Corporate Social Responsibility

Introduction of Apple Company

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Corporate social responsibility- Apple

Introduction of Apple company and justification to select this company

Apple is a multinational IT company of America which deals in electronic appliances, personal computers, software and online services. Apple is famous for designing, making and selling best smart phones and other electronic gadget such as iPhone, iPod, iPad, desktop computers, Mac notebooks and Apple smart watch. They also provides online services such as App store, iTunes and iCloud (Vogel, 2007). With this, They also deals in operating system such as iOS 8 and OSX.

In 1976, it was established by Steve Jobs, Ronald Wayne and Steve Wozniak to design and sell their personal computers of higher quality. That time, it was known as Apple Computer Inc. which was further renamed as Apple Inc.

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Now days, according to revenue, Apple is the second highest leading and growing company in the market of smart phone after Samsung. But according to technology and assets, it is the world's largest company in smart phone. Apple is famous for their brand loyalty which helps them to generate more revenue and profitability (Friedman, 2007). The annual revenue of Apple in 2014 according to worldwide is US $ 182 billion.

In this essay, Apple company has been selected because it is focused on corporate social responsibility of their stakeholder in order to fulfill their planned objectives. The main objectives of Apple Company is to expand their sales of smart phone by attracting new customer along with increase their brand loyalty and customer satisfaction (Objectives of Apple, 2015). They also focus on increasing their goodwill and positive image towards people.

For effectively achievements of these objectives, Apple is focused on satisfy their customers, investors, shareholders, suppliers and employees by fulfilling their need and expectation. In this manner, Apple is also incorporated corporate social responsibilities (CSR) in their plans and policies for effectively satisfy their stakeholders. Corporate social responsibility influences company to involve the safety and security of environment and society in their business strategy. With this, it assists organization to make effective plans for social and environmental welfare (Council and Toze, 2012).

This CSR includes the factors such as managing risk, protecting brand equity, increasing reputation, legal license, effectively utilization of resources and following government rules. With this, it also includes to maintain relations with investors, business partners, host communities and employees. Further, it also assists to take new opportunities and adopts innovation technology (Welford and Frost, 2006). This corporate social responsibility helps Apple company to enhance their reputation toward customers and stakeholders which is beneficial for their long term growth.

From the last ten years, Apple has developed as one of the unique brand in the world. It is famous for their innovative design, technology and unique product. But with this popularity, it is also difficult for Apple company to maintain CSR in their organization. In this manner, they are also facing issues in fulfilling their responsibility toward CSR. This issues are related to human and labor rights in maintaining relationship with their suppliers. There is lack of engagement of stakeholders in strategy development which put their impact on the relationship of Apple with their suppliers (Cadbury, 2006). With this, Apple does not adopt the concept of triple bottom line thinking. This concept of triple bottom line helps companies to understand about the issues of environment and social along with maximize profitability. Further, there is also lack of team and leadership in setting CSR strategy in systematic manner. With this, Apple dose not focus on the concept of sustainability which can be achieved by using holistic approach instead of dated approach. There is also lack of information which provided by Apple to its customers. It does not enclose suppliers name, sustainability report and supply chain.

Main stakeholders of Apple company and their impact on making CSR strategy

Stakeholders are the person who direly and indirectly connected with the activities of company. Stakeholders put their impact on managing business strategy of company. Here, Apple is one of leading technology company which deals in various products such as smart phones, operating system and online serves. So, there are various stakeholders of Apple company which including lenders, employees, customers, software developers, suppliers, managers, music industry etc. These stakeholders put their impact on company's strategy related to corporate social responsibility (Friedman, 2007). This impact of stakeholders in the respect of Apple company are as follows:

Employees: Human resources of company gives their contribution in the development and growth of company. In the return, Apple needs to satisfy the need and expectation of their employees. The CSR responsibility of Apple towards employees is related to minimum working hour, better salary, effective incentives, bonus, better work environmental and promotion (). With this, it is also related to provide medical facilities, retirement benefit, avoiding discrimination and maintaining relationship (Council and Toze, 2012). There are 75000 employees working world wide in Apple company who need proper satisfaction and effective relationship. These need of employees can be fulfilled by focusing on CSR strategy which also gives benefit of reducing employee turn over ratio and conflicts.

Software developer: In Apple Company, software developer is the main stakeholder who develops and designs various smart phones and other gadgets. Company should provide proper training to its software developer in order to make software which should be beneficial for company, society and environment. With this, there are so many competitors of Smart phones in market which always try to influence and hire the software developers of Apple. So it is essential for Apple to focus on CSR responsibility of its software developer to maximize their loyalty and satisfaction (Vogel, 2007).

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Suppliers: Apple needs products of high quality to make their smart phones and other electronic appliances. For that, they needs to maintain better relationship with their suppliers. In the case of apple, labor and human rights are the major issues which are facing by Apple company to maintain their relation with suppliers (Perrini and Tencati, 2008). For that, they needs to adopt the concept of CSR for maintaining better relation with their suppliers. In this manner, they can involve suppliers in their business by providing them market share of Apple. This partnership assists suppliers to provide high quality of raw material and machinery along with maintaining strong relationship.

Customers: Apple company is focused on the loyalty of customers in order to expand their sales effectively. The Corporate social responsibility of Apple toward customers is to provide high quality of product along with right information about their product and services. This responsibility influences company to avoid fake advertisement which decrease the goodwill of company (Dubielzig and Schaltegger, 2005). The prices of Apple smart phone is very high according to their competitors. So that, they also needs to provide equal product and services according to their high prices. With this, high prices smart phones of Apple is only affordable by royal class customers. So, management of Apple should also design the phones which is affordable for middle class customers too.

Lenders: A lender is a public or private institution which provides fund to operate business and company. The responsibility of Apple company related to lender is legally return of their fund and money with interest and profit. In the case of Apple company, lender charges high interest to provide loan on the basis of their leading condition in market. For this, there is necessary for Apple company to maintain strong relationship with their lenders which helps them to get loan in minimum interest for future plan and project (Kotler and Lee, 2005).

Manager: The manager of Apple company manage the activities at the workplace such as training, recruitment, selection, leadership, motivation and learning. Moreover, manager of Apple manages human resources at workplace. So it is necessary for management of Apple company to maintain relationship with their manager. In Apple company, they doesn't involve managers in decision making process which is the main cause of performance deficiency and decreasing satisfaction. So, they should involve them in decision making process along with providing them the power of leading, guiding and motivating employees effectively (Carmel and Agarwal, 2006).

Music industry: Music industry helps Apple in maintaining their software such as iTunes and iCloud. To get better services from music industry, apple needs to provide them better benefits according to their services. With this, Apple is also responsible for maintaining good relations with music industry to reduce the affect of competitors related to influence them (Lee and Kim, 2009).

There are different types of rules and regulation developed by government of different countries which influences Apple company to change their plans and policies. With this, government rules also put their impact on Apple's strategy for fulfilling the responsibility of CSR. This corporate social responsibilities are differ from country to country (Vogel, 2007). These differences in CSR of Apple according to different country are as follows:

United kingdom: Government of UK mostly focus on technology innovation, employee engagement, shareholder benefit, employment, training and development. So, the responsibility of Apple company in UK is related to provide better opportunity to their employees along with provide training and development programs. Wth this, Apple needs to provide proper profit to their shareholders along with right information. Here, it is necessary to adopt innovative technology by considering the safety of environment, society and human resources (Friedman, 2007).

India: Indian government is focused on education, employment, environment and woman's empowerment. CSR responsibility of Apple in India is related to promoting education, sustainable environment, equality of gender, woman's empowerment, safety of human resources and society welfare. In India, the bargaining power of buyer is very high, so that, there is need to set the prices of smart phones in reasonable and competitive manner (Council and Toze, 2012).

United states: Government of US includes the rules of corporate social responsibility in their laws of country. This rules are related to human rights, economic development, economic security, growth of local citizen, environment protection, anti-corruption and supply chain management. This rules should be followed by Apple company to get success in US market (Juščius and Snieška, 2015).

China: In China, CSR includes the responsibility related to effective price, education, heath care, environment safety, charitable organization, forest safety, heritage protection and anti-corruption. In China, there are so many companies of smart phones which provides more services in low cost to their customers. So, Apple needs to establish unique and effective strategies to launch their product in the market of China (Atiyas and Doğan, 2007).

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Assessment of CSR strategy adopted by Apple

Apple is one of the company which is focused on environmental campaign of its product and services. It includes the strategy of CSR in their core mission. It is one of the goal of Apple company to make its sustainability more effective and better (Council and Toze, 2012). For this, they are focusing to adopt innovative technology to ensure the safety of environment and society. Further, the new operating system OS X launched by Apple helps in saving more energy. From 2009 to 2015, the energy used by Apple products has decreased by 57%.

Further, Apple avoid the use of harmful metals such as lead, PVC, mercury and phthalates in producing their products. Apple includes the process of measuring the availability of carbon and methane to ensure the safety of human resources and environment. They use solar, wind and water sources to consume energy in their production process that saves electricity. Saving of electricity is beneficial for economic development (Vogel, 2007). They also use irrigation system which helps in identifying soil moisture and climate change. The employees of Apple uses the sources to reach at workplace are bio fuel buses, bicycles, carpools and foot. In Apple, there are 80% campus is surrounded by plants and fruit trees. They use renewable resources to consume energy in their offices and stores (Atiyas and Doğan, 2007).

Further, apple is focused to set the salary and working hours of employees in such a manner which is according to industry standard. With this, they provides family environment to their employees along with maintains relationship with them effectively (Jamali and Mirshak, 2007). The main strength of company is to provide high quality of product and services to the world according to expectation. This expectation is fulfilled by adopting new technology and strategies. In the respect of employees, they are focusing to provide training to improve their knowledge, skills and education. This programs helps company to minimize turn over ratio of employees along with increase their loyalty.

Furthermore, there are also some responsibilities which should be focused by Apple company in their CSR strategy. The main objectives of Apple is to provide high quality services, but there is also need of setting effective prices along with quality. Because the prices of their smart phone is very high as compare to their competitiors. For this, they needs to understand the need and demand of customers by taking feedback and surveys (Nolan and McFarlan, 2005). Further, there is also need of adopting the system of CRM which is beneficial for maintaining relationship with customers. Apple adopt the concept of centralization in which they does not involve stakeholders in their decision making process which reduce the satisfaction of stakeholders. For that, they needs to take suggestions from their stakeholders. With this, there is also the issues of human rights in maintaining relationship with their suppliers. For that, they needs to concern with their suppliers to overcome this issue. For Apple Company, there is a need of adopting tipple bottom line to make their CSR strategy more efficient.

Recommendation for future changes and development in Apple

According to the concept of Kotler and Lee, it is a major responsibility of every company to consider CSR at the time of making their business strategies. CSR enhances the goodwill of company along with helps in establish their brand in the world (Council and Toze, 2012). The concept of Kotler and Lee helps Apple company to understand the importance of CSR which is beneficial for fulfilling their mission and objectives. By considering the framework of Kotler and Lee, Apple will get knowledge regarding how to change their CSR strategy for their future development.

In today's competitive world, delivering high performance, increasing sales and profitability are not sufficient for a company. With this, there is also a need of ensuring the safety and welfare of society and environment. According to a research, including CSR strategy is the main majority of most of stakeholders (Friedman, 2007). This strategy of CSR is differs for each stakeholders.

In the case of Apple, they needs to provide effective training, development, education, leadership and motivation to their employees along with better salary and incentives according to their performance (Jamali and Mirshak, 2007). It is also a responsibility of Apple to reduce the chance of conflict at workplace along with the impact of discrimination, different culture and diversity. The organizational structure should be in such a manner which provides proper satisfaction to employees. For this, Apple should try to make some changes in their company policies.

Further, they needs to provide correct information through annual reports and advertisement to their investors and shareholder (Nolan and McFarlan, 2005). Here, the distribution of profit should be in effective manner to satisfy shareholders. For Customers, there is a need of changing their technology for providing new and better services. This technology adopted by Apple should be environment friendly and energy saver. Apple is also responsible for designing new jobs in order to provide employment which gives their benefits to society.

Further, they are also responsible to consider the safety of environment. For that, they needs to avoid the use of harmful chemicals and metals along with they can focus on recycling of their wastage. In this manner, they can consult with government to improve their policies related to environment and society (Zerk, 2006). They can contribute to social welfare by investing in charitable organization, educational institution and heath care organization which enhance their positive image towards customers.

With this, they needs to use such type of machinery and methods which helps in reducing air, water and noise pollution. Further, they can also contribute society by organizing the camp such as blood donation, vaccination and regular check-up.

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Self assessment of this essay

This essay helps me to understand the concept of CSR which is a major aspect that should be adopted by every multinational organization to enhance their goodwill. By considering the case of Apple, this essay helps me to increase my knowledge about the operations performed by Apple company by including corporate social responsibility. This essay has increased my knowledge about advantage and disadvantages of CSR. This advantage are related to increase profitability, revenue, goodwill, employee loyalty, customer satisfaction and reputation of company (Advantages of CSR, 2015). CSR also maintain relation with customers, employees and suppliers along with managing risk. By preparing this essay, I have become capable in planning production process which is environment friendly. This environment friendly production use the source of bio fuel, water, air and wind to generate and consume energy which saves electricity. Further, this essay influence me to use the resources such as bicycle, foot and bio fuel buses to ensure the safety of environment.

Furthermore, this assignment assists me to understand the disadvantages of CSR which is related to increase cost and competitive disadvantages. This essay also helps me to understand the strategies and policies adopted by Apple company related to their corporate social responsibility. It also assists me to identify the actions performed by Apple Company such as avoiding harmful metals, planting trees in campus and using renewable resources for electricity. It has increased my knowledge about the Apple company in the respect of their vision, mission, objectives, CSR strategy, issues related to CSR and actions for future development (Council and Toze, 2012).

This essay has also increased my knowledge about the factors which should be consider by Apple comapny in their business strategy which is related to government rules, environment safety, social welfare, anti-corruption, anti-discrimination, employment and education. Further, there is also necessary to adopt the concept such as leadership, motivation, performance appraisal, increment and promotion (Zerk, 2006). Further, this essay helps me to identify the answers of following questions such as who is responsible for making CSR strategy, why it is necessary for company and what should be added in CSR strategy and which are the fields where it is necessary to establish CSR strategies? With this, this essay assists me to increase my knowledge about the company which deals in smart phones, operating system and online services. This online services are related to application store and downloading software.


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