CEO of Apple - Term Paper Example

Ford founded a multimillion company from a dream (Feser, 2011). Driven by ambition and the need to meet his customers’ needs, Ford superseded all expectations and rose to become an acclaimed business entrepreneur. With the development of the T-model, Henry Ford’s ambition opened the doors to creating cars that were efficient and affordable to a range of persons and thereby making cars a necessity rather than a luxury (Feser, 2011). Ford is a man who upholds the stakeholder theory to its maximum benefit (Schermerhorn, 2011). He paid attention to the interests of his consumers as well as the employees (Feser, 2011). However, he was also stubborn and had a controlling way about him that in many instances compromised the company (Feser, 2011). An excellent example is his vendetta against trade unions. Fester (2011), reflects that as early as history allows, successful ventures in politics, religion and business boil down to the brains behind the scene; the leader of the venture. The personal characteristics (mindset), strategies, strengths and weaknesses of a CEO determine the success or demise of the organization (Schermerhon, 2011). Apple Inc. is not an exception to the rule. Through examining its past leadership, I can establish a trend in CEO characteristics influencing the running of the organization. Finally, with the help of this analysis, I postulate on the possible leadership Apple Inc. should utilize in the future. While most leaders rely on a universal set of principles such as trustworthiness, charisma, creativity and endurance, different environments influence the way these leaders will apply these principles (Griffin, 2010). Establishing the fundamental principles of any organization is crucial because it helps to define the role of the leader (Schermerhon, 2011). With every new invention, Apple Inc. seeks out new marketing slogans (Feser, 2011). However, one can summarize that Apple Inc. cherishes innovation thereby creativity is the main principle that defines their market strategies (Fesser, 2011). Nonetheless, while businesses thrive or fall in view of these principles, there are legal and ethical issues to consider (Schlegelmilch, 1998). Apple Inc., in the recent past, has faced a couple of these issues and their ramifications can be pinned on the leadership the CEO provided. Griffin (2010), describes the late Steve Jobs as an inspiring visionary whom at the same time was an insufferable egotist. Griffin (2010), further asserts that the success of Steve Jobs stems from his contradictory and often complex personality. When Steve Jobs took over in 1996, he came with an agenda. Steve Jobs preferred “old weapons”; therefore, he cut down on new projects and focused on marketing and rejuvenating the company’s image (Griffin, 2010). The strategies he employed to rejuvenate the company such as high-end disruptions require that an individual is courageous and witty (Schlegelmilch, 1998). An example is the iPod which Griffin notes “hijacked the music industry” (Feser, 2011). Zeal, charisma and an animated personality helped Jobs reclaim Apple Inc.’s lost glory and raise it to a proclaimed multinational (Feser, 2011). Feser (2011) also holds that Steve Jobs created value for shareholder, consumers and the society. What Feser (2011) forgot to mention is that employees are also shareholders. Therefore, in my view, Jobs’ success reflects on one stakeholder’s satisfaction; the customer. In examining other parties such as employees and the wider society discrepancies emerge. Schlegelmilch (1998) reflects that a most common trait for persons considered exemplary business leaders is strong personal ethics. There is a clear link between personal ethics and community ethics (Feser, 2011). A person with strong personal ethics is likely to influence persons around them to uphold the same especially if that person holds a position of leadership (Griffin, 2010). Schlegelmilch (1998) summarizes personal ethics with one word; integrity. Integrity assures the stakeholders that the leader can do what is right in the presence or absence of scrutiny (Griffins, 2010). Apple Inc. is an American Company. As such, there are a number of regulations it has to uphold. These regulations encompass both the legal and ethical responsibility of any corporate setting based in America (Feser, 2011). Schlegelmilch (1998) points out that these regulations rely on written and unwritten contracts and require the corporate to meet the employee’s needs and the consumer’s needs while upholding the law. As such, a corporation should not associate with issues like child labor, environmental degradation, fraud and other forms of corruption and cruel treatment of employees (Schlegelmilch, 1998). The apple supplier code of conduct is clear on the above mentioned issues. First the code states that workers should be treated with respect and dignity (Apple Inc, 2009). Secondly, the code satisfies that Apple Inc. strives to maintain an environmentally responsible manufacturing process (Apple Inc, 2009). Thirdly, the code provides that the suppliers are subject to the rules of the nations to which they belong (Apple Inc; Version 3.1, 2009). This last provision brings about a lot of questions in view of ethics and legal adherence. This is because the supplier code of conduct quotes the recommendations in the Ethical Training Initiative and the Universal Declaration of Human Rights (Apple Inc, 2009). Some rules of a supplier’s country go contrary to universal standards thus raising some controversies. The following are instances of Breach of law and Ethics by Apple Inc. suppliers: The relaxed regulations in the home country of suppliers create an environment conducive for breach of ethics and in some instances breaking of the law (Schlegelmilch, 1998). The first notable problem is the use of child labor. In his text “Exploring Management”, Schermerhorn (2011) explores the issue of large corporate “unknowingly” utilizing child labor. This problem is rampant in Asian countries where children take up the bread winner roles because of extraneous economic conditions (Schermerhorn, 2011). Given, local law enforcement could not solve the child labor problems in these countries (Griffin, 2010). Steve Jobs made it clear in statements he made in defense of Apple Inc. that these issues were a stretch to the company’s jurisdiction (Schermerhorn, 2011). Schermerhorn (2011), points out that despite Apple claiming that they carry out regular audits amid strict regulations, foreign suppliers still engage in child labor practices (Feser, 2011). However, it is no secret that the mother company has the mandate to mitigate these issues (Hughes, 2012). A good example of a situation spiraling out of control is the Faxconn suppliers in China (Hughes, 2012). At one point, reports of mass suicide threats swept the headlines of dozens of dailies both in China and America (Hughes, 2012). The reports estimate that over one hundred employees attempted to commit suicide in protest of their dire working conditions. Hughes (2012) notes that this situation relays one crucial message; the Faxconn has breached the given code of ethics. Hughes (2012) points out that a later analysis revealed that the workers at the factory were subject to numerous extraneous working conditions. The first problem was long working hours exceeding 16 hours a day (Feser, 2011). The employees also claimed that the company did not compensate them adequately (Hughes, 2012). One can summarize these claims as inhumane treatment, an issue the code of conduct describes as illegal (Griffin, 2010). These situations show that the suppliers go against the code of conduct in all five sections namely Labor and Human Rights, Health and Safety Rules, The Environment, Ethics and The management Systems (Apple Inc, 2009). While Feser (2011) tries to create a striking resemblance between Henry Ford and Steve Jobs, I see the obvious parallels. Ford valued his workers, offered them sufficient wages and favorable working conditions even in subsidiary branches of his company (Feser, 2011). How did apple find itself in this situation? Companies in the west strive to beat high production costs to make their products more affordable to its consumers (Hughes, 2012). With this in mind, CEO’s approve of moves such as locating some of their manufacturing plants in Asian countries (Feser, 2011). The law permit’s such moves so their actions remain legal (Feser, 2011). However, with low cost labor come other issues such as child labor, inhumane working conditions, fraud and disregard of green practices (Schlegelmilch, 1998). Steve Jobs also acknowledged that these suppliers break the law and are in constant breach of the code of ethics and other binding contracts with the mother company (Hughes, 2012). The sad part is that Apple Inc. is well aware of the implications of breaking these laws, but they still rely heavily on these suppliers (Schermerhon, 2011). Apple has the right to make a profit, but social responsibility should account for its crucial decisions (Schlegelmilch, 1998). In fact, the situation is so awful that one supplier used a poisonous chemical non hexane which resulted in the demise of four dozen employees (Hughes, 2012). According to the Guardian, Apple Inc. is worth $90 billion in cash reserves (Feser, 2011). With such revenue and the fact that the CEO of Apple Inc has the mandate to mitigate the situation, I believe this company underscored (Schlegelmilch, 1998). Again, the situation boils down to the CEO (Schermerhon, 2011). There are personality traits that cause a leader to make extreme business risks and haphazard corporate governance (Griffin, 2010). Steve Jobs in view of the situation in Faxconn suffered from the previous condition (Schlegelmilch, 1998). Steve Jobs was a difficult man with traits ranging from egocentric to intimidating. Hughes (2012) sees that the previous findings on Foxconn as inadequate. He blames this inadequacy on the fact that the company did not take the suicides seriously (Schermerhon, 2011). Instead, Foxconn blamed the suicides on heroism that is the individuals committed suicide to give their money! I hold that of all persons Steve Jobs turned a blind eye to the situation and thereby aided the suicides in China (Schlegelmilch, 1998). Perhaps the continued harassment of the employees at Foxconn has a lot to do with Steve’s personality. With the amount of resources Feser (2011) postulates is at the CEO’s disposal, he could assure an industry that promotes humane working conditions, but he did not do so (Griffin, 2010). The situation in Faxconn can be mirrored in America only in a more subtle way considering the strength of the laws that protect American workers (Schlegelmilch, 1998). As such, the priority of profit may have overwhelmed his better judgment in regard to living up to the code of ethics the company upholds (Schlegelmilch, 1998). Whether it was his defiant nature, or the need to safeguard the company’s profits that led Steve to cast a blind eye on the situation in Faxconn, is still a debate (Hughes, 2012). It is amid such controversies that Tim cook takes the reigns of Apple Inc. Company. Unlike Steve, Tim is a level headed and calm leader. The first order of business he needs to attend to is the Faxconn situation (Schermerhon, 2011). He recently commented that all of the employees attached to the company deserve fair and humane treatment as per the Apple Supplier Code of Conduct (Apple Inc, 2009). It is in the best interest of all Stakeholders that this statement is true. Granted, Tim has not worked long enough to establish a clear judgment on his leadership character (Griffin, 2010). As such, I reserve the “Janus” description for Steve Jobs at this point (Schlegelmilch, 1998). Nonetheless, there are a few pointers the new Apple CEO should put into consideration. One is to embrace Steve Jobs excellent traits and shun the terrible ones (Schlegelmilch, 1998). Research shows that extremists such as Jobs make strong leaders but counter research also proves that a leader can be successful without the bad traits, case in point; Richard Branson and his legendary Virgin Atlantic Airline (Schlegelmilch, 1998). In view of the current market structures and increased completion, situational leadership is the best option for any CEO Apple Inc. included. Situational leadership theory holds that there is no definite procedure or rule that a leader should follow in regard to decision making (Schlegelmilch, 1998). The situation the establishment avails, however, is a guideline to the leader (Schermerhorn, 2011). The CEO of Apple Inc should, therefore, choose an approach that compliments the given situation. To put this theory into practice, the CEO situation needs a top down analysis. The key aim is to get the subordinates to respect and love the leader not to fear him as in the case of Jobs (Griffin, 2010). Situational theory provides for this through the contingency models (Schermerhorn, 2011). One factor in this model is that the level at which subordinates favor a leader determines his success. Task structure is also crucial to the success of a CEO. Schermerhorn sees this aspect as crucial because it requires that the CEO is aware of the roles of all persons in the establishment and their worth (Schermerhon, 2011). This facilitates fair treatment of employees. Criticisms on Jobs’ style of leadership may lead one to think that a leader should be all bark but no bite (Schlegelmilch, 1998). On the contrary, the contingency model through the aspect of recognizing position of power holds that reward and punishment are necessary to the success of a venture (Schermerhorn, 2011). Steve may have used his power to help the company succeed, but the correct approach is to use perceived and prescribed powers to influence noble causes such as humane working conditions while achieving success (Griffin, 2010). The success of Apple under the leadership of Steve Jobs is evident. However, this success concentrates on the technological aspect of the corporation (Schlegelmilch, 1998). In business, success requires that a company satisfies the stakeholders and remains socially conscience; this is true success (Schermerhorn, 2009). In view of the ethical issues above, Apple Inc. is still not successful. It has disgruntled employees managed by fraudulent suppliers (Griffin, 2010). A reasonable approach would be to separate personal traits from the work environment for the greater good of the company (Schlegelmilch, 1998). However, research in the field of organizational behavior proves that this strategy is almost impossible to adopt (Griffin, 2010). While situational theory provides a safer approach to leadership, personal characteristics run deep in the management style a leader adapts (Schermerhorn, 2011). These characteristics determine the leader’s mindset, the strategies they prefer the mistakes and the right calls they make that guide the path an organization takes (Griffin, 2010). References: Feser, C. (2011). Serial Innovators: Firms That Change the World. New York: John Wiley and Sons. Griffin, R. W. (2010). Management. New York: Cengage Learning. Hughes, R. (2012). International Handbook of Workplace Trauma Support. New York: John Wiley & Sons. Apple, Inc. (2009). Apple Supplier Code of Conduct. Retrieved from www.apple.com: images.apple.com/supplierresponsibility/ - United States Schermerhorn, J. (2011). Exploring Management. New York: John Wiley & Sons. Schlegelmilch, B. B. (1998). Marketing Ethics: An International Perspective. New York: Cengage Learning. Read More