Compliance of Apple Inc - Research Paper Example

Compliance of Apple Inc Introduction Technology has been transformed with the passage of time and it has impacted a great deal over corporate sector and societies around the globe. Technology has introduced new business ventures that have enabled to grow human resource and build global work environment and compliance standards. Apple Inc. has been pioneer in innovation and technology and it become market leader in matter of less than a decade. Being a market leader, Apple is responsible to behave ethically and socially within global corporate context (Zylla, 2013). The paper will assess compliance of ethical standards enforced and audited by Apple throughout its global operations. Political Political influence cannot be denied in current age because governments endeavor to protect rights of consumers, employees and other stakeholders and they tend to implement certain laws, regulations and taxes. All businesses need to comply with such rules and regulations in order to smoothly operate (Zylla, 2013). Apple Inc. attempts to abide by the labor laws around the globe and has also standardized ethical practices pertaining to labor and human rights. For example, Apple Inc enforces its suppliers across the globe to limit 60 hours of maximum work. The company audited and found 92% compliance of workweek standard for its suppliers around the world (Supplier Responsibility). Economic Companies have shifted their operations to developing countries in order to curtail their costs and improve through economic ways. With such an approach, businesses have saved heavy taxes that could be imposed while operating in their homelands. Economic factor is most influencing for the businesses as it directly affects revenues and profitability. Apple Inc has suppliers from China, India and other parts of the world that serve the company virtually or provide the required hardware, supplies, etc. The company has to assure compliance of standard ethics and variable economic obligations that exist in each country. It attempts to choose most reputed suppliers from around the globe so that economic and legal compliance may not be compromised while quality is maintained throughout operations (King, 2011). Social In present era, societies are driven through global values and the gulf between different societies is contracting due to expanding embrace of international social values. However social circumstances differ geographically (Zylla, 2013). Apple Inc behaves as socially responsive entity and endeavors to aid workers as and when required to bring them in pace with the rapid changing dynamics of the world. Apple does not allow the suppliers to overburden employees and limits the working hours per week so that they stay in good health and work efficiently in the long run. The company attempts to educate manpower of its suppliers through SEED (Supplier Employee Education Development) program. It teaches them Economics, English and many other worthy skills to enhance their performance. It has been able to train 861,000 workers in last 7 years. The compliance team has increased 40% in-person audits in matter of a year in order to monitor and evaluate ethical practices carried by the suppliers (Supplier Responsibility). The company recommends changes to the suppliers as and when required and partners with them to drive the change. Cultural Apple Inc has policy of providing equal opportunity and keeping diversity and inclusion in the company. The organizational culture of company provides space and respect to employees irrespective of their demographic belongingness. The suppliers of company exist in all parts of the world and hence the company tends to stay conflict free in terms of differences that occur due to different cultural values. For example, Chinese are quite conservative for their culture and there are numerous suppliers and direct workers working for the company. The compliance team engages with Chinese workers in order to understand their values so as to avoid non-substantive conflict (Zylla, 2013). Technological Technology has been highly influencing factor for the businesses because they can curtail costs, bring efficiency and reduce barriers with the help of technology. Unfortunately not every place or company is interested to embrace technology as a driver for organizational change and efficacy. However, Apple Inc educates its suppliers through conventional classrooms over technology and its application so that they join the pace of rest of the world (King, 2011). Moreover, the company has also introduced technological tools like ipad learning and many others to provide them further ease to learn and embrace technology. The company has a very rapid cycle of technology and it tends to innovate its processes and products rapidly in order to stay competitive in the stiff global competition (Supplier Responsibility). Environmental The company is greatly concerned with the environmental responsibility as well because consumers are more aware and they like to buy a brand that cares for environment as well. Apple Inc. endeavors to utilize renewable energy resources and it also stays cautious about processes carried throughout the supply chain. The company has efficiently reduced carbon emission for all of its products over the years (King, 2011). Human Resource and Ethics The company is keen to observe ethical standards while inducing human resource, developing them or working with the workers. Apple Inc has spent $3.96 million additional funds to labor brokers to hire 45000 workers. The company holds its suppliers accountable to comply with the hiring ethics that it audits periodically to assure ethical compliance and observance of human rights. The company also focuses on safety of workers and it has launched 870 projects through Environment, Health and Safety Academy so that working conditions are improved for the workers. It has also implemented chemical management processes throughout its supply chain (Supplier Responsibility). Conclusion Consequently, compliance team of Apple Inc has been constantly endeavoring to cope up with variables like social, economic, legal, political, environmental and cultural in the context of ethics so that the company maintains its corporate image as socially responsive. The company has improved its responsiveness through implementing set of ethical standards and auditing them periodically to assure that suppliers comply with the provided norms. The company also helps workers and the suppliers to engage in partnership to drive change to let them embrace technology, improve processes and organizational standards. References Apple - Supplier Responsibility. (n.d.). Retrieved from https://www.apple.com/supplier-responsibility King, S. (2011). Apple marketing audit and new service product plan. GRIN. Zylla-Woellner, J. (2013). Business Analysis of Apple Inc. GRIN Verlag. Read More