Competition may drive capitalism, but social responsibility and community relations are gaining ground as an important business strategy in today’s world. Many companies are joining forces not only with business competitors, but also with human rights and environmental activists (formerly considered enemies) and socially responsible investors academics, and governmental organizations.
Apple Computer Company is making strides to improve their community relations and social responsibility reputation. As previously stated in this blog, Apple is a company that prides itself on its care for the Global Environment, as stated on their official website:
"Environmental protection is a priority for the conservation of precious natural resources and the continued health of our planet. Apple recognizes its responsibility as a global citizen and is continually striving to reduce the environmental impact of the work we do and the products we create."
Also, in 2004, Apple was among the information and communication technology companies that started developing the Electronic Industry Code of Conduct (EICC), a program that promotes responsible supply chain management. According to the EICC website, the code “outlines standards to ensure that working conditions in the electronics industry supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible.” EICC includes not only major information and communication technology companies such as Apple, Cisco, Dell, IBM, Intel, and Microsoft, but also smaller contract manufacturers such as
Foxconn,
Flextronics, and
Sanmina.
Next comes the
PRODUCT RED campaign, founded by
U2 singer and activist Bono. The campaign applies a strong business model to help solve HIV/AIDS with a focus on Africa. Apple is one of six companies, including Gap, Motorola, American Express, to have signed on to create RED-branded products with significant portions of profits going to the
Global Fund to Fight AIDS, Tuberculosis and Malaria. "PRODUCT RED is unique in the world of what they call 'cause-related marketing,'" said Dan Rosan, program director for public health at the Interfaith Center on Corporate Responsibility. (The center is a coalition of 275 faith-based institutional investors with over $100 billion in assets.) Mr. Rosan told SocialFunds.com that "the very important thing about PRODUCT RED is that the money is substantial- it will probably end up being in the hundreds of millions of dollars over many years, and the money goes to a very important place."
Apple is also a member of the National Minority Supplier Development Council and takes part in minority business opportunity trade fairs across the country. The company funds an education technology research group, the Apple Classroom of Tomorrow, to explore new ways of teaching and learning. Apple donated $1 million to families of firefighters who died on September 11, 2001, and they support gay, lesbian, bisexual, and transgender issues and organizations.
From 2003 to 2005, Apple joined forces with The American Association of School Administrators to sponsor the President's Technology Award, designed to empower the next generation of school system leaders. The program recognized up to 18 member superintendents who demonstrate vision and leadership in educational technology to empower the next generation of school system leaders.
Furthermore, Apple has a full collection of environmental, health, and safety policies. In 2004, Apple was recognized for outstanding transportation benefits to employees that encourage alternative, environmentally friendly commuting practices.
Although the focuses of these programs are not all directly related to the Apple’s key businesses and product development, they are very arguably effective in positively enhancing Apple’s reputation in the corporate world and throughout the community simply by their getting involved and backing a cause.
Now for the critique- “Build it up to break it down” as Professor Morra would say! :)
Apple prides itself on its concern for the global environment, and it discloses environmental information on its website, however, the company reports limited quantitative data and does not publicize corporate-wide electronics recycling goals, which they should. While Apple is a more narrow company than its competitors, it could improve its environmental standing by disclosing more information about existing programs, publicly committing to recycling goals, and improving recycling programs, especially for iPods.
Apple should make more of an effort to engage in an open dialogue with the socially responsible investing community on these important matters. Two-way communication is so important to internal and external community relations in a leading company in this industry. What good are their community relations if nobody knows about their efforts?
Apple remains a leading innovator in its design efforts, but there is room to improve its corporate responsibility performance by increasing the overall transparency of the company.
Visit Apple's Supplier Code of Conduct site:
http://www.apple.com/investor/
