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¶ … Global Business Environment
Ongoing challenges in the global business environment are mostly attributed to unethical business practices, failure to embrace technology advancements, and intense competition among businesses. Apple Inc. is an example of a company that has faced challenges in the global business environment because of unethical business practices with regards to its suppliers' compliance with the company's code of conduct. Despite safety being one of the major components of Apple's operations, the company is renowned for having suppliers that are abusive to their workers. For instance, Wintek and Foxconn are among the firm's electronics suppliers with factories characterized by terrible working conditions. However, when Apple's supplier code of conduct is raised, the situation with these suppliers remains the same and contributes to numerous concerns regarding compliance. As a result, Apple has made several changes to its Code of Conduct in recent years, which have generated new standards for suppliers in order to maintain business relationships with the company. This code of conduct states that the working conditions in its supply chain must be safe, employees should be treated with dignity and respect, and manufacturing processes should be environmentally responsible. In essence, Apple's relationship with various suppliers is based on three major aspects i.e. safe working conditions, respect for employees, and environmentally responsible business processes and practices. However, this code of conduct has been constantly violated by various suppliers such as Wintek and Foxconn. Some of the company's suppliers have been characterized by unsafe working conditions, long working hours, and little pay.
Apple's Supplier Code of Conduct
As previously mentioned, Apple Inc. has been renowned for working with suppliers that are abusive to their workers. Wintek and Foxconn are examples of Apple's electronic suppliers whose manufacturing plants in China have terrible working conditions. This situation has generated concerns regarding Apple's supplier code of conduct and business relationships with supplier with unethical business practices. Actually, whenever infringement of the firm's supplier code of conduct has been raised, the situation has seemingly remained the same (Kaiser, 2012). Consequently, employees at Apple's suppliers have been forced to deal with poor and unsafe working conditions and minimal wages despite the crucial role they play in assembling some of Apple's products.
Changes in Apple's Supplier Code of Conduct
In light of the various unethical business practices by its suppliers, Apple Inc. has made several specific changes in its supplier code of conduct in recent years. These changes not only focus on improving business relationships with suppliers but also based on the need for accountability and improvement. Actually, accountability and improvement are among the core business objectives of Apple Inc. And its suppliers. Apple Inc. has made these changes as part of its ongoing measures to help in ensuring safer and more ethical working conditions and business practices. Moreover, the recent changes are geared towards driving change in the suppliers' business operations following identification of noncompliance. There are several specific changes that Apple has made to its supplier code of conduct in the recent past including
1. Apple joined the Fair Labor Association and devoted itself to comply with the association's standards to ensure safe and ethical business practices and operations among its suppliers. For instance,…
References
Kaiser, T. (2012, January 27). Report: Apple's Suppliers Continuously Violate Code of Conduct,
Apple Does Nothing to Change It. Retrieved March 7, 2015, from http://www.dailytech.com/Report+Apples+Suppliers+Continuously+Violate+Code+of+Conduct+Apple+Does+Nothing+to+Change+It/article23867.htm
Nova, S. & Shapiro, I. (2014, March 25). Assessing the Reforms Portrayed by Apple's Supplier
Responsibility Report. Retrieved March 7, 2015, from http://www.epi.org/publication/assessing-reforms-portrayed-apples-supplier/
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