12 Apr 2022

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Challenges in the Global Business Environment

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Apple stipulates that all its employees working in its supply chain are entitled to an ethical and fair working environment. The company also states its belief all staff deserves to be treated with a great deal of respect and dignity. The suppliers are therefore required to treat Apple’s workers in a humane and accepted manner. The Supplier’s code of conduct also entails a new antidiscrimination clause that serves to communicate the company’s stance that its suppliers are advised against any form of discrimination against Apple’s employees regardless of union membership, gender identity, sexual orientation, religion, race, political affiliation, national origin, marital status, gender, ethnicity, disability, age or any other precincts under the protection of the law, while carrying out employment duties or during hiring (Andersen & Skjoett-Larsen, 2009). Another change in the Supplier’s Code of Conduct is that suppliers are barred from asking for medical or pregnancy tests with the exception of necessary workplace requirements or where applicable regulations and rules. Nevertheless, suppliers should not make biased judgments on the basis of test results.

Besides, there is a change in guidelines related to the abuse and anti-harassment clause. The supplier is strictly expected to ensure and abuse and the harassment-free working environment. That said, suppliers should not engage in any form of sexual harassment, physical and mental coercion, psychological harassment or verbal harassment and abuse.

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In light of the prevalent modern-day slavery, Apple has proposed its stand regarding prevention of human trafficking and involuntary labor. Under the clause, suppliers are expected to use a voluntary labor force only. They are strictly not to be involved in any trafficking or individuals or utilized prison, indentured, bonded, forced or slave labor. One bold change is that Apple makes it clear to suppliers what it regards as involuntary labor- employment, receipt, transfer, recruitment, harboring, and transportation of individuals by using fraud, abduction, coercion, force, threat or payments of any kind involving the proposition that one has control over the other for exploitation purposes.

Over the years, Apple not been very specific and directs about its stand on workers’ documents as relates to suppliers. However, its 2016’s Supplier’s Code of Conducts commands suppliers not to seize employees’ travel and identification documents issued by the government. Suppliers are also called upon to ensure that the employee contracts they provide to workers are written in a language that can be clearly understood by the workers. Although include in previous codes of conduct, the restrictions placed on workers in the 2016 version has taken the shape of free movement of the worker within the workplace or during entry and exit of the company premises. Furthermore, suppliers are instructed to make sure the third-party organizations it uses are in compliance with the requirements of the law and code thereof. Suppliers carrying out the recruitment of foreign contract workers are expected to pay for all the expenses and fees related to the recruitment process.

It is also apparent that there has been an apparent change in Apple’s standpoint on the issue of underage labor. The main stipulation in the clause is that Apple requires suppliers to give hire the services of persons who are beyond the age of 15 years or higher depending on the prevailing legal age. One of the main changes in this clause is that suppliers may offer “legitimate workplace apprenticeship programs for an educational benefit that are consistent with Article 6 of ILO Minimum Age Convention No. 138 or light work consistent with Article 7 of ILO Minimum Age Convention No. 138” (Rothlin & McCann, 2016).

Another change that has been witnessed in Apple’s 2016 Supplier’s code of conduct is in the clause regarding the protection of juvenile workers. Apple contends that supplier may give jobs to juveniles who have attained or surpassed the applicable legal minimum age yet are not past 18 years of age only if their morals, safety, and health are guaranteed as provided for by the International Labor Organization’s Minimum Age Convention number 138 (Oehmen et al., 2010). Another statement not included in previous Apple Supplier’s Codes of Conduct is that juveniles are not supposed to do night work or work overtime.

Moreover, Apple has made another change to its stance on students’ internship conditions. For example, suppliers are required to ensure student workers are properly managed by keeping their records in good condition, adhering to best practice with educational partners, and protecting the rights of students according to applicable regulations and laws. Apple also states that suppliers should offer appropriate training and support to all student workers.

Apple has also made it clearer that suppliers are supposed to comply with the 60 hours a week regulation. Employees are also entitled to one day off per week with the exception of unusual situations o emergencies. Each employee is not supposed to work beyond 48 hours in a work week. The supplier is therefore called upon to adhere to all the applicable regulations and rules in relation to days of rest and working hours. For example, Apples declares that all overtime work should be purely voluntary.

Regarding benefits and wages, Apple has implemented one particular change; suppliers are now expected to make sure that employees get their legally authorized minimum wages and benefits. Furthermore, suppliers are required to provide workers with leave periods, vacation time and legally documented holidays. Suppliers are required to provide compensation for workers during overtime according to the legal premium rate. Apple marks a new statement in its Supplier’s Code of Conduct by requiring the suppliers to communicate the pay periods and pay structure to all employees. They are also required to pay precise salaries and wages without delay. Apple also restricts suppliers from using wage cuts as a form of disciplinary action. Suppliers are also supposed to use outsourced and temporary labor in accordance with the local law.

Under health and safety, the main changes are as follows: Apple requires its suppliers to identify, analyze and take care of occupational safety and health dangers via a certain hazard elimination process, administrative controls and/or engineering controls. Suppliers are expected to offer employees personal instruction and functional protective equipment related to the specific occupation. In the clause dealing with emergency response, preparedness and prevention Apple stipulates that suppliers should carry out identification and assessment of possible emergency situations. For example, suppliers should come up with and apply emergency responses and plans that serve to reduce harm to property, environment, and life. “To the extent that Supplier transports goods for Apple into the United States, Supplier shall comply with the C-TPAT (Customs-Trade Partnership Against Terrorism) security procedures on the U.S. Customs website at www.cbp.gov (or other website established for such purpose by the U.S. government)” (Rothlin & McCann, 2016).

As far as incident management is concerned, suppliers are required to have a framework in which workers can report safety and health near-misses and incidents together with one in which the investigation, tracking and managing of such reports can be performed. As a new move, Apple states that suppliers should take up action plans aimed at reducing risks, providing needed medical treatment, and contribute to return to work by employees. Another clause that has been added to the Apple Supplier’s Code of Conduct is the ergonomics clause where suppliers are shunned from promoting worker activities that involve repetitiveness, incorrect lifting positions, and the use of excessive force. More so, Apple has augmented that suppliers ought to integrate the basic concepts of identification, analysis, and control of employee exposure into the qualification of all modified or new workstations, tools, equipment and production lines.

In relation to worker safety and health committees, Apple requires suppliers to start initiatives and safeguard worker safety and health committees in order to promote the prevalent safety and health education as well as to foster the involvement of workers in safety and health matters in the working environment.

Under environment, Apple has continually championed for hazardous substance restriction and management. One change mad is that Apple considers suppliers responsible for the creation of the systematic technique of identifying, managing, minimizing and recycling or responsibly disposing of hazardous substances. In addition, Apple has included within the code that suppliers are expected to stick to the company’s Regulated Substances Specification for all manufactured products along with the ones it provides to the firm

For non-hazardous waste management, Apple stipulates that suppliers need to use a systematic and well-organized approach to detect, manage, minimize and recycle or responsibly dispose of non-hazardous waste.

There have also been significant changes in the ethics section. First and foremost, business integrity clause comprises Apple’s stance that supplier is barred from taking part in bribery, embezzlement, extortion, and corruption in order to obtain an improper or unfair competitive advantage. Regarding disclosure of information, one of the major changes in Apple’s 2016 Supplier’s Code of Conduct is that suppliers are required to precisely record information pertaining to Apple’s environmental, health and safety, labor and business practices. In light of the proliferated innovations, Apple has included a ‘Protection of Intellectual Property’ clause where the supplier is supposed to uphold, respect and protect customer information and property rights. Apple has also slotted a clause that protects whistleblower and complaints from unknown parties. In the clause, Apple articulates that suppliers should allow for the receipt and review of anonymous complaints in order for workers and managers to report grievances in the workplace (Andersen & Skjoett-Larsen, 2009). As such, suppliers are expected to safeguard the confidentiality of whistleblowers and restrict retaliation.

Under management commitment specifically management responsibility and accountability, Apple calls for the supplier to identify the representatives of the company who are responsible for carrying periodic review and implementation of its management systems. There is also a noteworthy change in training and communication where suppliers are required to perpetually obtain feedback about its training and effective communication practices in order to achieve more improvement.

References

Andersen, M., & Skjoett-Larsen, T. (2009). Corporate social responsibility in global supply chains. Supply Chain Management: An International Journal , 14 (2), 75-86.

Rothlin, S., & McCann, D. (2016). Employees: Dignity and Workers’ Rights. In International Business Ethics (pp. 157-177). Springer Berlin Heidelberg.

Oehmen, J., De Nardo, M., Schönsleben, P., & Boutellier, R. (2010). Supplier code of conduct–state-of-the-art and customization in the electronics industry. Production Planning & Control , 21 (7), 664-679. http://dx.doi.org/10.1080/09537280903547785

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StudyBounty. (2023, September 15). Challenges in the Global Business Environment.
https://studybounty.com/15366-challenges-in-the-global-business-environment-essay

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