The Apple Organization: Unethical Behaviors - Case Study Example

Name: Date: Course: Professor: The Apple Organization: Unethical Behaviors. Apple Company is one of the world’s most renowned companies for its quality products such as the electronics which include the computers and the iPhones. The company is also renowned worldwide for its innovations associated with the innovations linked to their products. Additionally, this company’s reputable status is associated with its ability to have provided thousands of people with job opportunities hence, a source of living to these individuals. Therefore, for this company to operate successfully in the highly competitive global market, it must produce their products in line with the consideration of the ethical principles so as to safeguard the security of the populations and the environment at large (Svara, 2007). Apple organization like any other business organization is required by the law to function according to the stipulated ethics so as to respond effectively to both internal and external triggers of change. These ethics are important in an organization since it expresses the values an organization has to its workers and to the general public. The elements which have contributed to this organizations excellent performance in the competitive market include respect for the clients, honesty and trust among other ethics. These ethics have contributed to Apple’s organization overall performance through influencing its employees ways of thinking, building trust within the organization and their customers and developing goal oriented culture in the organization hence, its excellent performance in the electronics market (Ferrell et al. 2008). Upholding of the labor and human rights to promote dignity are some of the ethical principles of the Apple organization. This is achieved through treating its employees with dignity and respecting their varied needs and backgrounds to promote organization’s productivity and unity at the workplace. Other ethical codes in this organization include, antidiscrimination (basing on race, age gender or color), fair remuneration, prevention of forced labor, prevention of under-aged labor, provision of adequate working hours( 60hours per week), freedom of association within the organization among other ethics which govern the behavior of the employees in the organization (Peng, 2009). Despite these reputations linked with the Apple organization, the organization has been associated with various unethical behaviors which have contributed negatively to the company’s provision of their products and services to their customers. The company should function in a way that is acceptable in the society and engage in organization’s activities which contribute to the overall economic stability and protection of the environment (Lusted, 2012). Therefore, this paper tries to analyze in detail the unethical behaviors which have been associated with the Apple Company, and try to identify some of the effects which are likely to contribute to these unethical behaviors. The analysis is done taking into consideration the MAN2100 which stipulates the ethical responsibilities which the organization should uphold. One of the unethical behaviors of the Apple Company is the violation of their employees’ rights and labor laws. This is evidenced by the long working hours its employees have to perform their tasks. For instance, audits done in the company revealed that the employees were working in the company for a duration of more than 60 hours a week and some employees working in the organization for a duration of more than six days in a week. Additionally, the company is involved in the employment of children who are less than 15 years and providing false information in their records. The employees are paid less wages as compared to the duration of their working hence, violating their rights which is unethical (Zimmerli, 2006). Additionally, the company engages in innovations which are considered unethical according to the MAN2100 regulation on organization’s responsibilities. The employees responsible for marketing these innovations are required by the organization work for long periods of time causing burn out and exhaustion to these employees. Employees have faced incidences of injuries such as motion injuries, injuries due to exposure to toxic chemical substances and the provision of unhealthy working conditions at the pretext of promoting innovations contributing to the violation of the employees’ labor rights hence, engaging in unethical behaviors (Creemer, 2009). The company, like any other organization should allow its employees to form independent genuine unions within the organizations. These unions are to ensure that the organization’s employees are provided with suitable working conditions which promote their health, productivity and innovations in the organization. Union’s activities include, ensuring proper remuneration to the employees, proper working conditions, protection of their labor rights, and advocating for the protection of the employees labor rights among others hence, preventing unethical behaviors in this organization (Illing, 2006). The organization’s marketing of its products is unethical. This is because; the company releases some of its products at a faster rate into the market at a faster rate as compared to the other organizations. However, the qualities of the products which are released by the company within as short period of time have very little quality differences from the previous product released into the market. For instance, the iPhone released by the company in the year 2008 has little differences when compared to the same iPhone released into the consumer market in the year 2012 (Carlton, 1997). The Apple’s company anti-competitive behavior in the electronic market is unethical. The company’s decision to adopt behaviors such as developing portable devices which have been locked into the iTunes is unethical since it will lead to the creation of an iTunes monopoly for their devices as compared to its competitors. Additionally, the company’s inability to license some of its products such as the Pair Play device is unethical since it will lead to inability of these devices to be encoded to other Apple products related producers. the company’s behavior such as preventing its iPhone users from installing other applications such as the Google Voice is unethical since it restricted its customers on the kind of the products to access to which is against the ethical regulations governing an organization (Lusted, 2012). The company’s distributor’s behavior such as discharging of the toxic wastes such as the metals and polluted materials into the water bodies and the surrounding communities is unethical. Additionally, the company’s stakeholders move to adopt policies which do not promote strong advocacy of policies supporting environmental protection and sustainability is unethical. This is because; adoption of such policies and the discharge of the toxic substances to the communities affect the health of people living in these environments negatively by exposing them to diseases and injuries hence, unethical (Illing, 2006). Furthermore, some of the business strategies adopted by this company are unethical. For instance, the organization’s decision to sell their products directly to the consumer’s through their own stores without involving other dealers in the market. Additionally, the company’s behavior such as selling their products below the standard costs provided by its competitors, provision of clever products, and a different distribution strategy against the regulations provided by the ethics governing organization’s behaviors is unethical. Direct provision of their services to their consumers without involving other dealers in the market is unethical since it leads to deteriorating business relationships and increased incidences of business monopoly in the market (Carlton, 1997). The organization’s behavior such as selling of their innovators unlicensed products is considered to be unethical. For instance, the organization’s behavior of selling of its employee’s unlicensed books and pirated products through the online methods of marketing was considered to be unethical. In Addition, the organization’s action such as the adoption of the post-launch reductions of their products prices is considered to be unethical. This is unethical since its move to reduce their products prices will negatively affect its competitors through shifting consumers focus to their company with the core aim of profit maximization (Lusted, 2012). One of the ethical requirements for all the organization is the free access of the organization’s events by other external bodies such as the media. However, the organization’s tight regulations towards the media on their access to the organization’s information associated with its products launches, and the organization’s current developments are unethical. This is because; the general public and the media bodies are kept unsure of the organization’s current developments. This behavior consequently leads to the organization’s actions such as increased hype associated with its products launches (Creemer, 2009). The organization antitrust behavior towards other organizations providing programs the organization’s products had been using is considered to be unethical. For instance, the organization’s act of disallowing the use of programs such as the Adobe Flash, which was used in the previous versions of the iPhone products, is unethical. This is because; adopting such behaviors by this organization will contribute to the organization being anti-competitive. In cases of leaked information concerning the organization’s product launches, it has been pressuring the journalists and filling of law suits against the unknown individuals who might have leaked the information hence, considered unethical (Zimmerli, 2006). Furthermore, the organization’s behavior to transfer most of its intellectual property to other stakeholders is considered to be unethical. This is because; transferring its ownership will prevent the organization from incurring high taxes on the profits gained from their sold property. The organization’s aggressive behavior to maximize profits through the exploitation of its employees is unethical. This is because; exploiting these employees is against their labor laws and predisposes them to injuries and exhaustion hence, decreased performance and motivation in these employees (Ferrell et al. 2008). One of the factors which contribute to this company’s unethical behaviors is its abstract thought of it being productive more than its competitors. This organization’s identification characteristics such as its employees sense of their belonging, employees methods of endorsing reciprocity with exchange of better relationships within the organization also contributes to this organization’s unethical behavior. Additionally, lack of the adoption of tight policies on the need for environmental protection to enhance the health of individuals living in these environments contributes to the organization’s unethical behaviors (Jennings, 2012). Decline in the public reputation to the organization is one of the effects associated with the Apple’s unethical behaviors. This occurs mainly through the negative picture its consumers get when they are made aware to the unethical behaviors underlying this organization. This has led to the organization incurring a lot of costs in order to restore its public image. The surrounding communities have been negatively affected by this organization due to its behavior of discharging its toxic wastes into these communities. Consequently, this this has exposed these communities to injuries and various diseases due to the toxic wastes (Trevino & Nelson, 2011). These unethical behaviors have led to the violation of the labor and the human rights by this organization. this is evidenced by the under aged labor where children less than 15 years old are engaged in various organization’s activities, low wages being paid to the employees, poor working conditions and employees working for more than 60 hours which is against the labor laws. Additionally, the provision of poor working conditions in the organization has predisposed its employees to various risks such as repetitive motion injuries and exposure to hazardous chemicals at their working environments (Svara, 2007). Creating policies which govern employees’ behavior and practice in the organization is one of the methods which can be adopted by this organization prevent cases of unethical behaviors in the competitive global market. The organization should embrace the formation of the employees’ unions so as to ensure that its employees are equally represented in the organization and their rights respected for. The organization should build a culture which foster transparency, communication and openness among the employees. This will facilitate the implementation of the’ ethics which will regulate employees’ behavior. The organization’s management should work together to create employees understanding of their expectations and they should focus on incenting the right culture in the organization (Peng, 2009). In conclusion, unethical behaviors in the Apple organization have negatively affected both the organization and its employees. This is through contributing to decreased sales as a result of the negative picture to its consumers and the high costs incurred in the events of restoring the organization’s picture to the general public. Therefore, the organization should adopt measures which contribute to the prevention of any cases of unethical behaviors from the company. Planning should be carefully done to ensure that decisions on the organization’s marketing strategy are employed to prevent incidences of unethical behaviors. ` References. Carlton J. (1997). Apple: The Inside Story of Intrigue, Egomania, and Business Blunders. New York: Times Business. Creemer D. (2009). Psychological Perspectives on Ethical Behavior and Decision Making. Charlotte: Age Pub. Ferrell O. C, Fraedrich J. & Ferrel L. (2008). Business Ethics: Ethical Decision Making and Cases. Boston: Houghton Mifflin. Jennings M. (2012). Business: Its Legal, Ethical, and Global Environment. Mason: South- Western Cengage Learning. Illing G. (2006). Industrial Organization and the Digital Economy. (2006). Cambridge: MIT Press. Lusted M. A. (2012). Apple: The Company and its Visionary Founder, Steve Jobs. Minneapolis: ABDO Pub. Peng M. W. (2009). Global Strategy. Ohio: Cengage Learning. Svara J. H. (2007). The Ethics for Public Administrators in Government and Nonprofit Organizations. Sudbury: Jones and Bartlett. Trevino L. K. & Nelson K. A. (2011). Managing Business Ethics: Straight Talk About How To Do It Right. New York: John Wiley. Zimmerli W. C, Richter K. & Holzinger M. (2006). Corporate Ethics and Corporate Governance. New York: Springer. Read More