Code of Ethics in Apple Company - Term Paper Example

? OF Apple Inc. of Ethics Definition: A of Ethics for this company shall be the formal document that establishes all the behavior patterns and expectations for all employees, associates and independent contractors globally, while interacting with or for the company (www.bcorporation.net). Purpose: Apple Inc. Code of Ethics will; - Define acceptable behavior - Promote high standards of practice - Provide benchmarks for all members for their growth and development - Establish a framework for professional behavior and responsibilities - Serve as a vehicle for occupational identity - Serve as a grade for attaining occupational maturity (B Corporation) Apple Inc. Chief Executive Ethical Statement As Chief Executive of Apple Inc., I believe that in order for the organization to survive and succeed, it must have a sound set of beliefs on which to base all its policies and actions. In addition, faithfulness to those beliefs is what will ensure corporate success, because it will influence our consumers as to our commitment to being socially responsible. Ferrell et al 2001), states that the globalization process brings individuals of different nations, who bring their cultures, their laws, their values, and different sets of moral and ethical standards to business situations, and to this Apple Inc is totally cognizant, and will utilize such diverse resources to constantly update its ethical code of conduct, to more meaningfully reflect high degrees of relevance to what obtains in the market (Ferrell, F. 2001). Finally, if the organization is going to meet the challenges of changing world market conditions, it must be prepared to reinvent itself constantly around those established beliefs (Hitt, W.D 1990) Apple Inc. Statement of Ethical Principle Apple shall commit itself to invest in the communication means for educating the company employees, business associates and shareholders, to enable them achieve their full potentials in terms of ethical behaviors. To this end it will endeavor to: - Step up its audit and training at all locations around the world. - Make every effort to train all new employees during the first three months of their employment and periodically afterwards (www.dept.ttu.edu/financialandforms/codeofconduct-1-p4f.). - Introduce new guidelines for ethical standards on dormitories, juvenile protection, medical non discriminations, pregnancy non-discrimination, and avoidance of involuntary labors, wages, equitable distribution benefits and the scheduling of working hours especially in Asia and Africa. - Evaluate its Management Commitment Index on a quarterly basis. - Monitor the ethics of the recruitment process on quarterly basis across all organizational lines. - Rate its Suppliers Responsibility Conformance Index. And take action where appropriate. - Promote the highest levels of free expression of ideas and opinions across all organizational lines. -Protect the dignity and privacy of its employees, and ensure confidentiality in all records kept, as well as in their personal lifestyles. Apple Inc. - Outline of Code of Ethics: The Code of Ethics shall be developed along the following outline, A. Introduction B The purpose of the code of ethics C. The Chief Executive ethical prospective D. Apple Statement of Ethical Principles E. Corporate Responsibilities F. Relationship with Shareholders G. Implementation Policies H. Quality Assurance Audits I. Reporting Procedures J. Communication Policies (www.bcorporation.net) K. Educational Strategy Implementation Policies The Code of Ethics for Apple Inc. will be implemented using a 12 step program (www.bcorporation.net). At the outset the program will be subjected to endorsements, integration, circulation, employee feedback, affirmations, contract affiliations, mandatory regular reviews, training, enforcement procedures, translations, networking, and annual reporting. (www.bcorporation.net). Apple Inc. embraces John Stuart Mill’s definition of end result ethics, which states that the moral rightness of an action is determined by considering its consequences (Hitt, W.D 1990), and as such will implement its ethical policies using all these relevant factors. Corporate Responsibility Apple Inc. regards aligning its activities with the social, economic and environmental expectation of all its stockholders as extremely vital, because it has become a multibillion dollar technology related company (www.sourcewatch.org). Apple Inc. believes that being a good corporate citizen is the right strategy to pursue at this time, as it will ensure that the company remains a sustainable and going concern for several years. As such, it has built its ethical values into all its policies and procedures, to ensure timely gains in the future. Globalization, according to Buarque (2003) has brought enormous pressures to bear on companies, in the sense that they are compelled to try to attract customers at any cost to obtain short term results (Buarque, R. et al 2001). Apple has recognized that this has made many companies turn blind eyes to good corporate ethics, falling prey to the competitiveness of the market, instead of investing into the future, where customers are expected to reward them for their earlier responsible actions. However, by our commitment and responsible actions, we will maintain our ethical standards for all the competitors to see, and perhaps emulate in the name of good corporate citizens. Relationship with Shareholder Apple Inc. objective is to continually be the company that provides computer software and hardware to its clients globally. The company significantly values its relationship with all stakeholders who have contributed to its successes (Ighom, Wenghian, and K 2009). It will continue to plan growth strategies especially where new supplies and manufacturing entities are available to participate. The company shall listen to all the ethical concerns of it stakeholders, and where feasible, use them to draft new ethical codes of conduct that will enable it to maintain its image as well as profitability. Educational Strategy Apple will make it its responsibility to educate right across all layers of its organization, to ensure that its ethical strategy is tailor fit for the business. It will ensure ethics training include vignette and theories that come from the company situations and experiences, so that all can more relate to real life issues (www.bcorporation.net). Training will focus on specific issues like health and safety, labor and human rights, proper work ethics, environmental operational impact, quality assurance, rewards systems, as well as suppliers and employees responsibilities. This will ensure that overtime the levels of values and motives according Hitt (1990) will be elevated to serve the company well, in its pursuit of mutually established goals and objectives. Apple Inc is aware that integrity, trust and effective leadership are interconnected (Hitt 1990), and the best way to start building these values into employees must be through education, because this will enable them to become responsible, dependable, and committed to the ethical standards and other goals and objectives that has been transmitted to them, from the higher echelons of the organizational hierarchy. Quality Assurance Audit Apple Inc Quality Assurance Audit will conform to ISO 9001, and will ensure that all systems including ethical standards at all levels are in place and being followed. Audits will be comprehensive in scope globally, in that it will cover compliance, conformance, process, department, product, systems inclusive of security portfolios. This will ensure that when all our final products that are delivered to our customers with the company logo on them, will perform with maximum effect, as stipulated in our marketing and advertizing programs (Quality Assurance & Audit 2009). These audits, from the manufacturing floor to the main offices in the US, will be performed by external auditors, so that objectivity and consumer as well as stakeholder’s confidence in our reporting will not have any negative repercussions that will reduce our stock prices. It will also help to keep us compliant with the legal and regulatory requirements of the Securities and Exchange Commission (Quality Assurance & Audit 2009). Reporting Procedures Apple Inc will institute monthly mandatory reporting from all managers, regarding the status of ethical compliance, conformance, process, department, products, and systems audit. The organization will also us these reports to measure the Management Compliance Index of all its managers, which according to Hyatt (2010), was at an all time low of 61%, compared to the minimum standard of 95% , which is reflective of the company goals. Efficient maintenance of the reporting systems Apple Inc. believes, will serve as proof that the Code of Ethics created are effective , according to B Corporation(2007). It also gives opportunities implement timely updates to ensure there are consistency and reliability in all systems and operations; despite environmental fluctuations, and competitors attempted inroads into our global market dominance. Apple organization will regard failure to adhere to its reporting procedures at all levels, as major violations of its Code of Ethics, and will take actions to terminate the services of those found deficient. Communication Policies Apple Incorporated, intend to provide mediums for the expression of ideas, and opinions by it employees, regardless of color, race, religious orientations, and organizational status, by designing a communication system and policies that will constantly reflects its unique culture and values. We accept responsibility to ethically inform and educate our employees, independent contractors, suppliers, stakeholders, and other associates through our communication network, as this will ensure our values and beliefs remain uncompromised, in the pursuit of growth, sustainability, and mutual development. Apple will institute compulsory orientation programs for all its new employees, suppliers, and associates at all levels, and in all countries to effectively communicate and generate measures of understandings of the Code of Ethics they are expected to conform to, while performing or interacting with the company. The company will also hold Quarterly Ethics Seminars for managers, promote its open door policy to all employees, as well as conduct annual ethical performance reviews across all subsidiaries, to help ensure timely replications are being achieved (Hitt, 1990). Global Code of Ethics Monitoring Committee Apple Inc realizes the significance of monitoring the effectives of its Code of Ethics implementation effectiveness in countries like China, The Philippines, Czech Republic, Malaysia, Singapore, Taiwan, and the Democratic Republic of Congo, and has decide to assembly a Monitoring Committee to ensure compliance across all operations. We will ensure the cultural and language barriers are minimized, by appointing representatives from each country the company operates in to the committee, because different cultures can be present in communications, notions, gestures, and the importance given to time factor, and in regards to what is morally right or wrong (Ferrell et al 2011). The committee shall be authorized to make unannounced visits to any of its operation, to investigate the levels of compliance to its Code of Ethics, and shall report all major violations, as well as recommendations for actions, to the Chief Executive Officer within twenty four hours. All decisions regarding the terminations of the services of entities that are found non-compliant shall be made by the Chief Executive Officer in consultation with the Board of Directors. Apple shall also mandate Annual Reviews of the Code of Ethics conformance, in all global entities, with a view to update it to the current practices as they pertains to the electronic manufacturing industry. In order to maintain its corporate image, and to be seen perpetually as a socially responsible multinational, Apple Inc. shall demand of its Committee to focus its attention specifically on violations in the use of child labor, working conditions and practices in countries where suicide has become frequent, recruitment malpractices, and discriminatory practices among minorities and women in all operating countries. We have observed that one of the most common forms of ethical problems occurring in the workplaces globally, is discrimination in the hiring of staff, by sex, race, religion, or physical handicap (Ferrell et al 2001), and will take drastic actions , where such practices are reported, and our investigations confirms it. The President of our Global Operations will chair the Committee, and shall ensure that copies of the most current Code of Ethics Manuals are in every location for at least three months, prior to making un-announced visits. This is the company way of ensuring the Code of Ethics are available to all those who are responsible for implementation and monitoring activities that relate to it. Making it happen It shall be part of the core values of Apple Inc. to fulfill the philosophy of Mark Pastin, which states, “Excellent companies shall do more than talk ethics. They take positive steps to address ethical issues and apply the practical tools of ethics, in their management practices” (Pastin, M.1987). Apple Inc regards itself as an excellent company, in terms of its market shares, its dominance in product quality, and the high technical competence of its research, marketing, operations, and production. Accounting, Customer Relations, Human Resource Management, and the technical expertise in its employ, and as such will do more than talk ethics, by taking critical actions after implementing these Codes of Ethics. We shall publish in all locations, the outcomes of all our internal and external audits, as well as the action taken, to ensure motivation as well continued adherence to our Code of Ethics, especially among first line and other managers whose cooperation becomes critical to the success of the program. Additionally, the company shall publicly award those subsidiaries, who in the opinion of the committee, has performed exemplary in maintaining the mutually established Code of Ethics Standards during the periods under review. Apple Inc and its executives will also remain cognizant of the fact that Ethics has to be lived from the top down, and it is critical that no one in the company is seen as above the Code of Ethics, which is used to guide the behaviors and expectations of all employees, stakeholders, and associates (B Corporation). Managers are not expected to say one thing and then do another, because such actions are simply licenses for the rest of the company employees to follow suit, thereby bringing down the entire organization in the process. The Future Apple Inc sees itself as a going concern, and shall constantly commit its resources along the outline established under the code of ethics to operate its businesses globally. The company does not embrace the argument that every aspect of its core values outlined here, is fixed in stone, but regard the publication as evolving, to the extent that it can be modified and updated where necessary to ensure greater levels of organizational excellence and compliance. However it challenges its employees and associates to raise their ethical standards to match that of the company, and where possible, use the company open door policy to outline deficiencies observed, to ensure a more perfect format can be drafted to help the organization remain on target to achieve its goals and objectives. Finally, the Code of Ethics as presently drafted, has the entire management support behind it, and will be used as a guide for all employees and other associates as to the kinds of behaviors that are acceptable in the organization. It will also be used to punish all violations, subject to legal advice where necessary, and all practicing managers are expected to use it in their daily operational deliberations. References 1. B Corporation. Resource Guide. (11/3/2007). www.bcorporation.net/resource/bcorp/documents/B%20resources%20%20creating%code%20%/20ethics.pdf. 03/03/11. 2. Hitt, William, D. (1990). Ethics and Leadership. Columbus, OH. Battle Press. pp.3, 13, 98,163. 3. Source Watch. Corporate Responsibility; www.sourcewatch.org (03/03/11). 4. Ighomwenhian, Kingsley. (2009). Intercontinental Marks 20 Years of Beneficial Relationship with Stakeholders. African News Service; May 6, 2009. p.1 5. Quality Assurance Audits. (2009). Types of Audit, www.totalqualityassuranceservice.com/tag/quality-assurance-audit/ 03/03/11 6. Ferrell, Fraederich, et al, (2011). 8th edition. Business Ethics and Ethical Decision Making 7. Hyatt, James, (February 25, 2005). Apple Increases its Monitoring of Suppliers. Business Ethics. www.business-ethics.com/2010/02/25/1938-apple-increases-its-monitoring-of-suppliers/ 03/02/11 8. Pastin, Mark, (1987). Ethics and Excellence. New Management Spring 1987 9. Buarque, Renato et al (2003). Global… Business Ethics? Challenges and Paradoxes. www.sase.org/oldsite/conf2003/papers/coutinho-bertrand.pdf 03/04/11 Read More