The Global Business Environment: Apple Supplier Responsibility - Term Paper Example

The Global Business Environment: Apple Supplier Responsibility Doing business in the modern and global economy places presents a myriad of challenges to many organisations. Most of the challenges in the global business environment are attributed to unethical practices, failure to adapt to the first changing world of technology and stiff competition. In the face of these difficulties when doing business in the global environment, organisations have therefore respond by developing and implementing measures that assure sustainability. Apple Inc. implemented Supplier Code of Conduct in the year 2005 in an effort to have all suppliers around the globe adhere to set standards and desired business practices. A number of changes have since been introduced aimed at ensuring the company and its suppliers engage in ethical business practices when it comes environmental conservation, employee relations etc. In this paper I will be explaining the changes so that every supplier is able to understand the importance of implanting them. One important issue in international business is working in an environment that is safe and healthy. Apple has introduced this as a requirement and not an option for all its suppliers. This follows the realization that most managers especially in the middle levels lack the much needed skills for proactively addressing and solving workplace related issues such as safety, protection of the environment and health. To fix this problem the company in the year 2013 established the Apple Supplier Environment, Health, and Safety (EHS) Academy. Suppliers are required to nominate three people per facility who attend an 18 months training program at the academy covering courses in safety, chemical management, ergonomics and many others. After being equipped with these skills, the participating managers are expected to implementing projects that reflect the goals of the training back in their various facilities. Another important aspect of the Code of Conduct at Apple is implementation of practices that are environmentally sound. The company recognises the need to protect the environment and such requires all suppliers to uphold superior environmental standards that are above what is required by local law on matters hazard management, waste treatment & disposal, emissions and noise. To ensure strict supplier adherence to the requirements, Apple has deployed a team auditors who make factory visits and carry out inspections that are sometimes by surprise. The audit team reviews necessary work permits as well as equipment and takes samples to ensure the suppliers are proactively protect the environment. Any violations discovered warrant closure of the offensive process or sometimes entire lines of production until that time when the issued are addressed. The company also partners with NGOs like IPE to carry out regular environmental risk surveys on suppliers. This is because pollution is harmful to the environment and the entire planet yet future generations need the same planet. Areas covered by the surveys include management of wastes, usage of water & air emissions and the data obtained is used in mapping risks and building targeted trainings, tools and measures of minimising environmental impact. Apple values its people and wants to cultivate the same among its suppliers as they are part the brand. Suppliers are required by apple to adhere to labor laws and ethical standards when it comes to hiring and treatment of workers. The company is committed towards seeing an end to unethical hiring practices for instance. It engages with all its business teams as well as suppliers across the entire supply chain so as to implement fair practices of hiring. On hours of work for instance the company has set a standard of 60 hours per week except in extremely events, at least a day of rest in seven days and any overtime should be strictly on voluntary basis. The policy on underage labor is zero tolerance and any supplier found in violation faces an automatic probation. There is also the Underage Laor Remediation Program requiring all suppliers found employing persons who are below the legal employment ages to fund their safe return home, finance their education, pay their wages and offer them jobs on attainment of legal age. The goal of initiating and implementing such measures is to ensure the company not only provides employment and cares for the environment but also respects human rights. Employee education is key to the success of any business and at Apple this is not taken lightly. It is important those workers are treated in a dignified manner, know their rights and work in an environment that is ethical. It is therefore a requirement that suppliers train all their employees on topics such as the Apple Code of Conduct, local country laws, and health and regulations safety in the workplace. Apple has also made available enough resources to its supplier companies so as to train their factory managers on workplace communication, human resource practices and maintenance of safety in the places of work. Through the SEED initiative, Apple is investing heavily in equipping factories with resources like computers, learning software and video conference facilities in order to assist employees acquire necessary skills. So as to succeed in the modern world of business, employees must be up to date with knowledge and highly motivated. Apple is doing just this and requires suppliers to make sure the dream is realized by implementing these measures. In conclusion therefore it is important that business in the global environment is quite challenging. Organisation must position strategically through implementation of programs that differentiate and allow them to compete favourably. Apple has placed a huge responsibility to its suppliers of ensuring adherence to above average standards on issues that are important to brand and business success. Suppliers are expected to have good practices when hiring, uphold human rights, protect the environment and engage in good manufacturing practices if they have to maintain their relationships with Apple. This is why the company has come up with a Code of Conduct and is doing everything possible to support suppliers meet the expectation. It has partnered with universities to offer training to its suppliers and also NGOs to carry out risk surveys. Regular audits performed by the Apple’s auditors on the sites are aimed at checking compliance, suggesting improvements and curbing any malpractices that could negatively impact on the brand. Suppliers are therefore expected to understand and support these efforts. References. 1. Apple. (2015). Supplier Responsibility. Available at: https://www.apple.com/supplier-responsibility/ Read More