INT 220 Assignment 6-2
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Global Supply Chain Case Study
INT 220 Assignment 6-2
[Author name]
7-23-2023
Apple faced allegations of labor rights violations at its suppliers in China, first at Foxconn in 2009 and later at Pegatron in 2014. The media and public opinion played a significant role in bringing attention to these issues and holding Apple responsible for the actions of its suppliers.
Apple's offshore outsourcing strategy presented challenges in maintaining control and monitoring supplier practices. Despite CSR concerns, Apple remained highly profitable and maintained strong customer loyalty.
Corporate Social Responsibility
Corporate social responsibility, specifically related to employee treatment, is crucial for a business for several reasons. Firstly, ethical treatment of employees is essential for upholding the
company's reputation and brand image. Negative publicity regarding labor rights violations can tarnish a company's image and lead to consumer backlash. Secondly, addressing CSR concerns improves employee morale, productivity, and loyalty. A happy and engaged workforce leads to increased efficiency and innovation, contributing to the company's long-term success. Finally, companies with strong CSR practices tend to attract socially responsible investors and partners, enhancing their overall financial sustainability.
Public Opinion
The media and public opinion can significantly impact a business, as seen in Apple's case. Negative publicity and public scrutiny compelled Apple to address CSR concerns and take steps to improve labor conditions at its suppliers. Public perception can affect consumer buying
behavior, investor confidence, and the company's stock value. Companies must proactively engage with the public and address CSR challenges to maintain trust and credibility.
International Business
In international business and supply chain management, companies face unique challenges due to different cultural, legal, and economic environments in various countries. Companies must ensure that their suppliers adhere to ethical standards and labor regulations, even in offshore locations. Engaging in responsible sourcing and regular monitoring of suppliers is essential to mitigate CSR risks and maintain a positive brand image.
Labor Practices
Advantages of commonly used labor practices in international business, such as offshore outsourcing, include cost savings, flexibility to meet fluctuating demand, and access to a skilled workforce in certain regions. However, disadvantages include loss of control over labor conditions and potential negative publicity if suppliers violate ethical standards. Companies must
strike a balance between cost efficiency and ethical responsibility when choosing labor practices in international operations.
The Road Ahead
To proceed following the incidents outlined in the case, Apple should adopt a proactive and transparent approach to corporate social responsibility. This includes:
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