APPLE CASE STUDY

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Southern New Hampshire University *

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220

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Business

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Apr 3, 2024

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Carla Rangel December 2 nd , 2023 INT-220 Global Supply Chain Case Study This case revolves around apple and come of its supplies including Foxconn, and Pegatron, and the biggest key issue in this case is the ethical violations related to poor employee treatment and poor working conditions at both Foxconn, and Pegatron. According to the article, “18 Foxconn workers attempted to kill themselves, and 14 died at the manufacturing company’s facilities…” (Lee, Mol, Mellahie, 2016), while for Pegatron, several of their factories, forced employees to work in a dangerous environment for very long hours. (Lee, Mol, Mellahi, 2016) Corporate Social Responsibility (CSR) is defined by the Harvard Business School as “the idea that a business has a responsibility to the society that exists around it” (2023). A company has full responsibility on how they treat their workers. Part of Corporate Social Responsibility includes providing a good work environment for employees to work at. The media and public opinion played a significant role in the apple’s case, as it helped bring the issues to light, leaving the company (Apple) with no option but to come out and address the issues to the public. After the first time that the bad treatment towards employees at Foxconn was exposed, “one of Apple’s responses were to move some of its businesses away from Foxconn to Pegatron.” (Lee, Mol, Mellahi, 2016) which was a good decision to the eyes of the public as it stopped the scandal from appearing on the news and it helped improve Foxconn treatment towards their employees.
Even though the ethical violations occurred at Foxconn and Pegatron, since Apple was associated with them, they were held responsible, but Apple was not directly ruling over Foxconn, they just had a partnership, but the responsibility fell unto Apple as they are a big and popular company based in America, while Foxconn is based in China and Pegatron in Taiwan, and employee laws in America are very strict, while in countries like China and Taiwan employee laws are different. This teaches us that companies need to be careful of their partnerships as they can be held accountable for the practices of their suppliers. Some of the advantages of international labor cost effective access to talent globally, while some of the disadvantages include potential for unethical practices, (such as the one Apple went through) and quality control issues. In conclusion, we learned how important Corporate Social Responsibility is to a company. In apple’s case, such responsibility was linked to the company’s image. According to the article, Apple’s response was very good and “the effort was recognized by the Fair Labour Organization, which announced improvements in labour practices in Foxconn factories.” (Lee, Mol, Mellahi, 2016).
Citations Lee, S.H., Mol, M., & Mellahi, K. (2016). (rep). APPLE AND ITS SUPPLIERS: CORPORATE SOCIAL RESPONSIBILITY. Ivey Publishing. What is Corporate Social Responsibility? 4 types: HBS Online. Business Insights Blog. (2021, April 8). https://online.hbs.edu/blog/post/types-of-corporate-social-responsibility
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