Global Supply Chain Case Study
Key Points
The case highlights the corporate social responsibility issues that Apple and its supply chain network face. Having adopted outsourcing as its main global strategy, the company carries out most of its operations outside its California headquarters in the US (Lee et al., 2016). For instance, China houses its manufacturing factories, which implies that most of its suppliers are located there. Despite Apple’s insistence that all workers are entitled to safe and ethical working conditions, multiple media investigations reveal that workers are subjected to long working hours, unsafe working conditions, and compensation that does not befit their work.
Also, the case highlights environmental sustainability concerns in China. The China Labor Watch highlights some violations despite a promise to comply with environmental sustainability regulations (Lee et al., 2016). Pollution caused by Apple’s factories in China is a matter of great concern. Furthermore, poor labor practices and working conditions have contributed to the company’s poor reputation in the past as highlighted in the past. One of Apple’s partners, Foxconn, an original designer manufacturer, is reported to be violating the requirements for safe working conditions. In 2010, for instance, 18 employees at Foxconn attempted suicide, while 14 of the workers died at the company’s facilities (Lee et al., 2016). Since the 2010 incident, there has been increased scrutiny of the facility and Apple’s overall state of working conditions.
Importance of Corporate Social Responsibility (Employee Treatment)
CSR, especially on employee treatment, is good for business success. First, when a business treats employees fairly, they feel a sense of importance to the respective company (Chen et al., 2020). That leads to increased morale and work engagement; as such, employees will exploit their potential to help the company achieve its objectives. In the long run, there will be increased productivity and motivation
Also, favorable employee CSR practices contribute to a company attracting and retaining the best talent. Today, most employees, especially the most talented, evaluate a company’s CSR reputation even before applying for a job. If the company is known to treat employees well, it will attract the best talent (Chen et al., 2020). In the same breath, if the company demonstrates a commitment to the employees’ welfare, they are likely to stay loyal and commit to a long-term working relationship.
Moreover, good employee CSR practices bolster an organization’s brand image and reputation. Today, most consumers examine companies before they patronize their business, and a company that demonstrates care for its people is likely to get more business (Chen et al., 2020). Besides, investors also delve into the CSR status before offering to finance a company’s operations. To that end, appropriate employee-based CSR practices positively contribute to its bottom line.
Public Opinion
Public opinion and the media have played a significant role in shaping Apple’s CSR. First, pressure and scrutiny from the media and the general public have played a key role in highlighting the company’s poor working conditions along its supply chain network. For instance, in 2011, following the media scrutiny that highlighted suicide incidents at the Foxconn factory, the company made promises about how it intended to improve its CSR practices. Also, the media raises public awareness regarding the company’s inappropriate CSR practices. Following these exposures, the public demanded that the company improve its practices to get customers. The fear of losing customers as a result of poor reputation pushes Apple to embrace appropriate CSR practices.
Lessons for International Business
Apple received the blame for sustainability violations even though Foxconn and Pegatron were the ones that committed most of the violations. This raises crucial lessons for businesses operating international businesses and collaborating with a network of suppliers and partners. From the incidents, it emerges that while manufacturing facilities employ workers directly, it is the responsibility of the company that contracts their services that ought to ensure ethical compliance (Perry et al., 2014). To that end, there is a need to vet such manufacturers before contracting them. Another lesson is that reputation management responsibility falls under the hands of a prominent company (Perry et al., 2014). Although Foxconn and Pegatron were directly involved, the media ignored them and largely focused on Apple.
Advantages and Disadvantages of Commonly Used Labor Practices In International Business
One of the commonly used labor practices is outsourcing. Advantages of this practice include reduced costs, tapping into specialized talent, and allowing the company to focus on competencies. On the flip side, multi-cultural differences, quality inconsistencies, and the risk of depending on an international labor force emerge. Another commonly applied practice is offshoring. Advantages of offshoring include access to a diverse workforce and benefiting from tax incentives. However, offshoring is characterized by regulatory and political risks and communication hurdles.
The Road Ahead
Apple should embrace transparency regarding its CSR practices. The company should publish transparent reports on its supply chain practices. Once Apple implements this, stakeholders will be in a position to hold both the company and its partners into account and evaluate progress toward appropriate CSR practices.
References
Chen, H. L., Hu, Y. C., Lee, M. Y., & Yen, G. F. (2020). Importance of employee care in corporate social responsibility: An AHP-based study from the perspective of corporate commitment. Sustainability, 12(15), 5885.
Lee, S. H., Mol, M. J., & Mellahi, K. (2016). Apple and its suppliers: Corporate social responsibility. Ivey Publishing, 1, 1-10.
Perry, P., Fernie, J., & Wood, S. M. (2014). The international fashion supply chain and corporate social responsibility. In Logistics and Retail Management: Emerging issues and new challenges in the retail supply chain (No. 4, pp. 77-100). Kogan Page.
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Question 
INT 220 Module Six Assignment Global Supply Chain Case Study Guidelines and Rubric
Overview
Global Supply Chain Case Study
In Module Six, you have explored logistical and cultural considerations for managing diverse teams. In this assignment, you will apply what you have learned by analyzing a case study to conclude corporate social responsibility in an international context.