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Lessons from Apple on the Use of Ethical Values in Business Decision Making

University: Australian Institute Of Higher Education

  • Unit No: 8
  • Level: High school
  • Pages: 10 / Words 2537
  • Paper Type: Case Study
  • Course Code: BMGT3001
  • Downloads: 369
Question :

This sample will let you know about:

  • What is Business Decision-Making?
  • Where is the issue prevalent? Why is it important?
  • Brief history about the organisation
Answer :
Organization Selected : Apple

INTRODUCTION

There are different cases which occurs on daily basis. It is needed to understand that cases must be solved out by having the detail analysis about the situation so that situation can be tackled easily. The chosen case study for this respective task is between “Apple Suppliers & Labour Practising”. In respect of the file, the chosen case study is about Apple Suppliers and their Labour Practices. The main issues is related with the products which they imports from different part of the world to manufacture any of the apple products. The product which is being used is bin which is imported from the mines of Indonesia. The issues has been directly prevalent from the past activity where different age group of people are keeping their life in danger for the purpose of surviving in this world.

Background of the case

The background of the case simply explains about the Apple suppliers and Labour Practices. There are thousand of loyal customers connected with Apple Inc. just because of cult available in the organisation. Although, company has been earning huge profit since longer period of time and even it can been seen from the states that in the year 2014 they sold 74.5 millions iPhone (Vonk, 2018). The overall profit of the company was around $52 billion. Although, company was performing really well in the market but the main question which was raised is all that whether they were performing according to ethical manner or not and if not. The reason behind this issues that they doesn't manufacture goods domestically as number of components were sourcing and production was being imported from outside. As there are number of products which bring imported is harmful for workers as well as for environment too.Take online assignment help in UK from the Experienced Experts at the best price.

On of the major thing which they imports from other part of the world is 'Tin'. It is being imported from the mines of Indonesia. The facts that has been found is that there are number of children who been involved in mines which can be very dangerous for their life. The statement was given on this respective points by Apple Inc. “To reduce the effect of criticism, they can simply cancel the contract to not buy any of the tin from Indonesia (Apple Suppliers & Labor Practices,2017). But, this will not reduce any of the effect as middle man will have to suffer as they will face difficulties to get the price for the work which they are doing on regular basis and even thousand of other people are involved in buying this tins”. But, having criticism on regular basis the demand is not decreasing for Apple and they are able to earn huge amount of money.

Where is the issue prevalent? Why is it important?

The common issues which has been prevalent in this respective case is all about the child labour which is being done in the mines of Indonesia (Kleine, 2014). The issue related to child labour is common and it can be seen since longer period of time. Although, it has been not affecting their growth but still it will be important to understand that in any of the situation they must not try to involve any of the children in their work.

This is common that that number of organisation doesn't give important to child labour which is taking place in frequent occasion. The thing which is required to be understand is that it is ethical and legally wrong because in any of the situation company cannot involve children for the production or manufacturing any of the unit. Here, any of the situation says that problem will not occur upon apple as they are not the one who is dealing with those children who is involved in mining work but they could have asked some of the question with the company because directly or indirectly they have been involved in this illegal activity. Also, they have been criticised for dealing again and again with the same company for the work which has been done by the mining organisation of Indonesia. In short, it will be necessary for the organisation like Apple to have a detail conversation on this respective case because there will be one moment where they might have to suffer for this respective unethical issue (Zompras. and Siakas, 2015).

Brief history about the organisation

Apple is a multinational organisation which has been dealing in different part of the world. The headquarter of the organisation is located in Cupertino, California. The founder of Apple was Steve Jobs, Steve Wozniak and Ronald Wayne where its date of incorporation is 1st April, 1973. The current CEO of the company is Tim Cook. It is one of big four technology company including Amazon, Google & Facebook (Apple Site Map, 2019). Worried for Marketing Essay Help ? Get our experts Help Now!

The company is well known for its brand value and its size and revenue. In financial year 2018, its total revenue was around $265 billion which is far ahead from any of the technology sector organisation. Also, it is the only U.S public whose value has touched or crossed more then a $1 trillion. Although, it has a well developed brand value which is not being offer by any of the other organisation but still they have been facing different issues which has a dirtect impact on their overall performance. As, they have been facing issues regarding labour practices and even anti-competitive behaviour. It is found that they have been involved in environmental practises and unethical business practices.

Talking about the current situation, they are known for the products which they supplies within the market such as their Mobile series and their securities which they provide along with products keep the product safe and secure (Klavenes. and Wisniewska, 2016). The Mac Book which they distributed in the market is a great success for them as it helps to perform the task in best possible manner in any of the situation.

Discussion of the case

The major meaning which case is suggesting is all about the work and behaviour of Apple Inc. towards their employees. There are number of situation where company is not giving focus towards their employees and due to which they have been conducting those activities which are totally unethical and even against the law. It will be important for them to look at the situation of the case and according to that must bring changes.

After having the detail analysis on the case, it required to understand for company like Apple that they are performing at a greater platform where they are needed to set standard for accomplishing the goals. It was suggested in the case that organisation didn't mainly focused upon ethical practises and legal legislation which means their major goals to earn profit and delivery brand value to their customers. It addition, the statements which has been presents by the organisation looking completely different where they are required to work because its their responsibilities to work for the employees.

Arguments

Whenever any of this problem occurs, it requires to understand that company themselves have to interfere for finding the best solution because it directly or indirectly affect the goodwill. The above given case study suggest that the Apple Inc. never works for the benefit of their employees which is completely wrong because they are the one who helps to accomplish the goals in any of the situation (Cooke, 2018). There is the employment law which explains that in any of the circumstances company is required to follow rules and regulation while performing any of the business activity.

According to the case, Apple is responsible for ethical lapses because they must have the knowledge regarding the employees who is engaged and helping the organisation to accomplish their major targets. Although, in this respective case the issues was created from the side of mining company from where they purchases tin. But, it will be necessary for them to discuss with the head of mining company because they have been affected from children who has been involved in hazardous work.

The situation of the case says that, the problem which is being faced by Apple is just because of the unethical practises being followed by supplier. But, this doesn't means that company should stop making deal with those organisation because there are very chances for company to sustain in the market after taking those decision (Lüthje. and Butollo, 2017). Here, head member should try to find the way that how they can solve out the problem related to child labour. This problem can remove the wording related to 'bad apple' for the organisation.

Any of the customers directly or indirectly depends upon the quality of product which is being delivered by the organisation. But, they never focuses that how they are performing the market. Whenever they will focus upon this respective situation then they will get the answer that internal affairs should be consider. Even results should that Apple is the only public company in US which has a revenue of $1 trillion which is itself an example that customers do not consider any of the internal matter of the organisation. For changing the attitude of working style of any organisation, it will be necessary for customers to check ethical track record of organisation before purchasing any of the product. The technologies has been changing day by day which simply explains that organisation can only perform well if they are working by considering the ethical factor and environment (Hoque. and Rana, 2019). The problem which is mainly seen is that not only Apple but there are other organisation as well who do not consider this types of factor because their major motive is just to earn profit. But, it will be required to understand that customers themselves to bring changes in it.

According to the Child Labour Act of Australia, it simply explains children are allowed to work in some of the condition but they must be above the age of 15 years. The main thing towards which law wants to focus is that any work should not be of hazardous in nature because life is in danger in that respective circumstances. But, in case of Apple they have been not giving any of the focus in it. The case related to child labour has taken place in Adidas as well where it was discussed that they are not allow to force child labour to work for extra hours for personal benefit. In this respective case, the legal action was taken against the organisation and they had been penalised for the mistake which has been performed by them (Child labour scandal hits Adidas, 2000). In this case, heave penalty was charged against the organisation.

In the same manner, the above argument wants to explain that in any of the situation actions can be taken against the company because directly or indirectly those children in Indonesia has been performing for Apple. Even their management team knows about the treatment which is being given to the worker who is working for them but still they are not taking any of the action for the betterment of an organisation. Even in one of the investigation conducted by BBC news in China clearly shows that employees were forced to work for extra shift for the purpose of generating additional benefit. It is again the law but company denied that they not involved in any of this activities and even employees where being treated equally (Apple 'failing to protect Chinese factory workers', 2014).

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Ethical Decision Making Approaches & Theories

There are different types of ethical theories and concepts which plays the crucial role at the time of obtaining the goals of an organisation. There are altogether four different types of decision making theories and they are deontology, utilitarianism, rights, and virtues. For the purpose of finding out the solution in this respective case, Deontology ethical theory of decision making has been used (Stein. and Hartmann, 2017). It is the decision making theory which states that any of the people should adhere with their roles and responsibilities. It should be mainly focused in that those respective situation where decision making involves code of ethics. The ethical theory of deontologist simply means that any of the person will consider the law while taking any of the business decision. It will not allow to develop any of those situation which can create issues in future period of time.

The decision that Apple Inc. is not serious towards their employees has been concluded from the ethical decision making theory of Deontology because it simply tells that any of the decision should be taken by considering legal factors. The responsibilities should be based on the capabilities but company just seeks for their benefits as they doesn't give any of the focus towards their employees which is completely against the law and ethical values (Shao, 2018). After having the knowledge regarding the situation of mining area in Indonesia they could have tried something different for children so that they would not have to keep life of children in danger but they just gave the negative statement on it which is quite wrong for the one who was listening to it.

So, deontology ethical theory explained that the decision making policies and the reply which was given by the head of Apple Inc. was completely against and it has created the negative impact on society. Here, it will be necessary for such a big organisation to take some of the initiatives towards their employees because they are the one who is helping them out to accomplish the goals(Oakey, 2013).

CONCLUSION

After having the detail analysis upon prepared report, it can be concluded that any of the business organisation should understand that they must consider the ethical values while making any of the decision for business organisation. Company like Apple has been performing really well within the market but still there are some of the issues which is needed to be fix such as considering ethical values in decision making process. Also, there are number of situation where they doesn't give importance to their employees which is needed to be solved because that is one of the problem which can create bigger issues for organisation like Apple in maintaining their goodwill in the market.

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