The recent release of Apple’s new smartphone, the iPhone 7, has overshadowed the class action lawsuits that the company currently faces from both American and Canadian law firms. Complaints have risen from iPhone 6 and 6 Plus users as the displays of their smartphones have become unresponsive, and has been labelled as the “touch disease” by the technology repair firm, iFixit.

In spite of iPhone owners approaching Apple with these concerns, the smartphone giant brushed aside their comments and continuously replied with unsatisfactory advice by offering to completely replace the phone for the high price of $300. iFixit explains that over time, the displays will become completely unresponsive to touch, making a phone that was released only two years ago virtually inoperative. This issue affects a large amount of iPhone 6 and 6 Plus users, as research shows that roughly 11% of Apple’s in-store repairs are from the “touch disease.” Infuriated customers are seeking compensation in the form of a nationwide repair, replacement, or recall at no cost. The lawsuit claims that Apple supplied products whose defects were “knowingly and intentionally concealed.” (Merchant Law Group, 2016) iFixit suspects that the problem stems from the thin iPhones being warped with use, which may move or damage the chips that allow the screen to interact with touch inputs. Although Apple has not formally responded to this issue, plaintiffs are looking for a jury trial to make a case decision.

iPhone 6 and 6 Plus users claim to have displays that are unresponsive to touch. image source: http://siliconangle.com/blog/2016/08/30/apple-sued-in-class-action-lawsuit-over-iphone-6-touch-disease/

The controversy surrounding the lawsuits is particularly alarming because it affects Apple’s brand image. Specifically, this affects the value proposition of the entire company as it claims to produce and supply technology that is innovative and reliable. If the quality of one of Apple’s signature products is in question, this significantly alters the public’s perception of all Apple merchandise; customers can lose trust in the quality of all Apple products, which would compel them to switch to other alternatives such as Samsung. The consequences of this complication could even influence future sales of Apple products, especially the iPhone 7, since its press event fell on the same day as the launch of the lawsuits. Future sources of revenue are vulnerable because customers are deterred from purchasing the heavily anticipated phone for fear of the “touch disease” being a problem for iPhone 7’s. Therefore, complaints of iPhone 6 and 6 Plus users pose a serious threat towards Apple’s reputation and character.

Overall, a simple act of negligence from iPhone engineers could be harmful to the future of Apple as customers have begun to question the integrity of the company. Not only is Apple’s relationship with their customers in jeopardy from this glitch, but the overall reputation of the tech giant is at stake.

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It is the main incentive of any company to maximize profit from selling a product with the most efficiency, but does that make it acceptable to go to unethical lengths? In particular, one controversial scandal that has made headlines over the past year is the issue concerning the automotive company, Volkswagen installing a software that allows vehicles to cheat pollution tests.

Nicknamed the ‘defeat device’ by BBC News business reporter, Russell Hotten, this specialized software allows the vehicle to detect a testing environment resulting in lower gas emissions and power usage. However, once the car is outside of the testing environment, the engines will emit “nitrogen oxide pollutants up to 40 times above what is allowed in the US.” The decision to install this software is unethical because it ultimately breaks the basic level of trust that should exist between a company or business and its consumers. Volkswagen has eventually admitted that approximately eleven million vehicles have been installed with the ‘defeat device,’ meaning that there is a significant amount of cars that surpass the acceptable carbon dioxide emission levels. This scandal is even more unethical because Volkswagen had previously campaigned the cars’ low emission levels as a marketing strategy. This false advertisement to the public has led Volkswagen to sacrifice the trust that was once held by consumers in exchange for temporary successes in sales. Although it may have been more efficient to create an engine that was cheaper to manufacture, Volkswagen has had to respond with the resignation of the Volkswagen group’s chief executive, Martin Winterkorn. In addition, the automotive group is facing considerable fines with a maximum amount of $18 billion on top of the potential resignation of more management board members. Although installing this device may have been logical at the time, Volkswagen is no longer viewed as a company that is honest with its customers and possesses integrity.

Overall, Volkswagen has lost its credibility with consumers and the automotive company because of the decision to install devices that go against the values of an ideal automotive company. This scandal is seen as unethical in the business world because it opted for an dishonest and fraudulent level of communication with the public.

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