Apple Corporate Responsibility to the Customers - Essay Example

?Apple Corporate Responsibility to the s Table of Contents Table of Contents 2 Introduction 3 Corporate Social Responsibility (CSR) Performedby Apple to Customers 4 Discussion 7 Conclusion and Recommendations 9 10 References 11 Introduction Apple Inc. is a world renowned leading manufacturers of technological products. In its operations, the company aggressively aims at providing safer and highly productive working conditions for its employees with the belief that it shall assist the company in preserve quality services and likewise assuring long term customer loyalty. According to its vision, the organization has been quite responsive in inculcating the value of its Corporate Social Responsibility (CSR) when dealing with the customers. Fundamentally, due to its aspiration to create customer value and employee satisfaction, the organization has developed a ‘Corporate Charity Matching Program’ to keep its employees motivated and driven towards efficiency in rendering quality services to its customers (Apple Inc., 2013; Somo, n.d.). One of the major ethical issues witnessed by Apple when performing its operational activities is often argued to be its rapid innovation concerns. It is in this context that Apple has been focused on inculcating rapid innovations of its products which has not only reduce the span of product life cycle, but has also increased its challenges in terms of customer loyalty and brand awareness. For instance, due to the rapid innovations of its product line, the customers are likely to become unresponsive to the new brands launched along with possess a feel of dissatisfaction due to the decreasing span of product life cycle. Emphasizing on this particular issue, the aim of this study is to identify the initiatives taken by Apple in performing its CSR with efficiency from a customer point of view. The discussion will thus initially focus on studying the CSR initiatives majorly followed by Apple and further emphasize on learning the implications of its CSR initiatives on the customers. Based on the understanding obtained, few recommendations will also be provided for Apple to perform more efficiently when dealing with the customers. Corporate Social Responsibility (CSR) Performed by Apple to Customers Apple acts quite responsibly in incorporating highly efficient codes of conduct with its intention to comply with various ethical responsibilities including all the suppliers and distributors in the organization and therefore ensuring quality throughout its supply chain. Apple also emphasizes on implementing effective CSR strategies that would integrate greater awareness and responsible conscience among the management in offering highly innovative products to its customers through effective productivity, ensuring profitability for the organization to a large extent (Apple Inc., 2013; Chun, 2011). However, in its marketing practices, the company has been focused on rapid innovations, which has given rise to certain ethical issues in relation to quality standards, privacy assurance, intellectual property rights, customer loyalty and patent law infringement risks among others. For instance, because Apple extensively focused on product innovation at frequent instance, comparatively more than its rivals, it also has to witness substantial pressure in terms of preserving product quality which needs improvement on a consistent basis. Such rigorous emphasis on product quality along with innovation not only requires huge expenditure in the research and development process, but also increases the risk of quality errors resulting in ethical hazards and customer dissatisfaction. To be illustrated, after the introduction of iPhone 4 by Apple, it was noted that customers had to face various difficulties due to the reception error in the gadget caused because of faulty antenna interference. Apple, in order to resolve the reception problems, provided free bumpers as well as cases for a limited period of time but had to suffer from rising expenditure as well as reducing customer loyalty (University Of Mexico, n.d). As a consequence, Apple also had to witness negative impacts on its cost efficiency which in turn inhibited its control over competitive pricing when offering its products to the customers. This further limited its market sphere to elite and higher income group customers who could purchase the products even at a high price owing to the huge innovation, quality and research and development costs (Cable News Network, 2012). Rapid innovation conducted by Apple also hampered its privacy assurances rendered to the customers resulting in a substantial number of customer complaints and thus can also be considered as a significant ethical issue. To be illustrated, in 2011, Apple had to suffer from various lawsuits based on user privacy issues caused due to the settings implanted in its cell-phones allowing data networking and data sharing facilities. This was looked by the government as an act of organization’s violation of user privacy which made the company renovate the products making the setting easily manageable by the customers apart from rendering compensation to the buyers who had complained against the brand (The University of Mexico, n.d) Apple’s extensive research and development initiatives along with its innovation strategies have also been under scrutiny in relation to emission and other environmental concerns too. It is worth mentioning in this context that the success of Apple substantially depends on the consistent development and establishment of new products. However, as Apple has been upgrading its technology at a frequent rate, they are also compelling customers in replacing the older version with the upgraded newer model in the same product line. As the organization is focusing on upgrading the products, the older version is been kept aloof which certainly causes significant dissatisfaction among its target customers. Notably, Apple mainly targets the elite or high income group of customers who are brand loyal and thus are driven by the belief that brands shall add to their status within the society. Hence, frequent requirement of replacing the previous model, makes them feel dissatisfied. However, in order to resolve such problems, the company has been focusing on recycling the older products and thereby offering it in the market at a lower price. As a result, the organization established a program in recycling older versions of mobile phones, Macs and iPods which although rendered the company with great customer base, but hindered its customer relationship within its core target market (Moscaritolo, 2012; The University of Mexico, n.d). The theft of intellectual property has also become one of the major concerns for Apple, partially due to its rapid innovation strategies. Owing to its rapid innovation, today, Apple owns various intellectual property rights. However, as few of its products have been accused to be based on almost identical designing of its rivals, Apple has been recorded to be sued under various litigations based on intellectual property rights (Apple Inc., 2013). For instance, the use of iTunes as a domain name by Apple caused significant legal hazards affecting its brand image among customers. Eventually, it was observed that the name was registered under the brand, Ben Cohen which was being used by Apple without permission or legal rights (The University of Mexico, n.d). Even though Apple was able to obtain the rights, it had to incur huge compensation costs and also witness hindered brand loyalty from its customers which apparently hindered its CSR efficiencies. Apple was again charged with a lawsuit from Cisco Systems in 2007. Cisco filed a case that Apple had violated on the trademark of iPhone. The negotiation process conducted by both the parties in the aftermath of the lawsuit, a few of the stakeholders looked at the procedure adopted by Apple as a mere illusive one which apparently depicts that the brand loyalty of Apple among its customers was being significant hindered due to these issues. This further hinders its efficiencies in relation to CSR from a customer perspective (Ozimek, 2012; The University of Mexico, n.d). Discussion Apple’s CSR initiatives concerning customers’ interests have been commonly attributed as among few of the good practices in the recent business context. Undoubtedly, to strengthen its customer loyalty as well as employee satisfaction, the company has been focused on conducting various strategies including its expansion through supplying computers to the school students and introducing the products to the younger people belonging to middle-age group. However, when assessing Apple’s CSR initiatives to customers, it corporate philanthropy of rapid innovation tends to be under serious scrutiny. As discussed above, with the rapid innovation strategies applied by Apple, it also had to face significant issues concerning its ethical performances in terms of user privacy protection, intellectual property rights, shrinking product life cycle and similar other factors, which has apparently contributed to its risks of customer dissatisfaction and hindered brand loyalty with the targeted market segment (Vaidyanathan, 2008). Another view which can be taken into consideration in this context emphasizes on the competitive advantage of CSR disagreeing to the fact elaborates that CSR and its approaches are to be incorporated as a marketing strategy which depicts a direct impacts of such initiatives on the customers. It is worth mentioning in this context that because Apple has been witnessing significant disruptions in its CSR initiatives, it is likely to hinder its brand imaging and thereby affect its long terms sustainable growth within the global Information Communication Technology industry. Various lawsuits from the end of its stakeholders and also from its customers on the basis of privacy issues, quality hazards and others have also contributed to huge operational costs for the company. This has in turn caused the company to charge higher price on its products offered to the worldwide customers shrinking its marketing within the periphery of elite and high-income group of customers. However, with the continuous launch of new models, elite and high income group of brand loyal customers tend to perceive a degree of dissatisfaction as such rapid alterations in the brand hinders their belief of obtaining a status position with the consumption of Apple products. Moreover, the company also has to conduct extensive research and development operations which not only requires huge investments from the company but also generates the threat of environment related ethical issues (Vaidyanathan, 2008). Notably, the arguments in relation to Apple’s performance of corporate responsibility to customers can be traced with the analysis of competitive features. It is in this context that Apple requires to make continuous efforts in developing the application of the technology and new products which often leaves the company with scarce resources which further hinders its quality assurance to the users and therefore tends to create a negative impact on their long run association with the company (Vaidyanathan, 2008). However, from a positive concern, rapid innovation has also provided Apple with various advantages in terms of competition. Being one of the leading innovation companies in the information communication technology industry, the company witnesses minimized threats from its rivals. To be precise, the company offers rapid innovative products in the global market owing to which, the threat of substitute products availability and bargaining power of the customers minimizes substantially. Hence, the company attains substantial competitive advantages through its innovation strategies. Nevertheless, when concentrating on the interests of the customers, such strategies can be observed to reward the customers with increased choices limited in the Apple’s product categories and thus, during the occurrence of any quality or ethical issues, customers have to face significant dissatisfactions (Whaley, 2012; Porter & Kramer, 2006). Conclusion and Recommendations From the above observation, it can be recommended that CSR initiatives performed by Apple to its customers requires necessary changes in order to ensure better loyalty from its target market segment. In its previous operations, it has been apparently observed that Apple has to witness significant ethical challenges from the end of the customers in relation to its rapid innovation strategies. Undoubtedly, owing to its frequent innovation launches, the company has been able to obtain huge benefits in terms of competitive advantages sparing lesser degree of bargaining power to its customers and threats of substitute products, which has significantly strengthened its position within the global informational communication technology industry. However, it also has to witness certain ethical issues from the customers’ end which depicts that the company needs to improve its CSR initiatives to its buyers. It is in this context that providing customers with better technology by ensuring quality standards and privacy along with other requisites in relation to customers’ interests, the company shall be able to obtain better sustainability growth prospects in relation to its CSR initiatives. The organization should require maintaining the affectivity of intellectual property rights in order to gain the faith of the customers towards the offered products as this strategy would allow the company to improve its brand image by a considerable extent. However, these strategies might reduce the frequency of its innovative launches in the customer market worldwide, it shall enhance brand loyalty among customers and better association of stakeholders directly or indirectly associated with the company. References Apple Inc., 2013. Supplier Responsibility. Environment. [Online] Available at: http://www.apple.com/supplierresponsibility/ [Accessed March 11, 2013]. Apple Inc., 2013. Jobs at Apple. Corporate. [Online] Available at: http://www.apple.com/jobs/us/corporate.html [Accessed March 11, 2013]. Apple Inc., 2013. Trademark, Copyright and Intellectual Property. Legal. [Online] Available at: http://www.apple.com/in/legal/trademark/ [Accessed March 11, 2013]. Chun, R. 2011. Corporate Social Responsibility at Apple. IMD. [Online] Available at: http://www.imd.org/research/challenges/corporate-social-responsability-apple-opportunity-rosa-chun.cfm [Accessed March 11, 2013]. Cable News Network, 2012. The Unspoken Truth about Apple. Home. [Online] Available at: http://tech.fortune.cnn.com/2012/07/30/the-unspoken-truth-about-apple/ [Accessed March 11, 2013]. Moscaritolo, A. 2012. Protesters Deliver Petition for Ethical iPhone to NYC Apple Store. Home. [Online] Available at: http://www.pcmag.com/article2/0,2817,2400043,00.asp [Accessed March 11, 2013]. Ozimek, A. 2012. Why Don't Consumers Protest Apple's Intellectual Property Bullying? Business. [Online] Available at: http://www.forbes.com/sites/modeledbehavior/2012/08/27/why-dont-consumers-protest-apples-intellectual-property-bullying/ [Accessed March 11, 2013]. Porter, M. E. & Kramer, M. R., 2006. The Competitive advantage of Corporate Philanthropy. Harvard Business School Publishing Corporation, pp.1-45. Somo, No Date. Apple - CSR company overview. Home. [Online] Available at: http://goodelectronics.org/publications-en/Publication_1963 [Accessed March 11, 2013]. University Of Mexico, No Date. Apple Inc.’s Ethical Success and Challenges. Ethical Issues at Apple Inc. [Online] Available at: http://danielsethics.mgt.unm.edu/pdf/Apple%20Case.pdf [Accessed March 11, 2013]. Vaidyanathan, B. 2008. Corporate Giving: A Literature Review. Philanthropy and the Corporate Social Responsibility Debate. [Online] Available at: http://generosityresearch.nd.edu/assets/17636/corporate_giving_final.pdf [Accessed March 11, 2013]. Whaley, D. 2013. Is corporate social responsibility profitable for companies? Home. [Online] Available at: https://www.devex.com/en/news/is-corporate-social-responsibility-profitable-for/80354 [Accessed March 11, 2013]. Read More