Case Study 1: Apple Labour Practices Apple is a highly successful US company makes billions of dollars profit every year. Like other electronic companies, Apple does not manufacture most its goods domestically. Most of the component sourcing and factory production is done overseas in conditions that critics have argued are dangerous to workers and harmful to the environment. For example, tin is a major component in Apple’s products and much of it is sourced in Indonesia. Although there are mines that source tin ethically, there are also many that do not. One study found workers—many of them children—working in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury workers alive. About 70% of the tin used in electronic devices such as smartphones and tablets comes from these more dangerous, small-scale mines. An investigation by the BBC revealed how difficult these working conditions can be. In interviews with miners, a 12-yearold working at the bottom of a 70-foot cliff of sand said: “I worry about landslides. The earth slipping from up there to the bottom. It could happen.” Apple defends its practices by saying it only has so much control over monitoring and regulating its component sources. The company justifies its sourcing practices by saying that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men. In a statement to the BBC, Apple said “the simplest course of action would be for Apple to refuse any tin from Indonesian mines. That would be easy for us to do and would certainly save us from any criticism. But it is not a good solution, since it would do nothing to improve the situation. We have chosen to continue business with these suppliers but also bring positive change as much as possible.” In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers and labor practices. A recent investigation has shown some improvements to suppliers’ working conditions. Questions: 1. What are the ethical problems and ethical dilemmas that you identify in this case? Explain in your own words. 2. What are your suggestions to improve the situation?

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
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Case Study 1: Apple Labour Practices Apple is a highly successful US company makes billions of dollars profit every year. Like other electronic companies, Apple does not manufacture most its goods domestically. Most of the component sourcing and factory production is done overseas in conditions that critics have argued are dangerous to workers and harmful to the environment. For example, tin is a major component in Apple’s products and much of it is sourced in Indonesia. Although there are mines that source tin ethically, there are also many that do not. One study found workers—many of them children—working in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury workers alive. About 70% of the tin used in electronic devices such as smartphones and tablets comes from these more dangerous, small-scale mines. An investigation by the BBC revealed how difficult these working conditions can be. In interviews with miners, a 12-yearold working at the bottom of a 70-foot cliff of sand said: “I worry about landslides. The earth slipping from up there to the bottom. It could happen.” Apple defends its practices by saying it only has so much control over monitoring and regulating its component sources. The company justifies its sourcing practices by saying that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men. In a statement to the BBC, Apple said “the simplest course of action would be for Apple to refuse any tin from Indonesian mines. That would be easy for us to do and would certainly save us from any criticism. But it is not a good solution, since it would do nothing to improve the situation. We have chosen to continue business with these suppliers but also bring positive change as much as possible.” In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers and labor practices. A recent investigation has shown some improvements to suppliers’ working conditions. Questions: 1. What are the ethical problems and ethical dilemmas that you identify in this case? Explain in your own words. 2. What are your suggestions to improve the situation?
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