In 2009, Apple was accused of allowing labor rights breaches at Foxconn, a key supplier of its goods in China (Lee et al., 2016). The most significant problem was that a considerable part of world activists questioned Apple’s compliance with fair employee treatment in many parts of the world. Due to the inexistence of effective trade unions in most developing countries, it is often hard to verify the level of social and medical insurance that ordinary workers obtain. At the same time, public opinion was significantly influenced by people’s country of living standards in comparison with Foxconn’s country.
Corporate Social Responsibility
Corporate responsibility initiatives may increase worker motivation in the workplace and lead to increased productivity. The vast majority of publicly offered companies report about the employees’ insurance and treatment as a significant part of environmental, social, and governance (ESG) compliance. In today’s world, even the most conservative corporate investors try to avoid those companies that ignore their contribution to the ESG movement. Consequently, it is critical to realize the significance of timely assistance to workers’ treatment at any level of danger connected with their activity.
Public Opinion and International Business
Public opinion has been significantly polarized and divided between those who actively support the company’s vision and mission and those who are concerned about companies’ compliance in the labor and manufacturing domain. For instance, on December 18, 2014, further evidence was shown in a British Broadcasting Corporation (BBC) broadcast that demonstrated that labor rights breaches remained in China, this occasion at Pegatron, another significant Apple vendor that specialized in the manufacturing of Apple’s iPhones (Lee et al., 2016). Even though information about the manufacturers of the iPhone was not classified, all charges were ultimately brought against the company by the customer.
It is crucial to specifically distinguish the countries level in which workers operate. On the one hand, in developing countries, such as China, it is often true that renting a factory and its employees is less expensive than maintaining them at one’s own expense. This is especially true if the manufacturing is located in a nation where expenses and labor are lower than in the United States. On the other hand, outsourcing manufacturing, particularly overseas, generally entails relinquishing some daily management to the contractor.
The Road Ahead
In my opinion, Apple should have to rethink the process of outsourcing work. The company should control the production entirely to ensure the safety of employees and the following of sanitary and other standards.
Lee, S. H., Moi, M. J., & Mellahi, K. (2016). Apple and its suppliers: Corporate social responsibility.