Answer to Question #284762 in Management for Kayan

Question

What strategic issues Apple company face in terms of CSR and what is the long term objective (LTO) to overcome that problem?

Answer 1

(a)Strategic Issues Apple Company Face in Terms of Corporate Social Responsibility.

 

 

 

Lack of stakeholder engagement strategy –

Apple lacks a sound policy in stakeholders’ engagement in a nutshell they lack a strategy that can give them an upper hand when interacting with stakeholders which negates their gains in their business operations. This is evident is numerous context e.g. their tendency to use generic reply while responding to media such as, “Apple is committed to maintaining the highest standards of social responsibility in our operations”

 

Lack of triple bottom line thinking –

Apple activities do not show any element of triple bottom line principle, it only focusses on profit maximization for the benefit of its owners. Any practice that significantly affects Apple’s income flow is disregarded. Well, the primary objective of any business is profit making but for any business to remain relevant it needs to have sound and responsive corporate social responsibility framework as this will create a good public image. According to New York Times, Apple has a very comprehensive code of conduct but it rewards its suppliers with very low profits which is pretty much demoralizing leading to compromised services

 

No corporate social responsibility leadership or team –

 Apple lacks an elaborate Corporate social responsibility culture which may mean shortage of workforce to carry out this practice. As a business you need community, the people around to drive the agenda. The people play a very vital role in disseminating information and as a business it is essential to make sure the community is consuming positive information and not negative one as it may serve a business a huge blow.

Low level of transparency –

Apple doesn’t share sufficient information with consumers of such information eg It doesn’t allow a third party to audit and interrogate the conditions of work in its supply chain.

 

(b)Long term objectives to overcome the problem.

Putting into place a responsive framework to engage thoroughly with stakeholders-

This will help in understanding the challenges that they encounter as they continue to do business with the company thus presenting a great opportunity to resolve them at an earlier stage.

 

Avoid focusing more on cost outcomes and instead focus on the value that a good corporate social responsibly adds.

It critical for business to identify a capable and appropriate and supplier who is able to supply on time since late supply or failure to supply may derail the business. Suppliers are also keen on the organization’s corporate culture before deciding to partner since it shows reliability.

 

Healthy engagement with contractors-

 Improved relationship with the contractors would serve to resolve some of the challenges that Apples continue to face in its supply chain – Building the capacity, sharing of information among others are actions which benefits not only the supplier but also the business itself in its performance. The understanding that success comes with supporting the wellbeing of the surrounding, and the people who are the pillar of the business would go a long way in shaping up the future of Apple.

 

 

References

Eoi.es. 2022. Apple’s poor CSR integration into strategy. [online] Available at: <https://www.eoi.es/blogs/imsd/apple%E2%80%99s-poor-csr-integration-into-strategy/> [Accessed 4 January 2022].