Business Risk Management: Apple Inc. Report (Assessment)

Exclusively available on Available only on IvyPanda® Made by Human No AI

A good number of business analysts would agree that the human resources department of Apple Inc has been risking the future of the company. The company has incessantly violated the fundamental responsibilities of human rights in a workplace. According to Stevens et al. (2012, p.5-6), the primary responsibilities of human resources department in any organization go beyond manpower hiring.

The department should reach out to all employees, communicate, gather insights and act appropriately. The department should plan appropriate interventions to alleviate unfavorable working conditions and to motivate workers.

The human resources department should assist employees, counsel and enhance their performance. It is also the responsibility of the department to observe all measures in hiring and retaining employees as stipulated by the law, and by the company’s code of ethics.

In 2006, Chinese workers in Foxconn Apple Inc factory in China worked for as little as $600 per year. It was reported that these employees were forced by management to reside in visitor’s restricted factory’s premises.

Poor working conditions and under-compensation was a risk by the human resource department, and it reflected negatively on the company (Musgrove 2006,p.1). Later in 2010, workers complained that the LCD screen cleaner was emitting poisonous substances, and wanted to sue the contractor.

Suicides by employees have been experienced at Foxconn factory in China. An employee committed suicide in 2009 after getting tortured by his seniors; the employee had lost a prototype for Apple iPhone. This incident was against the Chinese and American law, and has had dire impacts on Apple’s reputation.

Between 2009 and 2010, Foxconn attracted media attention after violating employee’s rights on several occasions. For instance, a videotape was released showing employees being assaulted by the factory’s guards. During the same period, twelve workers committed suicide.

The factory forced employees to sign an agreement in order to prevent occurrence of suicides in the future. Although the document was legally binding, the terms of sanctioning for suicide victims were not clear (Ruggie 2012, p.1).

There have been allegations that the company hires minor and student employees in its factories. Some of these minors are forced to work against their will, and some are from very poor backgrounds. Child labor is forbidden by the US labor law, and it is against the company’s values. Apple has a corporate culture defined by its Supplier Responsibility Progress Reports policy.

The company requires its suppliers to take full responsibility for their errors and omissions. When suppliers fail to meet the stipulated social responsibilities, their contracts are due for termination.

However, these repercussions have not affected the notorious Chinese factory after violating the human rights of its employees, and after breaking both Chinese and US law (Duhigg & Greenhouse 2012,p.1).

Employees’ problems of inadequate pay or low wages, forced, and child labor, physical and emotional abuses should be the concern of the human resources manager in any organization. These problems have continued to occur in Apple Inc factories.

This shows inefficiency and a high degree of risk in human resources department. Senior management at Apple has insisted that the company is applying a lot of efforts to improve the working conditions for its employees. The management has expressed its concerns on underage labor and expressed its desire to get rid of it.

This declaration is a confirmation that the management is aware of the risks being taken by the human resources department. Many multinationals, including Apple, have a code of conduct on rights or employees. The challenge is in the company’s ability to demonstrate compliance with the code.

References

Duhigg, C, & Greenhouse, S 2012, March 29, Electronic Giant Vowing Reforms in China Plants, The New York Times , pp. 1-2.

Musgrove, M 2006 , June 16, Sweatshop Conditions at IPod Factory Reported,Washington Post , pp. 1-2.

Ruggie, J 2012, April 4,Working Conditions at Apple’s Overseas Factories, The New York Times , pp. 1-2.

Stevens, J, Jeynes, V, Cotena, E, & Edelson, M 2012. Managing Risk: The HR Contribution, London,UK: Routledge.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2019, April 15). Business Risk Management: Apple Inc. https://ivypanda.com/essays/business-risk-management-apple-inc/

Work Cited

"Business Risk Management: Apple Inc." IvyPanda, 15 Apr. 2019, ivypanda.com/essays/business-risk-management-apple-inc/.

References

IvyPanda. (2019) 'Business Risk Management: Apple Inc'. 15 April.

References

IvyPanda. 2019. "Business Risk Management: Apple Inc." April 15, 2019. https://ivypanda.com/essays/business-risk-management-apple-inc/.

1. IvyPanda. "Business Risk Management: Apple Inc." April 15, 2019. https://ivypanda.com/essays/business-risk-management-apple-inc/.


Bibliography


IvyPanda. "Business Risk Management: Apple Inc." April 15, 2019. https://ivypanda.com/essays/business-risk-management-apple-inc/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1