Asignment report business ethnicscase 14 apple inc ’s ethical success and challenges

BỘ GIÁO DỤC VÀ ĐÀO TẠO TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN ~~~~~~*~~~~~~ ASIGNMENT REPORT: BUSINESS ETHNICS CASE 14: APPLE INC.’S ETHICAL SUCCESS AND CHALLENGES Lecturer Student Name Student ID Class : : : : Dr Nguyen Bich Ngoc Le Nam Khanh 11212835 International Business Management 63C Ha Noi – December 2022 Table Of Contents I Introduction II Apple’s history III Apple’s corporate culture .6 IV Apple’s ethics V Ethical issues at Apple INC 10 VI The future of Apple .15 VII Answering case’s questions 16 I.Introduction Apple is one of the best-known tech companies of all time, one of the Big Five of tech, and for good reason From the latest iPhone to the original Apple computer, the company has been an ingenious innovator of consumer technologies since its first days out of a home garage Founders Steve Jobs and Steve Wozniak met through a mutual friend It turned out to be a fated meeting that would change the path of modern technology forever Steve Wozniak created the original prototype for the Apple I computer—the first computer to resemble the computer we know today—a model with a large monitor and a keyboard Jobs saw the prototype and quickly realized its potential Together, the two founded Apple Computers Inc on April 1, 1976 When Apple first began out, the corporation faced several challenges Before becoming successful, they went to a number of CEOs and unsuccessful products But nowadays, Apple distributes its products not only directly through its 510 stores across the world but also through carriers and other third parties Through worldwide direct and indirect distribution channels, Apple is able to produce enormous volumes of sales For the past four year, Apple has won the title of World’s Most Admired Company, according to Fortune magazine For many customers, the Apple brand stands for excellence, distinction and innovation The brand is the most valuable brand in the world with a value of about $153 billion Numerous businesses have attempted to outdo Apple with their products, but none of them have been successful or figured out what makes Apple so distinctive Many people think that Apple's success is the result of a number of factors, including the extraordinary leadership abilities of CEO Steve Jobs, a corporate culture that values enthusiasm and creativity, and the company's well-known high-tech goods Apple has revolutionized both the technological and retail sectors thanks to these merging features II APPLE’S HISTORY Apple Computers, Inc was founded on April 1, 1976, by college dropouts Steve Jobs and Steve Wozniak, who brought to the new company a vision of changing the way people viewed computers Computers needed to be made small enough for people to use them in their homes or workplaces, according to Jobs and Wozniak Simply put, they desired a friendly computer for user In 1976, when the company where Wozniak was an engineering intern, expressed no interest in his microcomputer design, Wozniak, then 26 years old, together with a former high-school classmate, 21-year-old Steve Jobs, moved production operations to the Jobs family garage Jobs and Wozniak named their company Apple on 1st of April 1976 Three logo, a year after foundation the Apple was released, it was a much more commercial product In 1980 Apple launched the IPO of its stock it instantly created more millionaires about three hundred than any company in the history The Apple one two and three computers were text-based machine much like the earliest IBM PCs But Jobs want something more intuitive so the Lisa launched in 1983 with its graphical user interphase Job was forced out of Apple in 1985 after a long power struggle with the company’s board and it’s then CEO John Sculley Jobs then took a few of Apple’s members with them to found NEXT, specialized in computers for higher education and business markets Apple then purchased Steve Jobs company in 1996, this would not only bring SJ back to apples management but NEXT technology would become the foundation of the MAC OS X operating system In 1997 Jobs stepped in as the CEO to begin a critical restructuring of the company At the 1997 Macworld Expo SJ announced that Apple would be entering into a partnership with Microsoft included in this was a fiveyear commitment from Microsoft to release Microsoft Office for Macintosh as well as a 150 million US dollar investment in Apple One of Jobs first moves was to develop the iMac a family of all-in-one Macintosh desktop computers In 1998 the first iMac was released, at that time Apple had suffered a series of setbacks as consumers increasingly opted for Wintel Window PCs machines instead of Apple’s Performa models The Ipod was released in late 2001, the iPod line came from Apple’s digital hub category When the company began creating software for the growing market of personal digital devices years later the iTunes Music Store was launched with million downloads in the first 16 days The first version of Iphone became publicly available on June 29 2007 in selected countries While it wasn’t the first smartphone in leapfrog far beyond the competition and launched the mobiles revolution III APPLE’s CORPORATE CULTRE The organizational culture of Apple Inc is crucial to the company's ongoing success The organizational or corporate culture of the consumer electronics company establishes and upholds the employees' shared values, beliefs, and business-related actions The transformation of Apple from a computer firm to a consumer electronics company is unique and challenging to imitate Although many people may only guess as to why Apple was so successful, they frequently give credit to Steve Jobs' exceptional leadership skills, Apple's highly skilled workforce, and its strong corporate culture An innovative organizational culture exists at Apple Inc The company's cultural traits are centered on sustaining a high level of innovation that involves employees' creativity and a mindset that challenges norms and standards, such as in the field of consumer electronics design When it comes to aggressive and quick technological innovation and product development, the firm depends on cultural support and coherence, which determine competitiveness and industry leadership The following describe Apple's business culture most prominently: Top-notch excellence Creativity Innovation Secrecy Moderate combativeness Top-notch excellence: The organizational culture at Apple includes a human resources policy that only allows for the hiring of the very best job candidates Employees who failed to live up to Steve Jobs' demands were frequently let go Tim Cook has maintained this custom Such a custom upholds and strengthens a corporate culture that encourages, values, and anticipates top-notch excellence from the workforce of the Document continues below Discover more from: Critical Thinking Phil160 351 documents Go to course TỔNG ÔN Critical Thinking 27 Critical Thinking 100% (14) Triết - Bùi Bích Ngọc 10 Critical Thinking 100% (10) Critical thinking-Summary-Cô Huyền 11 Critical Thinking 100% (8) BTL Cnxhkh - 15 Critical Thinking 100% (4) Câu hỏi lý thuyết pháp luật đại cương;;;;;;;;; 19 Critical Thinking 100% (4) PHƯƠNG PHÁP Nghiên CỨU Trong KINH TINH TẾ VÀ KINH 24 Doanh Critical Thinking 100% (4) technological company The Apple organization has institutionalized this cultural feature as well For instance, the business offers initiatives that honor and promote employees that excel at software design Excellence is stressed as a key component of business success, particularly in product design and development, which is a significant growth strategy described in Apple Inc.'s generic competitive strategy and intensive growth strategies Creativity: This cultural trait relates to coming up with fresh concepts that advance the technological industry and its goods The management at Apple values creativity in terms of employees' knowledge, abilities, and skills This aspect of corporate culture enables the business to guarantee adequate innovation, particularly among staff members engaged in the design and development of consumer electronics products Design and features of goods like iPads, Macs, and other elements of Apple's marketing mix, or 4Ps, are evidence of this inventiveness To maximize the company's intellectual properties, such as patents for new mobile devices, originality is also culturally valued alongside creativity In this way, Apple's organizational culture supports the company's ability to meet and exceed customers' preferences and expectations Innovation: Rapid innovation is encouraged by Apple's organizational culture One of the most innovative industries in the world is generally seen as being in the technology sector Apple trains and encourages its staff to innovate in terms of their individual work performance and idea contributions for product development, design, and other procedures based on this cultural attribute Rapid innovation is made possible by the corporate culture, and this is essential to Apple's business strategy Rapid innovation makes it possible for the business to keep launching new goods that are profitable and appealing to its target market in the worldwide market for consumer electronics and Internet services Secrecy: Apple was created by Steve Jobs with a secretive organizational culture The procedures used by the MacBook manufacturer for managing and developing its human resources are still governed by this cultural trait The corporation uses secrecy as part of its strategy to reduce the theft of confidential information or intellectual property, including as the designs for upcoming iPhone models Additionally, it is a method of strategic management that enables Apple Inc to increase its competitive advantage Employees are encouraged and required to maintain business information within the technology business organization through the corporate culture The company's policies, procedures, and personnel contracts, which forbid the publication of information such as the plans for the upcoming versions of the company's consumer electronics, strengthen this cultural tendency In this regard, Apple's organizational culture aids in safeguarding the company against business espionage and the detrimental effects of personnel poaching Moderate Combativeness: Apple’s organizational culture has moderate combativeness This function is related to Steve Jobs and his aggressive style of management He was reputed to randomly test workers to see if they had what it took to work for Apple Tim Cook has been in charge of transforming the company's corporate culture to one that is less aggressive and more social Combativeness, however, continues to have a significant impact on the technology industry Apple's corporate culture has a mild level of combativeness that creates obstacles that inspire workers to improve their productivity IV APPLE’S ETHICS Apple has made an effort to guarantee that both its workers' and others' conduct is suitable at all times The company focuses its success on "developing new, excellent products and services and on exhibiting integrity in every business transaction." Honesty, respect, secrecy, and compliance are the four main principles listed by Apple as contributing to integrity Apple has created a code of business behavior that is applicable to all of its operations, including those conducted abroad, in order to more fully describe these principles Additionally, it has posted on its website more detailed corporate governance, director conflict of interest, and reporting protocol regulations Employees can also report misbehavior to Apple's Audit and Finance Committee by calling the company's Business Conduct Helpline Numerous Apple product parts are produced in nations with cheap labor prices Due to different labor rules and less direct inspection, there is a greater potential for wrongdoing Apple enforces compliance by having all of its suppliers sign the "Supplier Code of Conduct" and conducting factory audits Suppliers who refuse to adhere to Apple's guidelines may face further business restrictions from Apple Apple releases an annual report detailing its supplier expectations, audit findings, and corrective measures the business will take against factories where violations have occurred in order to stress its commitment to responsible supplier activity V ETHICAL ISSUES AT APPLE INC Although Apple has constantly come in first place as the most admired company in the world, it has recently had a number of ethical problems The future success of the company could be significantly impacted by these problems Serious wrongdoing or a failure to properly manage risks could potentially harm Apple's impeccable reputation The following factors are ethical issues associated with Apple: Product quality Privacy Sustainability Intellectual property Patents Product quality: Product quality is one matter that needs constant monitoring Because Apple's reputation depends on the quality of its products, errors might lead to difficult moral decisions Errors can become difficult to spot before a product is presented in the lightning-fast electronics business, where numerous new items are released every year After Apple released the iPhone 4, customers started to report reception issues The issues were brought on by interference with the antenna that happened when users handled the phone in a specific way Public relations professionals have criticized Apple for making it seem like the issue is not as serious as it is rather than working immediately to address it Following Consumer Reports' decision not to recommend the device, Apple offered free bumpers and cases for a limited time that fixed the reception issues Millions of customers bought the iPhone despite this product fault, but it serves as a reminder of how seriously Apple must take product quality Customers associate Apple's product quality with unbreakable standards Therefore, a blunder here might weaken the brand's reputation 10 Privacy: Apple Inc also has a lot of privacy concerns Apple and Google revealed in 2011 that several functions on the cell phones they sell capture information about the whereabouts of the phones Consumers and government representatives see this as an invasion of user privacy Users can choose to turn off these functions on their phones, according to the firms This wasn't totally accurate for Apple as some of its phones kept gathering location data even after customers turned off the feature This was caused by a bug, which Apple fixed with fresh software Both Google and Apple defend the methods they use to obtain data, but many government officials are not in agreement Apple and other electronics businesses may be significantly impacted by the government's consideration of implementing mobile privacy regulations Sustainability: Apple has made efforts to operate more sustainably, including minimizing the environmental effect of its operations The corporation does acknowledge that the majority of its emissions are caused by its goods Apple said in 2009 that its activities were responsible for the discharge of 9.6 million metric tons of gases 97 percent of its revenue came from the life cycle of its products, while just percent came from its facilities The effects of Apple's goods on the environment are a major concern because the company's prosperity depends on its ongoing development and introduction of new items Customers who trade in their old iPods can save 10% when purchasing a newer one Customers who recycle outdated Macs with remaining value may win gift vouchers Apple collaborates with nearby recyclers who abide by the relevant legislation Many consumers believe that throwing away their old items is more convenient, especially if they have little value, despite this recycling scheme As long as people keep throwing away their outdated technology, e-waste will continue to be a serious problem Additionally, Apple has made public statements on the reduction of hazardous substances in their products According to Steve Jobs, Apple 11 has removed lead-containing cathode ray tubes from its devices It uses light-emitting diodes (LEDs) instead of fluorescent lights, which not contain mercury, to build their iPods Additionally, the business has stopped using polyvinyl chloride and brominated flame retardants in its goods INTELLECTUAL PROPERTY Apple places a high priority on preventing intellectual property theft and actively pursues this issue To stop rival businesses from stealing its ideas, Apple takes seriously its obligation to protect its confidential information As a result, Apple and other computer companies have engaged in several legal battles Apple sued Franklin Computer Corporation in 1982, which had a significant influence on the rules governing intellectual property Franklin was allegedly unlawfully converting copies of the Apple II's operating system and ROM so they would function on Franklin machines, according to Apple Parts of computer programs, according to Franklin's legal team, are exempt from copyright regulations The courts first supported Franklin, but the decision was eventually reversed In the end, the courts decided that copyright law protects codes and programs Technology companies now have more comprehensive intellectual property protections thanks to this law In the end, the courts decided that copyright law protects codes and programs Technology businesses now have more comprehensive intellectual property rights because to this regulation Another noteworthy case was Apple's lawsuit against Microsoft following Apple's technology licensing to Microsoft Apple asserted that the licensing agreement only covered Windows 1.0 when Microsoft developed Windows 2.0 and that Microsoft's operating system had the "look and feel" of Apple's Macintosh graphical user interface system (GUI) The Macintosh GUI's "look and feel" was not covered by the license, according to the judges' ruling in favor of Microsoft The courts determined that despite their being similarities between the two, Windows did not infringe on copyright laws or license agreements merely by looking like Macintosh computers 12 More significant ethical problems on Apple's side were at issue in two other claims One concerned Apple's usage of the.co.uk domain Ben Cohen had previously registered the domain name in 2000, and he utilized it to send visitors to other websites In the end, Cohen utilized the domain name to send visitors to the Napster website, a site that directly competes with Apple Apple made an attempt to buy the domain name from Cohen, but when talks broke down, the corporation turned to the UK register Nominet Usually, the rights to a domain name go to whoever registers it first But the case's mediator found that Cohen exploited his registration rights and unfairly profited from Apple When Apple was granted permission to use the domain name, there were allegations that the large corporation (Apple) was being given preference over smaller businesses In 2007, Cisco Systems filed a new trademark infringement action against Apple Cisco said that Apple had violated its trademark for the iPhone Since 2000, Cisco had controlled the trademark Negotiations between Apple and Cisco to utilize the trademark had already taken place Apple, though, left the conversations Cisco claims that after doing this, the corporation established a front business called Ocean Telecom Services and applied for the iPhone trademark in the US Some parties perceived Apple's actions as a dishonest attempt to sidestep the bargaining process Both sides settled the legal dispute by agreeing to continue using the iPhone name Apple's actions in this instance are still debatable, though PATENTS It makes logical for Apple to secure its technology against theft given the large number of products it publishes each year Apple has sued numerous significant corporations as a result of its tough stance on patent protection For instance, the business sued Samsung, alleging that Samsung had imitated the designs of its iPad and iPhone for its own goods The Taiwanese smartphone maker HTC Corporation, which creates devices for Google's Android software, was also named in the complaint HTC is accused by Apple of copying a number of mobile features covered by Apple patents Although the action is against HTC, Google is also implicitly included because it is a significant client 13 Google's phones may be involved if HTC is determined to have violated a patent Whether Apple's assertions are true or false is the ethical question Is it chasing businesses that it genuinely thinks have violated its patents, or is it only attempting to discredit its rivals in order to seize control of the market? Although it may appear that Apple is being overly assertive, businesses who not set limits and safeguard their intellectual property risk having it copied by rivals, who may then exploit it to gain an advantage in the marketplace The legal system will decide if Apple's claims are true or false Finally, Apple is accused of violating patents in a more recent litigation Apple and Research in Motion are the targets of a lawsuit brought by Kodak, which claims that their products violated the company's patent on digital photography technology Kodak was countersued by Apple on the grounds that Kodak had infringed on Apple's patents Unfortunately for Apple, a judge for the US International Trade Commission dismissed Apple's claim in favor of Kodak The question of whether Apple violated Kodak's patents is still open Kodak is aiming for licensing income of $1 billion VI THE FUTURE OF APPLE 14 Apple seems upbeat about the future Customers have developed a cult following for Apple products and are fiercely devoted to the brand Apple's goods and services are created to be better than those of rivals Apple is expanding its ventures into the music industry with one of its newest products In order to introduce iCloud, a service that enables users to create and listen to their music collections without having to upload individual songs, the business has established deals with record companies Google and Amazon also provide services for storing music, but Apple has access to a greater number of tracks thanks to iTunes and record label deals By taking advantage of these chances, Apple may boost its market share in the consumer electronics and music industries Threats to Apple are not uncommon It is being sued by many rivals who allege that the business misappropriated intellectual property Furthermore, although Apple's aggressive approach has aided in the protection of its intellectual property, its tight control over its goods and trade secrets may also work against it Google, for example, uses a more open-source strategy It has demonstrated a strong commitment to the open-source movement, which encourages the release of software and software source codes to allow for greater input from outside sources Although this openness raises the possibility of intellectual property theft, it also fosters increased cooperation, which speeds up the process of invention Google's Android smartphones are starting to overtake Apple's iPhones in market dominance Eventually, Apple might have to reconsider whether its closed system is the most effective strategy for competing Apple has succeeded in the past ten years in keeping up with the rapidly changing computer and consumer electronics market When Jobs and Wozniak sold their first computer kit in 1976, their company's diversification, collaborative corporate culture, and product evangelism catapulted it to heights that were unimaginable at the time The business shows no symptoms of slowing down, and customers haven't showed any signs of losing interest in Apple VII ANSWERING CASE’S QUESTION 15 Explain how Apple’s philosophy and organizational culture have impacted how it handles ethical decisions An organization's ethical decision-making processes are influenced by organizational culture The ideals, customs, and traditions of the organization are incorporated into its organizational culture The workers at Apple are devoted and enthusiastic about what they They firmly believe in their business, and they go to tremendous efforts to spread the word about it and their products Apple as a company believes that all employees, regardless of their position or status within the company, should behave properly in all situations The business believes that every employee should act with integrity by being truthful, deferential, obedient, and keeping confidentiality This entails implementing these ideals into every aspect of their business All of the company's ethical choices are based on these beliefs By implementing methods like carbon emission reduction and recycling, the company makes sure it conforms with environmental standards All employees are provided with free transportation through the company, and their buses run on biodiesel, which is thought to be more environmentally beneficial because it emits less carbon dioxide Products with lead, mercury, or other harmful substances are not used by the company The business makes sure that recyclable materials are used in the production of its products Additionally, it exhorts customers to return things they are not using so that they can be recycled The business values treating its clients with respect The staff members make sure to provide quick client service They have many staff who handle client complaints and ensure that the requests of the customers are met Despite maintaining a closed atmosphere throughout all of its activities, the corporation is honest in all of its transactions They can secure their business by doing this and maintaining their privacy and confidentiality Why is Apple’s industry so competitive and how could this affect the ethical risk in Apple’s operations? 16 One of the most competitive industries is that of Apple The technology industry are very competitive Apple works with many different goods, all of which involve technology It occurs in a number of sectors, including, but not limited to, the computer, mobile, and music download industries The industry for mobile phones, where the firm has transformed how people use mobile technology, may have the most competition It has combined several technologies into a single product Its mobile phones look like little computers and are capable of carrying out numerous tasks People's lifestyles have evolved, and the majority of the items they use have become automated People today desire gadgets that will make their lives easier and save them time They desire cutting-edge mobile devices that will let them work and interact without boundaries Numerous businesses have discovered this and are creating products to fill this need The level of competitiveness in the sector has increased as a result Business benefits from competition In most circumstances, it lowers the cost of the goods while improving efficiency and productivity When there is fierce rivalry in a market, businesses usually use all of their efforts to maintain a sizable market share Some managers may get desperate due to intense competition, in which case they may embrace unethical business tactics In an effort to make sure that their company thrives, they can wind up doing something dubious (Ferrell at al 97) Sometimes managers set unattainable goals that they expect their staff to accomplish because they are under pressure from fierce industry competition When employees are under pressure to reach these objectives, they may resort to unethical tactics of accomplishing them In some instances, managers may exert pressure on staff to meet goals and may convey the notion that the end product is more important than the process used to get there This indicates that the workers will make every effort to achieve their goal and bring in the necessary income Businesses frequently wind up lowering their moral standards in order to remain competitive This has 17 occasionally led to them decreasing the quality of their products in order to reduce expenses Businesses take this action in order to provide consumers with low prices Antitrust laws and other rules governing competition have been enacted in many nations with the intention of safeguarding companies against disruptive rivals This is due to the fact that some companies' employment of competitive strategies results in decreased consumer welfare These laws forbid monopolies and differential pricing They make sure companies uphold ethical business practices The level of industry competitiveness may have an impact on the company's activities' ethical risks For instance, there may have been a moral dilemma with the company's iPhone due to the fierce industry competitiveness The business did not spend enough time making sure that its items were functioning properly One of the key facets of the business' operations is the production of high-quality goods The business makes sure that clients get the most out of using its products Apple Inc may have compromised its goods as a result of the fierce competition it faced from firms like Samsung Additionally, Apple has been accused of using cheap labor, which is unethical in and of itself Some of the company's goods are produced in Taiwan, where the workers endure terrible working conditions It's crucial to remember that the business has survived all these years with only a handful of scandals that have ethical implications This is due to the company's encouragement of proper behavior among its personnel under all conditions How you think Apple has handled the various ethical issues that it has faced in the past? I believe Apple has addressed the majority of the ethical complaints leveled against company well For instance, it has made sure that no harmful chemicals are used in the production of its goods Lightemitting diodes, which don't require mercury for lighting, have mostly replaced harmful materials like fluorescent lights Additionally, the corporation has set up a recycling program to recycle outmoded devices 18 in order to prevent improper disposal and to promote sustainability because newer electronic advancements make older ones obsolete quickly Because some of the materials used in older, outmoded devices can still be used, having a recycling program guarantees that they are not wasted This indicates that it has taken into account both the sustainability of advancements and innovations as well as environmental concerns that have recently been a big problem affecting many firms Consider that by implementing such a scheme, Apple has handled this ethical dilemma in an ethical manner, especially in light of the fact that they are giving customers discounts and gift cards in exchange for their working and outdated devices so they can trade them in for new and improved models Additionally, this will cost the business a lot of money, but it also shows that it is tackling ethical issues in a way that is comparable to the consequences of doing nothing about them Apple has also made sure to lessen carbon emissions by providing costfree transit rides As a result, employees won't be need to drive their cars to get to work, reducing the quantity of carbon emissions released into the atmosphere The business formerly faced allegations that its staff members in Taiwan were working in appalling and abusive conditions Some of the employees reported that they were obliged to work more than the authorized number of hours per week, which is sixty hours Additionally, some of the employees asserted that the company let children to work there (Enderle 2010) Changes to the working conditions in the impacted factories were made by the management in response to the issue Apple has also engaged in unethical practices related to product quality Considering this is one of Apples emphasis in its marketing, providing products that are not up to standard or with minor defects could send the wrong alarm to customers Customers' poor reception with the iPhone was discovered Customers complained about the issue, which was caused by interference with the antenna when handled in a specific way When Apple initially attempted to downplay the issue, it once more came under fire However, the business pushed ahead and found a 19 solution, first providing free bumpers and cases for a while until the issue was fixed Last but not least, the corporation has occasionally struggled with an ethical privacy issue after discovering, along with Google, that sold cell phones indeed gather data on the whereabouts of the cell phone (Daniels Fund Ethics Initiative 2011) Customers felt violated by this, which is exactly what happened The business fixed the issue by releasing new software, however some people continue to complain that the issue persists even after Apple stated that customers could turn it on and off The government was debated whether to enact additional regulations on the matter, which would undoubtedly have an impact on the business Apple hasn't been able to properly address ethical difficulties in this sector, which is one of the areas where it has fallen short Apple has also struggled to fully resolve intellectual property and patent issues, which have led to multiple legal disputes with rival tech firms The majority of the company's ethical problems, though, have been successfully resolved 20