Greenpeace and Apple Inc
Its Corporate Ethics and Governance
Part A
Environmental Issues of Apple Inc
One environmentalist stated that “business has a special obligation or responsibility to protect the environment, because of they have the power.” This should be done and implemented by different businesses although there is no formal environmental law that requires these enterprises to do so because they still have the deontological ethics towards the environment that will help them to maintain their good behaviors and independence in the market. On the other hand, Friends of Earth (2007), argue that the corporate power is out of control. Companies and organizations have too much power but they are not using it in order to care about their community as well as their environment.
Bowie (1990) argued that there are many enterprises or businesses that are violating their important moral obligations, thus all of these violations has a negative impact on the environment such as dumping toxic waste and hazardous materials illegally.
Apple Inc is an American multinational corporation that focuses on designing and manufacturing consumer electronics and the related software products. Apple is considered one of the best electronic companies in the world but they are also facing different environmental issues.
Green peace (2007) recently appointed an independent British scientific laboratory to conduct a test to the different products or technologies of Apple Inc. More particularly, the test was conducted to test the 18 internal and external parts of the Apple phone in order to test if it contains any poisonous or hazardous chemicals or material (Santillo et al 2007, p. 8). The result of the test shows that half of the different parts of the said product contain a venomous, toxic and damaging chemical or material called the Polyvinyl Chloride Polymer or also known as the PVC, that was long distinguished that has a bad effect to the health of the environment more particularly to the human and other animals because it has the effect of interfering the sexual development of mammals (Santillo et al 2007, p. 8). The said chemical is also classified in Europe as a category 2 for a hazardous to reproduction, as a matter of fact, the said chemical is banned to be used in all toys or any children cares as well as clothing articles (Cohan 2007). Apart from the PVC, Greenpeace also find out that phone also contains the toxic brominates compounds or also known as the Brominates Flame Retardants or BFR (Cohan 2007).
The environmental organization also found out that the Apple Macbook also contained BFR and got the top position of the highest level of the said chemical among the five brands that have been tested. Aside from the said chemicals there are also hazardous chemicals or materials that have been found from the product such as lead and PVC that have been proven and tested to have a negative or dangerous effect to the health of the human and animals as well as to the community and environment (Cohan 2007).
Greenpeace also said that there is more and more brand and businesses that are failing to involve in protecting the environment but they are continuing to produce a product that contains some toxic and hazardous chemicals and materials (Greenpeace 2006).
Greenpeace also conduct their studies based on scientific and actual form. They gather samples of different environmental samples such as water from the river as well as from the ground that are near from different electronic factories in different part of the Asia such as from China, Mexico, Philippines as well as Thailand. This is to ensure that there are no particular dangerous and unsafe chemicals and materials that could affect the health of the citizens of the people around the vicinity of the different electronic factories because all of the said chemicals can damage human by food chain.
According to Greenpeace there are many reasons why Apple got the lowest ranking in the most environmental friendly electronic companies such as failing to embrace the precautionary principles in handling different regulated substances and chemicals as well as providing continuous maintenance and improvement in eliminating PVC and phasing out the use of the BFR (see appendix a for the criteria for ranking). As of now Apple got the lowest rank, lower than Sony, Dell, HP and Nokia for the global policies and method in getting rid of or reducing different harmful and dangerous chemicals as well as taking responsibility about taking care of the products once it was disposed of the consumers (Evans 2007).
Egoism
Egoism is also known as self-centeredness or a situation or event where in an individual, organization or business are thinking for their own good only and not taking much effort in thinking about other people that might get affected. Hobbes said and believed that the natural condition of human is the primary reason that leads them to a morality of self-cantered (cited in Title 2000, p. 37). Another important meaning of egoism is the universal egoism which pertains to the event when someone considers his or her perspective about what is morally right based on their own interests (Title 2000, p. 37).
Although Apple already knew that their products have different chemicals as well as materials that are bad for the health of the human beings and the entire environment they are still continuing to produce such product just for the sake of their sales and their financial status. According to the video that have been released by Greenpeace, the result of the test that has been conducted about the phone shows that it has bromine, chlorine and phthalates. Its antenna has the highest bromine level of 10% by weight. Its headphone contains PVC and phthalate level of 1.5% by weight. Although their new product has a lower level or hazardous materials and chemicals, there have been companies that have already environment friendly phone particularly the Nokia that offer a mobile phone that is PVC free as well as the Sony Ericson and Motorola that removed some of the worst chemicals from their mobile products (cited in Fortune, 2007).
Utilitarianism
The main importance of the utilitarian theory is to predict the effects and outcome of an action. The main character of this theory is that it will be able to pertain and connect to all the entities that are involved and who will be affected the most by the decision (Rainbow, 2002). This theory have been disobey by the Apple, because although they already knew that there are hazardous or dangerous chemicals, substances as well as materials with their products they are still not doing anything about it or they are accepting that there are some irregularities about their system. Another thing is that the said company is not thinking about the safety and benefits of the people as a whole. We only have one world, if we destroy it, all of us will be affected regardless of the social, financial and moral status.
Rights and Justice
The main concept of the right and justice theory is that it focuses on the concept that a society is protected and given a highest priority (Rainbow, 2002). It is based on doing thing based on what are your rights and being balance. Apple inc. has its right to manufacture or produce different products that is based on their strategy as well as their business rule. On the other hand, the society or the environment as well as their customers also have their right to live healthy and safe.
Part B
Stakeholder Theory
Stakeholder theory starts with the assumption and postulation that values and morals are essential and significant as well as explicitly a part of doing business (Freeman & Wicks 2004, p. 364). It is the task of the manager to express and describe the shared sense of the value that they shaped as well as what it will bring or give to enable the company to make and put its stakeholders together (Freeman & Wicks 2004, p. 364). It can also help to push or shove the managers to be clear on how they want to do a certain business, more particularly to the kind of relationship that they want to and need to create to their stakeholders in order for them to deliver on their purpose (Freeman & Wicks 2004, p. 364).
Stakeholder theory reveals and directs how the manager functions, operates and works rather than tackling and dealing with the management theory and economist. The said theory answers two core questions: first is that it ask the purpose of the firm, that help the managers express the shared sense of the value that they have created that helps them to bring their core stockholder together and eventually push and drive them to have outstanding performance and determine their purpose and marketplace financial metrics; second tackles about the responsibility of the managers to their stockholders, that will help the managers to express on what they want to do to their business and what kind of relationship key that they want as well as need to create in order to meet the expectations and needs of their stakeholders (Freeman & Wicks 2004, p.364) (see Appendix D for the diagram of the stakeholder theory).
Apple inc. faced the challenge of their environmental issues by making their products more greener and changing their brand name into Greener Apple. This is to ensure that they are meeting the needs and the benefits of all of its stakeholders.
Supplier
In order to make sure that all of the products that the company will going to produce, the company created a standard or protocol between them and their suppliers. This is to ensure that they are properly managing the flow of their supply chain. Apple inc. uses the descriptive approach by giving and detailing the different integral parts of their business practice to their suppliers. This is to ensure that their all of their internal and external business processes will follow one standard to ensure that the finished product of the company will be safe both for the user and the environment.
Apple has implemented a company wide hazardous substance management and restrictions that enables the company to restrict different dangerous substances and materials (Apple 2006, p. 3). The said law or regulation will ensure that all of the different processes of the company such as safe handling, movement, storage, recycling, reuse as well as disposal will be done with accordance to the environment friendly ways (Apple 2006, p. 3). The suppliers must identify as well as manage different substances that pose a hazard if released to the environment and must comply with the different labelling law and regulations for recycling and disposal. In addition to that, suppliers must post their material safety data sheets using the primary language of their workers that shows the different hazardous or dangerous materials that are used in the workplace and must train those workers who are working with the said substances (Apple 2006, p. 3)
Aside from the said regulation the company is also implementing their wastewater and solid waste emissions that helps the suppliers to properly monitor, control as well as treat different aspects of sanitation of the entire facilities (Apple 2006, p. 3). The company also focus on how they will help to lessen air pollution by implementing air emissions of all volatile and ozone depleting chemicals as well as implementing pollution prevention and resource reduction (Apple 2006, p. 3). The company is also strict when it comes to their environmental permits and reporting (Apple 2006, p. 3).
Customer
The company use the instrumental approach to get the needs and demands of their customer. The main objective of the company is to ensure that they are meeting the demands and needs of their customers by offering different advance and high-tech products, after their environmental issues, the company have been more focus about the safety of their customer. The recent product that was released by the company, which is the phone, the advertisement and the press release of the company shows that the phone has been the safest among their products. As a matter of fact the company already planned to release their products that are free from PVC, BFRs as well as the arsenic by the end of the year 2008 (Apple 2007a).
Another thing that the Apple has added to their product is to increase the energy efficiency of their product for the sake of their customers or the users of their products and therefore will be able to help their customers to conserve energy consumption that eventually help the entire environment (Apple 2007a).
Community
The main focus of the company with regards to the community is the environmental factors. The main focus of the company after their environmental issue is the different aspects of their products and packaging design, responsible and accountable manufacturing, energy efficiency and competence and the most important, recycling.
With accordance with their product design, the company have decided to eliminate the Cathode Ray Tube or CRT displays in order to make their product lines more environmentally friendly.
Apple is also focusing on their responsible manufacturing by restricting the use of all of the environmentally harmful substances, materials and compounds as well as process (Apple 2007a). With accordance to the said aspect of the business practice, the company have implemented their restricted substances program that limits the use of all heavy metals as well as substances that can affect the ozone (Apple 2007a) (See Appendix E for the list of the substances that are banned from the products and process of Apple).
Virtue Ethics
Virtue ethics focus not on the act but on the agent that is doing the act. It helps to avoid different dilemmas or problems due to the fact that it does not focus on making a decision about two adverse outcomes but on the side of being a certain kind of person. It can also be analysed as a medicinal analogy (Pfaff 2007).
Virtue ethics enters in the picture when a certain individual or organization is doing their things with accordance with what is the right thing to do that will benefit the majority of the people or entities who are involved (Apple 2007b).
After the environmental scandals or issues that have been criticised by different environmental agencies and organization more particularly the Greenpeace, the company have declared or showed all of their accomplishments and plans with regards to the environmental aspects of their company (Apple 2007b).
One of this is that the company have already disposed or eliminate the use of the cathode-ray tube or CRT during mid of the year 2006. Another thing is that all of the manufacturing factories and products of Apple worldwide have already complied with the Restriction of Hazardous Substances Directive of RoHS during the same year (Apple 2007b).
At the end of the year 2008, the company is planning to totally get rid of their use of the mercury by transitioning to Light-emitting Diode or LED backlighting for all displays that will help the company as well as their customers to be more technical and economical feasible (Apple 2007b).
Another plan of Apple is to wholly eradicate and abolish the use of PVC and BFRs at the end of the year 2008 to ensure much environmentally and health friendly products (Apple 2007b).
Recycling of e-waste is also one of the tasks that the company give focus after all of the issues about their environmental aspects. During year 2006, the company have recycled about 13 million pounds of e-waste that is equivalent to 9.5% of the weight of all of the company’s products. By 2010, with their efforts and other activities, the company forecasted that they will be able to recycle the 19 million pounds of their e-waste (see Appendix F for the Percentage of the Weight Recycled of the past sales of Apple).
Apple is also implementing proper disposal system of different substances and materials that they are using. All of their e-waste are collected in the North America and eventually processed in the USA, therefore there is no shipping of disposal overseas that are done by the company (Apple 2007a).
The company is also focusing on the activities and processes that are done by their recycling vendors. Like their suppliers that company also set their standards, policy and rules and regulation that will ensure that all of the entities in their overall manufacturing and processing supply chain will follow the same standard and rules of the company.
Part C
As of now, there is no law or regulations enough to handle different environmental issues about different companies that are using different substances, materials and chemicals that can harm the health of the people as well as destroy the environment. Because of the said reason, different companies particularly those multinational and huge companies are just doing their initiatives that is based on their ethical virtues as well as based on their own organizational laws and regulation.
Because there is no law that will limit or set the activities and processes of different companies it will be hard to distinguish if a certain company is already doing something that is bad for the environment. Another thing is that most of the companies will do some environmental initiatives but it will also be based on the different aspects of the company as well as how it will affect their overall performance.
If a law that will handle the issues of environment and the different companies, will be implemented, it will help to centralized or set one standard that should be followed by different companies. By doing this, it will push them to be more friendly to the environment as well as it will make them to create or implement their own policy that will follow the entire or the mother law. Eventually, this will help all of the entities or actors that are involved in the picture to become more aware of what they can do to help the environment.
Credit:ivythesis.typepad.com
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