Marketing Ethics at Apple Inc - Essay Example

?Marketing Ethics Apple is a corporation that is recognised all over the world for its cutting-edge technological gadgets. Apple Computer was initiated by Steve Wozniak and Steve Jobs in 1976 in Cupertino. These two young men had such a strong belief in their capacity to create amazing gadgets that they felt that attending University was something that would merely serve to dull their creative capacities. Both of them left college without graduating in order to launch their dream company. Owing to the fact that they did not have enough capital to buy offices, they started by working out in a garage. The idea that there were two young people who so believed in what they were able to create that they even left university to do it is what inspires so many people about Apple. Steve Jobs is still viewed by many as the genius who literally inspired many people to begin to love computers. Jobs was behind Apple’s first technological marvels such as Macintosh, Apple brand, and Power Mac computers (Lashinsky 2012). Apple Computer’s iconic advertisement that ran during the 1984 Super Bowl so inspired people that they actually snatched fliers from Apple’s representatives at the end of the games (Lashinsky 2012). Apple’s profile suffered a momentary lapse shortly after the success of Macintosh when Steve Jobs left the company after a power struggle (O'Grady 2009). His return, more than 10 years later, marked another period of prosperity for Apple. People began to associate Apple’s success with Steve Jobs. In 2001, Apple launched the Apple iPod. The ingenuity of this device had other electronics companies scrambling and trying to produce duplicates of it that had more operations than Apple’s model. None, though, was considered by the public to be as good as the original. Many attribute Apple’s success to the extraordinary creativity of its late CEO Steve Jobs. When he succumbed to cancer in 2011, many technology experts were convinced that Apple would never be able to find another like him. Good Marketing Ethics at Apple Inc. Throughout its existence, Apple has tried to make sure that its workers always exhibit the appropriate conduct in all circumstances. It believes that it owes its success to the creation of high-quality and innovative products as well as the demonstration of uprightness in every business transaction (Shaw 2003). Apple holds that respect, honesty, compliance and confidentiality are the qualities that denote business integrity (Linzmayer 2004). To include these values into its workforce, Apple has outlined a code of conduct that is observed in all its branches worldwide. It has also availed more detailed policies that concern conflict of interest, corporate governance, and rules on how to report any instances of questionable conduct (Lashinsky 2012). Furthermore, Apple offers its workers a Business Conduct Helpline through which they can testify on any misconduct to the corporation’s Audit and Finance team. To stress on its pledge to ensure dependable supplier conduct, Apple issues a yearly Apple Supplier Responsibility statement that clarifies its audit conclusions, supplier expectations and the remedial actions the corporation will take against foreign branches where violations have taken place (Lashinsky 2012). Apple commodities are intended to have a lengthier lifespan as the hardware is created from sturdy materials such as aluminum and recyclable glass. The operating system is created to be useful even after years of being in the market (Alas, Ennulo and Turnpuu 2006). Owing to this fact, Apple’s commodities do not have to be replaced as often as those of other electronics corporations. This leads to fewer products being consumed, and less demand put on the large-scale workforce. If demand as well as world population were to decrease, Apple manufactured goods would be the primary products to be ethically sustainable due to the fact that they can be created by workers who are not overburdened with work or live in cramped quarters (Lashinsky 2012). Apple is also quite sustainable because it seriously observes matters concerned with environmental protection. Approximately 97 percent of the corporation’s carbon footprint is connected to its products — from production processes to consumer use to recycling. The residual 3 percent is linked to its facilities (Alas 2006). Poor marketing ethics within Apple Even though Apple is probably one of the world’s most admired companies, it has had to deal with a number of ethical concerns in the past few years. One of the concerns that experiences consistent oversight is the quality of Apple’s manufactured goods (Dragos 2008). Apple’s brand is dependent on product quality; consequently, mistakes can generate severe ethical dilemmas. In the fast-paced field of electronics where numerous innovative products are launched on an annual basis, mistakes are difficult to discover prior to product introduction. After Apple launched the iPhone 4, customers began to grumble about reception problems (Schneiders 2011). These difficulties were the result of antenna interference that took place when consumers held the phone some ways. Public relations specialists thereafter censured Apple for seeming to minimize the setback instead of reacting swiftly to correct it. This setback, however, did not stop millions of customers from procuring the iPhone 4, but it does re-establish the fact that Apple should be extremely careful in matters concerning product quality. Customers view Apple as being the most efficient company in terms of ensuring product quality; therefore, a misfortune in this area could injure the brand’s strong point. Privacy is another key concern of Apple’s. In 2011 Google and Apple revealed that definite features on the phones they trade in actually gather information about the locations of the phone Government officials as well as customers saw this as an intrusion into user privacy (Lashinsky 2012). The corporations then announced that consumers have the option of rendering these features inoperative. This was not completely accurate where Apple is concerned as a few of its phones still gather location information even after consumers have disabled the objectionable element. Apple ascribed this to an anomaly that it corrected by using a new software. Both Apple and Google stand by their information gathering devices even with the disapproval of government representatives. In the past, the American government has spoken of passing legislation on the preservation of mobile privacy. Such a move would adversely affect Apple as well as other electronics corporations. How to deal with waste is a problem that will continue to bedevil Apple as long as customers keep getting rid of their old electronic gadgets (Lashinsky 2012). Before his last illness, Steve Jobs clarified that Apple had done away with cathode-ray tubes which had lead from its commodities. Its iPods are assembled with light-emitting diodes (LEDs) instead of fluorescent lamps, which do not have mercury (Lashinsky 2012). Apple has also recently been in the spotlight due to the discovery of the deplorable working conditions in which its Chinese employees operate. These conditions are normality at the outsized FoxConn production facilities which are based in China. A large number of Apple’s tablets, computers, and smart phones are formed in these facilities (Cruikshank 2006). Marketing Audit Apple generates high quality goods by using a direct business approach to sell them to consumers. Apple’s main rivals are Toshiba, Dell, Asus, and HP. Owing to the global popularity enjoyed by Apple it still has the opportunity to expand into foreign markets (Lashinsky 2012). In addition, Apple’s strategic model allows it to develop a deep understanding of the expectations of its consumers and this then contributes to the strengthening of consumer relationships and boosts customer loyalty. Apple's climb to the top in the electronics’ market leadership is the result of an unchanging focus on providing customers with the best possible experience through standard based goods that almost outdo the expectations of customers worldwide. The main objective of Apple’s PR program is to proclaim Apple computers proficiency in product development and to hold the interest of all potential consumers of electronic products. The most efficient way of communicating is through advertisements in television as well as radio services. Recently, the internet has become another hot point for Apple’s marketing executives. The marketing environment in electronics permits Apple to be able to make out the major conditions that it may be unable to control as well as those it can control. Thus, it is able to effectively prepare and tackle threats and opportunities in the field of electronics. The potential for Internet growth is tremendous, giving foreign corporations such as Apple a distinct advantage in taking over the new markets. At Apple, it is understood that the future of technology is in faster and smaller electronic devices. Recommendations for Good Marketing Ethical Practice within the Company Ethical conduct in a business like Apple is connected with any decisions that the firm’s management makes concerning the daily activities as well as employee productivity in the corporation. Apple’s management should concentrate on making business moves as well as decisions that favours their enlargement and output while simultaneously allowing a fair playing field for its business rivals. Ethical commerce is another area that needs improvement. It concerns Apple Inc using fair trade in terms of their goods, services and business transactions. Apple should seek to make sure that all its goods are the most cutting-edge in the market and that it has advertised about them in order to avoid instances of recall being forced when consumers discover that some of the products do not meet the promised standards. Such occurrences can leave Apple’s clients feeling underserved and can lead to a shift in loyalty. Ethical relations also call for Apple Inc to uphold honest communications with business rivals as well as loyal customers. The facility to be able to efficiently compete in the manufacture of quality goods and services should be the main concern of the corporation. Conflicts of interest should also be solved between business rivals as soon as they are expressed. Apple Inc also has to ensure that it complies with the regulations as well as policies of the technology industry. This will ensure that the corporation does not have an excessive advantage over the rival businesses (Lashinsky 2012). It will also ascertain that Apple’s products meet the safety standards that are set by government recognized institutions that are responsible for ensuring that such regulations are followed. Diversity management is another area in which Apple can improve (Allhoff and Vaidya 2005). Apple Inc has a diverse worker base. As it has branches that are located all over the world, Apple should ensure that it institutes practices that allow and even encourage employees of different ethnicities to be able to work productively together. By hiring workers from diverse cultures, Apple has already shown its eagerness to promote cooperation between different world cultures. However, ensuring that all these cultures can work in harmony is a more difficult objective to achieve. Apple has to take into consideration the customs of the various geographical areas in which it has branches if it is to achieve harmony in its large workforce. Apple also has to take into consideration the different ideas that will likely be suggested by its working force. With an assortment of products that are viewed as cutting-edge in numerous geographical locations, the business will be able to draw more consumers and in the process increase its revenue (Alzola 2008). Apple should also institute monitors and guiding principles that will make sure that all the firm’s operations are at par with the ethical standards that are acceptable so as to avoid legal as well as ethical confrontations, particularly in its foreign branches. China is infamously known for the deplorable conditions in which many of its workers function. The extraordinary demand for electronic products created by Apple among Chinese citizens has in the recent past put great pressure on Apple’s employees. There have even been stories in Chinese news stations about Apple enthusiasts selling kidneys and committing crimes in order to get the money to purchase Apple I phones. Workers in China are forced to stand for most of their 10-hour shifts, and live in military-style quarters. They are also castigated when they refuse to work overtime. This can cause problems for Apple’s reputation in America when such things are revealed; however, in China, it is not something that is only unique to Apple. Environmental groups in many parts of the world have also condemned Apple for not monitoring their Chinese contractors whose production facilities release hazardous gases and wastewater into suburban neighbourhoods (Alder and Gilbert 2006). The case of Apple’s Chinese workers being subjected to deplorable working conditions caused an outcry because Apple appeared to be ambivalent about this fact and did not act until public opinion forced it to re-examine the issue. In truth, there are many less recognised American businesses that are not attacked for their refusal to chastise their foreign branches which compel workers to operate in horrible conditions (Albuquerque 2010). Apple, however, is an esteemed corporation worldwide. While such respect is sought by nearly every company, the fact is that it comes at a price. Apple Inc. may not be able to get away with any shortcomings because its policies and operations both in the United States as well as abroad, are constantly being monitored. Apple is expected, by Americans, to represent the best facets of American culture in all its foreign branches. The company is held to higher standards than its less well known competitors. Some have suggested that this is the reason why there was such a sharp reaction to the revelation of the conditions in which the Foxconn plant workers operate. This, however, is not a reason for Apple not to improve conditions for its foreign workers. Personal Critique Apple Inc’s success has always been due to its capacity to solve problems that others believed to be unsolvable, and launching products that actually alter how citizens all over the world play work and communicate. It is not an easy thing for a corporation to constantly outdo itself in producing new fangled electronic devices on an annual basis, particularly in the absence of a dynamic and extraordinarily creative leader. It has been suggested that Apple Inc. should endeavour to find numerous geniuses who will make up for Steve Jobs’ absence if it is to ever recapture its glory days. It is likely that Apple Inc. will still be counted among the foremost electronics giants; however, as to whether it will ever recapture its reputation when Steve Jobs was at its helm remains to be seen. The technology sector is perhaps the world’s most competitive industry. Steve Jobs' brilliance saw products created at a time when no one even knew they were looking for such commodities before Apple put them in the market. He did not discover the digital music player, the personal computer, tablets, or the smart phones. However, his creations so deeply altered the electronics market that he might as well have invented everything there is in it. Apple Inc.’s greatest challenge is probably to find a person or people who will adequately carry forward his brilliance. References Alas, R. (2006) ‘Ethics in countries with different cultural dimensions’, Journal of Business Ethics, vol. 69, no. 3, pp. 237 – 247 Alas, R., Ennulo, J. & Turnpuu, L. (2006) ‘Managerial values in the institutional context’, Journal of Business Ethics, vol. 65, no. 3, pp. 269 - 278. Albuquerque, D. (2010) Business ethics: principles and practices, Oxford University Press, Oxford. Alder, G. & Gilbert, J. (2006) ‘Achieving ethics and fairness in hiring: going beyond the law’, journal of Business Ethics, vol. 68, no. 4, pp. 449 - 464 Allhoff, F. & Vaidya, A. (2005) Business ethics, Sage Publications, New York. Alzola, M. (2008) ‘Character and environment: the status of virtues in organization’, Journal of Business Ethics, vol. 78, no. 3, pp. 343 – 357 Cruikshank, J.L. (2006) The Apple way, McGraw-Hill, New York. Dragos, P. (2008) ‘The challenge of business self-regulation: revisiting the foundations’, international Journal of Business Governance and Ethics, vol. 4, no. 2, pp. 169-188 Lashinsky, A. (2012) Inside Apple: how America's most admired--and secretive--company really works, business plus, New York. Linzmayer, O.W. (2004) Apple confidential 2.0: the definitive history of the world's most colorful company, No Starch Press, San Francisco. O'Grady, J.D. (2009) Apple Inc. - corporations that changed the world, Greenwood, Westport. Schneiders, S. (2011) Apple's secret of success - traditional marketing vs. cult marketing, Diplomica Verlag, Amsterdam. Shaw, W. (2003) Ethics at work: basic readings in business ethics, Oxford University Press, Oxford. Read More