Corporate Social Responsibility 1 Apple and Its Suppliers: Corporate Social Responsibility Students Name: Instructor’s Name: Course Name: Institution of Affiliation: Due Date:
Corporate Social Responsibility 2 Case Study: Apple and Its Suppliers: Corporate Social Responsibility Question 1 Apple's manufacturing and assembly of its products have 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 the questioning of the labor rights violation at its plants at Foxconn and Pegatron, located in mainland China. Apple officials must consider key stakeholders when prioritizing and devising their corporate social responsibility strategies. In the case of Foxconn and 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. Some of the advantages of maintaining a healthy buyer-supplier relationship include; less purchasing time and effort required to establish a price, can react quickly to changing market conditions and lower procurement process (Ankit., 2015). Disadvantages of creating an unhealthy buyer-supplier relationship includes; expediting and monitoring incoming quality, provision of minimum service by suppliers, the supplier not motivated to invest time and energy for development of buyer's products and less effective performance by suppliers (Ankit., 2015) Apple has institutional differences in China and United State. The way Apple is managed in China is a bit different compared to United Stated. In United States Apple’s managers are less authoritative and they use mostly participative leadership style where employees are given
Corporate Social Responsibility 3 certain level of freedom, but in China, Apple manager’s use authoritative leadership style where employees are not given opportunities to present their suggestion. Employees are forced to work extra hours, sometime even without a pay. In United States, Apple managers make decision based on the agreement with employees and they cannot force employees to work extra hours. Apple is indirectly responsible for the labor rights violations at Foxconn and Pegatron through the bullying of the 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 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
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- Fall '19
- Corporate social responsibility, Harvard Business School Publishing