Discuss measures taken by Apple to minimize ethical problems when working with partners in countries whose ethical practices differ from those in the United States.
What will be an ideal response?
Answer: Apple faced an ethical dilemma with one overseas partner. Like many other electronics and computer companies, Apple contracted with manufacturing facilities in countries, including China, where laborers are paid less than in the United States. This wage difference is not unethical. However, reports emerged that the people were forced to work seven days a week and often more than 10 hours a day. In addition, working conditions in these factories were unsafe, which led to explosions in two iPad factories in China, killing 4 people and injuring 77.
Was Apple responsible for the abusive working conditions and safety violations at these overseas facilities? Were the company's local contractors responsible? The ethical issues in this situation are complex. Apple has a supplier code of conduct that all suppliers agree to follow. And following the explosions in the two Chinese factories, Apple made a commitment to monitor the plants more closely. However, the abuses continued and critics accused Apple of ignoring reports of unsafe working conditions and of taking advantage of different ethical practices to increase profits. As Nicholas Ashford, a former chair of the National Advisory Committee on Occupational Health and Safety, said, "What's morally repugnant in one country is accepted business practices in another, and companies take advantage of that." Apple, however, contends that it does not want to take advantage of workers. CEO Tim Cook said that "We believe that workers everywhere have the right to a safe and fair work environment." To ensure this safe work environment, Apple engaged an intermediary—the independent Fair Labor Association—to conduct voluntary audits of all suppliers' facilities in China by inspecting the plants and interviewing workers. Apple's suppliers have agreed to abide by the results of the audits and to make changes in wages and working conditions.
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