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Ethics of Apple Inc.

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on 16 October 2014

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Transcript of Ethics of Apple Inc.

Privacy and Intellectual Property
Supply Chain Management Issues
Corporate Culture
“My model for business is The Beatles. They were four guys who kept each other’s kind of negative tendencies in check. They balanced each other and the total was greater than the sum of the parts. That’s how I see business: great things in business are never done by one person, they’re done by a team of people.”
- Steve Jobs

Most Apple products are made in Foxconn factories in China
Many of the factories break the supplier code of conduct with labor violations and safety hazards
High-Profile events include: suicides, explosions that have caused injuries and deaths, and ill workers from poisonous chemicals
Foxconn is one of the few factories in the world with the ability to produce certain Apple products
Key issue aggressively pursued
Apple has filed numerous lawsuits but received as many in turn
As a result, law has been determined that codes and programs are intellectual property
Many argue that because of its size and influence, Apple has the advantage in the courtroom
Corporate Evangelist: people who extensively promote a corporation's products
Must believe in the company itself, not just the products.
Environment of "doing things the right way"
Prized customer interaction
Extensive training, greater compensation, opportunity for improvement
Environmental Ethics: Transit subsidies, some free bio-diesel buses, shuttle services
Honesty, Respect, Confidentiality, Compliance
Code of Conduct available on their website
"Creating innovative, high-quality products and services while demonstrating integrity in every business interaction."
4 Traits of Integrity
Apple has access to lots of consumer's personal data
Allows better service, but also might be crossing boundaries
2011, information about customer locations was being transmitted back to Apple through their phone even if the feature was disabled
Claim it was a glitch but could lead to potential government legislation
Ethics of Apple Inc.
by Hailee Morgan, Anna Peterson, & Skylar Robinson
Ferrell, O. C. Business Ethics: Ethical Decision Making and Cases. Stamford, CT: Cengage Learning, 2014. Print.
Wan, William. "Foxconn Riot in China Unlikely to be the Last". Washington Post. Sep 25, 2005. Web.
Clarke, Mike. "China Foxconn's Woes Haven't Hurt the Bottom Line." Global Post. 2012. Web
CNN. "Steve Jobs". 60 Minutes. 2003. Web
How do you think Apple has handled the various ethical issues that it has faced in the past?
“Apple is making a killing on its products, and is consciously choosing to not to raise wages," - Kevin Slaten, a spokesman for China Labor Watch. (Washington Post)
“Such riots have become in some ways inevitable. It’s no longer simply a matter of raising the wages.” - Liu Kaiming, a labor expert in Shenzhen, the hub of China’s manufacturing plants. (Global Post)
A follower of the Apple cult regardless of the usefulness or real worth of the product. Believes with without question the cult propaganda which installs the almost mythological belief that what they have just bought is the fastest or most user friendly product ever, only to be re-sold the same product, with a few minor tweaks, a few months later with the same rhetoric and complete disregard for reality.
Why is Apple's industry so competitive and how could this affect the ethical risk in Apple's operations?
Explain how Apple's philosophy and organizational culture have impacted how it handles ehtical decisions.
Do the Ethics of Apple Inc. Affect Your Decisions as a Stakeholder to Support their Company?
Apple is working to improve labor conditions and monitor factories more closely
Fair Labor Association (FLA) states that Apple has improved dramatically and completed 280 of the FLA's recommendations

Ethical Improvements
- First Apple product sold
- Apple begins struggling and Steve Jobs leaves the company
- Steve Jobs is re-hired to try and save the company.
- iPod is introduced
- iTunes is launched
- Apple Computer, Inc. is renamed to Apple Inc.
Full transcript