The Current Position Regarding Apple Corporations Ethical and Social Responsibilities - Case Study Example

Apple Inc. Strategies of Apple Inc. Strategies Introduction One of the most famous organizations in the world oftechnology is Apple Corporation and its brand “Apple” is well recognized and recalled throughout the world. It is the most admired organization in the world from the past few years. It is an extremely famous brand that seeks to dignify its image because Apple has strong brand image in the world. Steve Job founded it, and now Apple Corporation is designing computers, laptops, phones, and software as well. In order to manage their brand identity, Apple focuses on the product specification and differentiation. Apple Inc. has a strong financial performance as well; it is because none of their products are at low prices. However, Apple role towards ethical and social responsibility is criticized for several years. Therefore, the paper will discuss the current position regarding the company’s ethical and social responsibilities. In addition, paper will also discuss Apple’s reputation that is affected due to its suppliers and its weak role towards ethical and social responsibility. Thus, steps taken by the company to perform it ethical and social responsibilities will also be discussed. Furthermore, the paper will also discuss the marketing strategies of Apple and recommendations to change and improve its marketing strategies to attain competitive advantage. 1. Apple’s current position on the company’s ethical and social responsibilities Apple is the most admired and successful organization that is continuously increasing its profits and improving its financial performance by introducing latest technologies. The higher management and the executives of Apple Company are facing the challenges for its role towards the corporate social responsibility. It is the reason due to which the company is being criticized. The company is criticized because critiques highlighted this point that the company does not contribute and play a vital role in corporate social responsibility. Although, it’s financial performance is stable but, the company is not investing in performing ethical and social responsibilities (Dijk & Schipper, 2007). The website of Apple provides commitment towards the ethical and social responsibilities in regard to supplier’s code of conduct and their role towards shaping the culture. There are environmental problems and issues related to human rights. Thus, the company introduced Greenpeace to show that they are contributing and changing the environmental policies. However, the company did not maintain its policy due to this reason; it was criticized by several non-governmental organizations (NGO) and critiques. This criticism left its negative impacts on consumers, employees and most importantly shareholders (Sandoval, 2014). Thus, corporate social responsibility (CSR) report was presented for the sustainability of business practices of Apple, which redefine the marketing strategy as well. After publishing the CSR report, Apple advised their shareholders for not adopting the resolution for CSR. However, Apple was criticized even after providing sustainable solutions and being the example of the Greenpeace. It was criticized because of supplier’s role and weak strategies for ethical and social responsibilities (Sandoval, 2014). 2. Impacts of ethics and social responsibilities violations on Apple’s reputation The impact of the publication of ethics and social responsibilities violations made by Apple’s suppliers positively increased the reputation and sells of Apple. Various incidents were reported about workers suicides and extended working hours of employees. It badly impacted the reputation of Apple and its role towards the ethical and social responsibilities (Dijk & Schipper, 2007). Thus, Apple had to deal with its suppliers such as, Foxconn and Pegatron. Although Pegatron, which is the major supplier for Apple from China, helped Apple to increase its business, it was violating the legal and ethical rules. It was reported by China labor watch after the investigation that they have found almost 35 legal and 45 ethical violations by Apple supplier Pegatron (Sandoval, 2014). One of the violations was using the underage labor workforces and paying their meager wages. In addition, it was reported that the workers were never educated about the utilization of any toxic chemical, which they were utilizing for Apple production in factories (Dijk & Schipper, 2007). It was a big issue that was highlighted and questioned why apple is not performing its role for corporate social responsibility even after attaining strong financial standing. These violations made by Apple’s suppliers have had a severe impact on Apple’s reputation. 3. Suggested methodology for Apple Apple Inc. could undergo monitoring program and compliance check even without informing the suppliers about it. For it, the company ensures that the supplier’s code of conduct is being followed or not. In this compliance and monitoring program, audits, verification measures, cross checking of reports and action plan correction is included. The suppliers are responsible to establish a workplace that is free from discrimination. The suppliers need to fulfill the demands of the workers by upholding their rights. Additionally, the suppliers are responsible to treat them with the utmost respect. They are not allowed to harm workers by any means verbally or orally (Dijk & Schipper, 2007). Thus, it can be said that Apple can utilize it compliance and monitoring program to ensure that the suppliers are maintaining the standards and workers are benefited and provided by their desired wages. Moreover, the code of conduct is being followed. 4. Premium pricing and customers willingness It can be said that the Steve Job’s objective and one of the strategies for Apple products is that the company should focus on the profits over market share (Sandoval, 2014). The goal of Apple, Inc. was to provide excellent experience of technology rather than focusing on low price strategies. With the help of the objectives and strategies Apple, Inc. has gained market competitive edge because there is an enormous market of apple’s customers that only prefer to use Apple products (Schneiders, 2011). It is because Apple has best products with advancement and the best quality. Thus, Apple is adding new and unique specifications and technologies to its products. In order to do so, the increase in wages and benefits are required and demanded by the suppliers and workers. The more market growth and demand increases the more workers, and suppliers demand increase in wages and benefits. For this purpose, if Apple had to raise the selling prices then it is possible that customers can pay more. It should be noted that Apple is already having a bit expensive products than any other company. Still, there is a huge Apple customers market. Herein, it should be noted that people starve for new Apple’s new products. It is the reason due to which Apple is maintaining a premium price by focusing on customers willing to pay more. As a result, it can be stated that people are willing to pay more and more to get the best, innovative, and advanced technological products by Apple Company. 5. Apple’s marketing strategy Apple’s primary focus remains on the product differentiation strategy that attracts the customers and grasps their attention. It should be noted that Apple do not spend money on the advertisements for marketing its products. In addition, it is also a strategy that is offered by the Steve Job that the product should be offered in the small number within the market. It creates the hype for the product (Sadeghi, 2012). By this, people tend to pay more and more. It can be analyzed that people get attracted by advertisements and demand more for those products that they find on media. Therefore, it can be recommended that Apple needs to use media platform for marketing its products. Although, Apple customer market is a huge market, however, its customers are moving towards the other brands (Sandoval, 2014). It is due to their attractive advertisements and strategies. For example, Samsung is also providing maximum range of new and innovative products that is more or less similar to Apple products. In addition, Samsung Company promotes their new items through media platform by designing attractive advertisements. With the help of this technique, the Samsung Company is attaining the competitive advantage and capturing Apple’s customer market as well. Therefore, by applying the new marketing strategy that is the use of media platform and advertisements Apple can attain the competitive advantage from Samsung. It should be noted that Apple’s premium pricing strategy does not allow many people to have any of Apple’s product. Their phones, iPad, iMac, and other devices are way expensive that a normal or middle range amount earner cannot afford this brand. Therefore, it is recommended that Apple, Inc. should offer some reasonable or low-price products as well. For example, Samsung also offers high range products but it has introduced low rate phones as well to cover all customers from the market. Conclusion On the basis of the analysis mentioned above, it will not be incorrect to state that Apple’s suppliers are not serious about human rights and environmental policies. In addition, Apple is criticized for its role towards ethical and corporate social responsibility. Although, there is a report available about CSR by Apple for its suppliers, Apple needs compliance and monitoring system to fulfill its CSR role. Furthermore, it can also be concluded that Apple can change its marketing strategies and premium pricing to increase the market share to attain the competitive advantage from its competitor like Samsung. On the basis of Steve Job’s objectives, marketing strategies, and product differentiation strategy, it is concluded that customers are willing to pay more due to the latest technology, product specification, and uniqueness. References List Dijk, M. V., & Schipper, I. (2007). Apple: CSR Company Profile. New York: SOMO. Sadeghi, S. (2012 ). Defensive Strategy – Apple’s Overlooked Key to Success. New York: epubli. Sandoval, M. (2014 ). From Corporate to Social Media: Critical Perspectives on Corporate Social Responsibility in Media and Communication Industries. New York: Routledge. Schneiders, S. (2011 ). 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