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  • Apple and Its Suppliers: CSR: Submitted To: Prof

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    Vishant Chopra
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    This document is a report submitted to a professor analyzing whether it is reasonable for Apple to apply different ethical standards to different countries in its supply chain. The report notes that Apple sources parts from various countries for assembly in China and promises high ethical standards at its assemblers like Foxconn and Pegatron. However, violations of standards like juvenile labor, excessive hours, and environmental pollution have occurred. The report argues it is not reasonable for Apple to have different standards across borders as that could lead to criticism and it is better to have consistent, legally binding standards to ensure compliance and reduce risky behavior throughout the organization. Apple should focus on implementing and enforcing its supplier code of conduct through audits and commitments to address violations.

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    This document is a report submitted to a professor analyzing whether it is reasonable for Apple to apply different ethical standards to different countries in its supply chain. The report notes that Apple sources parts from various countries for assembly in China and promises high ethical standards at its assemblers like Foxconn and Pegatron. However, violations of standards like juvenile labor, excessive hours, and environmental pollution have occurred. The report argues it is not reasonable for Apple to have different standards across borders as that could lead to criticism and it is better to have consistent, legally binding standards to ensure compliance and reduce risky behavior throughout the organization. Apple should focus on implementing and enforcing its supplier code of conduct through audits and commitments to address violations.

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    15 views2 pages

    Apple and Its Suppliers: CSR: Submitted To: Prof

    Uploaded by

    Vishant Chopra
    This document is a report submitted to a professor analyzing whether it is reasonable for Apple to apply different ethical standards to different countries in its supply chain. The report notes that Apple sources parts from various countries for assembly in China and promises high ethical standards at its assemblers like Foxconn and Pegatron. However, violations of standards like juvenile labor, excessive hours, and environmental pollution have occurred. The report argues it is not reasonable for Apple to have different standards across borders as that could lead to criticism and it is better to have consistent, legally binding standards to ensure compliance and reduce risky behavior throughout the organization. Apple should focus on implementing and enforcing its supplier code of conduct through audits and commitments to address violations.

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    of 2

    APPLE AND ITS SUPPLIERS:

    CSR

    Submitted To:
    Prof. Vijay Vancheswar

    Submitted By:
    Abhishek Sanghai– 19PGDM141
    Nishtha Seth– 19PGDM168
    Rishabh Kumar Agarwal– 19PGDM176
    Sheetal Goel– 19PGDM187
    Surbhi Jain– 19PGDM202
    Triyaksh Batra– 19PGDM205
    Vishant Chopra – 19PGDM207

    1
    Q5. Is it reasonable for Apple to apply different ethical standards to different
    countries?
    Ans:
    No, Stating the case facts:
    The statement of Apple read ‘Designed by apple in California and assembled in
    China’, where the semiconductors were procured from German and Taiwan, the
    memory and display from Korea, chipsets from Europe and these parts were
    ultimately assembled in China; this shows the complete supply chain of Apple.
    The 200 suppliers on Apple’s supply list were scattered around the world, ranging
    from Korea, Japan and Taiwan, through to Ireland and Czech Republic. Apple
    promised higher ethical standards like higher wages, reduced working hours and
    safety programs in the assembling unit sites, Foxconn (mark up 1.7%) and Pegatron
    (mark up, 0.8%), which in turn had many violations like juvenile workforce, excessive
    working hours, violation of woman’s rights and environmental pollution leading to
    deteriorating ethical standards.
    Reasons:
    Adopting different standards will create window for criticism from various
    stakeholders and media personality on avenues even when the labour laws are
    legally binding. The labour laws may differ across borders, but ethical standards on
    a principal level are and should be same. Adopting a common set of norms can be
    more advantageous to ensure compliance throughout the entire organization and
    legally binding through contracts. Moreover, the management and the workers are
    less likely to engage in risky and illegal behaviour if the company’s policies and
    procedures have explicitly forbidden them.
    Apple should concentrate on implementing its supplier code of conduct and make
    pledges to fight worker abuses, commit to the highest standards of environmental
    and social responsibility and ethical practices. They should also conduct internal
    audits to ensure their suppliers are compliant and any violations of the code could
    jeopardize their business relationships with Apple.

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