CSR
CSR
RESPONSIBILITY
CASE STUDY
OF
APPLE Inc.
CSR
Corporate social responsibility means that organizations have moral, ethical, and philanthropic
responsibilities in addition to their responsibilities to earn a fair return for investors and comply with
the law. A traditional view of the corporation suggests that its primary, if not sole, responsibility is to
its owners, or stockholders.
However, CSR requires organizations to adopt a broader view of its responsibilities that includes not
only stockholders, but many other constituencies as well, including employees, suppliers, customers,
the local community, local, state, and federal governments, environmental groups, and other special
interest groups. Collectively, the various groups affected by the actions of an organization are called
“stakeholders.”
Corporate social responsibility is related to, but not identical with, business ethics. While CSR
encompasses the economic, legal, ethical, and discretionary responsibilities of organizations, business
ethics usually focuses on the moral judgments and behavior of individuals and groups within
organizations.
Thus, the study of business ethics may be regarded as a component of the larger study of corporate
social responsibility.
The economic responsibilities cited in the definition refer to society's expectation that organizations
will produce goods and services that are needed and desired by customers and sell those goods and
services at a reasonable price.
Organizations are expected to be efficient, profitable, and to keep shareholder interests in mind. The
legal responsibilities relate to the expectation that organizations will comply with the laws set down by
society to govern competition in the marketplace.
Organizations have thousands of legal responsibilities governing almost every aspect of their
operations, including consumer and product laws, environmental laws, and employment laws.
The ethical responsibilities concern societal expectations that go beyond the law, such as the
expectation that organizations will conduct their affairs in a fair and just way. This means that
organizations are expected to do more than just comply with the law, but also make proactive efforts
to anticipate and meet the norms of society even if those norms are not formally enacted in law.
The first dimension is economic. CSR practices help not only the company, but the industry the
company is in, by raising the bar of expected behavior overall. Investors, seeing one company adopt
CSR policies will be naturally inclined to invest in that company, having seen it demonstrate
responsibility.
Other companies in the same field, seeing the benefits to CSR, will adopt similar policies as an act of
competition, and the attitude of the industry will gradually change. This saves economies from
suffering declines through illegal business practices.
The second dimension is social. By this Autischer does not necessarily mean creating a better
society through specific initiatives by the business, but rather refers to a more internal change. As a
company integrates CSR practices into its structure, the way it treats employees will inevitably
change.
Individual interests are treated with more respect in CSR-conscious companies, and concerns such as
employee health and family relations are considered. Employees, benefiting from increased care from
the company carry the positive influence home, influencing their families and society as well.
The third and last dimension is ecological. Companies take ecological responsibility primarily in two
ways.
First,they adopt precautionary practices, or practices that attempt to secure a healthy and
productive ecological environment for future generations and the future of the company. This
forward-looking action can include research into alternative technologies and waste management in
production processes.
The second action of the ecological dimension is eco-efficiency, or the increase in economic
efficiency through better ecological practices. These sort of actions reduce unhealthy emissions,
replace unsafe chemicals with harmless versions, and market more natural products. Many eco-
efficent policies are also precautionary, but the main difference is that companies are looking for
better profits through eco-efficiency, while precautionary actions are taken primarily on ethical
grounds.
The three dimensions of CSR are practiced in a number of ways. Some of the more common
policies, seen often in companies' social information sections, include:
Reform of internal controls and accounting habits, seen especially after the series of accounting
scandals that produced the Sarbanes-Oxley legislation.
Policies encouraging diversity in the workplace and discouraging any type of discrimination.
Reversal in corporate thinking regarding employees, a change from looking at them as costs to
looking at them as assets.
Resource productivity, or the use of more natural resources in production and manufacturing,
leading to an ecologically cleaner product and often creating recyclable products.
Polices regarding treatment of contract employees, especially in outsourced positions located in other
countries.
Companies have taken an increased interest in CSR for a combination of reasons. The role
government has played in legislations requiring certain social behaviors has decreased, giving
businesses more freedom to decide their social responsibilities themselves. Investors and customers
alike have begun to demand stricter policies on the part of companies regarding not only their
attitudes toward the environment and the people they interact with, but also how much information
they reveal. Faced with more open inspection, companies are beginning to pay more attention to
what their financial records prove they are doing. Many investors, realizing that ethical issues play a
large part in how much they know and how successful their investments become, are forcing
companies to show that ethical practices are being established.
Many companies have applied their CSR guidelines to the hiring process as well, seeking out
employees who have ethical credentials or who agree with the company's moral standards. To keep
such employees, businesses are paying more attention to the way they treat their work force,
including the incentives they provide for performance and working conditions. Externally, many of
the same policies are being applied up and down the supply chain, as companies look for suppliers
and distributors who share their ethical concerns. Partnerships are formed with social responsibility
as a factor in the contracts.
HISTORY
The nature and scope of corporate social responsibility has changed over time. The concept of CSR
is a relatively new one—the phrase has only been in wide use since the 1960s. But, while the
economic, legal, ethical, and discretionary expectations placed on organizations may differ, it is
probably accurate to say that all societies at all points in time have had some degree of expectation
that organizations would act responsibly, by some definition.
In the 1960s and 1970s the civil rights movement, consumerism, and environmentalism affected
society's expectations of business. Based on the general idea that those with great power have great
responsibility, many called for the business world to be more proactive in(1) ceasing to cause societal
problems and (2) starting to participate in solving societal problems. Many legal mandates were placed
on business related to equal employment opportunity, product safety, worker safety, and the
environment. Furthermore, society began to expect business to voluntarily participate in solving
societal problems whether they had caused the problems or not. This was based on the view that
corporations should go beyond their economic and legal responsibilities and accept responsibilities
related to the betterment of society. This view of corporate social responsibility is the prevailing
view in much of the world today.
The sections that follow provide additional details related to the corporate social responsibility
construct. First, arguments for and against the CSR concept are reviewed. Then, the stakeholder
concept, which is central to the CSR construct, is discussed. Finally, several of the major social
issues with which organizations must deal are reviewed.
The Companies Act, 2013 has introduced the idea of CSR to the forefront and through its disclose-
or-explain mandate, is promoting greater transparency and disclosure. Schedule VII of the Act,
which lists out the CSR activities, suggests communities to be the focal point.
On the other hand, by discussing a company’s relationship to its stakeholders and integrating CSR
into its core operations, the draft rules suggest that CSR needs to go beyond communities and
beyond the concept of philanthropy. It will be interesting to observe the ways in which this will
translate into action at the ground level, and how the understanding of CSR is set to undergo a
change.
Communities provide the licence to operate
Apart from internal drivers such as values and ethos, some of the key
stakeholders that influence corporate behaviour include governments
(through laws and regulations), investors and customers.
In India, a fourth and increasingly important stakeholder is the community, and many companies have
started realising that the ‘licence to operate’ is no longer given by governments alone, but
communities that are impacted by a company’s business operations. Thus, a robust CSR programme
that meets the aspirations of these communities not only provides them with the licence to operate,
but also to maintain the licence, thereby precluding the ‘trust deficit’.
Attracting and retaining employees
Several human resource studies have linked a company’s ability to attract, retain and motivate
employees with their CSR commitments. Interventions that encourage and enable employees to
participate are shown to increase employee morale and a sense of belonging to the company.
Communities as suppliers
There are certain innovative CSR initiatives emerging, wherein companies have invested in
enhancing community livelihood by incorporating them into their supply chain. This has benefitted
communities and increased their income levels, while providing these companies with an additional
and secure supply chain.
The traditional benefit of generating goodwill, creating a positive image and branding benefits
continue to exist for companies that operate effective CSR programmes. This allows companies to
position themselves as responsible corporate citizens.
POSITIVE ASPECTS OF CSR
Costs savings
By reducing resource use, waste and emissions, help the environment and save money too. With a few
simple steps, may be able to lower utility bills and achieve savings for business.
OBJECTIVES OF CSR
Economic considerations
Ethical considerations
Innovation and learning
Employee motivation
Risk management or risk reduction
Access to capital or increased shareholder value
Reputation or brand
Market position or share
Strengthened supplier relationships
Cost savings
COMPANY PROFILE
APPLE Inc.(IOS)
Type Public
Headquarters Cupertino,California,U.S
Employees 72,800(2012)
COMPANY OVERVIEW
PRODUCTS
Mac,iPod,iPhone,iPad,Apple Watch,Apple T V,Home Pod,Electricware,Software,Electric
Vehicles,Apple Energy.
2016-18 - PRESENT
In January 2016, it was announced that one billion Apple devices are in active use
worldwide.On May 12, 2016, Apple Inc., invested US$1 billion in Didi Chuxing, a Chinese
competitor to Uber.
The Information reported in October 2016 that Apple had taken a board seat in Didi
Chuxing,a move that James Vincent of The Verge speculated could be a strategic company
decision by Apple to get closer to the automobile industry,particularly Didi Chuxing's
reported interest in self-driving cars.On June 6, 2016, Forbes released their list of
companies ranked on revenue generation.
In the trailing fiscal year, Apple appeared on the list as the top tech company. It ranked
third, overall, with $233 billion in revenue.This represents a movement upward of two
spots from the previous year's list.On April 6, 2017, Apple launched Clips, an app that
allows iPad and iPhone users to make and edit videos.
The app provides a way to produce short videos to share with other users on the
Messages app, Instagram, Facebook and other social networks. Apple also introduced
Live Titles for Clips that allows users to add live animated captions and titles using their
voice.In May 2017, Apple refreshed two of its website designs.
Its public relations "Apple Press Info" website was changed to an "Apple Newsroom"
site, featuring a greater emphasis on imagery and therefore lower information density, and
combines press releases, news items and photos.
Its "Apple Leadership" overview of company executives was also refreshed, adding a
simpler layout with a prominent header image and two-column text fields.
9to5Mac noted the design similarities to several of Apple's redesigned apps in iOS 10,
particularly its Apple Music and News software.In June 2017, Apple announced the
HomePod, its smart speaker aimed to compete against Sonos and Amazon Echo.
Towards the end of the year, TechCrunch reported that Apple was acquiring Shazam, a
company specializing in music, TV, film and advertising recognition.
The acquisition was confirmed a few days later, reportedly costing Apple $400 million,
with media reports noting that the purchase looked like a move by Apple to get data and
tools to bolster its Apple Music streaming service.
CSR POLICIES
Apple corporate social responsibility (CSR) programs and initiatives are led by Lisa Jackson,
Vice President of Environmental Initiatives, reporting directly to CEO Tim Cook.
It has to be noted that “Steve Jobs wasn’t known for philanthropy. Some wondered if he
made anonymous donations to charity, some criticized him for his lack of public giving,
while others defended him” However, with Tim Cook assuming Apple leadership in 2011,
the focus on CSR aspect of the business was increased to a considerable extent.
Tim Cook is a member of Paulson Institute’s CEO Council for Sustainable Urbanization,
working with other CEOs of top Chinese and Western companies to advance sustainability
in China.
Apple has the Form 10-K, the annual report required by the U.S. Securities and Exchange
Commission.
The 10-K includes information such as company history, organizational structure, executive
compensation, equity, subsidiaries, and audited financial statements, among other
information.
However, in the case of Apple, it does not contain information on CSR issues. In this
respect two documents are relevant:
(1) Ethics, Apple’s company code of conduct, which deals, among others with corporate
governance, information disclosure, environmental health and safety, and procurement
(2) The Apple Supplier Code of Conduct, which in particular deals with working conditions
of suppliers. Also the Apple’s website contains CSR information.
Relevant parts of the Supplier Code of Conduct, with respect to social and environmental policies, are
summarized below. Where necessary, reference is also made to Ethics.
In none of the factories workers were aware of the code of conduct of Apple.
At Volex Cable workers pointed out that they are afraid of reporting bad working conditions to the
auditors because of the risk of losing their job. Visits are known in advance and management
instructs the workers what to respond and how to behave when the auditors are in the factory.
Allegedly, management has falsified labour contracts to mislead the inspectors and locked up
workers in the dormitory to prevent them speaking to the visitors.
The management of Delta Electronics said that large buyers stimulate the company to treat its
workers well and deal correctly with environmental issues and that some of these companies do
come with codes of conduct and perform audits.
Some buyers are very specific, like not using child labour and ensuring that the maximum working
week does not exceed 60 hours. Some of them also ask about the suppliers of Delta Electronics and
even check them.
The management mentioned the EICC code and said that Delta Electronics complies with this
standard.
APPLE CSR
CATEGORIES OF CSR APPLE PERFORMANCE
ACTIVITIES
Educating and empowering workers Apple education and development
progrmmes is offered free of charge by 18
factories and more than 2,80,000 took part in
various courses too.
Under the leadership of Denise Young Smith,
as Apple’s vice president for HR, Apple has
expanded its employee benefits programs to a
considerable extent. For example, “expectant
mothers can take up to four weeks before a
delivery and up to 14 weeks after a birth,
while fathers and other non-birth parents are
eligible for up to six weeks of parental leave”
Apple and Gender Equality and Minorities Apple employees are 32 percent female, 9
percent black and 12 percent Hispanic. Out of a
global workforce of 125,000, 37 percent of new
hires in the last 12 months were women. Out of
a U.S. workforce of 80,000, 27 percent of hires
came from underrepresented minority groups in
the last year.
The company reached equal pay to employees in
2016
Tim Cook is the only openly gay CEO of a
Fortune 500 company has been praised as a
strong champion of workforce diversity.
Waste Reduction and Recycling by Apple Apple offers recycling programs in 99 percent
of the countries it operates and the company
has diverted more than 508 million pounds of
electronic waste from landfills since 2008.
In 2016 the company introduced Liam, a line
of robots that can disassemble an iPhone
every 11 seconds and sort its high-quality
components so they can be recycled,
In 2015, more than 99% of Apple product
packaging was done from recycled paper or
papers sourced from sustainably managed
forests.
Apple is working with more than 160 recycling
companies around the world and in 2015 it
collected nearly 90 million pounds of e-waste
through its recycling programs.
Carbon Emissions by Apple In 2016 Apple’s comprehensive carbon
footprint was 29.5 million metric tons,
compared with 38.4 million the year before. As
it is illustrated in figure below, the company’s
CO2 emissions per product has been
consistently decreasing during the last four
years to reach 97 kg in 2016.
The company offers employees more than 550
electric vehicle charging ports for free, an
increase of 67 percent compared to the
previous year to encourage the usage of
electric vehicles. In 2016, the multinational
technology company conducted 34 energy
audits at supplier facilities, identifying more
than USD55 million in annual energy savings
opportunities.
Energy efficiency improvements introduced by
Apple suppliers in 2016 eliminated the output
of more than 150,000 metric tons of CO2
equivalents
CATEGORIES OF CSR APPLE PERFORMANCE
ACTIVITIES
Apple other CSR Initiatives and Charitable The company has planted more than 9000
Donations drought-tolerant trees in Apple Park in
Cupertino
In 2017 Apple donated USD 1 million to
Southern California Wildfire Recovery Efforts
The multinational technology company raised
more than USD 3 million for Hurricane
Harvey Relief Efforts in August 2017
Apple proved that 100 percent renewable is 100 percent doable. All their facilities worldwide—
including Apple offices, retail stores, and data centers—are now powered entirely by clean energy.
This is just the beginning of how they Are reducing greenhouse gas emissions that contribute to
climate change. They are continuing to go further than most companies in measuring our carbon
footprint, including manufacturing and product use. And they are making great progress in those
areas too.
Data center in Reno, Nevada, uses solar arrays with curved mirrors to concentrate the sun’s rays
and provide highly efficient solar power
Our new headquarters gets most of its renewable power from onsite solar panels and biogas fuel
cells, and it can even provide energy to the public grid
Investments in renewable energy have measurably reduced overall carbon footprint.
They have committed $2.5 billion in clean energy and energy efficiency projects like their biogas fuel
cell installation in Maiden, North Carolina.
Apple supplier Ibiden has one of the largest floating solar projects in the world
RESOURCES
Making the most of using the least.
They are always thinking of ways to use fewer of the earth’s precious resources and ways to use
them again. Like recovering more of the high-quality materials in your old devices to make new
products. Through more efficient recycling technologies and other innovations, we hope that one
day we can stop mining the earth altogether.
Rethinking materials
Mining less from the earth and more from old devices.
There are a lot of valuable materials inside old devices that are perfect for making new products.
The challenge is that recovering them is extraordinarily complex and hard to do
efficiently. So they have put their passion for innovation into piloting new recycling
technologies. With advancements like Daisy, their newest disassembly robot, they can
recover more materials, and at a higher quality.
Ultimately, they want to make products using only renewable resources or recycled material. And they
want to return an equivalent amount of material to the market, to be used by others. Their ambition is
that one day they’ll extract nothing from the earth.
When products can be used longer, fewer resources need to be extracted from the earth to make new
ones. So they assess all their products in their Reliability Testing Lab, using rigorous testing methods
that simulate customers’ experiences with their devices.
For example, they analyze how devices stand up to extreme heat and cold, exposure to water and
everyday chemicals, and scratch tests from materials like denim and metals like coins. All new
materials, including recycled materials, are tested extensively to make sure they meet our performance
and durability standards.
In the event a product does require repair, they have programs like AppleCare and Apple-certified
repair services to help their customers use their devices longer.
In their Reliability Testing Lab, they can create any climate their products might be subjected to —
from the humidity of Florida to the frozen North Pole
.
They are using more recycled and responsibly sourced materials in their packaging
They are constantly looking for ways to use more recycled and responsibly sourced paper, to create
technologies that use paper more efficiently, and to use alternatives to plastic. In fiscal year 2017,
100% of the paper in their packaging was from responsibly managed forests, controlled wood, or
recycled sources.
They are replacing some of the plastic components with materials like bamboo fiber and
bagasse, a by-product of sugarcane manufacturing. And they have reached their goal to protect
and create enough sustainably managed forests around the world to cover their current paper use
and produce fiber for generations. The results are more beautiful than ever — for our packaging
and for the planet.
In 2017, our U.S. product packaging used on average 29% less plastic than in 2016
Yearly production from their forest conservation projects is now greater than the amount of
virgin fiber used in Apple’s product packaging.
In partnership with The Conservation Fund, they have protected 36,000 acres of sustainable
forest in the Eastern United States. And in China, they have helped to improve the management
of more than 750,000 acres of forest in partnership with World Wildlife Fund.
They hold themselves accountable for every drop of water they use.
They are constantly seeking ways to conserve water and discharge wastewater safely. For
example, we’ve installed sophisticated sensor and control devices in our landscaping in Santa
Clara Valley, California, saving about 15.8 million gallons per year.
In our data centers, we pinpoint areas of use, detect leakage, and develop better ways to prevent
waste. And we’re increasing our use of rainwater or recycled water for nonpotable purposes.
In 2013, we established the Clean Water Program to help our suppliers adopt more mindful
water conservation strategies.
Since 2013, they have helped their suppliers save more than 13.6 billion gallons of water —
enough to provide every person on the planet with almost 30 glasses of water.
Through water surveys, data analysis, employee training, and technical support, they helped their
suppliers conserve more than 5 billion gallons of water in 2017 alone, increasing average
wastewater reuse to 37% across 106 sites. And since many of their suppliers also build
components for other companies, their work has reduced the water footprint of non-Apple
products, too.
They design for durability, so products are better for the customer and for the environment.
Plastic liners from films that protect iPhone are recycled into trays for use in a later phase of
production.
SAFER MATERIAL
Safer for people and for the planet.
Apple lead the industry in reducing or eliminating the harmful substances commonly used in
electronics. Through their rigorous process of design, testing, and analysis, they are constantly
evolving our products and how we make them. So the materials they use are safer for the
environment, the people who make their products, and the people who use them.
The evaluation process begins early in the design and manufacturing phases.
If replacements for hazardous chemicals aren’t readily available, they work with their suppliers to
find substitutions or explore how to eliminate the need for that substance
When they test replacements, they look for formulations that meet their environmental standards
without compromising performance. And, of course, the end product must still live up to the
design standards expected from Apple.
They built their own Environmental Testing Lab, where their chemists and toxicologists look for any
potentially harmful substances. Since 2006, they have expanded it to more than 30 times its original
size, and have regularly updated it with state-of-the-art equipment — like inductively coupled plasma
mass spectrometry, liquid chromatography mass spectrometry, and a laser-induced breakdown
spectrometer similar to the one used by the Mars rover.
To understand the safety of their materials more comprehensively, they are identifying all the
substances in every one of the parts we use.
So far, they have collected the composition of more than 25,000 individual components out of
the 50,000 present in their products, and they get data on more parts every day .
They then assess the chemicals in their materials using hazard and risk assessment tools to help
us understand their effect on the environment.
Product Testing
The worst toxins and what they have done about them.
They are continually evaluating the materials used in products. When they identify toxins, they
reduce them, remove them, or develop new materials that are safer.
These efforts also remove toxins from their manufacturing and recycling processes, which
protects products and keeps pollutants out of the land, air, and water.
We can do a lot
But we can’t do it alone.
They want insights and ideas from those who share their commitment to removing toxins. So they
formed their own Green Chemistry Advisory Board, made up of some of the world’s leading
toxicologists, researchers, and academics.
The board helps them identify innovative ways to minimize or eliminate toxins from their supply
chain. They also invite experts from around the world to meet with leaders at Apple. Together, they
focus on eliminating toxins at each stage of their process, while sharing their learnings through
Green America’s Clean Electronics Production Network.
And they seek out the best ideas and insights from top NGOs to help them make their products
and processes even safer.
Thereby they could save environment and bring creativity to the world-a way of sustainable
development.
Technology plays a great role in our life. With the advancement in technology, human life is more
comfortable and more convenient.
Technology affects our daily lives and education. Everyone uses a computer in their everyday life
for many different reasons, especially the students.
In university campus, you could find the student with diverse electronic products everywhere. Most
are the Apple products, such as computer, iPod, iPhone, iPad, and iTouch. Apple products affects
our life and education more and more.