Challenges in the Business Environment
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Challenges in the Business Environment
Most
businesses are conducted within the bounds of law but most important ethical considerations. The
sustainability of any business or corporate depends on its approach to ethical issues. Ethical considerations related to the impact of business operations on
the environment, society practices, compliance with
regulatory agencies, taxation
requirements, and employee welfare. However, over the past years, the ethical
responsibility has expanded beyond the operations of any corporation to the mandate of its suppliers. Companies
have the values and beliefs that they hold dear. These values are the basic frameworks
upon which a company’s rules are founded on. Integrity and transparency among
others are some of the most important values to any corporate. The supplier
code of conduct is a policy document that outlines requirements to be met by
all companies wishing to engage in business practices with a particular firm.
Companies have incorporated changes into their supplier code of document in a
bid to promote the values that are most important to them such as the employee’s
welfare. As a company, I believe that one of the key factors to our enlisting
in the fortune 500 is our commitment to our supplier code of conduct. Our
current supplier code of conduct is the result periodic changes to accommodate
emerging issues in business operations. This paper will discuss changes in the
Supplier Code of conduct of Apple
International Corporation and how it has changed over time drawing appropriate
examples.
The
purpose of Apple’s supplier code of conduct is to guide our partners in their
activities. As a company, we hold our
suppliers and ourselves to the highest standards in regard to human rights,
responsible business practices, and the safeguarding of the environment. This
means going far beyond the common industry
practices all in a bid to improve the lives of our suppliers’ employees. Our
supplier code stipulates the protection standards for the employees which are
fair working hours, nice living conditions, and safety at the workplace.
Changes
in Apple Supplier Code of Conduct
The supplier
code of conduct of Apple has and often undergoes a lot of changes and revision
to cater for the most recent emerging issues in business operations. The supplier
code has five essential sections which
include human rights and labor, employee safety and health, the environment, and
ethics (Apple Inc., 2018). The Code of Conduct is taken seriously by the
company and has seen a lot of
improvements and updates over the past years (Apple Inc., 2018). The 2016
report reveals that a close to 97 percent of the company suppliers had complied
with its policy of 60 hours per week in the previous year (Apple Inc., 2018). According
to the executive board, it is a huge milestone that had never been experienced
by the company before. The company has also placed in position stringent rules
in its supplier code that they could risk losing the privilege of production
and sales in any non-compliance behavior. Suppliers are required to provide
working conditions that are safe, treat the employees with respect and dignity.
They are also required to act in an ethical manner. There are requirements for
high standards in regard to environmental and social responsibility. This is a
big contributor to a reduction in carbon emissions.
Before
striking any deal with a supplier, the company conducts a risk assessment.
Scrutiny is done in regard to suppliers not treating their workers in an
ethical manner. Auditing takes place to assess such things such as supplier
employee qualifications and ethical conduct. In a past unannounced audit with
potential requests, Apple canceled most
of the requests from the suppliers. It is very unfortunate for willing
manufacturers who cannot meet Apple’s pass mark in order to supply the company.
The scoring method for the audit is very rigorous and the suppliers will rarely
pass the minimum score.
Changes in
Labor and Human Rights
This
is an area that has seen improvements over the years especially on the stance
of
empowering workers. The company has become aware that
in some countries education access is still very difficult. In retaliation, it
has introduced the Supplier Employee Education and Development Program (SEED).
Under the program, classrooms have been
set in supplier facilities with courses such as computer,
graphic skills, and Human Resource being
offered. Other recent additions to Apple
supplier code are in wages and benefits where suppliers are required to a give
a minimum wage and other benefits that have accrued. The suppliers are required to
communicate the salary structure before employing any worker. Another recent
addition to the Supplier Code of Conduct
is the grievance system. This is where Apple requires any supplier to give the
workers freedom to have a grievance system that will allow communication among
them and also the management. With the advent of recruitment agencies as a
recent trend in human resource management, Apple requires its suppliers to
ensure that any hiring firm that works for them complies with its supplier code
of conduct. Students who are allowed to work for the supplier company’s should
be properly managed by collaborating with educational partners to provide
appropriate support and training.
Changes in
Health and Safety
Among
the recent changes in health and safety
in Apple’s supplier code of conduct is the addition of health and safety permits
for suppliers. These are in regard to the suppliers complying with health
regulatory agencies. They should possess the appropriate documentation as
evidence that they have been certified to supply goods that are safe and meet the health safety measures. The incident management is a recent
development in Apple’s supplier code of conduct. This recent addition requires
that supplier firms have a system for employees to report health and safety
incidences. The system shall also investigate, track and manage reports that
concern health risks. The incidence management system shall also implement
actions aimed at mitigating health risks, offer the necessary treatment, and
facilitate the return of workers to work.
Changes in
Environment Conduct
Responsibility
towards the environment is a highly valued standard by Apple. In this context, various
changes and additions have been included in the environment section over the
previous years. Apple has a list of products that it requires all its suppliers to regulate their production. These
products are those that are meant for other consumers and Apple too. These
regulated products are chemical compounds and polymers such as plastics and wire
coatings. These compounds have a direct harmful effect on the environment and people. Examples include asbestos, chlorine
and its compounds, lead, mercury, perfluorinated compounds, nanomaterials and
radioactive substances among others. Suppliers are required by this newly added
code to regulate the production of the above-mentioned
compounds. Protection of stormwater is a
new development. Apple requires suppliers to adopt measures to prevent
contamination of stormwater runoff. This
means preventing harmful discharges and spills from supplier plants from
entering, drains, public water supply and other water bodies. As part of
environmental protection measures, Apple has included noise management as part
of the codes in its supplier code of practice. The boundary noise management
requires suppliers to identify monitor, reduce the amount of noise generated by
the facility through a sound design of the facility and the use of appropriate
equipment in production.
Changes in
Ethics
Apple
has added on to its supplier code of conduct the Customs-Trade Partnership
Against Terrorism (C-TAP). Suppliers are required to comply with security
standards and procedures stated by the U.S. Customs website. This is an attempt
to cooperate in combing terrorism.
In
conclusion, Apple Supplier Code of Conduct is a policy document that outlines
the mandate of all suppliers willing to conduct business with Apple. It
outlines the responsibility of suppliers to ethical practice, human rights, and
health of its employees. Over the recent past, it has undergone changes to
cater for arising issues such as the CTAP, Supplier Employee Education and Development
Program (SEED), and health and safety permits among others.
Reference
Apple Inc., (2018). Apple Supplier Code of Conduct.
Retrieved from
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