Ethics audit refers to an evaluation by an organization or a company on whether its operations conform to the ethical standards of its industry or the general public (Pflugrath, Martinov ‐ Bennie, & Chen, 2007). An ethics audit is usually done in organizations whose operations are thought to violate ethical standards set in a certain industry. Below is a copy of code of ethics for Apple Inc. "We expect our suppliers to maintain the highest standards of ethical conduct. Our Supplier Code of Conduct clearly states a range of practices we consider essential to running an ethical business". Suppliers must be committed to the highest standards of ethical conduct when dealing with workers, suppliers, and customers. Corruption, extortion, and embezzlement, in any form, are strictly prohibited. Suppliers shall not engage in corruption, extortion or embezzlement in any form and violations of this prohibition may result in immediate termination as an Apple Supplier and in legal action. Suppliers must disclose information regarding its business activities, structure, financial situation, and performance in accordance with applicable laws and regulations and prevailing industry practices. Suppliers shall not offer or accept bribes or other means of obtaining undue or improper advantage. Suppliers must uphold fair business standards in advertising, sales, and competition. Suppliers must create programs to ensure the protection of Supplier and worker whistleblower confidentiality and prohibit retaliation against workers who participate in such programs in good faith or refuse an order that is in violation of the Apple Supplier Code of Conduct. Suppliers shall provide an anonymous complaint mechanism for workers to report workplace grievances in accordance with local laws and regulations. Suppliers are encouraged to engage the community to help foster social and economic development and to contribute to the sustainability of the communities in which they operate. Suppliers must respect intellectual property rights; safeguard customer information; and transfer of technology and know-how must be done in a manner that protects intellectual property rights. The code of ethics for Apple Inc. outlines the expected conduct and behaviors of its suppliers with regard to the organization and the different environments they operate in. Apple Inc. emphasizes on truthfulness among all its suppliers. The organization strictly warns against corruption, extortion, and embezzlement and gives the consequences of such acts. Apple Inc. also calls for openness from all its suppliers by demanding for detailed information concerning all operations, financial statements and locations of the suppliers. Incidents of bribery by any supplier with the intention of winning a tender or a business opportunity over another supply is highly discouraged by the organization. The organization also gives the expected ethical standards while suppliers are conducting their businesses, advertising and fair competition. In circumstances where unethical standards are realized by any supplier or employee, then clear guidelines for protecting the whistleblowers for such unethical acts is required. Apple Inc. calls for the protection and confidentiality of all whistleblowers. Suppliers are also expected to engage local communities in their areas of operation and ensure that social and economic developments are observed. Suppliers are expected to uphold intellectual property rights and ensure customers’ information confidentiality. According to Spiro (2010), a good code of ethics should include principles by which an organization intends to live by, and should be clear and precise so that all employees can easily understand and comply with it (Spiro, 2010). The code of ethics document for Apple Inc. is clear and precise in its presentation. However, the document does not come out well on the consequences of violating the documented code of ethics. It is only in the instant of corruption, extortion, and embezzlement that the code of ethics documents gives consequent penalties. For instance, there is no clear guideline of what would happen if a supplier fails to disclose his or her information to the organization or if a supplier does not engage the community in his or her operations. Apple Inc. is among the leading technology companies and has a well-formulated code of ethics and code of conduct that guides its employees and also provides penalties to be taken in an invent of violation of any of the code of ethics (GradesFixer, 2018). Apple Inc. clearly states that if a supplier is involved in any form of corruption, extortion, or embezzlement, then such a supplier risks being his or her contract being terminated by the organization. A corrupt supplier is also Inc. canceled likely to be sued in a court of law for his or her corrupt acts. Therefore, suppliers who do not uphold integrity in their operations usually have their business connections with Apple canceled and legal actions taken against them. A Code of ethics in any organization plays a very key role in regulating operations and interactions within and without any organization’s premise. The code of ethics for Apple Inc. clearly state what is expected of all its suppliers when dealing with the organization and the communities around them. The code of ethics document outlines all the ethical standards to be observed for suppliers who wish to partner with Apple Inc., and actions to be taken against violators of the ethical standards. The code of ethics for Apple Inc. ensures that integrity is upheld in all the organization’s operations.
References
GradesFixer. (2018). A Study of the Changes in the Code of Conduct of Apple Inc. Retrieved October 1, 2019; from https://gradesfixer.com/free-essay-examples/a-study-of-the-changes-in-the-code-of-conduct-of-apple-inc/
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Pflugrath, G., Martinov ‐ Bennie, N., & Chen, L. (2007), "The impact of codes of ethics and experience on auditor judgments", Managerial Auditing Journal. 22(6): 566-589.
Spiro, J. (2010). How to Write a Code of Ethics for Business. Retrieved October 1, 2019; from https://www.inc.com/guides/how-to-write-a-code-of-ethics.html
