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Apple Incorporation is one of the leading tech companies at the global stage. The company offers various state of the art electronic devices, which are aimed at revolutionizing the technological world for better, and quality devices that can be relied upon. The company thus aims at becoming the best in terms of technology and have significant role in influencing the lives of individuals across the world. Expanding its market and embracing new markets is one of the key objectives that factors that the Apple Company is considering. Therefore, in order to effectively understand some of the key elements that can help in ensuring that Apple is able to achieve its objectives. The company has significant consideration on its code of conduct and thus it has put in place different policies to ensure that its suppliers and other stakeholders adhere to its way of operation which focuses on effective consideration its core values and ethics.
List specific changes that Apple (or on another company approved by the instructor) has made to its Code of Conduct in recent years. Provide at least one (1) example of each change.
Apple incorporation just like other key organization in the world have developed a very significant code of conduct which all of its stakeholders are expected to comply with. In recent years, the company has made significant changes to its code of conduct in order to reflect the significant issues that are evolving within the technological world. In order to ensure that the company remains competitive several changes have been considered in order to create a well engaged organization that respects the rule of law and ethics involved in delivery of quality products and services to its vast market. The company has a very significant competitive advantage in the market due to its unique products in the market. This means that there is need to ensure that any of the developments that are made within the organization focus on improving its brand image (Myers and Fellow, 2014).
Apple incorporation takes its code of conduct with utmost seriousness due to its significant role it plays in streamlining the organizational activities. Apple wants to ensure that its products are developed and distributed based on the outlined ethical standards and ensure that any shortcuts to the required process are strictly eliminated from the organizational operations due to bad image they reflect the company. All aspects of the company’s code of conducts are assessed and audited individually in order to ensure that the employees are doing all the required actions regarding the production of its products as well as ensuring that its workers are being treated fairly and ethically in order to create a better engagement within the company. Over the years, the company has put in place significant changes to its code of conduct to ensure that their products are supplied to the consumers in the best way possible. Suppliers who do not meet Apples code of conduct risk losing their supply licenses and the privilege of selling their products, which have unique value in the market (Friedman and Chiou, 2015).
In the Apples supplier responsibility 2015 progress report, the company affirmed that suppliers who did not meet part of its code of conduct were put on probation and monitored in order to see significant change or terminate their agreement. The violations that were detected by the company include employing underage employees, false documentation, worker intimidation and environmental concerns. As a result, the company has already terminated 18 suppliers due to sustainability code violations. The apple company in its 2014 audit reported 85% compliance with its prevention of involuntary, 95% compliance with its prevention of underage labor and 92% compliance with its working hour policy. The overall compliance with the company’s labor and human rights policies was 81% (Gonzalez-Padron, 2016).All these developments have been recently in order to improve the company engagement in the market and prevent any issues, which may risk the company’s image in the market due to poor engagement in both human rights policy and other ethical considerations, which are very important in business development (Myers and Fellow, 2014).
Apple Company aims at offering total quality in all its areas of engagement. They want to make sure that there products are produced within the stipulated standards as well as ensuring that the company’s employees are positively engaged to prevent any work related stress that may arise as a result of poor employee engagement.
Explain the identified changes to the suppliers in such a way that they will understand the standards that Apple requires in order to maintain their relationship with the company.
The apple company is considering a very significant approach in engaging its supplier or manufactures. When Apple is making decision to do business to suppliers or manufacturers, the company conducts a risk assessment. This is mainly done in order to ensure that their partners are able to fulfill their obligations as well as maintaining complete engagement with the companies already outlined policies (Fullerton et.al, 2015).
Compliance is a key area that Apple considers when deciding to do business. If the suppliers meet, the set high standards demanded of them by the Apple Company they are licensed and monitored closely to ensure that they comply with regulations outlined in the company’s code of conduct. In 2014, Apple conducted a significant audit of 459 suppliers before they were licensed to transact on behalf of the company. The constant audits that are carried out by the company to its suppliers are mainly done to ensure that the quality of services offered remains high as well as ensuring that they are compliant to various policies developed by the Apple Company (Gonzalez-Padron, 2016).
Discuss Apple’s stance on each of the following areas:
The company has a clear strategy on employee empowerment and promotes employee empowerment since it is one of the ways that employees are likely to improve on their skills. The company empowers its employee through education and it is very much committed to ensuring that its employees are empowered through educational opportunities. The company boosts of a record high education empowerment levels where since the year 2008 more than 861, 000 employees have taken advantage of the company’s Supply Employee Education and Development (SEED) program.
The company demands that its suppliers and all other stakeholders treat their employee ethically within the stipulated employee engagement levels. All the suppliers must show high level of commitment in ensuring that their employees will be treated in accordance to the company code of conduct, which protect employees against any level of exploitation. In 2014, the company had a significantly high percentage of 92 among all suppliers regarding compliance with the company’s working hour’s policy (Gonzalez-Padron, 2016).
Apple company has been on the forefront advocating for clean and safety facilities for its workers and they constantly worker the various strategies that its supplier puts in place in ensuring health workplace. The company considers employees who are highly qualified and know what is expected of them regarding their health and safety levels within the workplace. The company has initiated a very engaged and extensive mapping program, which is aimed at strengthening the chemical management process across all the supply chain (Myers and Fellow, 2014).
The company products are produced on the required environmental standards. The company focuses on producing environmental friendly products. It has incorporated other strategies to ensure that all its stakeholders especially the supplier comply with the outlined environmental standards of production and distribution. The company engages in clean water program where the company is able to save close to half a billion gallons of fresh water. The company also engages in training programs where they teach their managers and employees on the need to conserve environment (Friedman and Chiou, 2015).
Accountability and improvement are some of the key considerations made by the company. Due to the importance of accountability, the company continuously strengthens its code of conduct to ensure that there are no loopholes in practice that are adopted by their suppliers. The company in ensuring that the quality of the products produced remains high mainly aims the constant audits that are carried out by the company at ensuring that each of their suppliers is accountable for their own actions, which is a significant action (Watch, 2015).
Identify the key ways that Apple’s Progress Report has changed since last year.
Apple Company has been able to focus on specific areas that needs improvement. The company has significantly focused on progress of education, health and safety, which are critical in improving the quality of working environment among employees. The company has made significant efforts in ensuring that its employees are well engaged and treated in relation to the outlined code of conduct (Watch, 2015).
The progress report has focused on critical areas where compliance and engagement levels were still low and help in streamlining the performance of the company in order to maintain its status within the market. The company has significantly improved its environmental standards, which are expected to be held by their suppliers. The company has also improved on its accountability levels having increased the number of audits that were carried out compared to the level last year same time (Gonzalez-Padron, 2016).
The apple Inc. has had a great influence on most of the markets especially customers who are looking for high-end electronics that can serve them efficiently. However, the mid and lower end markets have been greatly ignored by the Apple Incorporation while the market is largely made up of the mid and lower end users. Therefore in order for the apple company to develop a better strategy which can propel them to future success
Examine the manner in which Apple’s Supplier Code of Conduct helps the organization operate as a socially responsible organization.
The supplier code of conduct that has been developed by the company has provided a better environment where the company is ensuring that there are better consideration where it can ensure that consumersreceive quality products that have been produced through ethical processes. The company is committed to attaining high level of social engagement. Suppliers are thus expected to provide good working conditions for its employee in order to ensure that they work to their best levels (Fullerton et.al, 2015).
The suppliers at the Apple are not expected to discriminate any of theory employees in relation to any aspects such as age, ethnicity, marital status, political status among other issues. Thus, the supplier code of conductis expected by the company to be followed significantly by the company by all its suppliers in order to create better environment where employees can easily engage and perform their tasks effectively. Thus, the supplier code of conduct plays a significant role in ensuring that Apple Company is a socially responsible company (Watch, 2015).
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