Individual assignmenttopic case 14 apple inc ’s ethical success and challenges

NATIONAL ECONOMICS UNIVERSITY Viện Đào tạo Tiên tiến, Chất lượng cao POHE -*** - INDIVIDUAL ASSIGNMENT TOPIC: CASE 14 Apple Inc.’s Ethical Success and Challenges Student’s name: Lê Chí Thành – 11215310 Ha Noi, 2023 TABLE OF CONTENTS CASE SUMMARY 1 Apple’s history .1 Apple’s corporate culture .1 Apple’s ethics Ethical issues at apple Inc .2 4.1 Privacy 4.2 Price Fixing 4.3 Rioting 4.4 Sustainability 4.5 Intellectual Property 4.6 Threats to Other Companies 4.7 Supply Chain Management Issues .5 The future at Apple Inc QUESTIONS DISCUSSION Explain how Apple’s philosophy and organizational culture have impacted how it handles ethical decisions Why is Apple’s industry so competitive and how could this affect the ethical risk in Apple’s operations? .9 How you think Apple has handled the various ethical issues that it has faced in the past? 12 i This is a preview Do you want full access? Go Premium and unlock all 15 pages CASE SUMMARY Access to all documents Apple’s history Get Unlimited Downloads Apple's first product, the Apple I, was created by co-founder Steve Wozniak and sold for $ 666.66 In 1976, Apple Computer Inc surpassed $ million in Improve your grades sales, but the mid-1980s saw difficult times for Apple In 1983, the company introduced the Apple Lisa for $ 10,000, but it flopped In 1985, Steve Jobs was ousted after internal conflicts with the Apple CEO, and the company underwent several CEO changes In 1997, Jobs returned to Apple to try and save the struggling company, and Upload immediately began to change the company's corporate Share your documents to unlock culture He instituted a "closed door" policy, which is still in place today Jobs created a flattened organizational structure and expanded into new product lines within the electronics industry In 2001, Apple launched the iPod and introduced iTunes, a type of "jukebox" software that allowed users to upload songs from CDs onto their Macs and organize and manage their personalized song libraries Free Trial In 2007, Apple was re-named Apple Inc and began to take market share away Get 30 days of free Premium from its top competitors in the computer industry Sales of desktops, laptops, and netbooks began to decline after tablet computers were introduced, but analysts believe tablet computers will continue to grow at a rapid rate Already Premium? Log in Apple’s corporate culture Apple's transition from a computer to a consumer electronics company is unprecedented and hard to replicate It is attributed to Steve Jobs' leadership abilities, Apple's highly skilled employees, and its strong corporate culture Evangelism is an important part of Apple's culture, with a chief evangelist who spread the message about Apple and gain support for its products Evangelists are not only employees, but loyal customers as well, forming what Apple refers to as a "Maccult" Successful evangelism only occurs with dedicated, enthusiastic employees who are willing to spread the word about Apple When Jobs returned to Apple, he instituted two cultural changes: he encouraged debate on ideas and created a vision employees could believe in Apple prides itself on its unique corporate culture, which emphasizes a flat structure and a fast-paced, innovative, and collaborative environment It also looks for retail employees that work well in its culture, providing extensive training, greater compensation, and opportunities to move up to manager, genius, or creative To reduce its environmental impact, Apple offers incentives such as transit subsidies for employees who opt to use public transportation, and free bus service between the Apple headquarters and the train station These incentives reduce fuel costs for employees while simultaneously lowering emissions released into the environment Apple’s ethics Apple has a code of business conduct that applies to all its operations, including those overseas, and provides employees with a Business Conduct Helpline to report misconduct It also makes each of its suppliers sign its "Supplier Code of Conduct" and performs factory audits to ensure compliance To emphasize its commitment, Apple releases an annual Apple Supplier Responsibility Report that explains supplier expectations and takes corrective actions against factories where violations occur Ethical issues at apple Inc 4.1 Privacy Consumer tracking is a controversial issue due to the increase in social networking, mobile devices, and Internet use In 2011, Apple and Google disclosed that certain features on the cell phones they sell collected data on the phones' locations Consumers and government officials saw this as an infringement on user privacy, and Apple attributed this to a glitch it remedied with new software Both Google and Apple defend their data-collection mechanisms, but many government officials disagree The government is considering passing legislation on mobile privacy, which could have profound effects on Apple and other electronics companies 4.2 Price Fixing In July 2013, a judge ruled that Apple had conspired to fix prices on electronic books in conjunction with five major book publishers Apple was part of a deal that required publishers to give Apple's iTunes store the best deals in the marketplace for e-books, and Apple received 30 percent of the proceeds This scheme is known as a most-favored-nation clause and can be used by companies to dominate the market by keeping competitors out Apple denies any wrongdoing and plans to appeal the decision 4.3 Rioting Apple halted sales of the iPhone 4S in China in early 2012 after massive crowds waited for 48 hours outside of the flagship store in Beijing began to riot Customers retaliated by throwing eggs at the store and attacking a mall property manager Other stores in Shanghai and one other in Beijing opened as scheduled and quickly sold out of the product This incident raised questions about Apple's ethics and the dangers to customer and employee safety In September, more than 2,000 Foxconn plant workers broke out into a fight in the dormitories and authorities sent 5,000 police officials to restore structure Apple has the responsibility to ensure workers at the plant are being treated fairly 4.4 Sustainability Apple has taken steps to become a greener company, such as reducing its environmental impact at its facilities, but the majority of its emissions come from its products This is due to planned obsolescence, which pushes people to replace or upgrade their technology whenever Apple comes out with an updated version To combat this, Apple has created a recycling program at its stores for old iPods, mobile phones, and Mac computers However, many consumers still feel tossing out their old products is more convenient, and e-waste remains a significant issue Apple made a controversial move by temporarily removing 39 products from the Electronic Product Environmental Assessment Tool (EPEAT) ratings system, which is used by many schools and governments when purchasing computer products Apple rejoined the EPEAT rating system after consumer feedback indicated that dropping the system was not necessary 4.5 Intellectual Property Apple is concerned about intellectual property theft and has filed many lawsuits against other technology firms In 1982, Apple filed a lawsuit against Franklin Computer Corporation for illegally formatting copies of Apple II's operating system and ROM Franklin's lawyers argued that portions of computer programs were not subject to copyright law, but the courts eventually ruled that codes and programs are protected under copyright law This law provided technology companies with more extensive intellectual property protections This is a preview Apple sued released Windowsall 2.0, Do you want fullMicrosoft access?after GoMicrosoft Premium and unlock 15claiming pages the licensing agreement was only for Windows 1.0 and that Microsoft's Windows had the "look and feel" of Apple's Macintosh graphic interface system (GUI) Access to all documents The courts ruled in favor of Microsoft, ruling that Windows did not violate copyright law or the licensing agreement Two other lawsuits involved Apple's Unlimitedwhich Downloads use of the domain nameGet iTunes.co.uk, led to complaints that Apple was being favored at the expense of smaller companies Improve your grades Apple faced a trademark lawsuit from Cisco Systems in 2007, which ended with both parties agreeing to use the iPhone name In the most recent case, Apple sued Samsung for infringing on multiple intellectual property rights, including patents, trademarks, user interface, style, false designation of origin, unfair Upload competition, and trademark infringement A jury found Samsung guilty of Sharedesign your documents unlockand Apple was awarded willfully infringing on Apple's and utility to patents, $1.049 billion in damages Apple's aggressiveness regarding patent protection has led to lawsuits against powerful companies, including Microsoft and Samsung It also filed a lawsuit against HTC Corporation, a Taiwanese smartphone manufacturer, accusing HTC of replicating a range of cellphone Free Trial features protected under Apple's patents Get 30 days of free Premium Eventually, the two companies agreed to drop the lawsuits and accept a 10year licensing agreement The ethical issue is if Apple's claims are legitimate or if it is simply trying to cast its competitors in a bad light It is up to the courts to determine if Apple's allegations have any validity Already Premium? Log in 4.6 Threats to Other Companies Steve Jobs allegedly threatened former CEO of Palm Edward Colligan with patent litigation if Palm did not cease poaching valuable Apple employees This "unspoken agreement" included companies such as Adobe, Google, Intel, Intuit, and Pixar Jobs' firm stance on the matter was made clear to Colligan, who countered with a response that Apple's employees were fair game In 2010, the U.S Department of Justice filed an antitrust lawsuit against the aforementioned companies and required them to dissolve this agreement Current CEO Tim Cook made it clear that Jobs was the only one with knowledge to this agreement and no other Apple employees were involved 4.7 Supply Chain Management Issues Apple is a highly admired and ethical company, but its supply chain issues have threatened to undermine its reputation In the last few years, multiple accusations of improper working conditions, underage labor disputes, and worker abuse have come into question Despite Apple's efforts to audit its factories and enforce strong supplier compliance standards, over 50 percent of the suppliers audited by Apple violated at least one part of its supplier code of conduct every year since 2007 Suppliers claim Apple's manufacturing standards are hard to achieve because suppliers are allowed slim profit margins, while competitors like Hewlett-Packard allow suppliers to keep more profits if they improve worker conditions Other problems with Apple's supply chain include underage workers, falsified records, overcrowded worker dormitories, and other labor violations Apple claims suppliers who violate company policies have 90 days to address the problem, but fewer than 15 suppliers have been dropped Several high-profile events at Apple factories have caused criticism of its supply chain, including over 135 workers falling ill and over a dozen workers committing suicide Foxconn, Apple's largest supplier, is one of only a few facilities with the capacity to build iPods and iPads, making it difficult for Apple to change suppliers Apple claims it is improving supplier conditions and becoming more transparent about its labor processes, and CEO Tim Cook visited Foxconn personally to improve worker safety The Fair Labor Association (FLA) states that Apple has dramatically improved the accountability of Foxconn and completed 280 of the FLA's recommendations, but continuous monitoring of its suppliers and enforcement of ethical standards are necessary to assure stakeholders that Apple takes the well-being of workers in its supply chain seriously The future at Apple Inc Apple is optimistic about its future and is taking its forays in the music industry further with iCloud, a service that enables consumers to create and listen to their music collections without having to upload individual songs In June 2013, Apple filed for a trademark application for an iWatch in Japan, which has fueled speculation that the company is developing a wearable computing device Apple is also testing larger screens for smartphones and tablets in response to competition, and is aiming to refine current products while continuing to develop new ones Seizing on these opportunities can increase Apple's share of the music and consumer electronics markets Apple has faced lawsuits from competitors over alleged intellectual property violations, and its tight hold over its products and secrets could be disadvantageous Google, for instance, has a more open-source approach, which allows for innovation to occur more rapidly Apple may need to re-examine whether its closed system is the best way to compete After the death of Steve Jobs in 2011, eyes are now turned to CEO Tim Cook, who prioritizes project and supply chain management over creative engineering Tim Cook is taking over the CEO position from Steve Jobs, but some fear he lacks the creative skills that made Jobs such a visionary This has prompted some to question whether Cook's leadership might change Apple's culture negatively, while others feel he could make Apple more competitive with his strong strategic management skills Apple has excelled at keeping pace with the rapidly evolving industry of computers and consumer electronics, and many believe new products are on the horizon Its diversification, collaborative corporate culture, and product evangelism have propelled it to heights that could not have been envisioned when Jobs and Wozniak sold their first computer kit in 1976 This is a preview Do you want full access? Go Premium and unlock all 15 pages QUESTIONS DISCUSSION Access to all documents Explain how Apple’s philosophy and organizational culture have impacted how it handles ethical decisions Get Unlimited Downloads Apple Inc is widely regarded as one of the most successful and innovative yourhas grades companies in the world.Improve The company built its success on a combination of factors, including a strong brand image, innovative products, and a unique corporate culture that emphasizes design, user experience, and attention to detail Apple's philosophy and organizational culture have played a significant role in shaping how the companyUpload handles ethical decisions unlockthat include innovation, Apple's philosophy isShare basedyour on adocuments set of coretovalues simplicity, design, and user experience These values are deeply ingrained in the company's culture and influence how Apple approaches ethical decisions For example, Apple has a strong focus on design and user experience, which means that the company is highly motivated to create products that are not only visually Free Trial appealing but also intuitive and easy to use This focus on user experience has Get 30 days of free Premium led Apple to develop a range of products that are highly successful and beloved by users around the world At the same time, Apple's organizational culture is characterized by a high degree of secrecy and a strong sense of control Apple is known for its closed Already Premium? Log in ecosystem, which includes proprietary hardware, software, and services This closed ecosystem allows Apple to maintain a high level of control over its products and services, which in turn allows the company to deliver a consistent user experience across all of its devices Apple's organizational culture has also been shaped by the leadership of Steve Jobs, who was known for his strong personality and uncompromising vision for the company Jobs was highly focused on design and user experience, and he was not afraid to make bold decisions that pushed the boundaries of what was possible in technology This approach to leadership has been carried forward by Apple's current CEO, Tim Cook, who has continued to prioritize innovation and user experience while also emphasizing the importance of corporate responsibility In terms of how Apple handles ethical decisions, the company has a strong commitment to corporate responsibility and sustainability Apple has taken a number of steps to address ethical issues in its supply chain, including implementing a supplier code of conduct and working with suppliers to improve labor practices and reduce environmental impact Apple also publishes an annual Supplier Responsibility Report, which provides transparency into the company's efforts to address these issues In addition, Apple has taken steps to reduce its environmental impact, including a commitment to using renewable energy and reducing its carbon footprint The company has also developed a recycling program that allows customers to recycle their old Apple devices Overall, Apple's philosophy and organizational culture have had a significant impact on how the company handles ethical decisions The company's focus on design, user experience, and innovation has led it to create some of the most successful products in the world, while its commitment to corporate responsibility and sustainability has helped it address ethical issues in its supply chain and reduce its environmental impact Another way in which Apple's philosophy and organizational culture impact how it handles ethical decisions is through its approach to privacy and security Apple has long been known for its commitment to protecting user privacy and keeping customer data secure This focus on privacy is rooted in Apple's philosophy of putting the customer first and providing products that are not only easy to use but also highly secure Apple's organizational culture also emphasizes the importance of control and security, which is reflected in the company's closed ecosystem and its use of proprietary hardware and software This closed ecosystem allows Apple to maintain a high level of control over its products and services, which in turn allows the company to provide a more secure user experience For example, Apple's iOS operating system is known for its strong security features, including encrypted messaging and biometric authentication Apple's approach to privacy and security has also influenced how the company handles ethical decisions related to government requests for user data Apple has been involved in a number of high-profile cases in which the company has refused to comply with government requests for user data, citing concerns about user privacy and the potential for government overreach In these cases, Apple has taken a principled stand to protect user privacy, even in the face of legal pressure Another way in which Apple's philosophy and organizational culture impact how it handles ethical decisions is through its approach to diversity and inclusion Apple has made a concerted effort to promote diversity and inclusion within the company and the broader technology industry This includes efforts to increase the representation of women and underrepresented minorities in leadership positions and in the company's workforce more broadly Apple's commitment to diversity and inclusion is reflected in its organizational culture, which emphasizes the importance of creating a welcoming and inclusive work environment The company has established employee resource groups and other initiatives aimed at promoting diversity and inclusion, and it has also taken steps to address issues of bias and discrimination within the company In terms of how Apple handles ethical decisions related to diversity and inclusion, the company has made a public commitment to promoting these values both within the company and in the broader tech industry For example, Apple has signed on to the Tech Inclusion Pledge, which is a commitment by tech companies to promote diversity and inclusion in hiring and other practices Overall, Apple's philosophy and organizational culture have had a significant impact on how the company handles ethical decisions The company's focus on design, user experience, innovation, privacy and security, and diversity and inclusion has led it to create some of the most successful products in the world while also prioritizing corporate responsibility and sustainability Why is Apple’s industry so competitive and how could this affect the ethical risk in Apple’s operations? The technology industry is highly competitive, with numerous companies vying for market share and striving to be the first to develop the latest products and services This competitive environment can create pressure on companies to cut corners, compromise on quality or safety, or engage in unethical business practices in order to gain an advantage over rivals This pressure can, in turn, increase the risk of ethical violations in a company's operations This is a preview Apple in the highly competitive technology industry, which is Do you wantoperates full access? Go Premium and unlock all 15 pages characterized by rapid innovation, fierce competition, and changing consumer preferences According to the case study, Apple's success has made it a target for to all competitors, who seek Access to emulate thedocuments company's product design, marketing strategy, and customer experience Get Unlimited Downloads The case study notes that the competitive nature of the technology industry can increase the ethical risk in Apple's operations This is because competition Improve your grades can create pressure to cut corners, compromise on quality or safety, or engage in unethical business practices in order to gain an advantage over rivals For example, the case study highlights the issue of labor rights in Apple's supply chain, where the company's suppliers have been accused of engaging in unethical labor practices in order toUpload meet Apple's high demand for products Share your documents to unlock The competitive nature of the technology industry can also increase the risk of intellectual property theft, which can impact both Apple's business operations and its ethical reputation According to the case study, Apple has been involved in a number of legal battles over intellectual property theft, including a highprofile case against Samsung in which Apple accused the company of copying its Free Trial iPhone design Get 30 days of free Premium The case study notes that Apple has taken steps to mitigate the ethical risks associated with competition in the technology industry For example, the company has implemented strict supplier standards to ensure that labor rights are respected in its supply chain, and it has also taken steps to protect its intellectual Already Premium? Log in property through legal action and technological measures However, the case study also highlights the ongoing ethical challenges that Apple faces as a result of competition in the technology industry For example, the company has been criticized for its use of offshore tax havens to reduce its tax burden, which some critics view as an unethical business practice that gives Apple an unfair advantage over competitors Overall, the highly competitive nature of the technology industry can create significant ethical risks for Apple, including issues related to labor rights, intellectual property theft, and unfair business practices While the company has taken steps to mitigate these risks, ongoing efforts are needed to ensure that Apple's operations remain ethical and responsible in the face of intense competition 10 To further address the ethical risks associated with competition in the technology industry, Apple has also implemented a number of corporate social responsibility initiatives For example, the company has made a commitment to reducing its carbon footprint and increasing its use of renewable energy sources Apple has also established a supplier responsibility program, which seeks to ensure that suppliers adhere to high standards of labor and human rights, health and safety, and environmental sustainability In addition to these initiatives, Apple has also taken steps to address the issue of intellectual property theft The company has filed numerous lawsuits against companies that it believes have infringed on its patents, and it has also taken measures to protect its intellectual property through technological means, such as encryption and digital rights management Apple's commitment to ethical business practices has helped to distinguish the company from its competitors in the technology industry The case study notes that Apple's emphasis on design, user experience, and corporate responsibility has given the company a competitive edge in the marketplace, and has helped to build a strong brand that is associated with innovation, quality, and ethical responsibility However, the competitive nature of the technology industry means that Apple must remain vigilant in its efforts to maintain ethical business practices The company must continue to monitor its supply chain and take steps to address any ethical issues that arise, and it must also continue to innovate and create products that are both high-quality and environmentally sustainable In conclusion, the competitive nature of the technology industry presents significant ethical risks for Apple, including issues related to labor rights, intellectual property theft, and unfair business practices However, by implementing corporate social responsibility initiatives and maintaining a commitment to ethical business practices, Apple can mitigate these risks and continue to distinguish itself from its competitors in the marketplace 11 How you think Apple has handled the various ethical issues that it has faced in the past? Apple has faced a number of ethical challenges throughout its history, including issues related to labor rights, intellectual property theft, and environmental sustainability Overall, the company's response to these challenges has been mixed, with some observers praising its efforts to address ethical issues, while others have criticized the company for not doing enough to promote responsible corporate citizenship In the area of labor rights, Apple has implemented strict supplier standards and a supplier responsibility program, which have helped to improve working conditions and reduce labor rights violations in its supply chain According to the case study, the company has also taken steps to address issues related to underage labor and forced labor, and has conducted regular audits of its suppliers to ensure compliance with its standards Despite its efforts, however, Apple has faced criticism in this area as well For example, some environmental groups have accused the company of not doing enough to address the environmental impact of its supply chain, particularly in the areas of mining and production Moreover, critics argue that Apple has not done enough to address labor rights issues, particularly in countries such as China where the company's suppliers are located For example, a report by China Labor Watch cited in the case study alleges that workers in Apple's supply chain continue to face long working hours, low wages, and poor working conditions Some observers have also criticized Apple for not doing enough to promote worker empowerment and collective bargaining in its supply chain In the area of intellectual property theft, Apple has taken a more aggressive approach to protecting its intellectual property rights, including through the use of legal action and technological measures As the case study notes, Apple has been involved in a number of high-profile legal battles over intellectual property theft, including a case against Samsung in which Apple accused the company of copying its iPhone design While some observers have praised Apple for taking a strong stance on intellectual property theft, others have criticized the company for engaging in what they see as overly aggressive tactics that stifle innovation in 12 This is a preview technology For Go example, some have thatall Apple's efforts to Do the you want fullindustry access? Premium andargued unlock 15 pages protect its intellectual property rights have stifled innovation in the technology industry and prevented other companies from developing new and innovative Access to all documents products In the area of environmental sustainability, Apple has made significant Get Unlimited Downloads strides in recent years, including through the implementation of a number of corporate social responsibility initiatives aimed at reducing the company's Improve your grades carbon footprint and promoting environmental sustainability For example, as the case study notes, Apple has committed to using 100% renewable energy in all of its facilities, and has also implemented a number of recycling programs aimed at reducing waste Upload Overall, it is clear that Apple has taken a number of steps to address ethical Share your documents to unlock issues in its operations, including in the areas of labor rights, intellectual property theft, and environmental sustainability While the company's efforts have been praised by some observers, others have criticized the company for not doing enough to promote responsible corporate citizenship In order to maintain its reputation as a socially responsible Free Trialcompany, Apple must continue to be vigilant in its efforts to address ethical and promote responsible business Get 30 days of issues free Premium practices Already Premium? 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