Ethical and Governance Issues Raised

3252 Words14 Pages
Table of Contents
1 Introduction 2
2 Discussion of case study 2
2.1 Identification of the Ethical and Governance issues raised in the case study 2
2.2 Critical analysis of the main ethical and the governance issues raised in the case study 5
2.3 An evaluation of the conditions that enabled the issues identified to arise 7
2.4 Recommendations to the company 9
3 Conclusion 11
4 References 12


Apple is one of the most successful companies to date, they have dominated most of the markets they have entered, and all of this was able to become a reality because of Steve Jobs, the founder of Apple. He is seen as a somewhat genius when it comes to business, and his employees seem to be very satisfied, but what most people
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corporate social responsibility; and (2) what has Apple actually done in regards to ensuring that its Chinese suppliers comply with Apple’s values.

Corporations such as Apple, are constantly under pressure to maximise shareholder wealth, as shareholders are the ultimate owners of the company. A key proponent of this view was Nobel-Prize winning economist, Milton Friedman. Friedman states in a New York Times article (1962) that managers’ key responsibility as agents was to the act in shareholders’ best interests; this was management’s social responsibility. By acting in the interest of others, such as the interest of society, management are not fulfilling their duty to shareholders and are effectively imposing a tax on shareholders, who could more efficiently allocate their resources to this purpose rather than rely on corporations.

However, modern theory known as corporate social responsibility (CSR), has complicated the situation in that stating that companies are not only responsible to its shareholders, but also to the stakeholders which its actions may impact (Freeman 1984). While this may seem to contradict the mantra of profit maximisation, Russo and Perrini (2010) suggest that in today’s conscience-minded society, success is based not only on maximising profit but also on a corporation’s stakeholder relationships, which include social and environmental issues.

The important factor in understanding CSR is that organisations
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