5 Jun 2022

18

Change in the Global Business Environment

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Academic level: College

Paper type: Research Paper

Words: 1191

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Apple has shown tremendous progress and commitment in complying with its code of conduct. This has been done by ensuring that the company's supply chain remains safe, that workers are treated with utmost respect and that their dignity is upheld (Myers & Fellow, 2014). Furthermore, Apple has shown commitment to ensuring that processes involved in manufacturing their products are environmentally safe. Apple expects their suppliers to fully comply with their code of conduct as well as the rules and regulations of the specific countries in which they operate (Linzmayer, 2004). To show their commitment to ensuring that their suppliers adhere to the set rule, Apple visits the supplier facilities on a regular basis with or without notice to assess the level of compliance by different supplier facilities (Myers & Fellow, 2014). During these visits, Apple conducts audits on the suppliers' wage, payroll, working hours as well as other practices and workers' records. If any facility is found to have violated the rules, Apple will consider taking severe actions which may include termination. 

Every year, Apple strengthens their standards to raise the bar. Apple forms close partnerships with their suppliers which enable them to develop the skills and knowledge they need to operate more responsibly. In 2016, Apple added new suppliers in their program, and as a result, their collaboration produced higher scores globally. Apple has notable made progress in several areas. 

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Child Labor 

In 2010, Apple issued a report that some of its suppliers were violating the company's code of conduct by practicing child labor and dealing in various dubious practices. In the following year, Apple researched the same and found out that ninety-one of underage workers were employed in ten of its facilities. The action was taken against the facilities, and in 2015 the number of cases of children labor dropped to three in one facility. Apple has continued to deal with situations of child labor and has shown tremendous progress in having adults within its supply chain. 

Progress in Reducing Working Hours 

Apple has made progress in reducing the working hours to comply with the one stipulated by the labor laws. Labor group monitoring Apple supplier facilities indicate that the once state of oppressive working conditions are steadily improving even though more has to be done to reduce overtime. Fair Labor Association released the results of the final assessment of the working hours and indicated a vast improvement in the working conditions. In 2015, Apple released a report noting that 97 percent of suppliers had complied with the sixty hours work week. This was an increase of 5 percent from 2014 (Chen & Bai, 2016). Several labor rights organizations have since praised Apple for reducing working hours and for improving the working conditions. 

Progress through Partnerships 

In 2016, Apple conducted seven hundred and five assessments on the suppliers. Close to 30 percent was first time assessment for the suppliers that were new to the program. Through the close partnerships with the suppliers, Apple was able to increase the performance of supplier sites by 59 percent and decrease the lower performing venues by 31 percent (Chen & Bai, 2016). Apple continues to release the standards of its supplier responsibility on an annual basis. The document is a detailed description of the expectations of Apple from its suppliers. This document further describes how the supplier facilities can successfully implement Apple's code of conduct. By publicizing the report, all the involved parties get into a better position to assess the expectations of and the merits of the company and ascertain whether or not the suppliers are meeting them. Apple also stretched its standard by adding requirements in specific areas like ergonomic breaks. By doing this, Apple recognizes that the real test does not rely on better rules alone but on whether the suppliers meet such standards. 

Progress in Environmental Conservation 

Throughout the supply chain, Apple has programs that help in water conservation, minimizing carbon emission, eliminating landfill waste as well as replacing dangerous chemicals. This helps in assisting the suppliers to reduce the energy that is used to make the switch to renewable energy. Apple is advancing the use of renewable energy by working with the suppliers to generate at least four gigawatts of the renewable energy by the year 2020 (Chen & Bai, 2016). In 2016, Apple increased the number of supplier sites participating in the energy efficiency program (Chen & Bai, 2016). Subsequently, this led to a reduction of carbon emission by seven million metric tons per year. Many suppliers are already committed to the project in which the Apple manufacturing companies are powered by renewable energy. This reduces carbon emission by seven million metric tons per year. Besides, more than 99 percent of the paper used in packaging comes from wood gotten from managed forests or recycled timber. Also, Apple initiated an academy to help support Environment, health and safety. This academy is designed to address the limited expertise in several areas with the management personnel in the supply chain. More than two hundred and forty factory personnel enrolled in the program. The impact of this training is evident as many workers have shown significant improvement at their workplaces. The practice has also played an essential role in hazard detection as well as finding solutions to the problems (Chen & Bai, 2016). 

The program has increased the company's compliance with the environmental laws by drawing close to the internationally recognized environmental responsibilities for companies. 

Apple has also verified that the tantalum smelters which are serving its supply chain are cleared and certified as conflict-free by impartial auditors. This is a significant step in ensuring that tantalums are not produced unethically by those who violate human rights or even the armed groups. In Apple's supplier report of 2014, Greenpeace released a statement which praised the efforts put by Apple in using conflict-free minerals. 

The Significance of the Progress 

Apple is a highly esteemed company. Even so, it is faced by several scandals of failing to comply with rules. For Apple to continue holding to its once highly regarded esteem, it is essential that the suppliers comply with the company's code of ethics and the rules and regulations in all the countries in which it operates (Frost & Burnett, 2007). For example, if the suppliers do not discriminate against any worker regardless of the background, Apple would be known for promoting human rights and upholding workers' dignity and as a result, would gain recognition globally. This would earn the company more customers, and this would be great for the business. Additionally, Apple would be a more desirable place to work, and as a result, more people would be attracted to join Apple. This would enable the company to have more and better workforce to drive the business forward. 

Apple had initially warned the suppliers that if they are found employing underage in their factories, then the company would make the suppliers to take the children back to their homes. Afterwards, the suppliers will pay their fees at any school chosen by the family and continue to provide income for the basic needs until they attain the age when they are employable (Satariano & Burrows, 2011). Apple also enlisted an impartial organization which can monitor the progress of the children until they complete their education after which the supplier should offer them employment. Children are the next generation. Any company which does not respect children's right is not worth standing. It is important that the suppliers should understand and respect children's rights to help them progress well into their adulthood without any interference. The suppliers should fully comply with the protecting the rights for Apple to continue holding unto its high reputable name. 

References 

Chen, J., & Bai, H. (2016). Analysis on the Reasons of Social Responsibility Management Deficiency of Multinational Corporations’ Supply Chain Based on PDCA Model—a Case Study of Apple Company. 

Frost, S., & Burnett, M. (2007). Case study: the Apple iPod in China.  Corporate Social Responsibility and Environmental Management 14 (2), 103-113. 

Myers, C., & Fellow, K. (2014). Corporate Social Responsibility in the consumer electronics industry: A case study of Apple Inc.  Resource document. Georgetown University, Edmund A. Walsh School of Foreign Service. http://lwp. georgetown. edu/wp-content/uploads/Connor-Myers. pdf. Accessed 10

Linzmayer, O. W. (2004).  Apple confidential 2.0: The definitive history of the world's most col 

Satariano, A., & Burrows, P. (2011). Apple’s supply-chain secret? Hoard lasers.  Technology 4 , 50-54. 

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StudyBounty. (2023, September 14). Change in the Global Business Environment.
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