the story of an ipad

Mac iPad iPhone Watch TV Music Support

The Story of an iPad

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What product did you choose and why?

Clarissa purchased an iPad back in September 2015.

Product Rationale

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Multibillion dollar company and household name.

Wherewithal to accommodate more ethically-driven

manufacturing and operations.

Dominant retailer in many developed countries,mass

production and consumption have waste implications.

High consumer expectations for continual innovation

and new product releases/upgrades.

High shareholder pressure to maintain high profitability.

Companies like Apple should not be immune from

public/regulatory scrutiny from an ethical standpoint.

Grandiose launches continue to glorify new products yet

fail to hold Apple accountable for future environment and

societal implications.

Society is arguably becoming technology dependent as a

result of Apple and other innovation driven companies.Is

this always a good thing?


Manufacturer Recommendations

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Towards PHASE III: Quality of Life: Solving critical social problems

Sustainable product development through worker empowerment, product and supply chain innovationStep 1: Create an Innovation Academy. Globally expand the Apple Supplier Environment, Health, and Safety (EHS) Academy — to train and empower workers, encourage product and supply chain innovation, and promote ethical product and supply chain innovation, and promote ethical managerial practices and Apple values.

Step 2: Sustainable product development. Create a new inspired iPad — manufactured locally, ethically and sustainably using recyclable materials and innovative production processes, and create a distinctive premium positioning.

Economic/Legal/Ethical Approach

Operational Audits: Continuous monitoring and disclosure of suppliers' practices.Apple takes the lead for voluntary disclosure but pursues profit and compliance firstly. Its supplier responsibility progress report includes ethical and environmentally responsible practices tackling issues such as empowering workers, labour and human rights, health, safety and environment, and ethics.


What are the key social issues involved?

Sending iPad production offshore takes jobs

away from America, and is determental for the

communities that end up producing these

prodcuts as the not treated to fair conditions

Offshoring to Asian Countries

Chinese suppliers of iPad routinely violated the code

of conduct for labour practices. In 2010, 14 workers

killed themselves at Apple’s biggest supplier, Foxconn.

Despite strict training and ethical standards being in

place, there are still reports of works being forced to

work overtime in unsafe conditions.

Labour Practices

Up until

recently, Apple

used two potential

hazardous chamicals,

benzene & n-hexane,

in the production of

their iPadstheir iPads

Manufacturing

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The role of the iPad in education has been seen as a positive and

as a negative. In a positive regard, iPads have helped children with

autism with their education. But, a negative is how the use of iPads

is limiting the social interaction between teacher and student

Educational Use

iPads are designed and built with a short (roughly 24 month) lifespan

in mind. This short lifespan occurs due to new operating system or model

updates and compatibility with older models. This results in product

wastage as consumers want the newest model, causing an inability to

move outdated stock

Planned Obsolescence

Mac iPad iPhone Watch TV Music

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Support

Government & Policy Maker Recommendation

Adopt an APAC Regional Standard for Minimum Workplace

Safety & Conditions in the electronics assembly market

Regional alignment is required to set minimum standards for

workplace safety and conditions for this industry in signatory

nations

Create regional body to conduct quarterly surprise audits with no

advanced noticeadvanced notice

Provide 2% corporate tax incentive for all companies within scope

who achieve 100% compliance

Rationale:

Why regional for entire Asia-Pacific? It is critical to have support across

the entire region to avoid displacing assembly production from China to

other countries with low wages eg. Taiwan, India, Indonesia

Why frequent surprise audits? Periodic auditing creates a sustaining

culture of awareness within the organisations

Why provide a corporate tax incentive for 100% compliance? Apple and Why provide a corporate tax incentive for 100% compliance? Apple and

its peer companies are profit seeking entities. Recent negative publicity

at Foxconn facilities had no impact on share prices so will not drive

organisational change. However increasing profitability by using a ‚carrot’

instead of a ‚stick’ would have a tangible influence on the company bottom

line and engage corporate strategy. Corporate tax incentives also improve

the reputation of APAC as a good place to do business


Macromarketing vs. Critical Marketing Perspective

Macromarketing framework demonstrates how Apple is involved and impacted by a myriad of markets and institutions.

Due to its reputation as a globally recognised and well-respected brand and has the corporate responsibility to adhere the below.

Ethical concerns about Apple’s manufacturing in China could

limit its products’ appeal among socially-conscious consumers.Practices,

beliefs and ethnicities of not only U.S but developed nations globally.Differing

needs, wants and ultimately expectations

Socio CulturalPollution and other environmental side

effects from manufacturing facilities in China. Cheap

labour in China / Sweatshop conditions = manufacturing of cheap

products to maximize profitability at the expense of it Chinese factory workers

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Environment

Pros: US is a member of multiple multilateral

and bilateral trade organisations.Provide

strategic, tactical and operational

advantages.

Cons:

Some agreements

lower investment, market,lower investment, market,

labour and supplier barriers

Apple’s dependence on Chinese manufacturing

and markets makes it vulnerable to political unrest

Political

Monopolistic competition – Low barriers to entry due to BIG

players (i.e. HP, Microsoft, Dell and IBM).Increased labor

costs in China could take away the cost

advantage of some Apple products.

A fluctuating U.S dollar could

impact exchange rates,

making it more expensive making it more expensive

for Apple to do business in

markets like Europe and China

Economical

Demand for cheaper, faster, and more efficient technology. Apple need to

monitor competitors closely and continuously optimise and enhance

product offerings to meet consumer expectations

Technological

A variety of Apples products are covered by intellectual property laws.

This leaves the company highly vulnerable to both piracy and litigation

Legal

Mac iPad iPhone Watch TV Music

Duhigg, C., & Barboza, D. (2012). In China, human costs are built into an iPad. New York Times, 25.Dhir, A., Gahwaji, N. M., & Nyman, G. (2013). The Role of the iPad in the Hands of the Learner. J. UCS, 19(5), 706-727.

Support

References

Davidson, J. (2012, March 17). The eyes have it for the new iPad. The Australian Financial Review, p. 7. Retrieved from http://www.afr.com/Hutchinson, J. (2013, January 16). Talk of iPad upgrade. The Australian Financial Review, p. 8. Retrieved from http://www.afr.com/Moon, P. (2011, August 30). Old technology performs some new tricks. The Australian Financial Review, p. 43. Retrieved from http://www.afr.com/

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Slide 6:Kraemer, K., Linden, G., & Dedrick, J. (2011). Capturing value in Global Networks: Apple’s iPad and iPhone. University of California, Irvine, University of California, Berkeley, y Syracuse University, NY. http://pcic. merage. uci. edu/papers/2011/value_iPad_iPhone. pdf. Consultado el, 15.

Miller Jr, R. E. (1980). IPAD Products and Implications for the Future.

Chapple, W. (2005) Corporate Social Responsibility (CSR) in Asia, A Seven-Country Study of CSR Web Site Reporting. Business Society. Vol.44, no.4 pp.415-441

Apple. (2015). Supplier Responsibility Progress Report 2015. Retrieved April 18, 2015 from http://www.apple.com/au/supplier-responsibility/progress-report/ Choi, D. Y., & Gray, E. R. (2008). Socially responsible entrepreneurs: What do they do to create and build their companies? Business Horizons, 51(4), 341-352.

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