s required by the SEC (Securities Exchange Commission) Apple has made the Form 10-K annual report available on its website. The Form 10-K contains – amongst other things – information on Apple’s business strategy and organisation, the company’s risk factors, legal proceedings and financial data. It also includes the business conduct policy of Apple: ‘Apple conducts business ethically, honestly and in full compliance with all laws and regulations. This applies to every business decision in every area of the company worldwide’. Furthermore, the business conducts deal with corporate governance, information disclosure, non-corruption and bribery, environmental health and safety. Apple has considered the GRI G3.1 indices relating to the economy, the environment, human rights, society and labour for its publication on Governance, Product Environmental Reports, Recycling and Facilities Environmental Report and Supplier Responsibility. For Supplier Responsibility, Apple, for example, has taken into account the indicator which reports on measures it has taken to contribute to the elimination of child labour. With regard to Product Environmental Reports, Apple has used the EN26 performance indicator, and sets out initiatives to lessen the environmental impact of its products. Apple designs its products with the aim of being as energy efficient as possible, and it is the only company that can claim all electronic goods are Energy Star qualified. Apple’s products have become more powerful while, at the same time, fewer materials are used and fewer carbon emissions are generated. Almost all of Apple’s products are outsourced for manufacturing overseas. On its Supplier Responsibility website Apple states: ‘Apple is committed to the highest standards of social responsibility across our worldwide supply chain. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Our actions – from thorough site audits to industryleading training programs – demonstrate this commitment’. The Supplier Code of Conduct (Supplier Code) outlines Apple’s expectations for the suppliers it does business with. As a condition for doing business with Apple, suppliers have to commit to the Supplier Code. For the Supplier Code, Apple has adopted the Electronics Industry Code of Conduct (EICC),119 the guidelines and standards for the electronics sector. Through onsite audits Apple ensures that suppliers comply with the Supplier Code. The final assembly manufactures are audited every year and the components suppliers are audited arbitrarily. Apple obliges its suppliers to respect the human rights of its workers, to inform the workers of their rights, and to treat them with dignity and respect. Apple requires from its suppliers that they prevent discrimination, involuntary and underage labour, excessive working hours and that they pay workers with wages and benefits in accordance with the applicable laws and regulations. Labour and Human rights A well-known conflict involving Apple’s suppliers are the suicides at Foxconn. It is the largest contracted electronics manufacturer in the world, with dealings involving Dell and Sony. Foxconn is the manufacturer of iPhones and iPads and employs over 900,000 workers, of whom 420,000 employees work at the Foxconn Shenzhen plant. This plant covers 15 factories, including dormitories, a hospital, a bank, a grocery store and restaurants. The workers live and work inside the complex. In 2006 the Chinese local press reported on the excessively long working hours and the discrimination of mainland Chinese workers by Taiwanese superiors. In May 2010 several media sources reported several cases of suicide at Foxconn. From 2009 to 2010 a total of 13 workers had committed suicide. The first worker, Sun Danyong, committed suicide after he had been interrogated on the loss of an iPhone 4 prototype that he had in his possession. When the former CEO Steve Jobs was asked about the suicides at Foxconn, he responded: ‘Foxconn is not a sweatshop.’ During an undercover investigation it was discovered that the reason for the multiple suicides was related to internal management. Question 1 Apple's contracted manufacturer Foxxconn has been in conflict with Apple because of it's so called unethical policies. Do you think that impacted on Apples's statement of "doing business ethically"? Comment critically, using examples from Foxxconn to support your answer. Question 2 Critically examine the evolving idea of Corporate Social Responsibility in your own words citing relevant examples. Question 3 Examine the concept of Reputation Indexes, Mandated Actions and Social Responsiveness in your own words.
As required by the SEC (Securities Exchange Commission) Apple has made the Form 10-K annual report available on its
website. The Form 10-K contains – amongst other things – information on Apple’s business strategy and organisation, the
company’s risk factors, legal proceedings and financial data. It also includes the business conduct policy of Apple: ‘Apple
conducts
decision in every area of the company worldwide’. Furthermore, the business conducts deal with corporate governance,
information disclosure, non-corruption and bribery, environmental health and safety. Apple has considered the GRI G3.1
indices relating to the economy, the environment, human rights, society and labour for its publication on Governance,
Product Environmental Reports, Recycling and Facilities Environmental Report and Supplier Responsibility. For Supplier
Responsibility, Apple, for example, has taken into account the indicator which reports on measures it has taken to contribute
to the elimination of child labour. With regard to Product Environmental Reports, Apple has used the EN26 performance
indicator, and sets out initiatives to lessen the environmental impact of its products. Apple designs its products with the aim
of being as energy efficient as possible, and it is the only company that can claim all electronic goods are Energy Star
qualified. Apple’s products have become more powerful while, at the same time, fewer materials are used and fewer carbon
emissions are generated. Almost all of Apple’s products are outsourced for manufacturing overseas. On its Supplier
Responsibility website Apple states: ‘Apple is committed to the highest standards of social responsibility across our
worldwide supply chain. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and
respect, and use environmentally responsible manufacturing processes. Our actions – from thorough site audits to industryleading training programs – demonstrate this commitment’. The Supplier Code of Conduct (Supplier Code) outlines Apple’s
expectations for the suppliers it does business with. As a condition for doing business with Apple, suppliers have to commit
to the Supplier Code. For the Supplier Code, Apple has adopted the Electronics Industry Code of Conduct (EICC),119 the
guidelines and standards for the electronics sector. Through onsite audits Apple ensures that suppliers comply with the
Supplier Code. The final assembly manufactures are audited every year and the components suppliers are audited
arbitrarily. Apple obliges its suppliers to respect the human rights of its workers, to inform the workers of their rights, and to
treat them with dignity and respect. Apple requires from its suppliers that they prevent discrimination, involuntary and
underage labour, excessive working hours and that they pay workers with wages and benefits in accordance with the
applicable laws and regulations.
Labour and Human rights
A well-known conflict involving Apple’s suppliers are the suicides at Foxconn. It is the largest contracted electronics
manufacturer in the world, with dealings involving Dell and Sony. Foxconn is the manufacturer of iPhones and iPads and
employs over 900,000 workers, of whom 420,000 employees work at the Foxconn Shenzhen plant. This plant covers 15
factories, including dormitories, a hospital, a bank, a grocery store and restaurants. The workers live and work inside the
complex. In 2006 the Chinese local press reported on the excessively long working hours and the discrimination of
mainland Chinese workers by Taiwanese superiors. In May 2010 several media sources reported several cases of suicide
at Foxconn. From 2009 to 2010 a total of 13 workers had committed suicide. The first worker, Sun Danyong, committed
suicide after he had been interrogated on the loss of an iPhone 4 prototype that he had in his possession. When the former
CEO Steve Jobs was asked about the suicides at Foxconn, he responded: ‘Foxconn is not a sweatshop.’ During an
undercover investigation it was discovered that the reason for the multiple suicides was related to internal management.
Question 1
Apple's contracted manufacturer Foxxconn has been in conflict with Apple because of it's so called unethical policies. Do
you think that impacted on Apples's statement of "doing business ethically"?
Comment critically, using examples from Foxxconn to support your answer.
Question 2
Critically examine the evolving idea of Corporate Social Responsibility in your own words citing relevant examples.
Question 3
Examine the concept of Reputation Indexes, Mandated Actions and Social Responsiveness in your own words.
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