Corporate Responsibility and Market Strategies: The of Apple - Case Study Example

Corporate Responsibility and Market Strategies Introduction Apple Computers Incorporation is one of the most famous technology companies in the world. It is an American technology company with its headquarters in Cupertino, California. The company develops designs, sells and supports different types of electronic products like personal computers, media players, and computer hardware and computer software. The social and ethical responsibilities of an organization lies in how the organization employs and uses its resources in order to not have any negative impact on the society and community in which it is operating. Apple Inc. has started showing increasing concerns towards the environment and the society and all its stakeholders by implementing robust corporate social responsibility strategies and practices in the business and among its business counterparts as well.   Apple’s current position on the ethical and social responsibilities Apple Inc. uses a number of Corporate Social Responsibility strategies in the business including both the short term and long terms strategies. The long term CSR strategies of Apple include stakeholder involvement, measuring social performance and managing the message of corporate social activities and communicate the strategy guidelines effectively. The short term strategies include a top down commitment, online reporting of CSR activities, employee and other stakeholder communication, awareness creation and publishing the corporate position statements on a periodic basis (Mark, 2012). Apple strives to remain one of the most environment friendly and environmentally sustainable technology companies. The company uses recycling programs and has sufficiently reduced the raw materials used in production. Also, Apple has taken up a green and eco-friendly sustainable supply chain system in its operations. The socially responsible view point of Apple is reflected in their mission statement which mentions the aim of Apple Inc. to protect the environment and ensure the safety and wellness of the global consumers, customers and employees of Apple. The company has also ensured that the highest standards of safety and environmental compliance are maintained in their supply chains. Also, Apple provides safe work environment for the employees in the company and ensures the wellness of the employees through various programs. Apple Inc. has implemented a green and sustainable supply chain in the business and has also established a stringent supplier code. The company has made it mandatory for all its suppliers to adhere to the supply chain management principles and comply with the supplier code of conduct established by the company. Also, the company has taken sufficient environmental friendly steps like establishing the system of recycling of products to ensure environmental sustainability. The company releases a periodic report under the name of Supplier Sustainability Report aimed at reviewing and monitoring the supplier practices and adherence to the supplier code of conduct (Apple Inc. Corporate Website, 2013). Also, Apple focuses on ensuring environmental awareness and sustainability in its production and other business processes. The company has adopted corporate standards with respect to health and safety guidelines and to maintenance of environmental friendly processes. Impact of ethics and social responsibilities violations made by Apple’s suppliers Despite the different steps taken towards corporate social responsibility, Apple Inc. is facing several challenges with respect to the ethical violations done by the suppliers of Apple. These violations negatively impact the image and goodwill of the company in the developed countries as well as its processes and operations in both the developing and developed countries. Of late, China Labor Watch which is a non-profit organization , has alleged one of the major suppliers of Apple Inc., Jabil Circuits related to the violations of ethical and social codes of conduct (Dlaz, 2012). The organization alleged Jabil Circuit of serious legal and ethical violations including that the company had millions of dollars in the form of unpaid overtime of the workers, the company forced its laborers to work for overtime without paying them properly and without allowing them proper rest and breaks from their duties. Also, the company was alleged to be discriminatory towards the workers ion the basis of age and gender. The company did not allow maternity and pregnancy leave for the women workers and refused to hire anyone above 35 years of age. All these were considered to be major ethical and social violations of labor laws. These activities of the major supplier of Apple Inc. were also against the codes of conduct established by Apple Inc. for its suppliers (Apple Inc. Corporate Website, 2013). Another supplier of Apple Inc., Foxconn Company was alleged of similar violations in 2012. It was said that the company forced their worker to work for extended hours without paying them suitably and did not paid the dues of the workers as well. Many workers of this company were said to commit suicide because of the ill treatment received firm the management of Foxconn. These scandals have badly affected the reputation of Apple Inc. with several criticisms drawn for the company with respect to ethical and social compliance. Apple has faced enormous pressure ion the local markets where Apple products are sold and also from the governments where the factories of Apple are operating in alliance with these suppliers. Many philanthropists and social groups have criticized Apple for their irresponsible behavior in the domain of corporate social responsibility. Methods that Apple can use to ensure that supplier compliance Apple Inc. should employ suitable strategies to ensure that the minimum wages and minimum benefits standards are adequately followed by the suppliers of Apple Inc. The company can devise a strategy in which it asks its suppliers to provide an extensive report of the annual wage payment done by these companies to its employees. Apple should do a periodic survey with the employees in order to know about the wages and benefits provided by the suppliers to the workers and laborers. This strategy will help the company to ensure that the main suppliers of the company adhere to the standards of minimum wages in their dealings with the employees. Another strategy that Apple Inc. can implement to enhance supplier compliance is that the company should impose fines on the supplies that pay the workers and laborers below the benchmarks of wages in the industry. This will help the company to monitor the compliance levels of the supplier companies and also motivate the supplier companies to pay the workers properly according to the industry wages standards (Mackenzie, 2012). Apple Inc. may also start maintaining records of the working hours of laborers in the factories. This will ensure that the suppliers do not impose extended labor timings for the workers. Apple Inc. can implement the before mentioned strategies to ensure increased supplier responsibility and compliance and also ensure that the labors are compensated and made to work according to the industry rules and standards. Will Apple’s customers pay more if it increases selling prices for providing better wages? The customers of Apple may not be willing to pay more for the products to ensure that the company follows the industry standards of wages and benefits in compensating the workers of the suppliers. The payment made to the labors and the benefits provided to the labors is a responsibility of the company itself. The customers cannot be made liable for paying more in order to meet the business requirements. The products of Apple are already highly priced and a further increase in price in order to pay better wages to the suppliers workers may cause the loss of brand loyalty among the customers of Apple. The company may cut down on its costs for this purpose and not increase the products prices. Apple’s current marketing strategy Apple is a first mover in the technology field. The company has established connection with the customers which drive the sales of Apple products. Apple can have price premiums due to the high quality of the products and the established brand image. The products of Apple are differentiated and high quality with innovative technologies and high pricing. Different products of Apple target different market segments. Apple is positioned as a premium brand appealing to the niche tech savvy customer groups. The main promotion of Apple occurs through the customers. Apple sells its products in flagship stores and through distributors in many countries across the globe. Apple continues to remain a market leader in the technological market with their innovative and premium quality products. Actions that Apple can take to improve its competitive advantage Apple can launch new products in the mobile phone segment instead of leveraging on only one category of mobile phones which is the iPhone. The competitors of Apple like Samsung have increased their sales manifold by introducing different models to cater to a wider base of customers. Also, Apple can use vertical integration in the business so that the costs are reduced which would help the company to lower the process of its products which may increase the sales of the products and improve the competitiveness of the brand in the market. Conclusion Apple is strongly established in the technological field with high volume of sales and profitability. However, the company should focus on their corporate social responsibility activities to add to the image of the brand and to increase the sustainable competitive advantage of the company. Also, Apple should build on its exiting marketing strategies and appeal to a wider segment of customers. The company should try to progress by working efficiently with the suppliers and workers and by employing suitable marketing strategies. Apple must employ new strategies and find new ways if ensuring competitiveness in the evolving market environment. References Apple Inc. Corporate Website. (2013). Supplier Responsibility - 2013 Progress Report. Retrieved from http://images.apple.com/supplierresponsibility/pdf/Apple_SR_2013_Progress_Report.pdf. Apple Inc. Corporate Website. (2013). Supplier Responsibility - Labor and Human Rights.   Retrieved from http://www.apple.com/supplierresponsibility/labor-and-human-rights.html. Dlaz, B. (2012). Apple – Ethics and Social Responsibility. New York: Routledge. Mark, A. (2012). Corporate Social Responsibility and Freedom of Association Rights: The Precarious Quest for Legitimacy and Control in Global Supply Chains. Politics & Society. Vol. 40(4), pp. 609-644. Mackenzie, A. (2012). Apple Ethics and Social Responsibility. New Jersey: Prentice Hall. Read More