Apple Ethical Issues: Conduct & Practices (2024)

Technology is nothing. What's important is that you have a faith in people, that they're basically good and smart, and if you give them tools, they'll do wonderful things with them.

- Steve Jobs

All businesses have some sets of ethical practices they follow. However, many companies, especially multinational corporations, fail to do so and are accused of ethical issues. In this case study, we will examine the ethical practices and issues of Apple.

Introduction to Apple

Apple Inc. is an American multinational technology company that designs and manufactures personal computers, smartphones, tablet computers, computer peripherals, and computer software. It was founded by Steve Jobs, Steve Wozniak and Ronald Wayne in 1975 in Cupertino, California, United States.

The company's first product was Apple I, a personal computer hand-built by Steve Wozniak (see Figure 1 below). For its first 30 years, the company was called Apple Computer Inc. until in 2007 it dropped 'computer' to reflect its ongoing expansion into the consumer electronics market. Currently, Apple is the largest information technology company by revenue and the world's most valuable company. As of 2021, employing 154 thousand people, the company had over 500 stores worldwide, including 271 stores in the United States.

Apple Ethical Issues: Conduct & Practices (1)Fig. 1 - Apple I Computer

Ethical practices

We do the right thing, even when it's not easy.

- Tim Cook, Apple's Chief Executive Officer

Business conduct

Business conduct is a set of principles designed to guide workers to conduct themselves with honesty and integrity in all actions representing a company.

There are four main principles that guide Apple's business practices: honesty, respect, confidentiality and compliance.

The company requires its employees, suppliers, contractors, consultants and other business partners to follow these principles when providing goods and services to Apple or acting on its behalf. In doing so, they should demonstrate high ethical standards, and treat customers, partners, suppliers, employees, and others with respect and courtesy. Additionally, they should protect the company's and its stakeholders' confidential information and make sure that business decisions comply with applicable laws and regulations. The company also has a set of policies regarding workplace behaviors, protecting Apple, individual accountability and business integrity .

Corporate social responsibility

Corporate social responsibility is a set of practices businesses undertake in order to contribute to society in a positive way.

Companies may set environmental goals, follow ethical practices and internal governance, or set social objectives - these are all forms of CSR that are integrated into a businesses' operations and interactions with its stakeholders.

To learn more about CSR see our explanation about Corporate Social Responsibility.

There are also some practices Apple undertakes to commit to society in a positive way. Apple seems to be highly value people. The company provides learning opportunities and ensures that health and safety standards are kept. What is more, it takes care of the environment by reducing its carbon footprint. As it says on the company's website:

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.com)

Ethical issues

Despite its commitments, there seem to be several ethical issues with Apple (see Figure 2 below). These include poor working conditions such as health and safety risks, child labour, poor environmental reporting, contribution to e-waste and tax avoidance.

People

After an investigation at one of Apple's suppliers, the Fair Labor Association found

excessive overtime and problems with overtime compensation; several health and safety risks; and crucial communication gaps that have led to a widespread sense of unsafe working conditions among workers "

In one of The Guardian's articles from 2019, Apple was named a defendant in a lawsuit filed in Washington DC by human rights firm International Rights Advocates on behalf of 14 parents and children from the Democratic Republic of the Congo (DRC). These parents were seeking damages and compensation for the death or serious injury of their children who, as they claimed, were working in cobalt mines in Apple's supply chain.

In the same year, the Ranking Digital Rights (RDR) Corporate Accountability Index, which rates companies on " commitments and policies, based on international human rights standards", gave Apple a score of 46%. A reason for the low score was Apple's

Lack of governance and oversight over human rights risks, and also lack of clear disclosure of policies affecting users' freedom of expression ”.

Environment

According to Ethical Consumer's rating for environmental reporting, in 2019, Apple received the worst rating. Despite some environmental impacts, Apple's 2019 Environmental Responsibility report included only one dated and quantified future environmental target which was generating or procuring at least 4 gigawatts of clean energy in its supply chain by 2020.

Additionally, the report included sections on the use of potentially hazardous chemicals. The company commented that

Apple products are free of PVC and phthalates with the exception of power cords in India, Thailand, and South Korea, where Ethical Consumer continues to seek government approval for our PVC and phthalates replacement. "

After eliminating the hazardous chemicals, Apple received Ethical Consumer's best rating for its pollution and toxics policy. However, although the company solved this issue, as of 2018 Apple in the United States abandoned the Right to Repair Bill which made the company further contribute to the problem of toxic e-waste.

Politics

In 2019 Apple was awarded the worst mark for strategies that were likely to be used to avoid tax Ethical Consumer. The family tree for Apple Inc on www.hoovers.com showed that the company had subsidiaries in countries such as Ireland, the Netherlands, and Singapore which are considered to be tax havens.

A tax-haven is considered to be a country or jurisdiction that allows large companies to benefit from the low taxation rates available in the country deemed to be a tax haven. This way, the company does not have to pay taxes in the country where it operates.

Despite Apple defending the accusation, the company's explanations were not strong enough and did not convince Ethical Consumers to change the mark. Additionally, there was no country-by-country financial information or reporting and no clear public tax statement confirming that it was the company's policy not to engage in tax avoidance activity or to use tax havens for tax avoidance purposes. As it turned out, by 2019 Apple had a tax gap of $100 billion for the decade and consequently lost a whole mark in the Ethical Consumer tax avoidance category.

Implications of the ethical issues

Ethical issues can have a significant impact on a company's brand image, consumers and employees. The several ethical issues of Apple Inc. mentioned above reflect on how the corporation follows ethical principles set in its business conduct and keeps up with its standards of social responsibility. Despite declaring its honesty, respect, confidentiality, compliance and commitment to society, Apple does not entirely accomplish its promises.

Nevertheless, the company does not seem to suffer the consequences. Its strong brand stands for high prices and stylish technological products. According to the most recent data from 2021, Apple was one of the top 10 consumer electronics companies and best brands in the world. What is more, the company's revenue is constantly growing. From 108.2 billion dollars in 2011, it grew up to 365.82 billion dollars in 2021. Therefore, it can be concluded that the ethical issues did not damage Apple's brand image and did not put off its consumers.

Apple Ethical Issues - Key takeaways

  • Apple Inc. is an American multinational technology company that designs and manufactures personal computers, smartphones, tablet computers, computer peripherals, and computer software.
  • Currently, Apple is the largest information technology company by revenue and the world's most valuable company.
  • Apple's business conduct includes four main principles that guide its business practices: honesty, respect, confidentiality and compliance.
  • Apple's actions regarding corporate social responsibility include creating learning opportunities, ensuring health and safety, and protecting the environment.
  • Unfortunately, there seem to be several ethical issues with Apple such as poor working conditions such as health and safety risks, child labour, poor environmental reporting, contributing to e-waste and tax avoidance.

Sources:

https://blog.hubspot.com/sales/steve-jobs-quotes

https://www.newworldencyclopedia.org/entry/Apple_Inc.

https: // www. britica.com/topic/Apple-Inc/Desktop-publishing-revolution

https://www.statista.com/chart/24857/total-number-of-apple-stores-worldwide/

https://www.statista.com/statistics/273439/number-of-employees-of-apple-since-2005/

https://www.apple.com/compliance/

https://www.apple.com/supplier-responsibility/

https://www.eoi.es/blogs/marieglueck/2012/05/07/how-serious-is-apple-about-csr/

https://www.ethicalconsumer.org/company-profile/apple-inc

https://www.grin.com/document/160761

https://www.statista.com/statistics/265125/total-net-sales-of-apple-since-2004/

References

  1. Fig. 1: Original Apple I Computer (https://www.flickr.com/photos/eevblog/14767800987) by Dave Jones (https://www.flickr.com/photos/eevblog/) licensed by CC BY 2.0 (https://creativecommons.org/licenses/by/2.0/deed.en)
Apple Ethical Issues: Conduct & Practices (2024)

FAQs

Apple Ethical Issues: Conduct & Practices? ›

Despite its commitments, there seem to be several ethical issues with Apple (see Figure 2 below). These include poor working conditions such as health and safety risks, child labour, poor environmental reporting, contribution to e-waste and tax avoidance.

What are the major ethical issues in Apple? ›

Is Apple ethical? Although Apple is ethical overall, there are certain ethical issues that still remain. For example, iPhones are produced with consideration for social responsibility, yet Apple has previously faced accusations of human rights violations, creating e-waste, and tax avoidance.

What is Apple's ethical conduct? ›

Respect—Treat customers, partners, suppliers, employees, and others with respect and courtesy. Confidentiality—Protect Apple's confidential information and the information of our customers, partners, suppliers, and employees. Compliance—Ensure that business decisions comply with applicable laws and regulations.

What are the ethical issues with Apple in China? ›

Apple has faced heat in recent weeks over its compliance with Chinese laws in order to continue its operations in China. Obeying local law in China means that Apple shares consumer data with the government and censors content according to Chinese government standards.

Is it reasonable for Apple to have different ethical standards for different countries? ›

Yes. Apple should apply different ethical standards to different countries because different countries have different cultures. Multinational companies need to respect different employees' ethical standards.

What ethical issues are involved in Apple and FBI case? ›

The ethical issue in this case is user privacy and government overreach into that user's privacy. The government's attempt to force a tech company to create a back door into a secure product could set a dangerous precedent for future companies.

What are the 12 ethical issues? ›

What Are the 12 Ethical Principles? Business ethics is an evolving topic. Generally, there are about 12 ethical principles: honesty, fairness, leadership, integrity, compassion, respect, responsibility, loyalty, law-abiding, transparency, and environmental concerns.

Is Apple environmentally ethical? ›

There are many different metals, rare earth materials and plastics used in each one. These come from areas all around the world. According to Apple's 2021 environmental progress report, one of Apple's main goals is to only use recycled and renewable materials in their products.

How is Apple socially responsible? ›

At Apple, we work every day to put people first — by empowering them with accessible technology, being a force for equity and opportunity, creating an inclusive and diverse work environment, and respecting the human rights of everyone whose lives we touch.

What is the Apple organizational issue? ›

A group of current and former Apple employees are publicly challenging the company on its workplace culture, following allegations that widespread incidents of racism, sexism, discrimination, harassment and abuse were being ignored by the consumer tech giant's human resources (HR) department.

What are Apple and Foxconn ethical issues? ›

Over the past decade, Foxconn has made headlines over its exploitation of employees and poor working conditions. Apple, in turn, has faced heavy public scrutiny for continuing to benefit from low labour costs, which promote poor conditions and the unethical treatment of workers inside its iPhone factories.

What are ethical concerns? ›

Ethical issues are defined as situations that occur as a result of a moral conflict that must be addressed. Thus, ethical issues tend to interfere with a society's principles.

What is the most ethical company? ›

MINNEAPOLIS --(BUSINESS WIRE)--Mar. 13, 2023-- For the ninth consecutive year, U.S. Bank has been named one of the World's Most Ethical Companies by the Ethisphere Institute , a global leader in defining and advancing the standards of ethical business practices.

Does Apple conduct business differently outside of the US? ›

" Differentiation is used by Apple to create offerings tailored to a specific markets overseas, and to stand out from the competition internationally. Through this strategy, the company has been able to establish a strong presence around the world.

Why does Apple conduct internationally? ›

With standardised global branding, Apple treats the whole world as one market and provides the same kind of products and services to everyone. This strategy allows them to get the most out of their technology and can meet the varying needs of people in different countries.

Is Apple or Microsoft more ethical? ›

Microsoft makes World's Most Ethical Companies list, Apple, Google, Facebook don't.

Why did Apple refuse to help the FBI? ›

At the time, Apple refused to create decryption software for the FBI, saying the request violated the company's First Amendment and Fifth Amendment rights. If such software were created, some fear, it could get into the hands of hackers and other bad actors who could use it for their own nefarious ends.

What political and legal issues does Apple face? ›

For instance, political crisis and wars in Europe are causing disruptions. Recent lockdowns in China have also affected Apple's performance (Gurman, 2022). Similarly, rising tensions between the USA and China may also become damaging for its performance.

How did Apple violate the antitrust laws? ›

The European Commission, the EU body investigating the charges, says Apple breached antitrust laws by stopping rival music firms like Spotify from advertising where and how users could subscribe to their apps.

What are the four 4 ethical issues? ›

The most widely known is the one introduced by Beauchamp and Childress. This framework approaches ethical issues in the context of four moral principles: respect for autonomy, beneficence, nonmaleficence, and justice (see table 1).

What are the three 3 types of ethical issues? ›

The three major types of ethics are deontological, teleological and virtue-based.

What are the 4 basic ethical concerns? ›

The 4 basic ethical principles that apply to forensic activities are respect for autonomy, beneficence, nonmaleficence, and justice.

Does Apple actually recycle? ›

You may be done with your devices, but chances are they still have more to give. We make it easy to recycle them for free. So you can protect the earth's resources and help get us closer to making every product with only recycled and renewable materials.

How does Apple reduce e-waste? ›

The company directed more than 38,000 tonnes of e-waste to recycling globally in 2021. Apple aims to eliminate all plastic from its packaging by 2025. The company is committed to minimizing resource use and the associated generation of non-hazardous or hazardous waste.

How does Apple positively impact society? ›

Apple's Employee Giving program, corporate donations, and grants support organizations in communities around the world, including those helping empower students, counsel people in crisis, and put food on the table for families around the globe.

What are the negative social impacts of Apple? ›

Our research highlights several ethical issues with Apple, including climate change, environmental reporting, habitats & resources, pollution and toxics, arms & military supply, human rights, workers' rights, supply chain management, irresponsible marketing, anti-social finance, and political activities.

What is Apple doing to help the environment? ›

Ahead of Earth Day, Apple is announcing progress toward its ambitious goal to make every product carbon neutral by 2030, including a new framework for sharing the reduced climate impact of new models of iPhone, iPad, MacBook Air, and Apple Watch.

How Apple treat their customers? ›

Apple's success secrets. 4 key tactics of high NPS to the Apple brand
  • A : Approach customers with a personalized warm welcome.
  • P: Probe politely to understand all the customer's needs.
  • P: Present a solution for the customer to take home today.
  • L: Listen for and resolve any issues or concerns.

What is Apple's biggest controversy? ›

Like many large multinational corporations, Apple has been accused of using tax shelters in order to protect its revenues. The company has been accused of using Ireland and Luxembourg to get tax breaks, allegations which the European Commission is investigating.

What is Apple's controversial issue? ›

Apple was criticized in 2021 for its plan to offer a different tool that would start checking iOS devices and iCloud photos for child abuse imagery. At the time, the company said the tool would turn photos on iPhones and iPads into unreadable hashes — or complex numbers — stored on user devices.

What is the controversy surrounding Apple? ›

Apple's antitrust fight isn't spooking investors

Perhaps Apple's biggest existential risk is its antitrust fight with Epic. The “Fortnite” maker sued the tech giant in August 2020, alleging that Apple's App Store payment system and restrictions against third-party app stores violated antitrust laws.

What labor law did Apple and Foxconn break? ›

Apple and Foxconn violated a Chinese labor rule by using too many temporary staff at a major factory that makes iPhones.

What is the agreement between Apple and Foxconn? ›

Apple supplier Foxconn wins AirPod order, plans $200 million factory in India, sources say. Taiwanese contract manufacturer Foxconn has won an order to make AirPods for Apple and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters.

What is the ethical dilemma of the Foxconn? ›

The current working conditions, low wages, and protest in term of committing suicide put the company into ethical dilemma. The main ethical dilemma about the Foxconn is that whether it's ethical for the company to place the firm's benefit ahead of employee's value.

What are the six ethical issues? ›

These principles include voluntary participation, informed consent, anonymity, confidentiality, potential for harm, and results communication.

What is an ethical issue example? ›

Some examples of ethical dilemma include: Taking credit for others' work. Offering a client a worse product for your own profit. Utilizing inside knowledge for your own profit.

What are examples of unethical practices? ›

Contents show
  • Taking Advantage of Misfortune.
  • Overbilling Clients.
  • Lying.
  • Kickbacks.
  • Money Under the Table.
  • Mistreatment of Animals.
  • Child Labor.
  • Oppressing Political Activism.

Why is Starbucks an ethical company? ›

In 2021, 95% of Starbucks coffee was ethically sourced and verified through the Coffee Farmer and Equity (CAFE) practices. CAFE verifies farming practices to adhere to economic, social, and environmental criteria to promote sustainable coffee. In 2021, Starbucks gave the Global Farmer Fund $100 million.

What companies have ethical issues? ›

There are many unethical companies out there, but this list is going to examine the ethical issues on the top 20 worst ones.
  • Nestle. Nestle is the world's largest food and drink corporation. ...
  • Tesco. ...
  • Coca-cola. ...
  • Nike. ...
  • Adidas. ...
  • Victoria's Secret. ...
  • L.L. Bean. ...
  • Amazon.
Sep 26, 2022

Is Amazon ethically responsible? ›

While it is the duty of governments to protect human rights, Amazon recognizes our responsibility to respect and uphold internationally recognized human rights through the ethical treatment of our workforce and those within our value chain.

What are the key strategic issues of Apple? ›

Despite its dominance in the space of mobile devices and computing, the company does face some key challenges. Among these weaknesses are its highly-priced products, entering areas of higher competition, and incompatibility with other software.

Why is Apple so different from other companies? ›

Apple's success lies in a strategic vision that transcended simple desktop computing to include mobile devices and wearables. Both performance and design are key drivers of the Apple brand and its ongoing success.

What makes Apple different to other companies? ›

Steve Jobs dared to be different, he catered to creators and dreamers. Apple was created to cater to people, not consumers. Unlike most corporations, Apple makes product decisions driven by design rather than finance and marketing. He sold dreams, not products.

What are Apple's business ethics? ›

Apple conducts business ethically, honestly, and in full compliance with the law. We believe that how we conduct ourselves is as critical to Apple's success as making the best products in the world.

What countries don't allow Apple products? ›

Among the Apple-less countries are Syria, North Korea, Sudan and Cuba, which face trade sanctions from the United States. That means the “exportation, reexportation, sale or supply” of any Apple goods from the U.S. or an American anywhere is prohibited in those countries, according to Apple's global trade compliance.

Why is Apple pulling out of China? ›

Apple is looking to move its production outside of China in order to diversify its supply chain. We may earn a commission from links on this page. Apple supplier Foxconn announced the creation of a major new factory in Vietnam and a $300 million investment to expand its current operations in the country.

What is Apple's ethical values? ›

APPLE'S ETHICS

They base their success on “creating innovative, high-quality products and services and on demonstrating integrity in every business interaction.” According to Apple, four main principles contribute to integrity: honesty, respect, confidentiality, and compliance.

What is Apple's ethics ranking? ›

This company ranked #48 in the Global 100, with an overall score of B-.

Which is more ethical Apple or Samsung? ›

As well, Samsung did poorly on Greenpeace's last electronics guide from 2017. Case in point: it scored a D- on hazardous chemical elimination while Apple earned a B. Samsung also flounders when it comes to doing right by its employees.

Which is the major ethical issue? ›

The most commonly experienced ethical issues include discrimination, harassment, unethical accounting, technological abuse, data privacy, health and safety, and favoritism and nepotism. Most of these concerns are experienced in workplaces.

What impact does Foxconn have on Apple? ›

Foxconn is Apple's biggest iPhone maker, producing 70% of iPhone shipments globally, which in turn makes up 45% of the Taiwanese firm's revenue, analysts at Taipei-based Fubon Research said this month. It also builds the device in India, but its Zhengzhou factory assembles the majority of its global output.

How is Apple being socially responsible? ›

At Apple, we work every day to put people first — by empowering them with accessible technology, being a force for equity and opportunity, creating an inclusive and diverse work environment, and respecting the human rights of everyone whose lives we touch.

Top Articles
Latest Posts
Article information

Author: Ouida Strosin DO

Last Updated:

Views: 5811

Rating: 4.6 / 5 (76 voted)

Reviews: 83% of readers found this page helpful

Author information

Name: Ouida Strosin DO

Birthday: 1995-04-27

Address: Suite 927 930 Kilback Radial, Candidaville, TN 87795

Phone: +8561498978366

Job: Legacy Manufacturing Specialist

Hobby: Singing, Mountain biking, Water sports, Water sports, Taxidermy, Polo, Pet

Introduction: My name is Ouida Strosin DO, I am a precious, combative, spotless, modern, spotless, beautiful, precious person who loves writing and wants to share my knowledge and understanding with you.