Corporate social responsibility is a key factor in how a company is perceived by consumers, especially in developed countries. However, as companies continue to outsource their supply chain into developing countries where labour is more cost-effective, it also becomes increasingly difficult to monitor sustainable practices throughout the supply chain. Apple, Inc. is a great example of a major corporation that has been affected by questionable practices in its supply chain. On the back of most Apple products exists a line of text stating, “Designed by Apple in California – Assembled in China”. The assembly process has been brought into question numerous times in recents years. For instance, contract manufacturers in China had allegedly taken part in labour practices that may seem unacceptable to developed countries. Instances as such have left a stain on the seemingly spotless Apple logo. Having realized the damage done by said practice to its brand, Apple took quick actions to answer these allegation by gradually raising labour standards to win back consumer confidence. As Apple’s supply chain is once again accused of environmentally and socially irresponsible practice in discharging harmful pollutants, Apple has once again taken actions to remove these stains by implementing policies that require suppliers to produce on higher social and environmental standards. But if Apple plans on keeping its highly held brand image in the public’s eye, the administration team in California will need to stay one step ahead of potentially harmful practices throughout its supply chain before the “Apple” starts to rot, instead of constantly cleaning up after suppliers as problems continue to arise.

ImageCredit: http://thegratefulbunny.files.wordpress.com/2010/06/rotten-apple-logo-zaw2.png

BBC Article – Apple meets China environment groups to polish image: http://www.bbc.co.uk/news/business-15768708

In recent years, Facebook has been dealing with numerous privacy issues as its clientele continues to expand. In a recent interview with PBS’s Charlie Rose, Facebook CEO Mark Zuckerberg stressed the fact that Facebook’s privacy control has been the same since its first day on the market and the company has attempted to make these settings easier for its user to understand and control.

Image credit:http://4.mshcdn.com/wp-content/uploads/2011/02/facebook-privacy-360.jpg

Then why are these privacy issues emerging now instead of the first days of Facebook?

The answer is simple. Facebook is now extending its reach beyond its initial niche market of tech-savvy college students and beyond the early adopters of this social networking service. Facebook now embraces an increasing number of less tech-savvy users through its rapid expansion, and privacy is one of the many points differences that are relatively more difficult for individuals in the late majority to swallow due to their lack of understanding of mechanics behind Facebook. The aforementioned reason, combined with the transparency of Facebook’s clear exposure of client information led to the increasing privacy issues. However, the public will start to accept the exposure of personal information as a price they have to pay for the most popular social networking service in the planet. Facebook will also be able to draw upon these complaints in adjusting the the taste of the it’s growing market.

Article on Forbes (including link to interview transcript) :                http://www.forbes.com/sites/kashmirhill/2011/11/10/mark-zuckerberg-and-sheryl-sandberg-facebook-is-the-luke-skywalker-of-privacy/ 

To many prospective entrepreneurs, Dragon’s Den seems like the perfect place to pitch their ideas for the venture capital and expertise needed to kick start their business. However, what they are pitching is not just he idea in their heads, but also their ability to turn these ideas into reality. Prospective entrepreneurs are constantly rejected by the Dragons because all they have is an idea. Such outcomes are not only restricted to the confined Dragon’s Den studio but also in the real business world. The uncertainties of human behaviour are simply impossible to predict. Therefore, ideas must be put into practice, and overtime the rough edges will be polished by the challenges presented by the real world. Having gathered operational data, entrepreneurs are able to add more reliability to their business pitch and prove to the Dragons that they have the passion and the ability to make things happen. This is why many participants with seemingly fantastic ideas are turned away on the show. The Dragons are able to apply their own experience and knowledge of the business world to the countless ideas that came without practical evidence of success. People are often overly optimistic about their products, a reality check is the first thing they need before risking everything for a dream that may forever remain a dream.

Learn more about Dragon’s Den here:          http://www.cbc.ca/dragonsden/

Dropbox, Inc. is a company founded by MIT graduate Andrew Houston in 2007. The company provides web-based file hosting service to a wide range of clientele across the world.

imagesource https://www.dropbox.com/home

Houston arrived at the idea of a easy-to-use cloud-based file storage due to his own frustrations with physically transferring files from one computer to another. Having realized there are others facing the same problem, Houston came up with a solution to the problem. Short after acquiring a $7.2 million seed funding, Houston entered into a market with many existing competitors offering similar services. However, Houston and business partner Arash Ferdowsi focussed on Dropbox’s ease of access across a variety of operating platforms, making the company a easy choice for PC users all over the world. The company, now in its 5th year of operation, is speculated to be valued at more than $2 billion, while holding 10% of the world’s backup client market share and expected to continue experiencing rapid growth and expansion in the years to come.

Sometimes, innovation is not only about thinking outside the box, but finding that dark corner inside a box which has yet to been explored.

With over 2 million unique visitors accessing the Dropbox server monthly and over 45 million users worldwide, Dropbox has undoubtedly made Andrew Houston one of the most successful entrepreneurs of the 21st Century.

Additional Sources:

Tech Crunch:                                 http://techcrunch.com/2011/07/12/dropbox-raising-massive-round-at-a-5b-plus-valuation/

Dropbox | Crunchbase Profile:       http://www.crunchbase.com/company/dropbox

The 2010 documentary Inside Job, explores the events leading up to the 2008 Financial Crisis, as well as the post-crisis economy. Over the last two decades, major investment banks teamed up with rating agencies and securitized insurance companies and exposed investors to an unprecedented amount of high-risky investments and loans, while betting against the very same investments which they promoted as high-quality, maximizing their own profit in the process.

The biggest issue behind these events is moral hazard. Moral hazards a situation in which the party responsible for decision making is not responsible for the consequences, and the decision maker is likely to take more risks and maximize his/her own interest. For instance, banks withheld potential risk factors from investor when promoting low-value CDO’s, because the investment capital belongs to the investors, and not the bank. Therefore, the consequences fall on the shoulder of the investors. Rating agencies manipulated reports to help banks achieve their goal. When the financial industry finally came crashing down, the United States government had to issue a 7 million dollar bailout for the financial industry, taken from the Federal Reserve Fund – taxpayers’ money. And the men and women responsible for plunging the world into this crisis walked way with their fortunes intact. It is essentially an ethical issue in the business practices of these firms that led to the economic recession.

With the recent emergence of the OccupWallSt protests, awareness is being raised amongst the general public about the unethical practices done by the financial industry. But most of us are still in the dark about what really happened, because it is still a “Wall Street government”.

Inside Job PressKit:

http://www.sonyclassics.com/insidejob/_pdf/insidejob_presskit.pdf

The growing concern for global warming has been a great challenge for many businesses with relatively large carbon footprints. Some businesses attempt to reduce its carbon footprint, others, such as Talisman Energy Inc. took a different approach to resolve the issue at hand. In 2004, Alberta-based oil and gas company Talisman Energy Inc. made a $507,975 contribution toward the production of a video with the sole purpose of undermining the scientific evidence behind man-made global warming, making the company the single largest contributor to the project. The project is headed by the University of Calgary. In return, the company received a tax receipt for it’s “charitable” donation. The campaign was eventually shut down for alleged partisan activities. The main ethical issue behind this rather clever public relations strategy, as stated by a campaigner for the Greenpeace Canda, is that “This was never about science. This was about implementing a strategy […] to cast doubt on the science so government wouldn’t force polluters to clean up their act.” The more-than-generous donation cast a cloud of deception over its true purpose while making it look like a simple act of support for a scientific cause. But in reality, the company invested the entirety of the donation in a marketing campaign designed to justify the company’s own business ideals and to draw more demand for what the company has to offer by lobbying against the Kyoto Protocol and other related government policies. Some may even argue that this is simply a tax-deductible channel for the company to impose its own propaganda.

In response to article: http://www.vancouversun.com/technology/Talisman+Energy+kick+started+climate+skeptic+fund/5399766/story.html

Welcome to UBC Blogs. This is your first post. Edit or delete it, then start blogging!