How did one company go from being #1 in the industry too facing so many battles?
One of the world’s largest tech companies found themselves face to face with multiple ethical issues that included climate change, human rights, supply chain management, and irresponsible marketing among others. “In December 2019, Apple was named as a defendant in a lawsuit filed by human rights firm International Rights Advocates on behalf of 14 parents and children from the Democratic Republic of Congo.” (Ethical Consumer, 2023). “Families of the employees sought out damages and compensation for the death or serious injury of children who they claim were working in cobalt mines in Apple’s supply chain.” (Ethical Consumer, 2023) The company was also rated as the worst company for environmental reporting in 2019. While Apple reported how it is environmentally responsible it didn’t include a second future-dated, quantified target. This came after the company was fined 10 million pounds by the Italian authorities for planned obsolescence that was built into their smartphones. All the while in the US, Apple sought out a right-to-repair bill. This led to Apple being viewed as helping to create a toxic e-waste problem.
It is no secret that ethical issues can have a major impact on a brand’s image, its consumers, and its employees. The ethical concerns of Apple mentioned here are a reflection of how the company follows ethical principles and keeps up with the standards of social responsibility. Apple has proven time and time again that it does not hold up to its promises of being an honest, respectful, confident company that adheres to compliance standards and is committed to society. However, it doesn’t seem that the company has suffered any consequences for its actions. Apple is a strong brand that offers quality products with high price tags. According to the most recent data from 2023, Apple is in the top 5 consumer electronics companies and the best brands in the world. The company’s revenue seems to have a never-ending growth spurt. From $260 Billion in 2019 to a whopping $394 Billion in 2022. (Curry, 2023) We can see that these ethical issues have not damaged Apple’s brand, or image, or stave off its consumers.
Apple can help brighten its image by treating its employees like humans and not robots. Ensure that they are transparent with their practices. The company pledges to conduct its business ethically, honestly, and in full compliance with the law. “The firm believes how they conduct themselves is critical to its success in making the best products in the world. (Apple, 2023) The company requires each of its employees to certify that they have read and understand the policy when they join the company. They also require that each employee review the policy for each year that they work with the company. Violating this policy may result in disciplinary action. (Apple, 2023) They have compliance functions in place so that their team focuses on Business Conduct, Political Compliance, Export and Sanctions Compliance, Health Compliance, Antitrust Compliance, and Anti-Corruption compliance. (Apple 2023). Each and every employee must complete mandatory annual Business Conduct training. The company also offers additional resources for its employees. Here they can address any questions or concerns they may have. Apple conducts both internal and third-party independent assessments of these programs to ensure they are effective. (Apple, 2023) The company makes any changes to the policies and training to reflect emerging trends. (Apple, 2023). Apple’s Chief Compliance Officer provides regular updates to the Audit and Finance Committee of the Board of Directors.”
References:
Apple. Retrieved on April 2nd, 2023. Ethics and Compliance. https://www.apple.com/compliance/
Curry, D. February, 27th 2023. Apple Statistics (2023). https://www.businessofapps.com/data/apple-statistics/
Ethical Consumer. Retrieved on April 2nd, 2023. Company Profile: Apple Inc. https://www.ethicalconsumer.org/company-profile/apple-inc
Newman, J. March 2nd, 2023. The 10 most innovative companies in consumer electronics of 2023. https://www.fastcompany.com/90846903/most-innovative-companies-consumer-electronics-2023
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