Week 9 Assignment 2 Challenges in the Global Business Environment

CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 1 Challenges in the Global Business Environment Kimberly P. Bentley Professor Jacinta Acquay BUS 475 Business and Society 11/18/2015 This study source was downloaded by ...

CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 1 Challenges in the Global Business Environment Kimberly P. Bentley Professor Jacinta Acquay BUS 475 Business and Society 11/18/2015 This study source was downloaded by 100000831988016 from CourseHero.com on 04-19-2022 10:03:29 GMT -05:00 https://www.coursehero.com/file/13077645/Week-9-Assignment-2-Challenges-in-the-Global-Business-Environment/ CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 2 Changes in Apple Code of Conduct The Apple Inc. Code of conduct was first introduced in 2005. Over the years, the company has made a number of changes in the code of conduct depending on the new risks that may present themselves or to cover areas that may have been overlooked at the beginning (Apple, 2015). The changes are a necessity given that new challenges present themselves every day in the highly competitive market, and the only way in which the company maintains its competitive advantage in the market is by changing as the global market changes (Ferrell, 2014, p. 43). The company conducts an audit every year in order to ensure that the suppliers adhere to the code of conduct and those who do not face the likelihood of termination of the contract. The code of conduct between the supplier and a corporation is crucial as it determines the nature of the relationship that exists between the two. Below is a list of some of the changes that Apple has made in its Code of Conduct over the years: a. Antidiscrimination In 2014, Apple made changes in the code of conduct for employees about screening for Hepatitis B and pregnancy. This is because although most companies conduct screening of Hepatitis B before hiring an employee, it could be viewed as a form of discrimination by the public. This is because it is not an infection that can be transmitted by contact and hence it is illogical to discriminate against those who may be infected. Also, at the beginning of the formation of the company, female candidates were required to take a mandatory pregnancy test. To the public, this could be misconstrued to be some form of discrimination against pregnant women. The globalized world in which we live in today is one in which consumers rarely want This study source was downloaded by 100000831988016 from CourseHero.com on 04-19-2022 10:03:29 GMT -05:00 https://www.coursehero.com/file/13077645/Week-9-Assignment-2-Challenges-in-the-Global-Business-Environment/ CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 3 to be attached to accompany which has a bad reputation. Furthermore, the world today is one in which people are constantly fighting for equal rights for women in the workplace. Mandatory pregnancy tests were removed from the code of conduct to show that the company embraced the idea of equal opportunities at work for both men and women. In an instance in which the test is to be conducted, Apple requires that guidelines be given to the candidates to ensure that they do not feel like they are being discriminated against (Apple, 2015). b. Working Hours and Days of Rest Excessive working hours for the employees is a problem that has been in the industry for quite a while. The company setup a code of conduct which stipulates that employees who work at Apple were required to put in 60 hours per week and could only exceed this in cases of emergency only. However, over the years, the company discovered that some their supply chains, employees exceeded this working hours by far and rarely ever a day of rest (Apple, 2015). This thus made it necessary for the company to stipulate that there would be no exceptions on the required number of working hours of the employees, especially when it comes to the supplies. The new code of conduct passed by the company requires that the suppliers try to limit having working work overtime and ensure that all employees have one day of rest. This can only be achieved by improving the management systems of the suppliers. c. Employment of Underage Employees This has been an issue that has put Apple under scrutiny a number of times as there is a claim that the company employs underage children in the sweatshops. The company conducts an audit of its suppliers and in a case in which the supplier is found to have hired an underage worker, This study source was downloaded by 100000831988016 from CourseHero.com on 04-19-2022 10:03:29 GMT -05:00 https://www.coursehero.com/file/13077645/Week-9-Assignment-2-Challenges-in-the-Global-Business-Environment/ CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 4 there are measures that the company takes. For instance, in one of the sweatshops in China, the company insisted that the supplier returns the underage child to her family with compensation and that the child is taken to a school of her choice (Apple, 2015). Reasons for Changes on Code of Conduct Apples have always tried to ensure that the company’s employees and anyone that the company deals with display appropriate conduct in all situations. It is important for suppliers to understand the crucial role that the reputation of the company plays in the determination of the overall success of the organization. Even in an instance in which tow companies may be offering a similar product at varying prices, consumers may opt to purchase the expensive product if the company has a good reputation (Ferrell, 2014, p. 64). The trust and confidence of the consumers in the company are important as they determine the consumer’s decision to be associated with the company. We live in an age that technology has taken over and transformed almost every aspect of our lives and corporations have highly been affected. In the past, there was the likelihood that there may be an ethical issue that arises in a company but it goes unnoticed. However, the modern era leaves no room for mistakes, especially when it comes to equality at work, social responsibility, and environmental awareness. A slip up by the suppliers can be detrimental to a corporation such as Apple that has taken years to get to where they are today (Apple, 2015). Apple always ensures to release an annual progress report, whether good or bad, to the public that goes further to show their corporate social accountability. It is important for suppliers to understand the important role that the code of conduct plays and adhere to it. It is imperative This study source was downloaded by 100000831988016 from CourseHero.com on 04-19-2022 10:03:29 GMT -05:00 https://www.coursehero.com/file/13077645/Week-9-Assignment-2-Challenges-in-the-Global-Business-Environment/ CHALLENGES IN THE GLOBAL BUSINESS ENVIRONMENT 5 that suppliers understand that given that they work together with Apple; their reputation is closely linked. The minute that people start talking about a company that supplies Apple with raw materials, it directly affects the reputation of the company. Thus, this is the reason as to why Apple decided to start auditing the suppliers to ensure that they adhere to the stipulated code of conduct. The code of conduct is made available to the suppliers to ensure that they fully understand the level of conduct that is required of them Conclusion After reviewing Apple Company, it is evident that the company has made some changes in their conduct depending on the changing issues in the society. This is imperative as it ensures that the company can survive in a highly competitive market. Despite all the negative attention that the company may get from time to time, the level of commitment by the company to ensure that it maintains a highly ethical and socially responsible company could be among the attributing factors the company’s long-term success. Consumers nowadays are highly aware of the level of responsibility they require from companies. There is no reason as to why a consumer would want to purchase a product associated with