CORPORATE SOCIAL RESPONSIBILITY AT APPLE INC

EXCLUSIVE SUMMARY

As one of the world's most admired corporations, Apple has several ethical challenges and limitations that make it a fantastic subject for examination. Quality, privacy regulations, and long-term survival are three of Apple's most important ethical concerns. For example, Apple has misrepresented privacy agreements and failed to account for environmental damage, among other things. Apple may face competition from Samsung and Amazon, as well as investors and advocacy groups like the Electronic Frontier Foundation. Many people still perceive Apple to be the best technology company; however the company has been plagued by ethical and moral issues.

INTRODUCTION

Several technology companies, including Apple, have created apps aimed at enhancing the mental well-being of their customers. A wide range of smartphone apps are now available to help people keep track of and manage their thoughts, feelings, and behaviors (Adorno, Jose. 2021). The efficacy of some has been well established in the treatment of depression and other mood disorders, but the efficacy of many others is unknown. Apps like Joyable, which offer weekly text, email, or phone coaching sessions to help users deal with stress. People who are unfamiliar with mental health services or the various standards that govern them may be misled by an unlicensed mental health specialist (Apple.com. 2021).

Apple has recently focused on their involvement in the e-mental healthcare industry and their value to their company's financial stability when it comes to the development of mental health apps for the company. For the sake of public safety, social responsibility initiatives should be implemented as well. It's a great idea for Apple to have a company that's well-versed in science and technology (Ayadi, M. A., 2015). Also taken into account are the necessities of excellent corporate governance for successful networking among all stakeholders, as well as growth potential aimed at increasing firm profitability while also enhancing society at large. Finally, one should not overlook the significance of one's own e-mental health (Apple Inc. 2012).

Historical background

According to a lack of agreed-upon norms for acceptable corporate citizenship, multi-national corporations continue to utilize cheap labor and create sweatshop conditions; despite increasing public awareness of the risks they face (Song, 2016). Apple Inc.'s human rights and corporate social responsibility have been widely criticized. One of the world's largest computer, phone, and tablet software developers is California-based Apple Inc. It has been found that Inter 3x customers have a high degree of brand loyalty (Manoela, 2016). Ethical issues have lately arisen for the corporation, despite its enormous success and devoted customer base, Workers may be subjected to harassment, intimidation, and poor working conditions at any time. According to a recent media study, Chinese workers put in more than $-hours every month for their bosses. There have been a number of reports about the company's links to forced child labor as well.

Apple's digital media platforms and software are just as well-known as its hardware. As the world's most valuable brand and first publicly traded company, Cupertino, California-based Apple (Apple Press Release. 2021).

For as long as anyone can remember, Apple was one of the most legendary companies. In the digital revolution, the major purpose is to change people's views on computer technology. In 2020, Apple hopes to bring in $274.5 billion in global sales. Apple has a major impact on how people use and integrate technology into their daily lives as the largest technology firm in the world, with 511 retail locations in 25 countries and 147,000 workers.

Apple's Policy on Corporate Social Responsibility

It's hard to know if Apple lives up to its reputation for secrecy when it comes to CSR and sustainability initiatives. With its reputation for secrecy, Apple has boosted its CSR programmes significantly in the last decade, with an emphasis on environmental and social responsibility (Annual Report. 2018).

Green Business Practices at Apple

To be one of the first corporations to do so, Apple plans to spread this programme throughout its supply chain by 2030. By the end of this decade, all products will be carbon neutral. Apple's environmental sustainability efforts will boost device longevity and durability by 2020. Using these methods, it is possible to recycle 40% of the Macbook air's materials. Apple's first carbon-cutting programme, Restore Fund, was launched earlier this year to protect 36,000 acres of long-term forest in North Carolina and Maine (Ayadi, M. A., 2015).

Conservation International and Goldman Sachs have teamed up to help this project avoid at least 1 million metric tons of carbon dioxide per year. Apple is also minimizing the amount of hazardous elements in their products, such as mercury, PVC, and Beryllium, as part of their environmental sustainability efforts. New and more stringent restrictions have resulted in an A+ rating for the corporation from North American chemical safety campaign Mind the Store. Apple was granted the EPA Safer Choice Partner Award in 2020 because of their efforts to use healthier cleaning agents (Apple Inc. 2012).

In order to further reduce the environmental impact of Apple's supply chain, the company is attempting to procure raw minerals in a more sustainable manner. Cobalt, Tin, Tantalum, Wtungsten, and Gold Refiners must submit to an independent audit by an Apple-approved third party (Apple Inc. 2012).

Equality and Fairness Programs at Apple

As part of its $100 million Racial Equity and Justice Initiative, Apple is introducing a number of new CSR programmes in 2021. As a result of these efforts, educational opportunities are being extended to people of colour (Apple Inc. 2012).

1.???? For the benefit of historically black institutions, a $25 million Detroit learning and innovation centre is developing a developer academy.

2.???? Venture capital funding for minority-owned company enterprises.

Aside from that, the company's social responsibility initiatives continue to encourage its personnel to embrace difference and advance their careers. About 64% more people who belong to underrepresented groups have entered the workforce in the last six years. There has been a 70 percent increase in the number of women working in jobs, and an 85 percent increase in women in leadership roles (Jo, H., Song, 2016).

COVID-19 Relief?

COVID-19 mitigation activities received almost $15 million from Apple in 2020. Health inspections and social distance standards, as well as more thorough cleaning and the provision of masks and sanitizer to workers, were all established as protective measures across the supply chain. Additional apps for the pandemic and the CDC instructions for COVID-19 quarantine, testing, and tracking procedures have been made available by Apple, as well (Riel, E., 2016).

Issues with Apple's Corporate Social Responsibility

Despite Apple's significant efforts in corporate social responsibility (CSR), Chinese subcontractors continue to accuse the corporation of human rights breaches (Riel, E., 2016). Dissolving business ties with Chinese suppliers suspected of violating the company's CSR labor rules has been accused of taking too long by critics, especially if doing so would affect revenue.

Forbidding sales of Chinese goods made with the forced labor of Muslim minorities was an issue for Apple, which reportedly pressured Congress to amend. The Australian Strategic Policy Institute (ASPI) published a study in March 2020 revealing that Apple engages in unethical practices in China's Xinjiang province. Apple's Xijiang suppliers have not yet been accused of violating human rights, but the company has promised to monitor the situation (Manoela, 2016).

Because to its purported obsolescence design, Apple is also being sued in Europe, as previously noted. Customers have complained that the company used battery capacity manipulation to drive them to buy new or upgraded devices earlier than necessary (Roy, S. S., 2015).

Analysis and decision-making in the context of corporate finance

In order to take advantage of strategic possibilities and reduce tax costs connected with bringing back overseas funds, Apple's management must have adequate US cash on hand. The first stage for the company is to do a complete analysis of all current cash demands, including transactions, risk management, and expected future investment needs as the apps are further developed. Goals such as CSR/Sustainability can be used as a proactive strategy for TBL strategy. When it comes to mental health, Apple plans to focus on alleviating emotions of hopelessness and stress.

A company's reputation for maximizing profits regardless of how they're acquired is a clear example of the link between profit and social responsibility. When it comes to Apple's renewed focus on profitability, measures to safeguard natural resources should be tightly linked to the success of its applications. There are many people whose basic mental health requirements are harmed as a result of Apple's reluctance to promote proper disposal of electronic devices When profit maximization takes precedence over people's basic mental health needs, this is a crucial component of Apple's ability to mediate these issues. This means the company needs a financial structure that maximizes its funding capacity while also ensuring that its business strategy can be implemented in any economic or industrial climate (Manoela, 2016). For example, Internal and external stakeholders should profit from the company's cash distribution strategy. If Apple is gaining public trust and confidence in its ability to create regular cash flow, it may be necessary to raise the dividend. Apple may explore increasing the dividend in order to compete with its rivals (Murray, Poppy. 2021).

CORPORATE SOCIAL RESPONSIBILITY FRAMEWORK

CEOs have been debating ethical conduct in the workplace since the 1950's. The document's significance and value were not fully appreciated until recently. After the publication of Archie Carroll's “Pyramid of CSR Initiatives” in 1991, we were introduced to the concept of corporate social responsibility (CSR). While the pyramid has been widely used in recent years, its simplicity and flexibility to represent CSR across four different businesses have made it a popular concept. There are four distinct areas of responsibility that organizations must fulfill: economic, legal, ethical, and charitable (Annual Report. 2018).

Economic responsibility

The bottom of the pyramid is where a companys success begins. As a result of the companys CSR efforts, workers may find themselves out of a job if they cannot be paid. A companys future seems to depend on its ability to generate profits. Businesses have a responsibility to provide goods and services that consumers need or want at a reasonable price, according to this statement (Annual Report. 2018).

Corporations must spend at least 2% of profits on corporate social responsibility (CSR), mandated by the federal government. Even Apple Inc., the worlds most well-known smartphone manufacturer, does not adhere to this rule. During the period from 2016 to 2021, Apple Inc. says it spent less than required by law (Ayadi, M. A., 2015).

Legal responsibility

In the beginning, the corporation must abide by all applicable legal requirements. In terms of the four levels of care, this is the most important one. A few examples of legal requirements that a business must follow in order to be successful include employment restrictions, competition with other industries, tax restrictions, and, of course, employee well-being. If a firm fails to meet its legal obligations, its operations may suffer.

In the way Apple Inc. conducts business, “The Code” is an internal business code embodying Apple Inc.s main ideals and principles. Members human rights and dignity are protected by the organizations code of conduct. Neither Apple Inc nor any of its subsidiaries employs nor uses any form of forced labor. Employees are never allowed to demand payment from us or anybody else to work for us. We will only work with distributors who can demonstrate that they share our moral standards and beliefs (Adorno, Jose. 2021).

Ethical responsibility

IT services, business solutions and outsourcing are offered by Apple Inc. to clients across the world. The most valuable thing we own is our human capital. Apple Inc. places a high importance on the safety of its employees and intellectual capital in order to accomplish its performance and growth goals. When it comes to the structure of our company, we are incorporating Apple Inc. factors, such as adopting our training programmes, policies, and facilities. Customers, collaborators, and other business partners will profit from our companys international expansion (Apple.com. 2021).

Philanthropic responsibility

There are additional responsibilities that go beyond what is mandated by law. A company should go above and above its legal and social responsibilities in order to show that it is truly charitable. Its a decision, a result, and a decision (Apple.com. 2021).

1.nbsp;nbsp;nbsp;nbsp; Employee and consumer well-being is at the heart of Apples corporate social responsibility initiatives. It is our belief that long-term effects and impacts may be achieved through our “Impact through Womens Empowerment” attitude. With its global reach and workforce, as well as its competence in IT, Apple aspires to improve the efficiency and effectiveness of social programmes.

2.nbsp;nbsp;nbsp;nbsp; Apple Inc. demonstrates their concern for the community by focusing on education and skill development, as well as health, environmental stability, and energy conservation.

3.nbsp;nbsp;nbsp;nbsp; Apple is eager to lend a helping hand in the case of a natural disaster or other emergency. Since 2013, a slew of new CSR initiatives in Asia have been made possible thanks to the Seventh Schedule of the countrys corporate law.

4.nbsp;nbsp;nbsp;nbsp; Programs are chosen for Rajasthan based on their relevance for local needs and the companys vision and competence in this area.

APPLE INC CSR STRATEGIES

Apple Inc. produced a notion and profited from it, according to CSR initiatives (CSR). Supporting local charities and decreasing the companys environmental effect rank high on the list of priorities for this humanitarian-minded business (Apple Newsroom. 2021).

People

Apple regards its people as one of the most significant resources a corporation can have. When a company creates an environment that allows its employees to realize their greatest potential, it empowers them. When it comes to Apples long-term viability, the companys ability to recruit, excite and inspire its employees is critical (Apple Press Release. 2021).

For Apple Inc.s human resources strategy, maintaining a work environment that is both supportive of the binding norm and flexible is key to keeping up with rapid technological innovation. Consequently, our diverse and digitally savvy workforce may thrive in both their personal and professional lives. There are a variety of social activities that Apple Inc. has organized for its employees, both inside and outside the company, according to the company.

Society

A major improvement in Apple Inc.s use of information technology resulted in learning hours being reduced from 250 to 60 if performed manually. Literacy is linked to economic growth. Because of the high school dropout rates caused by old manual techniques, Apple Inc. has been able to keep students engaged while also assuring that they are literate utilizing its Computer Based Functional Writing course. A total of 561,884 people used ALP in fiscal year 2018, including 173,876 students (Ayadi, M. A., 2015).

Planet

To address environmental issues, the company wants to go beyond regulatory compliance by developing a lifecycle strategy for its whole supply chain. Environmental stewardship initiatives have been adopted in four areas of Apple Inc.s operations:

1.nbsp;nbsp;nbsp;nbsp; 26 Carbon footprints can be reduced by increasing energy efficiency and turning to renewable energy sources.

2.nbsp;nbsp;nbsp;nbsp; Managing groundwater requires careful consideration of rainwater use, recycling, and collecting.

3.nbsp;nbsp;nbsp;nbsp; Waste management includes reducing, reusing, and recycling.

4.nbsp;nbsp;nbsp;nbsp; Long-term viability of distributor networks is a must.

ANALYSIS OF APPLE FINANCIAL GROWTH AND INVESTMENT

Apple should take a look at those that want to make a positive impact on the world. When it comes to investing, there are a growing number of investor groups whose investment practices are increasingly recognized around the world as contributing to a more equitable and sustainable society. So, like the Universal and Social Investors, the Rational Investor is looking for market-based rewards. A variety of investment strategies, including corporate management, investments to benefit the poor, and the implementation of environmental and social criteria, are all now being developed by our firm. Shareholders will get a quarterly dividend from Apple, which CEO Tim Cook claims would attract new investors (Ayadi, M. A., 2015).

In order to attract new investors, Apple will have to highlight its socially responsible app development. Limiting potential dilution of employee equity is a necessary part of this strategy. Employee and stakeholder participation may be boosted if Apple used CSR as a strategic management tool to improve its performance. Mobile content consumption is expected to grow as more people use smartphone with better connectivity, according to Jo, H., Song, (2016). When it comes to delivering 3G/4G service, Apple should take note of this already occurring in Asia. Most mental health apps are now utilized in the West, but addressing mental health disparities could change that (Riel, E., 2016).

According to Roy, S. S., (2015), Apple's new App Store Criteria impose tight guidelines for creators of health and medical apps. This is wonderful news for Apple, which should take advantage of the situation if its competitors do not take action. New guidelines protecting human subjects and avoiding bodily injury are more detailed and specific than the previous ones, Murray, Poppy. (2021) argues, for the benefit of public safety. Apple has a tremendous opportunity to further establish clinical recommendations that will govern the e-mental health business as a whole with these new guidelines. Medical and psychological experts will be needed to help with the app's development. Medical apps are plagued by a lack of data or information that may be utilized to diagnose or treat patients. It's vital to draw attention to the app's limitations in this situation. Moodkit is an app developed to help folks who are dealing with self-monitoring and correcting problematic thought patterns when it comes to depression, anxiety disorders, and anger management. Depression sufferers who are interested in learning the basics of therapy can benefit from Moodkit, but those who are extremely depressed would be better off seeing a therapist for treatment (Murray, Poppy. 2021). In addition, the film Mind-Shift serves as an excellent illustration. Anxiety disorders, phobias, and panic attacks are among the conditions this programme aims to help young adults and vulnerable teens better understand and cope with.

It's been determined that previously approved apps such as Instant Blood Pressure were incorrect, and because of this, Apple now has a great opportunity to show its expertise in the business. A year ago, Apple began banning dosage calculators because they must be licensed by an FDA-approved body or an international equivalent. Every stakeholder must be involved in order to promote the message of social responsibility. As a long-term supporter of patient safety, Apple should make it quite clear that its apps will be maintained and improved (Mack, H. 2016).

In addition, the company should note out that it prohibits all of its employees from dealing in derivatives of Apple shares and from selling short Apple stock. In this field, leaders must promote the growth of their business. It's vital that Apple include an annual list of all political contributions it receives on its website for mental health apps that are subject to stringent oversight. For e-mental health businesses, restrictions prohibiting shareholders' an inquiry into how their funds are being used for political campaigns not only protects their investors' interests, but also enhances their sense of social duty and financial success (Manoela, 2016).

REPORT ON APPLE'S CORPORATE SOCIAL RESPONSIBILITY

An in-depth look at Apple's CSR initiatives can be found in the company's annual report. This study applies a variety of frameworks to analyze Apple, including SWOT, PESTEL, Porter's Five Force Analysis, Anasoff Matrix, and the McKinsey 7S Model. All of these are applied to Apple. This report examines Apple's top executives, business strategy, organizational structure, and culture as a whole. Additionally, the report examines Apple's marketing strategy and environment, as well (Mason, C., 2014).

Energy Consumption by Apple Inc

To put it another way: The Mac mini is one of Apple's most renowned environmental triumphs since it lowered overall power consumption by 57%. According to Greenpeace's Clicking Clean Report (Manoela, 2016), Apple is the only firm to obtain a Clean Energy Index of 100%. All of the company's global operations are currently powered by renewable energy at a rate of 10%. (Mason, C., 2014).

Consumption of Water by Apple Inc

1.???? In 2019, Apple used more than 1, 2 billion gallons of water. Short-term freshwater storage, as well as recycled water, falls under this heading.

2.???? 2. Suppliers have saved over 30.5 billion gallons of freshwater so far, and in 2019 alone, 9.3 billion gallons of water was saved. 3.

3.???? Data centers cooling systems can recycle water as many as 35 times.

4.???? Apple Park is a facility in Cupertino that makes use of 75% recycled non-potable water. A 600,000 gallon rainwater tank at Apple's Austin, Texas, campus is used to water the campus' drought-tolerant plants.

Apple Waste Reduction and Recycling

1.???? Recycling programmes by Apple have saved more than 508 million pounds of electronic garbage from ending up in landfills over the previous decade.

2.???? There was a 53% increase in the number of supplier sites pledging to go zero waste in 2019.

3.???? Apple debuted a new line of recycling robots in 2016 dubbed Liam, each of which can disassemble an iPhone in only 11 seconds and sort its high-quality parts (Manoela, 2016).

Carbon Emissions by Apple Inc

1.???? There were 25.1 million metric tons (or 75 percent) of emissions from Apple's product manufacturing in 2021, which is shown in the graph below.

2.???? The company's carbon impact has decreased by around 35 percent from its peak in 2019.

3.???? By 2030, the tech titan has promised to be carbon-neutral.

Apple and Responsible Sourcing

1.???? To begin, all tungsten, gold, and cobalt smelters must submit to independent audits to ensure the quality and safety of their output.

2.???? The company was able to responsibly collect nearly 13,000 metric tons of wood in North Carolina and Maine as a result of its cooperation with The Conservation Fund.

3.???? Apple plans to assist in the sustainable management of 1 million acres of forest in the United States' five southern provinces by 2020.

EVALUATION OF FINANCIAL RISK OF APPLE INC

Apple's corporate social responsibility requires it to assess financial risks using stock market data and information. Apple might assess risk and ethics in a worldwide financial context using stock returns and market patterns. Market data like stock returns and market patterns create idiosyncratic risk. Apple executives in charge of mental health should consider the link between financial risk and risk assessment. Culture-based strategies function best when targeting society's most vulnerable (Mason, C., 2014). Themes explored include collaterals, commitment, violence, attitude, and provider mental health. As a result, Apple and the mental health community must collaborate closely to serve those who value restorative justice. Poor environmental performance has been shown to lower a company's financing capacity by increasing the entire risk of chemical firms, including potential environmental liabilities. As there appears to be an inverse relationship between leverage and chemical emissions, greater environmental performance may be associated with higher levels of leverage, and stakeholders may better assess risk. This will enhance Apple's internal financial control system and systematic risk management (Murray, Poppy. 2021).

CONCLUSION

We think Apple should get on board with e-mental health. Even if mental health apps can bring in money for Apple, the company must also be held socially responsible. Corporate social responsibility and corporate governance, they argue, are inextricably linked. When developing apps, it is important to point out that Apple discloses all political contributions and other laws geared at deterring shareholders from questioning how their money is spent. An entire ethical framework must be in place to ensure the safety of the public when developing apps and e-mental health. As a result, the company's risk management strategy sets it apart from its rivals.

Because of demands to become “A Greener Apple” a decade ago, Apple has transformed its social and environmental impact. Apple, a profitable and innovative firm, has the potential to make the world a better place. Sustainability and corporate accountability will be a focus of consumer, environmental, and government groups around the world.

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