Corporate Responsibility and Marketing Strategy of Apple - Essay Example

Apples Corporate Responsibility & Marketing Strategy This paper provides an overview of current position on Ethics as well as social responsibility that is retained by Apple Inc. It provides detailed examples of how this position urged the company in question to invest into education and charity. The text analyzes the impact that publications about the suppliers had on Apple Inc. which resulted into emergence of various reports and additional audits. The author explores the possible methods for the company to ensure that the suppliers adhere to the standards and analyzes if the Customers will be willing to pay more because of this. The last section is devoted to marketing strategy as well as two corporate advantages of the company. Introduction One would make no mistake suggesting that business activities in the modern world are rather different from the previous times. While it is possible to point out some differences such as computerization as well as use of electronic money, it is clear that they are quite superficial. The aspect that truly differs business in the twenty first century is the increased attention towards ethical and social responsibility of a company. Indeed, if one takes a close look at the most profitable and famous organization in the world, one can not help noticing that they have invested into their positions on Ethics with the help of controlling activities that are performed by the suppliers. This paper will analyze the case of Apple Inc. and dwell on the peculiarities of its marketing strategy. Current position of Apple Inc. on Ethics It is quite understandable that in a company as big and powerful as the one in question the ethical issues become extremely significant since they are able to have whether positive or negative influence on the performance. Thus, it is suggested that “the employee handbook [of Apple Inc.] celebrated the importance of people to the firm’s success” (Budd & Scoville, 2005, 71). In other words, the company wants to show appreciation of every single worker which is likely to contribute to the formation of pleasant working environment and reinforce job satisfaction. For example, Apple Inc. has invested a considerable amount of funds into education of the employee so that they would know their rights both in the offices which are located in the United States and at factories oversees (“Apple - Supplier Responsibility”, n.d.). This might be viewed as an indication of the fact that the company in question is willing to treat every employee equally and present one with the best working conditions that are possible. As a result, it is important to contribute to awareness of the staff of the rights that they are entitled to. In addition to that, Apple Inc. is known to have donated a lot of material funds to charity that would be later directed to the development of the local community and industries (Chun, 2011). The company sees these activities as essential ones, acknowledging the power that it embraces as well as the impact that it is able to have on the community. This is rather important to see note since such highly developed level of social responsibility reflected self awareness of the company as well as its desire to help the people around. Impact of publications about ethical misconduct of suppliers on Apple Inc. When a person thinks about the relationship between Apple Inc. as well as its suppliers that are located oversees, one inevitably comes to the discussion of its Chinese factories. A considerable amount of public criticism was directed at the working conditions at this country. All this resulted into the necessity to introduce supplier responsibility reports that were conducted by Apple Inc. in order to make sure that the basic rights of the employees are not violated (Jefferies, 2014). It is quite understandable that within the United States of America the company in question adheres to all the rules and regulations that are placed by the applicable legislation; however, there may be a different situation in China. In addition to that Apple Inc. introduced more careful as well as detailed audits of its overseas factories so that malpractices of treating the employees unfairly would be put to the end (Tsukayama, 2013). With this regard, one should note that the great distance at which the factories are located does not allow performing more frequent quality checks. However, the company in question is doing everything that it can to bring the standards of labor in the foreign countries up to the standard that is considered to be sufficient. Methods to ensure that suppliers adhere to wage and benefits standards The previous section analyzed the connection between Apple Inc. as well as its suppliers. It must be noted that the former heavily depends on the latter since the process of moving production to a different country where the cost of labor is cheaper allowed the company to make the price for the products cheaper as well, this way reaching more potential customers. Thus, the first method that might be utilized by it to make sure that the suppliers do not violate the regulation is to introduce an objective monitoring system that would identify every single instance of misconduct and make sure that all the parties who should be held responsible will not avoid the punishment. In addition to that, it may be rather advantageous to infiltrate some employees into the factories and ask them to report about the actual state of working conditions on them. Indeed, this may be considered to be one of the most effective ways to address the issue since when the audit is conducted and when the reports are made, the factories may be willing to make the situation appear better than it is. In this case it is possible to grasp the real essence of the things. In other words, this will provide the company in question with an objective account of the situation. Will the customers be willing to pay more for more ethical products? The products of Apple Inc. are extremely popular and a small increase in the price is not likely to divert a lot of customers. The result may be quite the opposite: once again these products will reinforce its premium brand image. However, one should note that in spite of the fact that the customers will be paying more for product, in case the increase in prices will be conditioned by the changes in production, the customers will not be paying more because they want more ethical products. In other words, the majority of the audience does not pay attention towards the accusations against the suppliers of Apple Inc. All they are interested in is the final product Apple’s current overall marketing strategy If one takes a look at the current business world, one would have to note that the company in question is considered to be among the leaders of it. The researchers argue that “Apple’s innovative ability and the quality of its marketing strategy will likely determine the outcome of the company’s foray into the music, mobile phone, and video-on-demand businesses” (Ireland, Hoskisson & Hitt, 2006, 13). Indeed, this company was able to enjoy its strong position on the market due to strong image that it produced which relied on innovation and uniqueness; active use of different media platforms, including the cutting edge ones; closed system which provided all the elements that were included in the products, contributing to the feeling of completeness. Actions to improve competitive advantages It is largely suggested that “organizational capabilities – the way the company makes decisions and manages its processes – can be a source of competitive advantage” (Hill & Jones, 2013). In case of Apple Inc., with death of its charismatic leader Steve Jobs, there is lack of a unified vision that would allow the company to continue the movement in the direction that was originally chosen. That is why a suitable action would be to launch a line of products that would re-introduce the original values and show the true meaning of uniqueness. In addition to that, it is stipulated that it would not be an exaggeration to say that “competitive advantage [of iPod] came from its simple, attractive design relative to its price” (Williams, 2000, 203). In other words, this combination of innovative as well as user friendly design as well as moderate price is one of the key advantages of this company. That is why the latter should make a survey about the inconveniences of the new products and take them into consideration while designing the next generation of the devices. Conclusion Having examines all the evidence that was presented in the paragraphs above, one is likely to come to the following logical conclusion: Apple Inc. pay a considerable amount of attention towards its treatment of employees as well as social responsibility. All the publications about any kind of misconduct of the suppliers resulted in the introduction of the additional measures that ensure high quality of working conditions. The marketing strategy of the company is a bright one which heavily relies on innovative spirit and unique approach towards ordinary operations. References Apple - Supplier Responsibility. (n.d.). Apple - Supplier Responsibility. Retrieved October 23, 2014, from https://www.apple.com/supplier-responsibility/ Budd, J. W., & Scoville, J. G. (2005). The ethics of human resources and industrial relations. Champaign, IL: Labor and Employment Relations Association, University of Illinois at Urbana-Champaign. Chun, R. (2011, November 11). Tomorrows Challenges. Apple CSR. Retrieved October 21, 2014, from http://www.imd.org/research/challenges/corporate-social-responsability-apple-opportunity-rosa-chun.cfm Hill, C. W., & Jones, G. R. (2013). Strategic management: an integrated approach (10th ed.). Mason, OH: South-Western, Cengage Learning. Ireland, R. D., Hoskisson, R. E., & Hitt, M. A. (2006). Understanding business strategy: concepts and cases. Mason, OH.: Thomson Higher Education. Jefferies, D. (2014, March 5). Is Apple cleaning up its act on labour rights?. The Guardian. Retrieved October 24, 2014, from http://www.theguardian.com/sustainable-business/apple-act-on-labour-right Tsukayama, H. (2013, September 6). Apple looks into new allegations of labor violations in China. Washington Post. Retrieved October 24, 2014, from http://www.washingtonpost.com/business/technology/apple-looks-into-new-allegations-of-labor-violations-in-china/2013/09/06/d2650320-16e5-11e3-804b-d3a1a3a18f2c_story.html Williams, C. (2000). Management. Cincinnati, Ohio: South-Western College Pub.. Read More