Corporate Social Responsibility and Marketing Strategies: Apple - Case Study Example

Corporate Social Responsibility and Marketing Strategies: Apple Case Study CSR and Marketing Strategies: Apple Case Study In the business world, the need to subscribe to values and norms of the society pushes companies into structuring their operational frameworks and strategies to safeguard the societal rules, moral provisions and values. Businesses are expected to operate in ways that uphold social and ethical practices. The attachment that companies form with stakeholders compels them to not only be accountable but also operate in ways that ensure their well-being is protected. Big companies, apparently, seem to have even more responsibilities owing to the vast area of operations. The need to protect the stakeholders and improve the living standards of those the business engages is a fundamental principle that every firm should uphold in achieving collective social benefit (Hunnicutt, 2009). Apple Corporation has recorded tremendous growth and has attracted attention in the contemporary society. The company’s contributions to the telecommunication industry are significant. However, the question that many have been asking themselves is whether the American multi-national upholds social responsibilities. Apple Corporation has consistently undertaken its social responsibilities in its operations within the global telecommunication industry. Apple’s Position and Corporate Social Responsibility It is cannot be doubted that Apple Inc. is a remarkable company in the electronics, mobile and computer technology industry. The organization was launched in 1976 by Steve Jobs among others in California. At its inception, it produced specifically computers although it has expansively stretched to mobile phones, watches and other electronic devices of high-end market. It has steadily grown and developed since then and today, it commands a relatively large market share of about 48% in the U.S. Additionally, it controls about 68% of Japan’s telecommunication market. As it stands, it trails after Samsung at second position in regards to revenue and rates third in the globe in mobile phone production. This position makes Apple highly reputed in the information technology industry. It has also rated highly in CNN’s Fortune 500 as a company reputably venerated by customers (OGrady, 2009). Moreover, in addressing the company’s contributions to the social environment in which it operates, it is important to evaluate its activity or inactivity in pursuing its socials roles and obligations. Other than being the best in the face of customers, Apple is obliged to undertake certain responsibilities in order to influence the community and the generation society it operates its activities in positively. As a matter a matter of fact, in the past years, Apple has not been so much concerned or preoccupied with their corporate social responsibilities, and this has generated a series of criticisms especially from the media. The past top managements have not been so much considerate about the responsibilities such as engaging in philanthropic activities, starting up a foundation program to cater for the needy amongst others. The former CEO, Steve Jobs, had quoted on several occasions that Apple’s responsibilities to its society are met by providing high-quality products (OGrady, 2009). However, the company took a different path in regard to CSR after a new CEO came in place. With the understanding that the public are vigilant on the company’s engagement in undertaking its social responsibility and improving the society, Apple Inc. has sought to engage in various charity programs. The organization has since publicly declared its pledge to involve itself in diverse ways that can help it meet its social responsibility goals so as to benefit the community. The organization’s appeal to the public about its friendship with the environment has been demonstrated by the devotion the company has towards environment conservation and management through projects dubbed ‘climate change’ like micro-hydro projects, programs that provide for environmentally-friendly methods of productions, energy renewability among others. These moves were made in response to the reproaches that were directed towards the company owing to its alleged pollution and environmental mismanagement. Apple Inc. has also been pushed by other organizations as well as its stakeholders into taking up its responsibilities. The myriad criticisms that the company ha received has plunged it into a number of activities that greatly benefit the society. ‘As You Sow’ is one of those non-governmental organizations that have been on the forefront in slating Apple for its inactivity in corporate social responsibility. In reaction, Apple has enhanced its social engagements and ‘a dollar for a dollar’ is one of the ways it has responded to support charity projects. Greenpeace project among other moves is some of the actions it has also taken to prove it is indeed concerned about its stakeholders’ welfare. Impact of Publication Ethics and Social Responsibilities Violations Apple’s Reputation One way in which Apple has redeemed and renewed its fading image as far as the social context is concerned is the publication that was made by Apple’s supplier about the ethics and social responsibility violations. The company has significantly improved it sales volume. The action worked to the benefit of Apple by supplementing its marketing efforts. The company’s commitment to upholding ethical standards has seen it publish various suppliers who violated the standards. This aspect, in turn, has seen it earn trust from the public thereby increasing its sales. An example is the case of Foxcom and Pegatron which have had issues with the set ethical standards (Lashinsky, 2012). It is for this that it disengaged and abandoned the services of the former. For instance, the alleged unethical handling of workers at Foxcom which saw one of them commit suicide is a reason Apple stopped working with the supplier. Ways to Ensure Customers Adhere to Wage and Benefits Owing to the mixed nature of Apple’s suppliers, the need to regulate and monitor and ensure wage and benefits are prioritized. In about 25% scenarios, the company has often found cases in which its suppliers fail to adhere to these standards. The necessity to discover a practical remedy to countercheck this is, therefore, necessary. The first method that the company can adopt is a compliance monetary program that can watch over the suppliers. This can involve engaging in serious auditing as well as counterchecking the suppliers’ reports. The independent monetary system in which Apple counterchecks its suppliers’ actions versus the labor right is a viable remedy. Secondly, platforms should be availed that can be used by the abused workers to report such incidences for investigation. In most cases, Apple relies on data that could be distorted and getting the first-hand data is undoubtedly accurate (Lashinsky, 2012). Suppose Apple Increase its Selling prices… Evidentially, the effort Apple is putting in CSR is highly appreciated. The changes it is making in ensuring that its stakeholders’ well-being are safeguarded are embraced by the public especially its customers. This was seen when it recorded increased sales after publicizing its suppliers’ violation of ethics. It is accurate to say that if Apple increases the prices of its products, its consumers will still be able to buy the commodities it provides. This is justifiably possible because there is a belief amongst Apple’s customers that the company produces goods and services that are of high standards. Relatively, the current prices of these products are also high, and a slight increase would have negligible change in sales. In an exploration conducted about to survey whether consumers would buy products provided by Apple in case the prices go up, a bigger portion admitted they would still stay with Apple regardless of the escalation of charges (Lashinsky, 2012). Apple’s Marketing Strategy and Recommendation for Competitive Advantage The management of Apple Inc. understands that finding the correct and suitable marketing strategy is critical to the organization’s global success. The company has therefore sought various ways achieving. The varied marketing strategies are generated from the understanding that different markets require a different approach. This has been approached through strategic alliances in which it has sought to promote its brand in foreign and new market by combining with other companies such as HP. In overall, the company uses positioning strategy in which it has mentally created a perception in which the products are believed to be of high quality. It becomes easy to get into a new market as the high brand reputation promotes the particular products (Cadogan, 2009). It is recommended that one of the best ways Apple Inc. can use to achieve competitive advantage is innovation. The fact that the company is endowed with high and advanced technologies makes it possible for it to develop innovative products that can attract the customers. According to Schoemer (2010) customers are likely to be attracted to companies that are increasing innovating their products and advancing them to more sophisticated forms. This innovation should be done to almost every product unlike the way the company has been doing it. Although it has constantly upgraded its IPhone through to series six (IPhone 6), other products have not been considerably been improved. Consequently, Differentiation strategy would work best for Apple as a competitive advantage strategy. By this the company will be able to broaden the range of products that it produces and create a new one that the competitors do not offer. This ‘blue ocean’ strategy will render competition unnecessary thereby promoting Apple Company. Conclusion As demonstrated, Apple Corporation is a leading multinational organization that is conspicuous in the global telecommunication industry. At first, the company operated with less conscious and care about its social responsibility. However, it took a turn when a new CEO came in. With the pressures from human rights activists and other critics, Apple has since bowed to the pressure by actively engaging in various activities that seek to improve the social well-being of its stakeholders. Moves it undertook such as publicizing the violations of standards by its suppliers has enhanced the trust that the public has on it. As seen, the provision of high-quality services and products that is one of the prime reasons why Apple has sustained the high customer loyalty and steady sales despite the relatively high prices. To gain market competitiveness, it is recommended that the company engages in innovation and product differentiation. If these are done, the organization will be able to meet its CSR demands while at the same time maintaining their sales volume. References Cadogan, J. (2009). Marketing strategy. London: SAGE. Hunnicutt, S. (2009). Corporate social responsibility. Detroit, MI: Greenhaven Press. Lashinsky, A. (2012). Inside Apple: How Americas most admired-and secretive-company really works. New York: Business Plus. OGrady, J. D. (2009). Apple Inc. Westport, Conn: Greenwood Press. Schoemer, K. G. (2010). Change is your competitive advantage: Strategies for adapting, transforming, and succeeding in the new business reality. Cincinnati: F+W Media. Read More