Apple, with it’s new, flagship smartphone, the iPhone 6, set to be revealed today, is condemned by CSR Organizations such as China Labor Watch and Green America due to the company’s failure to improve working conditions in its supplier factories in China. Please find the link to the article below:
http://www.cnet.com/news/apple-chastised-for-unsafe-working-conditions-in-supplier-factory/
I agree with Mr. Milton Friedman that mere promises of improving worker conditions are tactics “approaching fraud”. However, his view of disregarding CSR completely, and working only towards maximizing profits (while keeping withing the boundaries of the law), is, in my opinion, too extreme. As Mr. Edward Freeman voiced, it’s important to consider all stakeholders, and the community and employees are no exception. In fact, disregarding CSR in Apple’s case can be disastrous for the company given the negative effect on its brand image days before the revelation of the new iPhone. Apple should live up to its promises of maintaining worker conditions. This would have a positive impact on the company’s public image, thereby ensuring that the new iPhone is met with positive-thinking customer and critics bases. Furthermore, it can act as an extrinsic motivator for the employees. This would allow the company to increase the productivity of its suppliers in China, and hence reduce production costs. Of course, the long-term benefits of a “good-will” cannot be forgotten, especially since Apple is a premium brand. So, while Apple, doesn’t have to be purely altruistic, it shouldn’t overlook ethics completely.