Evolving Corporate Responsibility in a Global Context
From a legal perspective, in many countries, a company is a legal entity with a legal personality. However, the rules governing rights and obligations may differ (Dine & Koutsias, 2020). Generating profits for shareholders has now shifted from a fundamental, primary goal to a mechanism for achieving more severe goals.
If the missions and visions of many large corporations, for example, Apple or Coca-Cola, do not contain a word about profit, about social responsibility, competitiveness, customer satisfaction, and creating a better world (Cardona & Rey, 2022). The responsibility of companies began to change, first outside the framework of direct intervention from legislation and authorities – the phenomenon of social and environmental responsibility has become a logical and long-overdue step in the development of the world community.
Several factors contributed to this development, driven by the external environment. Remote communication and the entry of industry leaders into global markets have confronted organizational leaders with the need for cultural and moral adaptation, and external factors, such as the pandemic, have only accelerated this process (García-Sánchez & García-Sánchez, 2020).
Global environmental issues have attracted increased international attention amid the imminent risk of irreversible consequences from warming or ocean pollution (Rajamani & Peel, 2021). Accordingly, companies, as part of a global community with great opportunities, began to invest resources consciously in protecting the environment, switching to renewable sources, and adopting a value-based approach to social processes before the introduction of legislative restrictions. Consequently, organizations are more accountable for more in the natural and human world.
Apple’s Sustainability Efforts: Achievements and Challenges
Apple is a pioneer in technology – they were among the first to offer a computer model, operating system, and smartphones as everyday devices, and the list of achievements does not stop there. The company was founded in 1976 and has since been a market leader in smart devices and service solutions, as well as one of the most recognized brands in the world (Li, 2021). The strengths are reflected in the IT giant’s mission: “Apple strives to bring the best personal computing experience to students, educators, creative professionals, and consumers around the world through its innovative hardware, software, and internet offerings” (Apple, 2024a).
The strategy is mainly focused on innovation while maintaining stability – the company holds annual conferences to present new products, and its business goals are to expand into global markets and maintain a pioneering position in the latest high-quality devices for the premium segment. Currently, Apple produces smartphones, tablets, computers, and virtual and augmented reality glasses, offers many services, including cloud services, and conducts active investment activities, owning, for example, the Beatles brand.
The company was chosen because it has a rich history and global capabilities that enable large-scale social and environmental responsibility assessment. However, according to the MSCI rating, Apple is rated average – the company’s carbon emissions are below the established threshold of 1.5 degrees, and its ESG rating is BBB (MSCI, 2024). According to this indicator, the organization is in the bottom half of the industry, taking responsibility for data security, supply chain, standards, and corporate behavior, and using few resources in electronic waste utilization, human capital development, and clean tech (MSCI, 2024). According to SDG, the company is involved in climate action and clean water goals (MSCI, 2024). Given Apple’s capabilities, the rating suggests the organization is not putting forth its full effort to become a sustainability leader. Still, its reputation is maintained at a stable average level.
However, the statements sound much more severe from the company’s side. Apple has become completely carbon neutral in manufacturing and aims to achieve a similar achievement in products by 2030 (Apple, 2024b). Social responsibility is reflected in the company’s value approach, which promotes diversity and inclusion; governance is guided by transparency and accountability at every operating level (Apple, 2024b).
However, the 10-K report, although it repeats the achievements indicated on the official website, an analysis of the company’s financial activity shows several problems: an increased threat to liquidity due to an increase in short-term debt, a transition from its own to a debt capital structure, which in total, even with growing sales, poses risks to maintaining current levels of growth and project implementation, not to mention new initiatives in the field of environmental responsibility (Apple, 2024c).
However, the company does not assume such responsibility in its press releases. Current news reflects branding through the positioning of integration into the sports industry, focusing on the ongoing development of Apple Vision Pro, leaving the sustainability news area rather inconspicuous below, with content that has not been updated for a long time (Apple, 2024d). Greenwashing is absent from crucial press releases; only brief event descriptions appear.
The company presents CSR under the Apple Stories sub-brand exclusively through content that is more than 6 months old. Diversifying delivery involves positioning stories about education, communities, the environment, and accessibility (Apple, 2024d). The company does not mention B Corp certifications or engage in optional reporting in press releases. Sustainable business practices are often undermined by periodic supply chain labor standards scandals (Knowbility Consultancy, 2023). However, this fact does not prevent sales from growing, and trust in the company, although it has fallen somewhat after the death of Steve Jobs, is returning to momentum under the current CEO, Tim Cook.
Accordingly, from society’s perspective, although the Apple team postulates a value-based approach, it is not immune to scandals involving people and society. At the same time, the company makes a significant contribution to charity and education. However, diversity is underrepresented on the board of directors, contrary to the cultural diversity approach (Apple, 2024e). Economic issues, including liquidity constraints and rising operating costs, but sales continue to grow despite global crises. Planetary contribution is described as a significant achievement in eliminating harmful gas emissions from most business operations – a stage that most large companies, even in this industry, have not yet achieved.
The sustainability development strategy includes stricter environmental protection. One of Apple’s critical problems lies in the massive consumption of semiconductors, the extraction of which, for example, in Taiwan, where Apple is the largest buyer, uses non-renewable energy sources (Hao & Bu, 2022). Developing solar or wind energy to produce critical materials for all devices is one of the company’s essential goals, reflecting its reputation and planetary responsibility.
Apple’s overall score is 6 – the company is doing more than most other major players in the market, but it still finds itself at the center of scandals. It does not work on many critical, agenda-driven areas. As a result, I tend to agree with MSCI’s assessment and appreciate Apple’s direct contributions. Still, I believe the organization can do more given its heavy reliance on non-renewable resources such as those used to make semiconductors.
Recommendations
The long-term recommendation is to reduce unsustainable indirect environmental impacts by transitioning semiconductor production to renewable energy sources. Production turnover should also increase at the current pace, leading to even more significant consequences for the Earth. Short-term recommendations should call for more responsible local management with robust oversight to reduce the risk of reputational damage from scandals. Additionally, Apple could launch a more robust marketing campaign to eliminate e-waste, leveraging its service networks to collect it and ensure proper disposal.
References
Apple. (2024a). Product feedback.
Apple. (2024b). Environmental social governance.
Apple. (2024c). Annual report 10-K 2024.
Apple. (2024d). Newsroom.
Apple. (2024e). Leadership.
Cardona, P., & Rey, C. (2022). Management by missions: Connecting people to strategy through purpose (p. 156). Springer Nature.
Dine, J., & Koutsias, M. (2020). Company law. Bloomsbury Publishing.
García-Sánchez, I. M., & García-Sánchez, A. (2020). Corporate social responsibility during COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 126.
Hao, D., & Bu, N. (2022). The broad and pivotal roles of Taiwanese electronics industry in the global electronics supply chain: A case study of Foxconn and TSMC. International Business in the New Asia-Pacific: Strategies, Opportunities and Threats, 161-196.
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Li, Y. (2021). Apple Inc. Analysis and Forecast Evaluation. Proceedings of Business and Economic Studies, 4(4), 71-78.
MSCI. (2024). Apple Inc.
Rajamani, L., & Peel, J. (Eds.). (2021). The Oxford handbook of international environmental law. Oxford University Press.