Introduction
One of the most prominent companies to have introduced CSR into corporate practice is Apple Inc. The company, in past decades, has often been linked to accusations of racism, child labor, and unethical stakeholder behavior (AFP, 2022). However, Apple Inc. has implemented new corporate responsibility practices by raising the minimum age of employees to fifteen and formalizing basic ethical principles for customers, employees, investors, and suppliers in a code (Apple, 2022). Among other things, to minimize reputational risks, the company has launched a policy to support African Americans and continuously improve working conditions for its employees in other countries, including the Foxconn plant in China.
Discussion
For Apple Inc., a well-developed supply chain is a crucial advantage its competitors lack. The current supply chain model is associated with many risks and conflicts of interest, so Apple Inc. uses a code of ethics to manage logistics (Apple, 2022). This includes requirements related to improving the safety of employees and treating them fairly. The advantage is that if a partner company violates the CSR, Apple Inc. can replace it with a more loyal competitor. There is already a known example where the company has encountered unethical behavior by suppliers, which has been the subject of public debate (Condliffe, 2017). It should be noted that Apple is now attentive to ethical violations by its partners because it values its brand reputation. It cannot, however, be said that business ethics is the basis for supply chain construction, for a large multinational company like Apple Inc. Optimization of profit channels is probably paramount. Nevertheless, the development of supplier relationships and logistics management are based on ethical standards, violation of which has destructive consequences for the company.
The above conclusions are not unfounded because business practice shows many examples where CSR does lead to an increase in business metrics. Academic evidence shows that implementing CSR is associated with increased profits for companies and sales, as well as reduced employee turnover (Morrison, 2022). This means that CSR creates a favorable environment for organizations in which employees want to keep working and increase their productivity, which becomes the reason for increased profits. Another study provides specific statistics for these improvements: it is reported that sales increased by 20%, productivity grew is 13%, and employee turnover was cut in half (Kline, 2020). Additional effects of CSR implementation are a 6% increase in shareholder value and a reduction in reputational and financial risks.
Conclusion
In other words, the numbers shown do demonstrate an increase in competitiveness for companies when implementing CSR practices. Nevertheless, management should understand that CSR implementation, as well as any organizational change, should be based on careful planning and risk engineering to reduce the likelihood of any undesirable outcomes.
Reference List
AFP (2022) Apple accused of mishandling sex misconduct complaints: report. Web.
Apple (2022) Compliance policies. Web.
Condliffe, J. (2018) Foxconn is under scrutiny for worker conditions. It is not the first time.Web.
Kline, M. (2020) How to drive profits with corporate social responsibility. Web.
Morrison, S. (2022) Can you make a profit and be socially responsible? Web.