Mohawk College Ethics Case Analysis Discussion
Description
Discussion Questions: Part 1.
Do you think Apple should be liable for ethical lapses made by individuals further down its supply chain? Why or why not? 2 marks
Should Apple continue to work with the suppliers in an effort to change practices, or should they stop working with every supplier, even the conscientious ones, to make sure no “bad apples” are getting through? Are there any other options available to them? Explain your reasoning and thoughts. 3 marks
Do you think consumers should be expected to take into account the ethical track record of companies when making purchases? Why or why not? 2 marks
Can you think of other products or brands that rely or have relied on ethically questionable business practices? Did consumers call them out or did they encounter legal consequences due to the liability exposure? Have(has) the organization(s) done anything to improve their practices? Explain and provide and example of another company to support your explanation/reasoning. 4 marks
From a risk management perspective, what would your recommendation be for Apple to improve and manage their potential liability exposure(s)? Explain with examples. 4 marks
If you were part of a third-party regulating body, how would you deal with ethically questionable and potential liability imposing business practices of multinational corporations like Apple? Would you feel obligated to do something, or do you think the solution rests with the companies themselves? Explain your reasoning. 4 marks
Part 2. What structure(s) and procedures would you bring into the organization to improve these situations and potential liability exposure and prevent any future similar situation? Why did you select these options? How will they help? 6 marks
Remember that your project can be supported with outside documentation. Web based material is fine if it it reliable and relevant. Ensure you cite that material and do not just plagiarize.
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Apple Suppliers & Labor Practices
With its highly coveted line of consumer electronics, Apple has a cult following among loyal consumers.
During the 2014 holiday season, 74.5 million iPhones were sold. Demand like this meant that Apple was in
line to make over $52 billion in profits in 2015, the largest annual profit ever generated from a company’s
operations. Despite its consistent financial performance year over year, Apple’s robust profit margin hides a
more complicated set of business ethics. Similar to many products sold in the U.S., Apple does not
manufacture most its goods domestically. Most of the component sourcing and factory production is done
overseas in conditions that critics have argued are dangerous to workers and harmful to the environment.
For example, tin is a major component in Apple’s products and much of it is sourced in Indonesia. Although
there are mines that source tin ethically, there are also many that do not. One study found workers—many
of them children—working in unsafe conditions, digging tin out by hand in mines prone to landslides that
could bury workers alive. About 70% of the tin used in electronic devices such as smartphones and tablets
comes from these more dangerous, small-scale mines. An investigation by the BBC revealed how perilous
these working conditions can be. In interviews with miners, a 12-year-old working at the bottom of a 70-foot
cliff of sand said: “I worry about landslides. The earth slipping from up there to the bottom. It could happen.”
Apple defends its practices by saying it only has so much control over monitoring and regulating its
component sources. The company justifies its sourcing practices by saying that it is a complex process,
with tens of thousands of miners selling tin, many of them through middlemen. In a statement to the BBC,
Apple said “the simplest course of action would be for Apple to unilaterally refuse any tin from Indonesian
mines. That would be easy for us to do and would certainly shield us from criticism. But that would also be
the lazy and cowardly path, since it would do nothing to improve the situation. We have chosen to stay
engaged and attempt to drive changes on the ground.”
In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers
and labor practices. While more recent investigations have shown some improvements to suppliers’
working conditions, Apple continues to face criticism as consumer demand for iPhones and other products
continues to grow.
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McCombs School of Business, Texas,
A. Marazia March 2022
1
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Tags:
supply chain
ethics
consumers
