Case Study Apple .docx - Case Study 11 September 2019 Apple and Its Suppliers Corporate Social Responsibility By Sun Hye Lee Kamel Mellahi and Michael J

Case Study Apple .docx - Case Study 11 September 2019 Apple...

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Case Study 11 September 2019 Apple and Its Suppliers: Corporate Social Responsibility By : Sun Hye Lee, Kamel Mellahi and Michael J Mol Source : Lee, Sun Hye, Kamel Mellahi, and Michael Mol. "Apple and Its Suppliers: Corporate Social Responsibility." Harvard Business Publishing . N.p., 22 Mar. 2016. Web. 06 Sept. 2019. 1. Identify the multiple levels of analysis at play for Apple as it addresses the corporate social responsibility challenges in its supply chain Stakeholders and their objectives, particularly in terms of CSR Maintaining a good Buyer - Supplier relationship Challenge of different cultural, legal, political, social, and economic environments Apple’s manufacturing and assembly of their products has led to Apple needing to work with international suppliers. Working with international suppliers comes with the challenge of different cultural, legal, political, social, and economic environments. Apple’s complex international supply chain has landed Apple in the CSR hot spot. Apple has been in questioning of the labor rights violation at their plants in Foxconn and in Pegatron located in mainland China. Apple officials must consider key stakeholders such as: Customers/Consumers, Apple’s Employees, Investors, Employees of Suppliers and Distributor when prioritizes and devising their corporate social responsibility strategies. In the case of Foxconn and in Pegatron Apple stakeholders differ in their analysis of how much attention should be paid to these labor rights violations and what would be an appropriate level of resolutions. Another challenge faced by Apple in this article is maintaining the buyer-supplier relationship. Advantages in maintaining a healthy buyer-supplier relationship can be “less purchasing time and effort required to establish price, can react quickly to changing market conditions, lower procurement personal required” (Ankit 1). Disadvantages in an unhealthy buyer-supplier relationship is “expediting and monitoring incoming quality, provision of minimum service by suppliers, supplier not motivated to invest time and energy for development of buyer’s products, less effective performance by suppliers” (Ankit 1). 2. Is Apple responsible for the alleged human rights violations that occurred? Apple is indirectly responsible for the labor rights violations at Foxconn and Pegatron through bullying of supply chain. The article provides Apple’s net sales and income from 2008-2014 and though this data is evident that Apple is a highly profitable company. In other words, companies would want to conduct business with Apple due to their highly demanded products which would bring in continuous work and higher revenue for Apple’s supply chain companies. With
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competition between companies for Apple’s business, these companies attempt to provide Apple with pricing offers that are better than their competitors. Any business aimed to generate wealth would want to aim for lower cost; therefore, Apple provides their business over to the ‘cheapest’ offering companies. What happens next? Apple’s suppliers have to now provide the promised
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