Business Proposal Presentation

Recommendations

While Apple has taken various steps to respond to the ethical concerns relating to its supply chain, ethical issues still persist as indicated in the data results. Therefore, the company can employ several strategies to perfect its inner and external ethical environment (McLaverty & McKee, 2016). First, the organization should launch business transformation and change management initiatives. Apple can improve its own ethical climate by promoting radical transformations from the top, too speedily and in frequent ways. In particular, the implementation of programs such as those that seek to avoid conflicts of interest. The selection of the right suppliers who observe ethical policies can be attained by having company leaders who do not have conflict of interest issues.

The second step that the organization can take is to introduce incentive programs to suppliers and employees. The provision of rewards and incentives to award-winning suppliers and corporate members for observing the company’s recommended ethical standards can help to avert possible breach of ethics (McLaverty & McKee, 2016). This is because humans tend to do what they are awarded to do. In light of the above, corporate leaders often receive exemplary rewards for meeting the targets. In some cases, ethical targets must also be introduced into the performance equation. Leaders who have the tendency to award contracts to suppliers who do not observe ethical policies have poor records of being awarded by the organization. For instance, bonus payments and executive share programs are normally premised on short-term business indices, which have the potential to overcome long-term initiatives and success.

Apple should also embrace a proactive strategy when responding to ethical issues. In the past, Apple’s strategy has been strongly reactive. This is evident by the social and environmental activities that it has undertaken to its supply chain (Clarke & Boersma, 2017). The essential company legitimacy is often negotiated via a multifaceted procedure with specific configurations of companies and stakeholders. The organization’s search for legitimacy is often faced with matters related to human and employment rights and activist groups. The company does not give room for stakeholders to express themselves on ethical violations. As a result, the organization is unable to interpret the real ethical issues that it is confronting. This problem can be countered by developing an open and two-way communication channel in which people are able to voice their concerns and the organization’s leaders respond in a timely fashion. Therefore, Apple should work as a listening organization.

Further, the organization should introduce an auditing model that evaluates the conduct of suppliers with respect to its ethical standards and guidelines. Currently, there is a major disparity between Apple’s declared values and standards and the actual ethical behaviors of its suppliers and business partners (Clarke & Boersma, 2017). Like other multinational corporations, Apple scores high-grade in corporate social responsibility standards but is in actuality breaching CSR principles in the behaviors of its suppliers. This is partly attributed to the fact that its social responsibility markers might not behave in a socially responsible way. Ethics auditing can be important in ensuring that all the ethical standards are observed by the organization’s suppliers.

Finally, Apple should develop labor relations principles and standards that should be followed by its suppliers. The firm should cut ties with suppliers who are expressing hesitance to embrace good labor laws (Adeyeye et al. 2015). For instance, Apple should disengage with suppliers that punish employees who join labor groups and unions. In addition, the company should join hands with activists and other stakeholders to improve the standards of living of employees within its supply chains.

References

Adeyeye, O. J., Adeniji, A. A., Osinbanjo, A. O., & Oludayo, O. O. (2015). Effects of

Workplace Ethics on Employees and Organizational Productivity in Nigeria.

International Conference on African Development Issues (CU-ICADI) 2015: Social and

Economic Models for Development Track

Clarke, T., & Boersma, M. (2017). The governance of global value chains: Unresolved human

rights, environmental and ethical dilemmas in the apple supply chain. Journal of Business

Ethics, 143(1), 111-131.

McLaverty, C., & McKee, A. (2016). What You Can Do to Improve Ethics at Your Company.

Harvard Business Review.

Violaton Rate in 2017 (in a 5-Point Likert Scale)