Global Chain Case Study
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Global Chain Case Study
Key Points
Apple Inc. is one of the leaders in the communication and electronics industry. The organization has established its market position based on the ability to understand and meet consumer needs. The case study focuses on the relationship between Apple Inc. and its suppliers to enhance corporate social responsibility activities. The primary issue raised in the case relates to accusations of labor rights violations in China (Lee et al., 2016). Apple Inc. works with Foxconn, a major supplier, with the organization being accused of labor rights violations. The multinational organization needed to maintain the brand reputation and had to deal with the issues to avoid adverse effects on the corporate image (Lee et al., 2016). Additionally, Pegatron, another large Apple supplier, was also accused of labor rights violations. Working with such organizations resulted in Apple Inc. being viewed as not adopting corporate social responsibility activities to cushion communities.
Corporate Social Responsibility
Corporate social responsibility is closely related to employee treatment and will impact brand reputation and overall business operations. Amidst accusations of labor rights violations through suppliers, Apple Inc. indicated that each of those workers has the right to safe and ethical working conditions (Lee et al., 2016). The organization understood different consumer segments are continually monitoring their activities. Incidences of labor rights violations will adversely affect consumer perception, which will affect sales and overall profitability.
Public Opinion
For an organization such as Apple Inc., it is critical to maintain a positive public opinion. The media, public, and opinion influenced the situation, resulting in Apple Inc. investigating labor rights violations. The media and public can influence business operations as they are major stakeholders (Agudelo et al., 2019). For example, the public is the consumers and may have a significant impact on sales.
International Business
The labor rights violations at Foxconn and Pegatron and concerns regarding corporate social responsibility were assigned to Apple Inc. It indicates that entities such as Apple Inc. need to be concerned about supplier engagements. Additionally, it offers lessons on labor practices and supply chain management (Agudelo et al., 2019). The leading organization has to monitor other stakeholders in the supply chain to ensure they do not participate in activities that jeopardize operations and brand reputations.
Labor Practices
There are different advantages and disadvantages related to commonly used labor practices in international business. Such practices offer advantages such as allowing workers to operate in different environments. The workers are allowed to work in a diverse environment and can help organizations meet overall objectives. On the other hand, the practices result in workers in less-developed countries being subjected to exploitation. There is a need to ensure standard labor practices are adopted to protect employees.
Road Ahead
Apple Inc. ought to have considered the adoption of measures geared toward controlling the suppliers. Continuous monitoring and vetting of future suppliers will help the organization reduce the adverse effects of labor rights violations.
References
Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1-23. DOI: 10.1186/s40991-018-0039-y
Lee, S., Mol, M., & Mellahi, K. (2016). Apple and its suppliers: Corporate social responsibility. Harvard Business Publishing, https://hbsp.harvard.edu/product/W16147-PDF-ENG.