Ethical Dilemmas in Apple's Low-Cost Countries-Dependent Supply Chain
self-selected study on a well-publicised supply chain problem. 2500 words.
Select a supply chain problem faced by a specific company that has been well publicised. Identify and critically evaluate the key supply chain issue(s) relating to this problem.
The purpose of this assignment is to encourage students to link what has been covered in class to real life, practical examples. Students are expected to identify a real current or past supply chain problem faced by a specific company. It is important that students can access information on this issue. For example, newspaper articles are usually a good source to use for information on the problem itself.
Examples of supply chain problems:
-Running out of toilet roll and other things (handwash/sanitiser/pasta/ etc.) during pandemic crisis
- Supply chain shortages affecting retailers as a result of Brexit.
-Problems matching supply and demand (e.g. KFC running out of chicken/Lego having too many bricks)
-Problems associated with monitoring complex global supply chains (e.g. child labour concerns faced by companies such as Nike, Gap and Primark)
- Problems monitoring quality/safety along supply chains (e.g. product defects/recalls (horsemeat scandal)
There are a lot of potential examples that might be used for this assignment. If you are struggling to identify a relevant problem, you can use one of the examples provided above or one of the many examples discussed in lectures. The examples above highlight issues that have affected supply chains in recent years. You will need to choose a specific company to focus on and not just discuss the broader 'industry-level' issue. The additional seminar session in week 9 will be used to provide formative feedback on assignment preparation and students will have the chance to ask questions to help them identify an appropriate problem to analyse. I will not be able to provide individual students with guidance on whether their problem/topic is ok. There are too many of you for me to be able to do this for everyone, so I won't be able to do it for anyone as that would be unfair if a couple of students ask and receive additional guidance. Extensive written guidance is given here and in the linked docs and there will be opportunity to ask Qs in the discussion forum, seminar or lecture sessions. Some of the interactive class activities are designed to help students identify a relevant problem and topic. I have also put together a Q+A document based on common Qs asked about this assignment and the discussion forum will display further Qs that get asked in the run up to submission.
Guidance
See below for a suggested structure and guidelines on how the word count should be used. The main thing to note is that the emphasis should be on the theory/topics identified as relevant and these should be discussed at length as opposed to merely describing the problem.
-Define the problem (roughly 250 - 300 words) - background information on the problem (e.g. what is the problem? What company was affected? What have the implications been? Where in the supply chain did it occur?). Non-academic sources such as newspaper articles and online articles would provide the majority of information on the problem itself.
-What supply chain issues are highlighted in this problem? (around 1800-2000 words)- consider in depth 1 or 2 supply chain topics that relate to the problem. Academic journal articles should inform most of the discussion on the key topics.
For example, if you are looking at the problem of Nike being exposed for using child labour, the main supply chain topic to consider is Social Responsibility in supply chains. In this section you would discuss this topic in detail (e.g. what it is, why it has become important, the responsibility of companies, what happens when things go wrong). Thus, you are essentially using the ‘problem’ as a platform to discuss the supply chain area that it relates to.
-Conclusions and recommendations (250 -300 words)- Has the problem been sufficiently rectified? How? Can steps be taken to prevent any future problems of a similar nature?
Feedback/Feedforward
Feedback can be provided in a range of different ways throughout a module. It is not just the written feedback you receive when you get a mark, but formative feedback is provided at lots of different stages e.g. answering questions in class or via the discussion forum, informal discussions in lectures. Basically, any time you receive information that helps you to develop your understanding of module content and move forward in completing your assessments, you have received feedback that should feedforward into your assessed (summative) work. The seminar in week 9 is provided to provide an opportunity for students to receive formative feedback for assignment 2. Please attend this with a good idea of the problem you want to analyse and topic (s) you wish to link it to.
Word Limit
Please pay careful attention to the word limit. The word limit for assignment 2 is 2500 words. Clarity and succinctness in your discussion is encouraged. References and quotations are included in the word limit but bibliography is not Please note that any appendices containing additional material beyond the word limit will not be considered. Be wary of using too many direct quotes. One or two is ok but each quote uses up the word limit and takes away from your own contribution in the essay. A maximum allowance of 50 words above or below the word count is permissible.
ETHICAL DILEMMAS IN APPLE’S LOW-COST COUNTRIES-DEPENDENT SUPPLY CHAIN
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INTRODUCTION
Apple is confronted with a formidable quandary concerning its supply chain due to its pronounced dependence on China. The preponderance of Apple's flagship merchandise, encompassing iPhones, Macs, and AirPods, originates in China, thereby rendering the corporation susceptible to an array of vulnerabilities, notably geopolitical tumult and trade discord. China's labour practices, marked by allegations of sweatshops, coerced labour, protracted working hours, and substandard working conditions, have attracted pervasive censure, thus precipitating ethical quandaries (Banker, 2023; Saunders, 2021; Sonnemaker, 2020; BBC News, 2020).
The intricacy characterising Apple's supply chain architecture exacerbates the conundrum. The corporation wields stringent oversight over its manufacturing affiliates, frequently imposing stipulations and procuring production equipment (Banker, 2023; Clark, 2021).
As a preeminent corporate entity on the global stage, Apple bears an onerous ethical mantle. Stakeholders and consumers hold a vested expectation that the corporation shall adhere unwaveringly to elevated ethical benchmarks across its supply chain, attending to imperatives such as equitable labour practices and human rights. Legislative enactments, typified by the Uyghur Forced Labor Prevention Act, have intensified scrutiny of Apple and its ilk, heightening the imperative to scrutinise and, potentially, relocate facets of their supply chains (Banker, 2023).
SUPPLY CHAIN ISSUES IN APPLE SWEATSHOPS
CORPORATE SOCIAL RESPONSIBILITY (CSR)
The main issue in Apple Sweatshops include CSR in supply chain management. CSR is an elective commitment undertaken by corporations to operate with ethical and societal responsibility, transcending the pursuit of profits to consider their impact on society and the environment. It encompasses principles of ethical business conduct, environmental sustainability, community engagement, equitable labour practices, responsible management of supply chains, philanthropic endeavours, and transparent disclosure. CSR also involves active stakeholder engagement and the adoption of a long-term perspective in corporate decision-making to ensure alignment with societal expectations and the promotion of positive contributions to communities and the planet (Lindgreen and Swaen, 2010). Companies embracing CSR aspire to strike a harmonious equilibrium between financial prosperity and their broader obligations, fostering a more sustainable and socially responsible world (Tekin, Ertürk, and Tozan, 2015).
Ballinger's analysis in 2012 illustrates that the exposure of "sweatshop" scandals and worker exploitation issues in the late 1990s and early 2000s led to heightened media attention directed towards CSR. His research found that a tiny fraction of corporate CSR press releases, less than one percent, addressed workers' rights issues, while the overwhelming majority predominantly focused on environmental concerns (Mogensen, 2018).
Apple has come under scrutiny for its association with manufacturers like Foxconn, where reports of inadequate wages (some at 16 hours a day and 70 cents an hour in 2012), harsh working environments, and violations of labour rights have surfaced. These issues are partially attributed to the pressure exerted by Apple, particularly during product launches, which can lead to disregarding legal labour rights and mistreating workers (Bukhari, 2021; Blodget, 2012).
In 2006, these conditions began to be exposed to the public, and the disconcerting patterns have still existed up to the present. The company provided efforts to mitigate such issues, but these are ineffective because there is a continuing increase in the demand for Apple products, forcing an increase in supply. Thus, these conditions make labourer's welfare worse. In the same year, Apple, the tech titan, launched