Marketing Strategy of Apple Corporation

The Ethical, Social Responsibility, and Marketing Strategy of Apple Corporation Name University The Ethical, Social Responsibility, and Marketing Strategy of Apple Corporation Apple Inc. is an American-based multinational corporation that designs, manufactures, and markets consumer software and electronics, personal computers, and other communication-related services. Since it launched the iPod mp3 player in 2001, the company has experienced tremendous growth. Presently, it is reputed as one of the most successful and biggest electronics manufacturer in the world. In addition, Apple Inc. is famous for its revolutionary marketing strategies, which have helped it to compete favorably against market rivals like South Korea’s Samsung Electronics, LG, IBM, and Microsoft. Despite the company’s financial success, however, it has faced criticism over its failure to enforce its ethical values and social responsibility policies, especially over its suppliers, who are accused of violating environmental regulations and workers’ rights. This paper critically examines Apple Inc.’s success and failures with regards to the enforcement its ethical code and social responsibility policies. In addition, it analyses the company’s marketing strategies, and possible ways of further enhancing its competitive edge over rivals. Apple’s ethical and social responsibilities are grounded on the company’s code of conduct for suppliers. The principles of the code reflect the standards established by the United Nations, the International Labor Organization, and the Electronic Industry Citizenship Coalition (EICC). The code of conducts requires the company’s suppliers to create a safe working environment for their workers, avoid child labor, offer acceptable minimum wages, adopt fair hiring practices, respect workers dignity, as well as implement environmentally friendly practices (Apple Inc., 2012). To ensure the code is enforced, the company conducts regular assessment and auditing of its plants and those of its suppliers. The company states that any violation of the code’s regulations automatically leads to termination of contracts and legal action. Antidiscrimination Apple condemns all forms of worker and hiring discrimination, including on gender, racial, sexual orientation, religious, political affiliation, or nationality basis. In addition, the company’s policy advocates for equal treatment of employees for job assignments, promotion, wages, rewards, and training. With regards to gender equality, suppliers are prohibited against conducting pregnancy tests as the basis for discrimination unless it is to do with worker safety and legal requirements. Similarly, suppliers are prohibited against medical tests that could be used to discriminate against workers, unless the information is used to enhance workplace safety and create worker friendly environments. Fair Treatment The fair treatment code requires all of Apple’s suppliers to desist from workplace harassment of employees. The company is against sexual harassment, physical and mental coercion, corporal punishment, verbal abuse, among other practices that undermine a worker’s dignity and freedom. Prevention of Forced Labor, Underage Labor, and Human Trafficking All of Apple’s suppliers are prohibited from employing trafficked persons/illegal immigrants, bonded/enslaved persons, or prisoners. In addition, the company is against transporting, transferring, or accepting persons by means of coercion, blackmail, coercion, fraud, abduction, or payment of monies to persons who have control over others with the aim of exploiting them. Accordingly, all labor must be provided voluntary, and employees have the liberty to resign or terminate their employment contracts at will, provided reasonable notice is given. In addition, workers should not be forced to surrender their government-issued identification documents such as driving license, work permits, national passport, or identification cards as condition for hiring. On this note, third-party agencies that recruit employees on behalf of the suppliers should comply with the Code’s provisions and the regulations of the countries of origin of workers, as well as the host countries. With regards to underage labor, the company is strictly against child labor. It demands that the minimum age of workers be 15 years, the legal minimum legal age of the host country, or the age for successful completion of the host country’s compulsory education. Working Hours All workers employed by Apple’s suppliers should work a maximum of 60 hours a week, which includes overtime. Workers should be allowed at least one off day a week, and should work voluntarily for overtime. Under no circumstances should working hours exceed the maximum time permitted under the relevant laws of the host country and the International Labor Organization. Wages and Benefits All suppliers are required to offer the required minimum wages under the applicable regulations. Similarly, suppliers are required to pay legally justified benefits. As such, workers should be compensated for overtime hours worked at the applicable premium rates, in addition to the regular working hours. Workers salary should not be deducted as a punishment or disciplinary measure. Additionally, suppliers should provide leave periods, vacations, and holidays to their employees, in accordance with the relevant laws and regulations of the host country. Health and Safety Apple advocates for a safe working environment for workers. Accordingly, it requires its suppliers to ensure workers’ safety by implementing sound health and safety measures in all aspects of their business operations. In addition, suppliers are required to take safeguards against occupational injury, exposure to harmful chemicals, as well as establishing an effective emergency response program. Integrity and Work Ethics Apple requires its suppliers and employees to observe the highest standards of ethical conduct. The company’s code of ethics promotes business integrity by prohibiting corruption, embezzlement, and extortion or giving of bribes. At the same time suppliers should observe the Foreign Corruption Practices Act (FCPA), all anti-corruption conventions, and all relevant anti-corruption laws of the host countries. Apple’s business integrity principles are summarized into honesty, respect, confidentiality, and compliance. Suppliers and workers are required to engage in honest practices, treat the company’s stakeholders with respect, including employees, suppliers, and customers. The company also advocates for the protection of confidential information belonging to its suppliers, workers, and customers. Social Responsibility Apple’s social responsibility is geared toward environmental safety and conservation and community development. Apple Inc. promotes environmental safety by requiring and encouraging its suppliers to reduce environmental impact of their operations by adopting environmental friendly designs, waste emission and manufacturing processes. For instance, the company requires its suppliers to comply with its most recent edition of its Regulated Substances Specification, 069-0135, which prohibit the use of specifi...