Apple's Organizational Culture Into Foxconn's Operations

There are two stakeholders in this situation and they are: the companies Apple and Foxconn as well as the Chinese government. Apple has obligations to their employees both domestic and global. They need to be mindful that a corporation is only as good as its products as well as, its image. They need to be mindful that since its headquarters are in the United States, it should do all that it can to maintain a positive image. It is also important to make sure that the products they sell are quality products while keeping the price as low as possible. Foxconn has a stake in its people and the products they export. The unfair and inhumane working conditions forced the government to step in. Foxconn also needs to be mindful of the issues presented previously for Apple (the difference they are headquartered in China). The fact that labor violations were taking place, China’s government had an obligations to its people. They need to protect their citizens from hazardous work conditions and hold Foxconn accountable for their actions.

Walmart claims that its mission is centered on helping people live better which not only applies to customers and associates, but also to the workers who make their products. Furthermore, all the products that Walmart offers to its customers are supposedly verified whether they are produced with dignity and respect for workers. In order to be accepted as Walmart’s supplier there are standards and obligations expected from suppliers. Following section examines closely what are the key standards that according to Walmart prevail within its global supply chain (Walmart, 2012).

Hon Hai Precision Industry Co., Ltd which trades as Foxconn Technology group or as the media calls it Foxconn has been in media limelight recently due to labor problems that have surfaced from the organization. Foxconn is a major equipment manufacturer supplier to electronics giants like Blackberry, Apple, Microsoft Xbox, Sony PlayStation and the Nintendo Wii. The internet has several articles and controversies regarding the deplorable worker conditions and cases of suicides by the workers.

Seagate also ensures they adhere to ethical labor practices employed in various parts of the world. With more visibility, this allows Seagate assistance to ensure more equitable treatment of supply chain partners. They must incorporate the proper corporate social responsibility (CSR) in global supply chains by introducing codes of conduct that are expected to ensure socially responsible business practices throughout the supply

First is Immanuel Kant’s principle-based ethics theory. This ethical theory requires us to treat all people as an end and never as a mean. All people have rights and these rights can’t be sacrificed just to get a cheaper product, even if it benefits the collective good. The employees at Foxconn are being treated as a mean, rather than as normal human beings, and are being treated very unethically.

Wal-Mart is the largest grocery chain in the world, second largest company on Fortune’s 500 2012 list, and the largest employer in North America. Wal-Mart is faced with many dilemmas and issues that can be expected of such a large and imposing organization. These problems include environmental issues, employee’s issues, leadership issues, supplier issues and creating an uncompetitive market. This is not an exhaustive list, and Wal-Mart has other dilemmas as well, but this paper will concentrate on the issues involving Wal-Mart interaction with employees and the problems Wal-Mart faces with them.

Some of these problems in the supply chain often go unnoticed as the number of links between supply network members. Supplier Ethics Management is the “management of suppliers and supply relationships with strategies, programs, and metrics that better align supplier business conduct with purchaser standards, with the goal of reducing the purchaser’s overall risk of corporate integrity failure in the supply chain.“ (www.s-ox.com)

Apple is the company which put the record straight as "We are aware of no other company doing as much as Apple to ensure fair and safe working conditions. We work with suppliers to address shortfalls, and we see continuous and significant improvement, but we know our work is never done." However, as a biggest high tech company with this assertion they do not fulfill their responsibilities in order to health, safety and working conditions of workers as well as protection of environment and controlling & monitoring the materials that in their supply chain. Apple must be aware of that as a company it is also responsible for the actions of its suppliers; the unethical and illegal issues done by the suppliers put Apple in a guilty position as much as the suppliers. To being a company that respects of environment, workers' rights, and ethical values is required more conscious and morally responsible action. Apple must take a hand in the suppliers' actions and must make more harsh implementations in terms of the regulations. If unethical situations continue to occur, Apple should definitely finish its relationship with the suppliers rather than shut its eyes in order to being an ethical company as they

Apple Inc, nowadays is one of well known leaders in the field of electronics items. This American multinational’s headquarters is in Cupertino, California. Its best known products are Mac lines of computers, the ipod, iphone and ipad. There are many competitors are in the market

Walmart is well known all over the over the United States. Almost every town traveled through will have a Walmart. This store is known for their low prices and their ability have the essential items that are needed on a daily basis. According to their website, Walmart employs 2.2 million people around the world, with 1.4 million coming from the U.S. alone. These employees are operating in over 11,500 store in 28 different countries. In these stores more than 260 million people will visit a store in their area in a week (walmart.com, n.d.). With this many customers coming into the store customer service is essential. With customer service, feedback and response is a huge part to help associates understand what they are doing right and what they are doing wrong. Then along those lines we will discuss how Walmart manages their supply chain and their supplier quality. Finally we will talk about Walmart’s employee empowerment, training and teamwork.

From its start-up until the present, Apple’s corporate structure hasn’t changed a lot. Before his death, Steve Jobs was the one to make the calls regarding all the decisions; everything had to be passed through him. The company’s decision making processes were and still are centralized, in which the CEO makes all the decisions but it is incorporating more of a collaborative approach. The company is doing so by encouraging its hardware and software teams to collaborate. This approach however, never existed when Jobs was the CEO. Apple is considered a centralized company because it makes high capital investments that encourage centralization. It is highly competitive, offers high technology products, has a homogeneous product line, low product diversification, and has a lot of experience doing international business. Furthermore, it is organized on different basis; functional, divisional and geographical. Its functional structure is that the innovations and visions essentially come from top management and flow down the organization. Top management includes the board of directors in which they oversee and ensure that shareholders’ interests are being served for a long-term. Also, its functional structure is departmentalized and includes marketing, engineering, manufacturing, financing, IT, research and development. Its divisional functions include the products the company is offering, the market it is operating in and geographical areas. Apple has four product categories; the

The second issue to discuss is on the policy on labour practices for companies such as Foxconn. Reports on their practices have been reported for years. There are over million people still working for the company working in these conditions. This raises a question on what is being done about this. Being reported for many years, the company doesn’t seem to do much about it. This is where policy and regulation should be coming to play. However, there seems to be a lack of enforcement on this. (Caufield, 2012)

Organizational culture of Apple was one of several extremely successful companies founded in the 1970s that bucked the traditional notions of organizational culture. Apple's informal culture had become a key characteristic that differentiated it from its competitors.

The main moral issue in this case study is whether Apple is responsible for the mis-treatment of Foxconn Employees. In this paper, I will use the moral theories of rights-based ethics, moral relativism, and moral universalism as well ethical views from well-known authors Jacobsen and Friedman to explore where Apple 's moral responsibilities should lie. There is no doubt that the conditions at Foxconn are unfortunate, and ought to be improved; however in my opinion I believe Apple is not morally responsible for the mistreatment of Foxconn Employees since Friedman and Jacobsen argue the social responsibility of Apple should not include charitable actives such as supporting Foxconn employees and since what is right or wrong varies between different cultures according to the principle of moral relativism.

The consumer electronics magnate Apple Inc. has been accused of labor abuse in its Asian supply chain. The acquiescence of underage labor, excessive working hours and illegitimate low wage in China-based Foxconn factories is clear evidence of corporate social responsibility (CSR) omission. In fact, such acquiescence is the result of an exploitation chain, with Apple at the top, Chinese workers at the bottom and Foxconn in between.