Evaluation of Ethical and Sustainable Policies
We have taken Apple and Sony as examples to evaluate their ethical and sustainable
policies.
Apple: Ethics and Sustainability
Apple Computer was founded in 1977 by Steven Woznaik and Steven P. Jones. In 1976,
they are introduced Apple 1, but it was failure and launched in 1980 was successful. By the
entry of IBM in 1983, Apple face a problem of failure of Apple 3 version computer. Apple
introduced, the Macintosh, its first mouse driven PC. In 1990, there are too much cheap PC
in the market and Microsoft had launched Windows 3.0. Apple launched the Power PC chip
based PowerMac; it allowed Macs to compete with the speed of Intel’s PC processors. Apple
arranged to concentrate on its more profitable competencies under the leadership of Mr.
Jobs , the co founder as interim CEO, also diverted its unsuccessful business as spin offs.
Apple pursued a number of acquisitions during 2002. It acquired Silicon Grail, Prismo
Graphics, and Certain assets of Zayante and also acquired the German based specialist
music software, Emagic. Apple launched an online store for downloading music tracks and
albums, the I tune store in 2003.
The three largest European independent music labels Beggars Group, Sanctuary Records
Group and V2 are signed licensing agreements in the following year by the Apple Inc. In the
2005 company collaborate with Acura, Audi, Honda and Volkswagen to deliver iPod with
their car stereos.
Apple is engaged in development, design and marketing of personal computers,
communication services, network solutions, servers, portable digital music players, and
related accessories, software and services. The company’s portfolio of offering comprises
iPods line of portable digital music and video players, Mac computing systems, iPad portable
multi media and computing device and servers, iPhone handsets. The company’s software
applications include Mac OS, iWork, iLife, and internet applications like Safari and Quick
time, among others.
The company mainly operates in the US and the head quartered in Cupertino, California with
the 34,300 employees. At the end of September 2009, company recorded revenues of
$42,905 million , an increase of 14.4% compare to 2008. The mainly reason for the increase
of revenues due to growth in sales of iPhone handsets and applications from the iTunes
store, and Third-party digital content. Apple adopted the new accounting principles on a
retrospective basis in the first quarter of FY 2010. Apple operated 273 store in the US and
internationally at the end of FY 2009. The company operates its business on geographic
segments. There are five main segment of the Apple Europe, America, Japan, retail and
other segments. Apple provides same facilities in each segment by provide the same kind of
hardware, software products and services.
The product of Apple can be grouped in different product like iPhone and related products
and services: iPod, portables, desktops, peripherals and other hardware, other music related
products and services, software, services and others. The third generation iPhone launched
in June 2009,and iPhone 3G, launched in 2008, which are also include in portfolio of the
iPhone 3GS. It has nice features like desktop-class email, searching, and maps, web
browning, and are comparative with Window-based computers and Macs. The design of
iPhone is tremendous, it automatically synchronise the content from users’ itunes libraries as
well as contacts, email accounts and bookmarks. Various Cellular network service
companies carry the authorizing Apple products to distribute and provide cellular network
services for iPhone with multi year agreements.
http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=5&hid=109&sid=16b6a4e3-3edd-
4a6c-8435-07eccb1ab7db%40sessionmgr111
The students of college and universities can use the iPhone product for the study purpose
like they can turns the classrooms into showrooms by using the iPhone. Students become
comfortable with the interface and familiar with the superior performance the brand offers, if
they go through school using Apple product. Apple has a high customer satisfaction rates
because of their extensive research about the customer’s needs means what they want in a
product, as a result they produce strong design and product of Apple like iPhone, Mac
laptops. By this, customer can easily use the Apple product and make them want to buy
more products in future. All the Apple product has the same architecture. Because of this
consistency, customers of Apple can easily know about the new product that what they will
be get in new product before they make a purchase. Customers know that it will be easy to
adapt to new hardware and software and this makes them go for a repeat purchase of the
new product.
The base of apple products is consistent with the previous products but its portfolio is not.
Consumers can enjoy apple products in a different ways which are using the apple products
in their living rooms, pockets, offices and virtually wherever they want. Apple also provides
an opportunity to the consumer to use one product for more than one functionality. For an
example, Apple IPhone can be used for various purposes like making a call, browsing the
NET, listening to music, staying up-to date with the world news and events. It can also be
used for traffic information and maps which helps them on the go and satisfy the needs of
the consumer in more than one way and this is what makes the consumer stay loyal to
apple.
Apple products have easy to use user interface and simple design. The use of bright colours,
stylish unit and easy to use software application makes the apple products more attractive
than its counterparts.
http://www.insidecrm.com/features/strategies-apple-loyal-customers/
Ethics
Treatment Of Suppliers
Apple is a multinational company and has suppliers all over the world. Apple procures
suppliers who provide high quality products and work on tight time lines. Apple requires
commitment to rigorous quality assurance from their suppliers.
The ideal suppliers for apple are those who understand their culture, expectation and take
time to learn about and understand the business and add value to their business. The
business apple are in, is fast paced and rapidly changing so they need suppliers who are
proactive and innovative. So apple does not tolerate any complacency and laid back
approach from their suppliers. Apple are quite strict in regards to quality assurance and time
deadlines from their suppliers.
Apple runs a supplier diversity program. They take their social and environmental
responsibilities seriously and provide strong and longstanding commitment to a diverse
supplier base. This program was formally established in 1993. Apple actively participates in
the program through National Minority Supplier Development Council (NMSDC), The
Women’s Business Enterprise National Council *WBENC). The categorisation of diverse
suppliers includes Minority- Owned, Women-Owned, Veteran-Owned and Service-Disabled
veteran-Owned.
Apple provides equal and fair opportunity to each supplier to participate in a competitive
procurement process. With Apple suppliers get opportunities to grow and help their business
by providing innovative solutions to apple.
Ref: http://www.apple.com/procurement/
Social Responsibility, Community Development and Charitable contribution
The studies have found that apple makes less charitable contributions than other similar
companies do. Unlike apple, other companies like Microsoft and Google do a lot more to
support charities and their operations all around the world. They are not obliged to make any
charity donations but morally and ethically, what they do is not enough for the community.
Apple has given their support to their employees with same sex partners and issued a
statement as below on their website.
"Apple was among the first California companies to offer equal rights and benefits to our
employees' same-sex partners, and we strongly believe that a person's fundamental rights --
including the right to marry -- should not be affected by their sexual orientation," the
company said in a statement.
Ref: http://www.sfgate.com/cgi-bin/blogs/techchron/detail?entry_id=31899
Sustainability of Apple
In the manufacturing of the Apple products including raw materials, they accounts for 38
percent of total greenhouse gas emissions. For making a 20-inch iMac, company use 55
percent less material than its first generation, 15-inch predecessor. Every sold of one million
iMac, company saves 10000 metric tons material-the equivalent of 7200 Toyota Priuses.
Company has greatest environment challenge is the presence of arsenic, brominates flame
retardants (BFRs), mercury, phthalates, and povininyl chloride (PVC) in product. Every Mac,
iPod and iPhone is free of PVC and BFRs. Also Mac Book Pro models feature displays with
mercury-free backlighting and arsenic-free glass.
List below are some of the things apple does for cleaner and greener products.
Apple ensures that working conditions in their supply chain are safe, workers are
treated with dignity and working processes are environmentally responsible.
Efficient packaging design helps emissions produced during the transportation.
Apple makes their products to be as efficient as possible. For example Mac mini uses
quarter of the power consumed by a light bulb.
Apple designs the products compact and efficient which requires less material and
consumes less energy. They also use materials which are highly valuable to
recyclers.
Apple has installed energy efficient equipment in their premises and they have
installed motion sensors for automatic shut off.
Apple provides different means of transport to their employees and runs a free bio
diesel coach service for employee commuting purposes.
Ref: http://www.apple.com/environment/complete-lifecycle/
http://www.apple.com/environment/news/
Evaluation:
To evaluate Apple in regards to sustainability and ethics, we need to look at its products and
services over the years. Apple Mac books have always been energy efficient compare to
their counterparts and the design of the Mac book has also been compact and uses less
material and less harmful chemicals. They have been successful in introducing the new
products with best energy consumption and compact design.
In the most recent Greenpeace (Environment activists) ranking Apple finished below the rest
of its peer groups. Greenpeace takes issue with Apple's use of certain chemicals:
brominated fire retardants [BFRs], used to coat printed circuit boards and prevent fires inside
a computer. But in the past few years, Apple has made efforts to reduce the use of harmful
chemicals.
In 2007, an Oakland environmental group filed a complaint alleging that Apple Inc.'s iPhone
is a health hazard because of the presence of phthalates in the headphone cord. Also there
have been examples where iPhone batteries have exploded and raised concerns over the
use of harmful chemicals in the batteries.
On the whole, whenever apple has faced criticism over the environmental effects of their
equipment, they have tried to overcome the problem and try to avoid the use of harmful
chemicals in their products.
Ref: http://www.environmentcalifornia.org/in-the-news/environmental-health/environmental-
health/chemical-stirs-up-controversy
http://www.businessweek.com/technology/content/dec2008/tc2008126 _018125.htm
SONY: Ethics and Sustainability
Ethics: Ethics is a law of philosophies that address, about how moral outcomes can
be applied in specific situation. Business ethic, guides for acceptable behaviour in
organization both strategy formulation and day to day operation. Today, Ethical approach
has been implemented in both corporate success and positive corporate images. All the
organization has decided to make a public commitment towards ethical business by
formulating codes of conduct and operating principles. (for example)If managers wants the
employees to act ethically, must understand ethical decision making practice themselves.
They, should start the first step of fostering a cultural of ethical behaviour in their companies.
Its, vital for manager to play an active role in creating a platform of work environment, where
employees are encouraged and rewarded for acting in an ethical manner.
Sustainability: Sustainability is the capacity to endure in ecology, how social as well
as biological system remains distinguish and production over time. It is the potential for
human beings for long term of well being maintenance, depends for the sustain of natural
world and natural resources. In, business, Sustainability evolves in environmentally friendly
nature, to ensure all the process, and manufacturing addressing current environmental
maintaning the profit. It is a strategy of business that meets the present world, without
compromising the future generation.
Introduction:
The world’s company leader Sony was, established in 1946 by Masaru Ibuka and
Akio Morita, complimented themselves as a, unique blend of product in innovation and
marketing. Sony invented the first hardware device; a tape player and recorder called the G-
TYPE recorder, during the time of 1950,s post-war in Japan, and it becomes the first
profitable product. Inspiring his engineers a spirit of innovation to achieve the interest of
market, he motivates them to work beyond their own expectations, Ibuka was a practical
market visionary, who could challenge the market that what product and technologies can
give rise in everyday life of customer. Ibuka , believes to work in exiting working
atmosphere which carry toward the open-minded corporate culture, whose employees retain
satisfaction and pleasure from their role, and his desire is to create a fun, dynamic work
place.
Sony, in 1957, launched the world’s first pocket transistor radio, which
established a market leadership for the company. Akio Morita was the true instrumental
marketing pioneer determined him to establish the Sony brand , who achieved the market, in
making the Sony a household house all over the world. Sony is the global manufacture of
audio, video, and communication and information technology product for consumer and
professional market. The mission of Sony is to develop the wide range of innovative products
and new multimedia technology that challenges in a particular way that customer enjoy by
accessing the digital entertainment world. Sony main focus on to strengthen in all the
important electronics products and make the platform in the market leadership in high profile
area such as, digital imaging, television, home video equipment .
To maintain the market of Sony, it has perused with the three corporate initiatives,
the customer initiatives emphasis on the importance of staff viewing Sony and its product
and service from customer perspective. The second initiatives Focuses on reinforcing Sony’s
cutting edge of technologies in the particular area targeted for achieving maximum
investment of resources, covering the Television, home video equipments, walk man and
digital imaging device. And, the last initiatives aim of the Sony is to, strengthening the
operation, ,‘Genba’ in Japan, has been designed in a particular location, which manufacture
the facilities direct to the sales offices.
Sales of new innovative products, Sony have make continuous effort to fuel industry growth
as well as with the company’s convergence strategy, for example including; VAIO notebook
which direct in both form and function. Sony has not just achieve the market in consumer
electronics but with the research and development of the company has made considerable
inroads in the area of professional broadcasting in creation of Beta-cam, HDCAM, DVCAM
and 24P format with digital form and the CLIE. In future, Sony brand will be determined the
success how the company meets the challenges’ of change according to the generation, and
has led the market in terms of new innovation.
Ref: http://www.icaa.eu/company/sony/article/45835.html
Ethics and Sustainability:
Sony have the policy to deal with both socially and ethically responsible manner,
which can follow all the applicable law and regulation to operate business in compliance.
Establishment of Sony Ericsson in 2001 has been operated under the special social
responsibility code, which helps the employee to change the ethical suitable decision
applicable to perform their job and duties on daily basis. To provide a safe workplace for
employees, Sony have a special code place expectation for supplier with social
responsibilities, of social respect of basic human rights with proper ethical standards in all
aspects of dealings. Supply management in Sony Ericsson insist that company only works
with the suppliers, to meet stringent requirements, influencing product creative improvement
and development from an environmental and CSR point of full supply chain is a key factor in
making the platform of leadership and compliance with requirements of consumer market.
Mainly all the Sony suppliers must undergo assessment to ensure compliance that verifies
the supplier to procedure within the place to control their own appropriate supply.
Sony Ericsson appreciate the initiatives which highlight issues surrounding metal
extraction, which opens to dialogues and corporation with industry bodies, non-
governmental organization and relevant authorities to find outcomes of complex issues. Sony
remains in contact with supplier of tantalum capacitor and require them not to use fake mined
tantalum from the Democratic Republic of the Congo and in the other surrounding area.
Altogether Sony and Ericsson, Sony Ericsson promotes the business strategies such as
Global Sustainability Initiatives and electronics Industry Citizenship Coalitions, trying to
create work more flexible better condition in controlling the product standards and production
of raw material.
Sony Ericsson, with the issue of changing the climate it has committed to tackle in
any aspects. Sony have constantly work to reduce the consumption of energy from our
products, They believe that all the platform of the Sony industry decide to work together
towards sustainable future, with this Sony Ericsson have signed to Copenhagen
Communiqués, so that the continues support can be gained toward comprehensive United
Nation Framework for working according to climate changing.
Greenheart is the contribution of the recent year of innovation to retain the phone
which offers a safe greener choice. Sony Ericsson have submitted the Green Heart Portfolio,
which revels the green innovation for reducing the entire environmental impact of the phone,
without changing any features or the style of the handset. And, thanking to all the following
features of Greenheart, Emission of CO2 from the phone and reduced of 15% of carbon
dioxide.
In, reduce of paper E-manual saves 90% of paper, reduce on environmental impact
of suitable compact in packing and transportation.
Use, of an Electronics in-phone reduce the standard paper version giving convenient
to the customer, makes easy to the product and supports to the customer where they
want.
All the plastic are made up of 50% recycle bin, saving the nature.
Phone have optimised display light sensor which reduce the energy.
To protect the phone, waterborne is painted that lowers exposure to Volatile Organic
Compound, and can be easily transfer in the form of raw material using local water to
refurbish at the assembly Plant significantly reducing transportation reducing CO2
emissions.
Sony Ericsson , In 2009 Reformatted the company’s global climate goals , to reduce
the absolute target specific of particular level of greenhouse of gases must be emitted in the
atmosphere which maintain the global climate, and not affect the Green house, securing
human rights. By, 2015 Sony will reduce the total greenhouse emission from entire cycle of
Sony products .To measure the impact of Sony on global climate, they have establish
Greenhouse Gas Protocol (A Corporate Accounting and Reporting Standards).
www.sonyericsson.com/GreenHeart
Sony Takes responsibility for their own product by offering the terms of take back and
recycle it cooperating with the industry, as the product refills toward the end of life, and
makes the customer satisfaction by providing location and information about recycling.
Sony , have make the legislation in which many places of the world are happy to participate
in the process of putting and many mobile phones are waiting to be recycled at the end, and
encourage to mobile phone user, individual action can make larger effect.
Around 55 of mobile phones have been collected and recycled in European
countries, due to that most EEE(Electronic and Electronic Equipment) do not distinguish the
WEEE(Waste Electrical and Electronic Equipment) as some European countries have
recording of product that are collected and end of that mobiles has been calculated. USA
EPA’s plug in to Recycling programme has collected in 11 million mobiles phone in total. In,
Australian mobile Telecommunication Association’s have collected nearly 34 tone of mobile
phones, Same as in many Asian countries, for example India ., china, Japan, Sony has
organised to participating in local recycling schemes. Canada, the program my cell has
recycle approximately 12% of phone purchase by the customer. Adopting this task, Sony
have Recovered to collect and recycle more than thousands of accessories and products of
the Sony.
www.sonyericsson.com/support
Comparison between Apple and Sony in regards to growth, social responsibility and
sustainability.
Apple’s growth has been very fast in the last few years whereas Sony has been growing
steadily for the last few decades. Apple mainly targets the youth with their smart products
whereas Sony targets all age people. Apple’s main products include Apple Laptop, IPod, I
Phone and I-pad which have been very successful. On the other side Sony has bigger
product rage like Laptop, Digital Camera, Camcorder, gaming consoles and many more.
Sony has been more socially responsible than Apple. Apple concentrates on commercial
growth and doesn’t get involve very much in social side. There are very rare instances where
Apple has done some charity work or any community work whereas Sony on the other side
have done more to help and support charities. Sony have been more socially responsible
and done more community support work. On the whole both companies are good at what
they do and have a niche in their own markets. Apple is more vigorous in what they do and
Sony believes in their brand name and steady progress. Apple’s growth for the last 3-4 years
is hard to sustain because to maintain the same growth rate they will have to come up with
new products which their competitors are not doing. Sony has been growing steadily and
their growth is sustainable if they keep producing high quality products diversify their
business.
