Corporate social responsibility | Business & Finance homework help


III. Fact Pattern: Corporate Social Responsibility Essay Question
The success of Apple Inc.’s products like the iPhone and the iPad made the company rely on manu-facturers in Asia to produce its products at a lower cost. These manufacturers were not/are not em-ployees of Apple. Apple carries no legal liability for the work of these manufacturers. Since these manufacturers were not focused on checking the origins of the minerals they used, Ap-ple faced accusations by activists that it knowingly endorsed using conflict minerals in its products.

These conflict minerals led to the abuse of human rights in the volatile parts of the world. Extrac-tion, distribution and the sale of conflict minerals such as tin, tungsten, and tantalum extracted from illegal mines in the Democratic Republic of Congo (Congo) and neighboring nationals funded armed militia who fought against the government and violated the human rights of people living in the con-flict areas.

Apple has implemented various programs to overcome the challenge of conflict minerals since it started facing pressure from some activist groups in 2010. Despite all the efforts made by Apple, the company faces an uphill challenge. The CEO must make an important decision about if/how to move forward with his operations in Asia. The Issue: Should Apple continue to use the same manufacturers in Asia? Role Play: Assume that you are the CEO of Apple and responsible for picking which one of three options as a course of action moving forward:

Please just answer 1a and 1b while answering the questions below for both questions. That means you will answer these questions below for both 1(a) and 1(b). 1) Will you continue using the same manufacturers in Asia? 2) Will you use other manufacturers?

3) Will you withdraw from the region? Question 1(a): Use the stakeholder model of Corporate Social Responsibility to make your deci-sion. Explain the important points in your analysis that have helped you decide whether to keep us-ing the same manufacturers, switch to other manufacturers in the region, or withdrawing completely from the region.

Questions 1(b): In a separate answer use the economic model to make your decision. Explain the important points in your analysis that have helped you decide whether to keep using the same man-ufacturers, switch to other manufacturers in the region, or withdrawing completely from the region. Assume the following facts: · Apple has not broken any international or national laws.

· Even if the manufacturing companies that Apple outsources its work to have directly or in-directly break local or International laws, Apple is not legally liable for the actions of their manufactures. · If Apple decides to use other manufacturers in the region, its profits will be reduced by 75%. The company would still generate a profit, but it would be much less than under its original arrangement.

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