performance. For example, Apple is now one of the most profitable companies in the world. The firm maintains high profit margins. Apple also has a strong financial position, which involves high liquidity through large amounts of cash. The company has also managed to avoid debt. Based on these corporate social responsibility conditions, Apple effectively satisfies the interests of investors as stakeholders. Employees of Suppliers and Distributors. Workers in Apple’s supply chain are also significant considerations in the company’s corporate social responsibility efforts. These workers are indirect stakeholders in Apple’s business but determine the firm’s corporate social responsibilities. The main interest of this stakeholder group is like the interests of Apple’s own employees, such as proper compensation and job security. Also, this stakeholder group is interested in ethical employment practices. To address these interests, Apple has a Supplier Code of Conduct. The company monitors and imposes requirements on the employment practices of firms in its supply chain. Part of Apple’s policy is to terminate business relations with suppliers that continue to fail or refuse to satisfy this Code of Conduct. Apple’s 2014 assessment of suppliers shows that 92% of suppliers now comply with the 60-hour workweek rule. Thus, to a certain high degree, Apple’s corporate social responsibility efforts satisfy the interests of the stakeholder group of suppliers’ workers  .
For Foxconn, they need also deal with customers, employees and investors, such as meeting higher working standards, which included paying higher wages, reducing working hours, investing in safety programs, and providing training, while also accepting lower and lower prices from Apple. G1: Is Apple responsible for the alleged human rights violations that occurred? Tier-1 suppliers? Tier- 2 suppliers? Even further upstream? Bring in some other examples and compare and contrast the different issues with the different organizations. Apple should be responsible for the alleged human rights violations that occurred. As Brad Reed said, “Apple makes insane profit margins on its iPhones and it can certainly afford to commit more resources for ensuring that people who manufacture them aren’t forced to work 18 days in a row.” Apple’s gross margin is around 38 percent while its supplier, Foxconn is about 1.7 percent, some suppliers’ margins are even less than 1 percent. In order to avoid bankruptcy and make profits, it seems that suppliers breached costly regulations in the area of labor rights is the most useful way, because supplier cannot cut costs by reducing the product quality, innovation on production process needs to input a lot of funds which may incur more costs. For the Tier-2 suppliers, the Tier-1 suppliers’ revenue from Apple company is tiny, it may cut purchasing cost to increase profits, so it means tougher challenges to Tier-2 supplies. Actually, Apple violated the triple bottom line, it
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- Summer '16
- Corporate social responsibility