Apple and Global Business Environment Challenges Essay

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Total Length: 1977 words ( 7 double-spaced pages)

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Introduction

Apple Inc. pays considerable attention to its conduct code. It wishes to ensure its offering is manufactured and sold in an ethical and efficient manner. The technology giant evaluates every element of its conduct code, personally undertakes audits for making certain its offering is produced correctly, and ensures the employees engaged in the manufacturing process are accorded ethical and fair treatment. Over time, the company has modified its conduct code a number of times for ensuring its goods are appropriately supplied to end customers. Suppliers who fail at complying with the corporation’s code simply end up endangering their dealings with the company. They may end up losing their license to manufacture and market Apple products (Moren, 2014; Apple Inc., 2017a). The company wishes to deliver to customers the entire package, and to guarantee their manufacturing process is eco-friendly. Finally, they wish to ensure their finished goods are in line with established standards.

List of specific changes that Apple has made to its Code of Conduct in recent years

i. Labor and Human Rights

Apple holds the belief that every supply chain member is worthy enough to be able to enjoy working in an ethical and just atmosphere. Every employee has to be accorded the right treatment, with extreme dignity and regard. Further, suppliers linked to the company ought to maintain the highest human rights standards. The company necessitates suppliers to refrain from discriminating against employees on the basis of aspects like age, sex, nationality, race, ethnic background, disability, marital status, political preferences, religion, union membership, gender identity, or sexual orientation, in organizational employment processes such as recruitment (Apple Inc., 2017a). Moreover, suppliers shall not demand the taking of health or pregnancy examinations (an exception here is when workplace safety rules or relevant laws call for it); further, the suppliers shall not engage in wrongful discrimination on test-outcome grounds.

Unreasonable working hours is one problem commonly plaguing the production sector. Apple’s policy, founded on Electronic Industry Citizenship Coalition and International Labor Organization (ILO) standards, restricts working hours in the organization to a maximum of sixty hours weekly; this is accompanied by a compulsory weekly rest day. In the year 2016, the company tracked weekly working hours of suppliers having approximately 1.2 million supply chain workers in their employ (Apple Inc., 2017b; Apple Inc., 2016). This year, it bettered its earlier result, attaining 98% supplier adherence to working hours over all workweeks. Its cross-functionally amalgamated initiative entails meticulous confirmation of every piece of information received from suppliers, under their standard appraisal.

ii. Environment

The company dedicates itself to environmental protection. Duty to the environment lies at the heart of Apple operations. Suppliers are expected to come up with, adopt and sustain environmentally responsible operational processes. Further, they need to adopt an efficient strategy geared at the identification, handling, reduction, and responsible disposal or recycling of toxic wastes (Apple Inc., 2017a).

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In the area of wastewater management, they are expected to adopt an efficient strategy geared at the identification, reduction and control of wastewater generated as a result of their operations. Lastly, they are expected to perform regular monitoring of wastewater treatment system performance.

In the year 2015, the company launched an end assembly supplier target of ensuring zero waste. Shanghai’s Tech-Com was found to direct to landfills or incinerate over 20% of its generated waste. Apple subsequently collaborated with it, together with the local recycler, and came up with a more efficient process to separate and recycle wastes. Consequently, as of now, Tech-Com recycles its entire waste (Apple Inc., 2017b; Apple Inc., 2016). Furthermore, Tech-Com designed a novel food waste management process; food wastes are now directed to local composters and not landfills. The company went one step further, utilizing their own experience to come up with a process to aid its own suppliers in gathering and reutilizing packaging material. Ever since this initiative’s commencement, Tech-Com successfully redirected over ten thousand metric tons of landfill-intended wastes and, in the year 2016, earned ‘UL Zero Waste to Landfill’ validation.

iii. Ethics

The company calls for first-rate ethicality standards in every effort. Its suppliers are required to maintain ethicality in all business areas, such as operations, business relations, procedures and sourcing. Suppliers need to apply due diligence when it comes to relevant supply chain material. They must come up with distinct management systems and policies for due diligence for determining relevant risks and implementing the right mitigation procedures. Due diligence ought to be carried out at the stage of mineral processing for ascertaining if the required minerals’ origins include high-risk areas (e.g., areas suffering under conflict, forced labor, horrendous child labor conditions, human trafficking, extensive sexual abuse, and other gross infringements of human rights and high risk behavior); risks also include severe safety and well-being related risks and adverse effects on the environment (Apple Inc., 2017a).

Apple Inc., in the year 2010, became one among the pioneers when it came to mapping corporate supply chains right from the level of production to that of smelter in case of 3TG (tin, tungsten, tantalum, and gold) (Apple Inc., 2016). Last year, it achieved cobalt-related mapping. Committed to constantly republishing 3TG smelters lists, Apple’s list now encompasses cobalt suppliers as well. For the 2nd consecutive year, every single identified 3TG refiner and smelter is engaged in individual 3rd-party auditing. Further, every cobalt refiner and smelter and is also engaged in such audits. As of last year, the company discontinued supply chain partnership with a total of twenty-two smelters (Moren, 2014). The company vows to continue breaking ties with entities incapable or unready to adhere to….....

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