Apple’s success is partly due to its ability to satisfy stakeholders and corporate social

responsibilities (CSR). Stakeholder groups impose demands that translate to corporate

social responsibilities, which influence firm performance. In Apple’s case, stakeholders
significantly affect the business in terms of customer perception and sales revenues.
Considering the continued high value of its brand, Apple effectively accounts for
stakeholders in its strategies and policies. For instance, the company addresses
stakeholders’ environmental concerns through a policy on sustainable material
sourcing. Apple has a firm and holistic approach in addressing the interests of
stakeholder groups significant to the business. These stakeholder groups compel
Apple to improve, and Apple affects them by satisfying their interests.

Apple’s stakeholders have varied concerns encompassing product quality and function,
business sustainability, employment practices, and financial performance. These interests
highlight the need for a holistic approach in corporate social responsibility efforts, which
Apple already uses in its aims to satisfy major stakeholder groups.

Apple’s Stakeholder Groups

Apple considers the interests and concerns of a number of key stakeholders in its
policies and programs for corporate social responsibility. Stakeholder groups impose
varying demands in different aspects of business. In Apple’s case, the following
stakeholders are the most significant:

1. Customers/Consumers
2. Apple’s Employees
3. Investors
4. Employees of Suppliers and Distributors
Customers/Consumers. Apple prioritizes customers as its top stakeholders in devising
corporate social responsibility strategies. This stakeholder group is composed of
individual and organizational buyers of Apple products. The main interest of
customers is to have effective and efficient products that are reasonably priced.
Apple products have higher price points. However, Apple’s premium pricing strategy
is acceptable because it matches the high quality and aesthetics of these products.
The company also has environmental programs for recycling and responsible sourcing
to address customers’ demands for business sustainability. Thus, Apple’s corporate
social responsibility efforts satisfy the interests of customers as the top stakeholders
of the business.
Apple’s Employees. Employees are the second-priority stakeholders in Apple’s
approach to corporate social responsibility. This stakeholder group is composed of
employees at Apple’s facilities. The main interests of these stakeholders are proper
compensation and career development. Employees as a stakeholder group are
important because they directly determine Apple’s human resource capabilities to
innovate and develop profitable products. The firm addresses the interests of its
employees through compensation packages competitive in Silicon Valley. Thus,
Apple’s corporate social responsibility efforts satisfy the concerns and interests of
employees as a major stakeholder group.
Investors. Investors are typically major stakeholders and determinants of corporate
social responsibility programs in businesses. In Apple’s case, investors are interested
in maximizing the returns on their investments. The company effectively addresses
this stakeholder group through excellent financial performance. For example, Apple is
now one of the most profitable companies in the world. The firm maintains high profit
margins. Apple also has a strong financial position, which involves high liquidity
through large amounts of cash. The company has also managed to avoid debt. Based
on these corporate social responsibility conditions, Apple effectively satisfies the
interests of investors as stakeholders.
Employees of Suppliers and Distributors. Workers in Apple’s supply chain are also
significant considerations in the company’s corporate social responsibility efforts.
These workers are indirect stakeholders in Apple’s business, but determine the firm’s
corporate social responsibilities. The main interest of this stakeholder group is similar
to the interests of Apple’s own employees, such as proper compensation and job
security. Also, this stakeholder group is interested in ethical employment practices.
To address these interests, Apple has a Supplier Code of Conduct. The company
monitors and imposes requirements on the employment practices of firms in its
supply chain. Part of Apple’s policy is to terminate business relations with suppliers
that continue to fail or refuse to satisfy this Code of Conduct. Apple’s 2014
assessment of suppliers shows that 92% of suppliers now comply with the 60-hour
workweek rule. Thus, to a certain high degree, Apple’s corporate social responsibility
efforts satisfy the interests of the stakeholder group of suppliers’ workers.

Apple’s CSR Performance in Addressing Stakeholders’

Interests
Apple has a considerably high performance in addressing its corporate social
responsibilities by satisfying the interests of stakeholders. The company satisfies the
interests of customers, Apple employees, and investors. However, Apple has the
opportunity to improve its corporate social responsibility performance in addressing
the interests of the workers of firms in its supply chain. Imposing rules on suppliers is
difficult, considering differences in organizational contexts. However, Apple has the
power to compel suppliers to comply with its Supplier Code of Conduct. Thus, the
company’s main corporate social responsibility effort should be to improve overall
compliance in its supply chain.

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