Corporate Responsibility and Marketing Strategies

Question 1

Ethical and social responsibility is an indispensable issue in any organization. The image and reputation of an organization depends on the effectiveness of its responsibility socially and ethically. Establishments have to put into consideration the benefits of their shareholders and emphasize on aspects apart from profit making. Companies are supposed to be concerned with eco-friendly, financial, ethical and social aspects, as these factors have a significant effect on the company’s fate ultimately (Crane, McWilliams, Matten, Moon, & Siegel, 2008). It is proved that corporations that engage in social and ethical activities have higher reputations and also have competitive benefits and bigger returns on investment (Sharma & Mehta, 2012). These corporations are regarded as high sustainability corporations. They also perform much better than firms that fail to engage in environmentally friendly programs that are also socially responsible (Abels & Martelli, 2012).

Apple has been known to be effective in its social and ethical responsibility. The taking over of Apple by Tim Cook in 2011, the present CEO from Steve Jobs has seen positive changes in Apple. For instance, he has ensured the increment of transparency in the supply chain, something that was initially an issue in the corporation. He has also introduced the employee donation matching program and other forms of charitable donations. Cook is also making attempts to convince the public that Apple is working towards improvements in other fields, especially concerning supply chain labour practices.

Cook, unlike his successor, Jobs, has been more involved in ways to make Apple more charitable in building its image and reputation in being a philanthropist. In reference to an internal meeting that was conducted in the fourth quarter of 2011, Cook made an announcement that Apple had collected $50 million for supporting the African AIDS research and poverty institutions (Creel, 2010). This was supposed to be done through the Product RED account which was established in 2006. As of 2013, Apple had made donations which amounted to more than $65 million. Cook has also initiated a charitable matching program for staff in the United States to enable them in their donation of money to non-profit organization of their choice with an utmost amount of $10,000 every year. In addition to keeping up with building more cutting edge technological strategies, Cook has been working on developing the reputation of Apple regarding philanthropy.

Apple has been reported to be one of the organizations that ensure environmental awareness. Apple Green Report of 2012 that was generated by Greenpeace made the announcement that every Apple’s product has no hazardous toxins comprising of brominated flame retardants (BFRs), phthalates and polyvinyl chloride (PVC) (Apple Green Report, 2012). It has also been recounted that Apple was the first corporation to accomplish the goal of the non-usage of brominated flame retardants and phthalates and polyvinyl chloride in the trade, since 2008. After being critiqued by Greenpeace for many years, Apple has made great improvements. It ensures that more energy-efficient products are manufactured with software and other built-in components that assist in saving energy. Apple has also performed well in its reusing program. These activities of Apple have helped in the growing of economy, in the creation of occupation markets and in the protection of the environment. It also helped in raising public attention on some issues, thus social goods are brought to the world.

Question 2

Apple is renowned as one of the most inventive companies in the 2014 Global Rep Trak 100 study. However, other than Apple’s high-tech products that take the attention of the whole world, some of Apple’s CSR practices are not very reputable. This was especially true during the term of Steve Jobs as the CEO. The media constantly disclosed information that regarded issues found in Apple’s supply chain and workforce abroad. Apple is also said to have refused to disclose their carbon emissions. It was also said to be one of the biggest international IT Corporation that is unwilling to join the Carbon Disclosure Project. This is an international non-profit organization that evaluates and discloses environmental information of various companies. These practices, among others, have given Apple a bad repute. Other factors, such as ignoring the working condition and ideals of their suppliers, have also negatively affected the reputation and relations between Apple and its stakeholders. For instance, workers may avoid seeking employment at Apple, fearing that they may be subjected to bad working conditions. There have been instances when young workers have called working conditions in Apple as life without dignity. Such concerns have brought about public consciousness and have led to the questioning of the corporate social responsibility of Apple. Apple has also lost some of its customers due to this negative picture portrayed. Labour advocacy associations have largely scrutinized Apple and its affiliate corporations for their poor working conditions subjected to their workers. The current CEO, Cook, is, however, trying to build the social image of Apple through introducing various improvements, especially regarding labour practices in the supply chain.

Question 3

Apple can utilize two strategies in order to make sure that its suppliers follow the benefit and wage standards going forward. These two methods include the use of contracts and delinking themselves from suppliers who have had various violations of the wages and benefits standards of the company’s workers. Through signing contracts between Apple and its suppliers, the company can make sure to include various conditions that would require strict adherence. These terms should be in a virtually direct relation to the employees of Apple. Such interests may vary from the basic working conditions, the wages and the benefits of the company’s employees. Amongst the factors to consider in such a case would be those entailing the profits attained from the transactions between the company and the suppliers. Apple should then ensure that there are strict and well defined consequences upon any violation of the set terms and conditions. This would act as a way to making sure the wages and benefits of the company’s workers are met.

The use of the method of cutting links with any suppliers who have made various violations of the company’s wages and benefits standards. This would then offer the employees an assurance of better wages and benefits. In case the company decides to delink themselves from such violating company suppliers, other companies would view this as a threat to their business relations with Apple. These companies would, therefore, ensure that they strive to attain such set wages and benefits standards. To some extent, they would also help Apple to achieve their personal goals set for their employees’ wages and benefits standards (Examining Apple’s Core, 2012).

Question 4

Apple’s customers will be willing to pay more for the products in the event that the company decides to the selling prices, in order to offer their employees better wages and benefits. This would be mainly due to the company’s long established reputation of producing products that are of the best quality and those that suit the use of most customers. The company has already made it quite clear that most of the products it manufactures are suited for the best use of these customers. It has also issued statements, both publicly and to private reporters that it seeks to ensure that the satisfaction of its customers is at the top of its priorities and strategies. With the publication of such reports, it would easily turn to work in the advantage of Apple, in case they increased the costs of their prices (Examining Apple’s Core, 2012).

Another reason for the willingness of Apple’s customers to purchase its products in the event that the company increases their prices would be the fact that there has been the making of positive reviews by its customers. These positive and consistently flowing reviews by Apple’s customers will help make it even easier for its customers to buy the company’s products. There is always an effect of the attainment of customer satisfaction and such a proof on other potential clients. If clients express a positive feedback on a company’s products, they are bound to be on an increased demand. This is a clear reflection of the typical Apple product. It is not important that the company intends to use the money gained from the increased price, in order to increase the benefits and wages of its employees. Rather, the quality and reputation attached to the company is what would actually make a great contribution to customers’ willingness to continue buying the company’s products (Examining Apple’s Core, 2012).

Question 5

In today’s era of hyper competition, it has become necessary for organizations to come up with marketing strategies to help them have competitive edge. Some of the strategies applied by Apple include cutting down the total number of products they offer and have also invested millions in research and development. They have also strategized on revamping on the process of distribution. Apple also has embarked on a distinguishing strategy that includes creative advertising, a new web site to help manage the process of sales. Another strategy has been linked to coming up with an education initiative by use of the launching of Apple retail stores which is a heightened concentration of customer service (Examining Apple’s Core, 2012).

Identifying trends has also been one of Apple’s strategies. Through recognition of trends such as digital consumerism, Apple has been able to meet the consumer’s needs. It achieves this through looking at consumer groups, industries and emotional focus of all of its customers.

Apple also analyses its customers as a marketing strategy. Through understanding its competition, Apple is able to enter into partnerships with its competitors in ways that are both mutually beneficial to them and also have downright advantage to them.

Apple has also embarked on making use of creative campaigns which include modern advertising channels. It helps in the growth of brand awareness. Apple has also enhanced its systems of distribution from regional outlets to national chains. More retail stores have also been opened as means of optimizing distribution, leading to increase of Apple’s total revenues. Apple has also resulted in outsourcing production abroad. This has helped in reduction of costs for Apple and also allowed flexibility in the process of production (McElhaney, 2008).

Apple has greatly invested in good customer relations. It is known to have one of the best customer services, having all of its customers’ concerns or issues being solved by its customer care representatives. It is helpful in achieving a competitive advantage.