Five Year Injunction? Oh my.

Apple gets five-year injunction over ebooks pricing affair 

Apple Inc’s Logo

Link to article – http://www.theglobeandmail.com/technology/business-technology/apple-gets-five-year-injunction-over-e-books-pricing-affair/article14158847/

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This article touches upon an ethical responsibility that is held by a tech giant as large as Apple.

Firstly, Apple is being unfair to consumers by trying to merge with other firms in order to dominate the e-book market.

This news has affected the shares of Apple “down 0.1 per cent at $494.64 in morning trading.” a perfect example of what may happen in the short-run when consumers believe that a company is violating its ethical responsibilities, otherwise known as Corporate Social Responsibility (CSR). Further, the injunction is a bad record on the company’s ‘transcript’, and may affect business through sponsors or 100s of other areas (future mergers, business partners etc.)

Ethics is the most fundamental aspect in running a business. Therefore, apart from the short run effects, violating the code of ethics also leads to long run consequences. These could include a reduction of applications for jobs in the company, a substantial loss in sales or boycotting, negative publicity, legal troubles due to regulations (i.e. environmental laws), destroyed brand reputation, and the list goes on…

All together, it is imperative that a multi-national corporation ensures it is fully compliant with the idea of CSR in all aspects of its operations.

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A concise 10 point list on the principles of positive business ethics can be read here. It presents a fantastic piece on the key aspects of Business Ethics –http://www.philiphumbert.com/Articles/10BusinessEthics.html.

A very interesting read on the pros and cons of Apple Inc. by Investor Place – http://investorplace.com/2012/02/is-apple-a-buy-3-pros-3-cons/

One of my favourite quotes, by Immanuel Kant – “In law a man is guilty when he violates the rights of others. In ethics he is guilty if he only thinks of doing so.”