1. Do you think that apple has demonstrated global corporate citizenship, as defined in this chapter ? Why or Why not ? Global corporate citizenship means that companies must not only be engaged with stakeholders but stakeholders themselves alongside government and civil society. Since companies depend on global development, which in turn relies on stability and increased prosperity, it is in their direct interest to help improve the state of the world. When Apple investigated and found some violations of its supplier code of conduct, which it had introduced in 2005. The following year, the company published its first annual supplier responsibility progress report, I think Apple demonstrated global corporate citizenship. Apple admitted its violations and did everything in its power to correct them. By 2011, Apple had inspected nearly 400 suppliers and had terminated 11 for serious violations.
2. In its response to problems in its contract factories, do you think Apple moved through the stages of corporate citizenship presented in this chapter ? Why or Why not ? _ Corporate citizenship is a term used to describe a company’s role in, or responsibilities towards society. So in Apple’s situation, it has moved through the elementary stage because at first it seemed they were not concerned the citizenship. During peak production periods, all three factories had exceeded the mandated limit of 60 hours of work per day, and many employees had been required to work more than 7 days in a row not receiving fair pay for overtime, unsafe conditions. Then Apple went through engaged stage, it turned to Social Accountability International and announced it had joined the Fair Labor Association. This is because Apple became aware that they needed to change public expectations. To make sure all contractors abiding the code; at Apple’s request and with the company’s financial support, the FLA immediately undertook the most extensive audit ever conducted of conditions in China’s electronics supply chain. 35,000 workers filled out anonymous questionnaires about their experiences. This process means that Apple is in the innovative stage and they continue in the process of auditing and tracking improvements.
3. What are the advantages and disadvantages to Apple of using its own company-specific supplier code of conduct, rather than a global code, such as those discussed in this chapter? Apple’s Supplier Code of conduct was already one of the toughest in the electronic industry, but it have made it even stronger. And its ensure compliance by conducting hundreds of audits per year worldwide. Its efforts span the entire range of its supply chain – from the manufacturers of tiny components to the facilities that assemble its final products.
4. What are the advantages and disadvantages to Apple of using and independent third-party auditor, rather than rely on its own internal audits? The advantages of bringing in a third-party firm are numerous. Investigative auditing firms employ accountants who do this work on a regular basis. As such, they know what to look for. Another advantage is impartiality. An outside investigative auditor – who has no personal or professional relationship with your employees – is likely to conduct the audit in an impartial manner. This is important, as these investigations can lead to criminal prosecution. Thus, relying on an internal accountant to find fraud or theft might place him in an uncomfortable situation, which can affect morale.
The FLA can certainly claim to be more independent. It conducts its own audits and requires members to disclose the results. And it also has a third-party auditor re-audit some of its own inspections to make sure progress is being made on fixing violations. If indeed you have an accountant trained in investigative auditing on staff, it makes sense to use your own forensic accountant in the investigative auditing process. The positive side of this is that it gives you more control over the dissemination of information. It is typically harder to control dissemination of information when an outside firm is involved. Another disadvantage is cost-related. Hiring an investigative auditing firm is typically far more expensive than using your own investigative accountant.