Apple Corporate Social Responsibility Case Study Analysis 2

Apple @ Foxconn Case Study Mr. M. Ianni

Table of Contents

APPLE – CORPORATE SOCIAL RESPONSIBILITY CASE STUDY ANALYSIS ...... 2

Works Cited...... 4

Assignment...... 5

Requirements:...... 5

Templated Document Download...... 5

1 APPLE – CORPORATE SOCIAL RESPONSIBILITY CASE STUDY ANALYSIS

Apple, famous for its Mac computers and iPhones, spends millions to create the image of a benevolent corporate giant that, while making money, does more than its part to better the world.

But a new study by China's Institute of Public and Environmental Affairs sharply contradicts this claim. The report, The Other Side of Apple, slams the corporate behemoth for mistreating its workers and poisoning the environment.

"Behind their stylish image," reads the introduction, "Apple products have a side that many do not know about - pollution and poison. This side is hidden deep within the company's secretive supply chain, out of view from the public." (Margolis)

July 2009: A Foxconn employee fell from apartment building after losing iPhone prototype. 18 more workers try to commit suicide over next two years.

2010: 137 workers at Suzhou facility, owned by Apple suppliers Wintek, injured by poisonous chemical, n-hexane, used to clean iPhone screens because it dried faster.

May 2011: Four workers dead and 18 injured in dust explosion at Foxconn factory in Chengdu, which produces iPad parts.

December 2011: 61 workers injured in gas explosion at Riteng Computer Accessory Co factory in Shanghai, which was trialling aluminium iPad 2 back panels.

Steve Jobs, the chief executive of Apple, finds "troubling" a string of worker deaths at Foxconn, the contract manufacturer that assembles the company's iPhones and iPads, but said its factory in China "is not a sweatshop".

Jobs was making his first public comments about employees' apparent suicides at a complex operated by the unit of Hon Hai Precision Industry... (Reuters)

So will we see some kind of movement to boycott Apple products, akin to the campaign several years ago to pressure Nike to improve working conditions in its factories? Seems unlikely at the moment. “You can either manufacture in comfortable, worker-friendly factories, or you can reinvent the product every year, and make it better and faster and cheaper, which requires factories that seem harsh by American standards,” an anonymous current Apple executive told the Times. “And right now, customers care more about a new iPhone than working conditions in China.” (Gustin)

Following ongoing public outcry and organized protests at Apple stores last week, Apple has announced that an organization called the Fair Labor Association is conducting independent assessments of worker conditions inside the factories of Foxconn, its manufacturing partner in China.

The FLA audit began this morning in Shenzen’s “Foxconn City.” In the inspections, FLA representatives will interview thousands of factory employees about their living and working

2 conditions, delving into topics such as compensation, health and safety, working hours, and the workers’ communication with management. The results of the inspections will be posted on the FLA’s website in early March. (Bonnington)

Apple is committed to the highest standards of social responsibility across our worldwide supply chain. We insist that all of our suppliers provide safe working conditions, treat workers with dignity and respect, and use environmentally responsible manufacturing processes. Our actions — from thorough site audits to industry-leading training programs — demonstrate this commitment. (Apple)

So will we see some kind of movement to boycott Apple products, akin to the campaign several years ago to pressure Nike to improve working conditions in its factories? Seems unlikely at the moment. “You can either manufacture in comfortable, worker-friendly factories, or you can reinvent the product every year, and make it better and faster and cheaper, which requires factories that seem harsh by American standards,” an anonymous current Apple executive told the Times. “And right now, customers care more about a new iPhone than working conditions in China.” (Gustin)

3 Works Cited

Conference D8. Steve Jobs on Foxconn Conditions. 5 October 2011. 2 March 2012 .

Cooper, Rob. Revealed Inside Apple's Chinese 'sweatshop' factory where workers are paid just £1.12 per hour to produce iPhones and iPads for the West. 21 February 2012. 01 March 2012 .

Gustin, Sam. Should Americans Care About Apple’s iPhone-Factory Conditions? 26 January 2012. 02 March 2012 .

Margolis, Dan. 25 January 2011. 01 March 2012 .

Reuters. Steve Jobs says Foxconn in China 'not a sweatshop' after worker deaths. 02 June 2010. 02 March 2012 .

Bonnington, Christina. Apple’s Foxconn Auditing Group ‘Surrounded With Controversy,’ Critics Say. 13 February 2012. 02 March 2012 .

Apple. (unknown date). Supplier Responsibility. Retrieved March 05, 2012, from www.apple.com: http://www.apple.com/supplierresponsibility/

4 Assignment

You will research and complete a case analysis using the MSWord Document Template. All details as to due dates and submission requirements will be given in class.

Requirements:

-Research and use at least five different sources other than those listed above although it would be beneficial to start with the above sources.

-Download the file AppleCaseTemplate.doc saving it as YourLastNameYourFirstNameAppleCase.doc (version 1997-2003).. Use this template file to complete your analysis and report. Submit it via the moodle. Note: The questions at the start of the document must be completed with the submission.

-The fact of the case section must be handed in class. The date will be announced in class.

-Submit a printed and bound hard copy that includes the answer to the questions, the case study analysis report including work cited list (Word generated) with internal citations, table of contents (Word generated) with page numbers and the rubric.

-You will submit a copy of your package via the moodle. Rename your report to YourLastNameYourFirstNameAppleCase.doc (version 1997-2003).