
The employees however do not seem to be contended and claims that proper solution has not been made to improve their work culture. They claim that organisation is bothered only about making profits and targeting their goal without giving reason for motivation among employees so that they could work with full aptitude. The company had enabled their work premises with additional recreation tools like tennis courts, television, swimming pools, interest clubs, etc. but the workers find them useless as they are unable to utilise them due to their excessive work load. The factories lacked necessary preventive tools as incidents were reported by employees that occurred in factories. In one of the factory fire broke out and other time poisonous gasses were spread inside the factory that choked many people (Lei Guo, 2012). Medical facilities also seemed inefficient at the time of disasters which brought rage in feelings of workers as they became sick due to inappropriate working conditions (Merchant, 2017). Apple Inc is one of the biggest MNC’s in the world and to maintain responsibility towards its stakeholders and entire business market is very significant for the company. With exclusive supply chain network and availability of products globally has made the company gain reputation and loyalty among customers. Thus it becomes necessary to maintain ethics and CSR while delivering enhanced consumer service along with giving fair returns to its shareholders. In order to examine the topic further two theoretical concepts will be utilised in this research paper.
In businesses ethical theories have always provided an enormous foundation while making judgements regarding ethical contents in work action. The basic fundamental theories that could provide assistance in case of Apple Inc are Deontological and Teleological theory. The two theories will help in considering the situation and derive different conclusions respectively. The significance and possible outcome of actions can be focussed while applying teleological theory. This theory is widely used in business context and public relation policies. Utilitarianism comes under teleological theory which states that actions made by employers seems good if maximum number of people feel contended or satisfied (Business Jargons). Thus it can be said that if a decision is fair; the end will automatically become fruitful. Eudaimonism in teleological theory states that action made by companies seems good if the goals are fulfilled along with maintaining public welfare. The promotion of trends and profiteering is enabled after fulfilling individual contentment is considered as an example of sound ethical base.
Deontology theory in ethics focuses on aptness or incorrectness in actions as opposed by others during the course of action towards the work performance or any individual (Mastin, 2008). Thus major work of deontologist is to make out whether the situation is fair or worse depending on the action and that the claim is correct or not. The moral obligations will always give priority to good actions and confirm moral ethics in its undertaking. In other words deontology deals with those ethical actions that proves good in the terms of society and is made without justifying their consequences regarding ultimate goals. The outcome of this theory always gives well results when talking about individual morale. The action taken is normally in favour of workers before considering corporate factors. Divine Command theory in deontological theory states that any moral action made by people is important as it is obligatory to perform actions ethically. It is duty of individuals to perform their part of responsibility with integrity in providing better moral action for society. Natural Rights theory states that the ethical theory gives rights to individual to work under fair condition and if it is exploited, people may demand for changes. This theory gives rights to the people to develop their transit and tradition after incorporating ethical laws (Mastin, 2008).
In case of Apple, the contribution made by the company in technological and supply chain has impacted the entire world significantly. However, ethical part in the company is found missing. The CEO of the company made profound decisions that made the company in top position in market but only if he could make extra effort in managing workplaces could have helped the company come out of the dilemma. The company lacked ethics and morals and thus faced issues regarding it (Lei Guo, 2012). The case of Apple Inc can be classified into deontological approach. Initially the company used to think about excessive working hours along with child labour and other issues relating health and safety. The increasing approach by social Media’s exposure regarding ethical behaviour had made company look more into its publicity impacts that may prove negative on share prices and revenues. With increasing pressure on workers and supply chain the company witnessed rise in audits and share prices and became close in accomplishing its objective. According to authors, any act towards fulfilling goal should be ethical and conditional or else it is considered as unlawful act (MSG, 2017). The suppliers of Apple always suffered ethically from Apple Company and since Asian regions had low bargaining power, they had to bear ethical force. Since Asian regions production costs are cheaper, the company tried to make utmost supply out of it and under no condition was ready to reduce its business (Firstpost, 2017). The act which the company followed is not accepted universally and the case of Apple shows that the company discriminated between their own employees and outside suppliers. The company was also reported to involve chid labour in its manufacturing unit which is again unacceptable case principally. Therefore it can be said that although the company was successful in implementing utilitarianism but deontological approach seemed unsatisfactory.
The CEO and the management of the company should take more care of their labours as the company is highly depended on them. The satisfaction and basic demands of employees shall be taken care of by the company including health facilities and enhanced working conditions. If these are not met, the company might have to face future troubles (Hewege, 2012). Here the company can apply consequentiality approach that may help the company to control the situation. The CEO needs to understand that increasing employees satisfaction always increase their work capability and maximise returns gradually. The decrement in job satisfactions loses the enthusiasm among employees and tendency to work is reduced along with reduction in product quality. The working condition of Foxconn as reported had unpleasant working conditions and thus created ethical dilemma which regulated the reputation of the company. If such working conditions are not enhanced, any positive decision may not seem accomplishing and also will not bring positive changes among employees. More worse the situation becomes will bring in more media attention and hence only inconvenience will be created in growth path (Dormehl, 2017). Nowadays people are getting more concerned about social welfare and CSR of organisations. If the consumers comprehend that the manufactures works for the company at the price of their living, it might become unbearable for them. As a result Apple might lose its important clients and customers which will automatically hamper company’s approach towards forming a sustainable position in market. The management system of the company thus requires undergoing constructive change in order to avoid future issues (Sin, 2016).
The management system at Foxconn has weak leadership control as it is seen that the leaders were unable to handle the situation at the beginning which increased to such an extent that made suicides in the premises of company. Foxconn requires leader who is more bureaucratic in control and possess a quality that could balance company’s requirement and labour demands (Bilton, 2014). Trust between managers and employees are the base of any company along with sharing responsibility. The ethical concepts demands the company to treat people as individuals and not like machines and thus the administrators are demanded to be superior in conducting moral ethics. If such ethical strategy is adopted in Foxconn, quick flow in decisions can be seen and closeness between authority and workers might solve the current issues. Training programmes can be introduced at Foxconn that might help workers in understanding latest techniques as well as different ways through which they could complete their job faster. Presently the dictators of Foxconn treat employees as slaves and despite getting such behaviour, no employee had ever tried to lawsuit against the company. Under the Labour Law of China, all the possessions and ID cards are kept by the company which are not returned back to their families even if they demand for it (Bilton, 2014). This again proves unacceptable law and justifies ethical dilemma faced by Apple Company. If any workplace is constructed without ethical presence, it becomes duty of leaders to rectify it and failing such, the organisation might have to face bad publicity in front of public and corporate world. Ethics refers to those moral principles that motivates people and creates moral development which can be seen in the operations of businesses. The best leaders are the ones who ensure bondage between employees and employer (Mastin, 2008).
Conclusion
After analysing the situation of Apple Inc in the above essay, from multi perspective view, it can be said that the Foxconn specialises in making utmost profits and generating sufficient amount of production. But the ethical issues as commented by its employees show that the company lacked moral principles and treated its workers as slaves (Brightkite, 2017). Foxconn has been able to implement bureaucratic and scientific management theory which made its workers work like machines and not like humans. This intolerant nature of the management had made many of its employees fall sick and even aroused suicidal instinct in them. The new CEO of the company had been under great pressure as the long running ethical dilemma needs to be corrected immediately or else the entire organisation might have to suffer immensely. MNC as huge as Apple loses its ethical conduct is something shocking for the nation as such companies is taken as examples of successful entrepreneurs. Thus it becomes very essential for the CEO to rectify the issues and make decisions that provides development for improved tomorrow (Elmansy, 2017). Leaders are entitled to make decisions after focussing on employee’s satisfactions and core development keeping aside personnel sentiments and profiteering nature. The above essay had given a detailed view on the organisation’s managerial incapability and about workers dilemma in a company. The two theoretical concepts discussed from management ethics had examined the dilemma crucially while making close evaluations of situation. The recommendations made in the essay might prove beneficial for the managers of the Apple Company and ensure that further decisions made by them are more based on ethical grounds. Thorough literature on key perception of management and leadership theories and significance of ethics in business had been studied that might result in costing ethical dilemmas in companies.
References
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