The organization conducting business in the United States and globally that I am familiar with is Apple Inc. I will include an analysis of global economic interdependence and effects of international technology industry practices and agreements. The importance of demographics, physical infrastructure, social responsibility and ethics versus legal obligations of the organizations will be aspects I examine. I will include an analysis of cultural differences, effects of political systems and influences of international relationships, along with the Foreign Corrupt Practices Act of 1988, influence of local, national, and international legislation. The effects of technology upon international operations for Apple are traits that I will address …show more content…
America has since adjusted to the country status as an interdependent global economy” according to Kline (1984). Apple Inc. is one company with success in the global markets. Apple Inc. is a company that has grown from three guys in a garage to a multinational globally active electronics corporation. Because of strict laws Apple has been proactive regarding its “Supplier Responsibility.” The company has installed a “comprehensive Supplier Code of Conduct, which outlines our expectations for the companies we do business with,” Apple (2011). According to Apple Inc. “The Supplier Code of Conduct requires our suppliers to ensure safe working conditions, treat their workers with dignity and respect, and establish and maintain environmentally responsible manufacturing processes.” In the past electronics supply chains have not been as stringent as they should have been. Apple is in an association with other suppliers called Electronics Industry Citizenship Coalition (EICC), which ensures each company voluntarily works to improve the conditions members of staff are working in. The EICC audits and updates members in a timely manner. Apple is proactive and addresses problems before they begin by allowing workers to know their rights and according to Apple Inc. (2011) “through collaboration with suppliers, government agencies, NGOs, and other companies.” This will help ensure that Apple, and
Apple business environment is competitive and fast-paced. Apple suppliers must understand this dynamic and be agile and flexible in responding to changing business conditions. All over the world, people are building Apple products and Apple has a responsibility to make sure that each person is treated with dignity and respect. It’s a massive challenge where Apple work is never done, but each year they implement meaningful, lasting changes across their supply chain. Because of this around the globe, Apple employees are united in bringing equality, human rights, and respect for the environment to the deepest layers of their supply chain. Apple goes deep into their supply chain to enforce their social and environmental standards by empowering workers through education, demanding that suppliers treat workers fairly and ethically at all times, having safe and healthy facilities, and hold their products and processes to the highest
In relation to Apple’s internal environment, the company encourages an innovative culture, involving staff creativity and open-mindedness to novel ideas. In addition, Apple stresses the use of environmentally friendly practices, and protection of employees’ safety and health at work (Schneider, 1995, p. 70). Apple’s external environment poses a challenge to the company in terms of emerging firms in the technology business line, competitors selling substitute products, charging lower prices that entice customers because of their affordability, in comparison to the high quality and pricing of similar items from Apple (Apple, 2012, p.1).
We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.
Immediately after the allegation, Apple launched an investigation and worked with their manufacturers to ensure that conditions were acceptable by its standards. In 2007, Apple started yearly audits of the labor conditions of all its suppliers, slowly raising standards and severing relationships with suppliers that did not comply—yearly progress reports have also been published since 2008.
Apple is committed to maintaining the highest standards, for both environmental responsibility and ethical conducts. They follow strict
In 2012, Apple initially unveiled 97% of its closely related global suppliers for reflecting their determination of solving the ethical issues occurred. In the same year, the visit to Foxconn and the participation in Fair Labor Association (FLA) were also tremendous steps for Apple to redress the issues, which was renowned for reticence before.
Apple is committed to ensuring that working conditions in Apple’s supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible. Apple’s suppliers (“Suppliers”) are obligated, in all of their activities, to operate in full compliance with the laws, rules, and regulations of the countries in which they operate. This Supplier Code of Conduct (“Code”) goes further, drawing upon internationally recognized standards, in order to advance social and environmental responsibility. Apple requires that Suppliers implement this Code using the management systems described below. The Apple Supplier Code of Conduct is modeled on and contains
Apple is one of the most valuable brands in the world. The company has strong brand loyalty, impressive revenue growth and superior innovations in technology. There are many aspects of the company that contribute to Apples success. One of the most important aspects is the company’s ethical decision making. Apple has a strong ethical code of conduct that represents the company as being ethical in all decisions being made. Despite Apples positive representation, the company has been faced with many ethical issues. Apple has been involved in many litigations ranging from a domain name dispute and patent infringement, to the use of refurbished products in their repairs. These unethical acts are risky for the company and can affect the company in negative ways. Another aspect that can affect the company is their competitiveness in the technology industry. This industry has many competitors that Apple has to compete with. However, Apple has been overly aggressive in protecting their property rights.
Apple has many suppliers in their large supplier network, which Foxconn is one of them. Foxconn is a Taiwanese manufacturer of electronic, which has many different factories in different countries. Foxconn is notorious for making iPhone in China and being brutal with their employees. This included poor working conditions, illegal overtime, and treating their employees like robots with no respect. Apple states that they had no idea this was going on in Foxconn, but that’s up to you if you truly believe them. Apple took some precautionary actions against Foxconn stating that Apple will join the Fair Labor Association (FLA) in order to run external audits once a year, and they developed a global supplier code of conduct. Apple released a statement
In 2013 Apple included two separate specialized audits, a process safety assessment and environmental audits. Violations were broken down to identify excessive working hours, discriminatory practices, protection of juvenile workers, and if the facility had been notified previously to correct any of the same discrepancies. There is zero tolerance for underage labor. For hiring any person underage, the company requires that the supplier make financial reparations, get them back into school, finance their education, and provide income as if they were an employee. Once the individual is legal, there is a job offer made available to them. Apple’s environmental practices had also come under a microscope. There was a focus on conflict minerals like tantalum, gold, tungsten, and tin. For the first time in the company’s history, a list of the smelters and refiners used by Apple were released. Steps are being taken to be conflict free through the aid of third party auditors like the FLA. Apple’s Supplier Employee Education and Development (SEED) program provides free education to employees. There is also an 18 month program to train workers in health and safety matters, as well as environmental issues. The numbers of people participating in these types of programs are expected to increase every year (Moren, 2014). SEED and other programs like it are created to educate and empower workers. Provide them with
The Apple Supplier Code of Conduct describes in detail the obligation of each supplier to provide safe working conditions, treat all employee decently, and practice environmentally responsible methods. Therefore, Apple 's supplier code of conduct has created substantial advancements since; the employee work conditions in Apple Chinese factory news released to the public of many violation human rights. The Apple corporations have made improvements to the Supplier to make the Apple suppliers accountable for their actions. However, the accountability of the vendor following all labor laws, making sure employee human rights not violated, requires safe and healthy work environment and empowering employees with the precise training and
Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.
The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.
Apple is undeniably positioned as the worlds most innovative and valuable technology company. Apple has successfully used simplicity and intelligence to take over the world of technology. Steve Jobs lead Apple to substantial accomplishments and vast income continuing when Tim Cook picked up leadership in early 2012. Although this company is undoubtedly financially wealthy, an ethical dilemma concerning Foxconn’s working conditions has been called into question. Foxconn, a key supplier to Apple, has reported long working hours, discrimination of workers, and a lack of working relationships that has lead to multiple attempted suicides and fourteen deaths before Cook took control. According to public opinion and perception when Tim Cook picked up leadership, he began attempting to improve standards for the Taiwanese workers. Recently Tim Cook explained, "We believe that workers everywhere have the right to a safe and fair work environment". This statement proves Tim Cook wants to see effective positive change within Apple factories. However, the company has responsibilities to stakeholders, particularly customers. Apple’s primary obligation revolves around producing technology with the best economic value for customers. With the factories improving, prices may increase, fewer products may be produced, and overall product quality may decrease. Tim Cook represents the ethical decision maker (EDM) in justifying the better option to
The Apple Corporation has very strong ethical and social responsibilities within the corporate world. Apple currently has a great position on their customer service and significant value. This is important when it comes to upholding a positive image. They have also violated a lot of these ethical and social responsibilities which has caused it to hurt Apple Corporation’s reputation. A couple of the violations that will be discussed are the wage and benefits standards and environmental issues. It is very important that Apple continues to follow these standard responsibilities. The other important factor to consider is keeping a price