The portion of scripture in Proverbs 22:1 about a good name being better than great riches has become a stark reality in the modern globalized business environment. Apple Inc., proprietors, one of the most powerful brands in the world came to realize this fact in the second decade of the 21 st century. By this time, the power of Apple’s brand was at its zenith with the iPhone and iPad setting the pace in the global information technology scene. Suddenly, the company was under attack based on how its contractors in third world countries including China were operating (Garside, 2013). It is important to note that all commentators place Apple Inc. among the best employers in the world. However, the conduct of third-party contractors was rapidly deteriorating the Apple brand and reputation hence directly affecting the marketability of Apple products. In a bid to stem the fallout and reclaim its good name, Apple made massive realignments in its Code of Conduct by setting stringent rules on all third party contractors and members of the Apple supply chain system.
List of specific changes to Apple’s Code of Conduct
Labor Relations Changes
The first change was dubbed the antidiscrimination rule that outlawed any form of racial, ethnic, and cultural or gender discrimination (Apple Inc., 2018). For example, there were to be no gender preferences for any jobs created to prevent a certain gender from getting hired.
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The second change was the anti-harassment rules that prevented Apple contractors and suppliers from physically, psychologically, or sexually harassing employees. For example, supervisors and managers would no longer be allowed to sexually exploit causal laborers. The third change related to the prevention of human trafficking and modern-day slavery. For example, no employee would be allowed to work against their will in any Apple associated company even if local laws allowed. The fourth change was the prevention of underage labor and protection of juvenile employees. For example, there was to be a minimum wage under which no Apple associate would be allowed to work. The fifth change which was closely associated with the fourth related the prevention of the exploitation of student laborers (Apple Inc., 2018). For example, proper records would be kept regarding student laborers including proper coordination with their learning institutions.
The seventh rule relates to the working hours and days of rest. For example, no employee would be allowed to work for more than 60 hours including overtime and a designated day of rest would be allowed after every seven days. Wages and benefits formed the eight change based on equity and fairness in remuneration (Apple Inc., 2018). For example, no employee would be paid less than the statutory minimum wages in the locations where they work. Labor and industrial relations formed the ninth change. For example, all unionizable staff would be allowed to join unions and participate in lawful industrial action. The tenth and final rule under labor relations was the grievances rule. For example, a confidential mechanism would be put in place for employees to air their grievances.
Employee Health Changes
The first change regarding employee health was the Occupational Health and Safety Management rule (Apple Inc., 2018). For example, all Apple associates must evaluate and extenuate all occupational risks facing their employees. The second rule relates to emergency preparedness and response. For example, every company had to understand potential risks such as fires or falls and make emergency preparations for their eventuality.
The third rule related to the actual occurrence of emergencies, including proper investigation and prevention of reoccurrence (Apple Inc., 2018). For example, in the case of a fire, authorities would be allowed to investigate and the recommendations made would be adhered to.
The fourth rule relates to the working and living conditions of employees. For example, Apple expects all contractors to ensure that their employees live in a clean and safe environment free of congestion. The final rule relates to the training of all personnel on health and safety issues. For example, supervisors would be trained on how to improve employee safety.
Changes with Regard to the Environment
The first environmental rule relates to relevant and necessary environmental permits. For example, any supplier or contractor whose activities affect the environment would need a permit for each of those activities under applicable laws. The second rule relates to regulated substances being used by any Apple associate (Apple Inc., 2018). For example, the use of harmful chemicals should be avoided where possible or undertaken with care to avoid inordinate hazards.
The third rules relate to the disposal of non-hazardous materials. For example, a focus on recycling would be engendered when it comes to all non-hazardous materials. The fourth rule relates to the disposal of hazardous materials. For example, hazardous materials cannot be disposed of in waterways. The fifth rule relates to water pollution (Apple Inc., 2018). For example, care must be taken to ensure that no toxic material is released to the water body.
Prevention of land pollution formed the sixths rule. For example, toxic substances would not be dumped on land in a manner that it can spread and cause environmental damage.
Air pollution more so with regard to noise formed the seventh rule. For example, companies must take measures to ensure that the noises they create do not cause inordinate inconvenience outside their precincts. Finally, the issue of energy usage was also canvassed in the changes (Apple Inc., 2018). For example, companies would seek to reduce energy consumption and focus on renewable energy.
Changes with Regard to Business Ethics.
The first ethical rule relates to due diligence in the procurement of materials. For example, the diligence extended beyond the quality of materials to the process through which they had been procured. The second rule related to business integrity. For example, engaging in corruption, bribery or unhealthy competition would disqualify a company from dealing with Apple Inc. The third integrity rule relates to disclosure of information and entails both keeping proper records and disclosing those records to the right authorities (Apple Inc., 2018). For example, falsification of financial records for fraudulent reasons would disqualify a company from interacting with Apple Inc. Respecting the intellectual property of others formed the fourth rule. For example, Apple would not buy supplies created through the infringement of a patent.
The firth rule relates to the protection of whistleblowers and anonymous informers. For example, whistleblowers should neither be fired nor their identities revealed. Finally, keeping of proper and regularly audited accounts formed the sixth ethics rule. For example, companies retain proper records of all their finances and have them externally audited on a regular basis in accordance with the law (Apple Inc., 2018).
Explaining the Rules in an Understandable Way
The Labor Relations Rules
Apple Inc. considers itself responsible for all employees who work for all its third-party contractors, suppliers, and other members of its supply chain. It is incumbent upon all companies that interact with Apple to treat their employees just as they believe Apple would treat those employees had they been actively working for Apple. The companies should not try and obscure their labor relations activities by presenting a positive front and covering up the rot underneath. Instead, they should make substantive changes since covering up labor relations abuses is just as bad as undertaking them in the first place. For a start, gender-based discrimination must be eliminated at all levels (Apple Inc., 2018). Declining to employ women or paying them a lower wage cannot be condoned. Similarly, discrimination based on religion, ethnicity, race or other cultural issues will also not be tolerated. Child labor should not be practiced at any costs, based on the national definition of a child under local laws. Juveniles who are allowed to work and students on attachment shall not be exploited either through overwork or underpayment. The safety of employees is paramount and must be ensured at all times. When an accident or incident happens, it must not be covered up. It will instead be investigated and proper compensation made. Finally, employees must be provided with proper residences that are hygienic and comfortable. Any human right abuses shall not be condoned (Apple Inc., 2018).
The Environmental Perspective
Apple Inc. takes environmental protection seriously and will not overlook inordinate environmental degradation by any of its associates (Apple Inc., 2018). Apple understands that some manufacturing and production processes cannot happen without some form of environmental pollution. However, Apple would like to seek definitive steps towards the reduction of environmental pollution. For example, mineral fuel is the largest form of environmental pollution today. Apple would like to see strategic plans and commitments to both reduce energy consumption and invest in renewable energy. Actual plans with substantiated commitment are necessary both for the reduction of energy consumption and investing in options such as solar and wind energy (Fehrenbacher, 2016). Similarly, the process of production does produce adversities including toxic fluids, toxic air, and loud noises. It is the obligation of every company to actively seek to mitigate the damage caused by all these adversities. The minimum requirement for the active steps taken must be those provided by the laws where the factories and plants are located. Further to following all laws, companies should innovatively protect the environment.
The Ethics Perspective
Apple is just as concerned by the quality of the producer of an item as it is about the quality of the item itself. Business ethics entails a corporate culture of always seeking to make the right decision under all circumstances. Making the right decision may be easy when the ethical choice also favors profitability. However, comprehensive business ethics requires doing the right thing, even when doing so will affect profit margins (Crane & Matten, 2016). For example, farmers may not know the value of their products in the international market and might be willing to accept whatever price is offered. Business ethics demands that such supplier is paid the right price even when they are willing to accept a lower price to avoid exploitation. In some cases, it is impossible for the company to keep track of all its decisions to keep them ethical. It is inter alia for this reason that every company should have internal and external auditors who keep close track of decisions in order to limit unethical conduct (Crane & Matten, 2016). There are, however, some areas where companies may elect to breach ethics to make better profits and it is in such areas that due diligence must be done as such breaches shall not be condoned. The first is the abuse of human rights at any level of production so as to reduce costs. The second is the bribing of government officials or employees of associate companies to gain undue advantage over the competition. The third is the breach of intellectual property, such as basing a process or product on the patented ideas of another company (Apple Inc., 2018). All the above brazen breaches of ethics shall not be condoned. Finally, there is no perfection in business ethics as even the most ethical companies can do better. Apple would want to see its associates making efforts to improve their processes, activities, and systems as far as ethics is concerned.
References
Apple Inc. (2018). Apple supplier code of conduct: Version: 4.4. Retrieved from https://www.apple.com/supplier-responsibility/pdf/Apple-Supplier-Code-of-Conduct-January.pdf
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization . Oxford, United Kingdom: Oxford University Press
Fehrenbacher, K. (2016). How Apple is pushing its suppliers to use clean energy. Retrieved from http://fortune.com/2016/09/19/apple-suppliers-clean-energy/
Garside, J. (2013, January 25). Child labour uncovered in Apple's supply chain. Retrieved from https://www.theguardian.com/technology/2013/jan/25/apple-child-labour-supply
