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Case Study Analysis: Apple Inc.
Ryker Arriola
Northern Arizona University
Business Ethics
September 25, 2022
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Case Study Analysis: Apple Inc.
1. Explain how Apple’s philosophy and organizational culture have impacted how it
handles ethical decisions.
Apple’s philosophy and organizational culture have influenced how the company handles
ethical Decision-Making in Practice decisions. Apple has always met the challenges of its
environment by focusing on technology and innovation; however, Apple also puts a strong
emphasis on social responsibility and human values as they relate to business. Apple’s culture has
helped it create innovative products, improve environmental goals, and attract top talent. The
company sets high standards in hiring through extensive screening processes for the top positions.
When an executive joins Apple, he or she is exposed to the company culture and allowed to grow
within it. The company’s organizational culture also supports the innovation of its products. “Work
hard and be relentless.” This line was the first thing Steve Jobs told his wife when they first started
dating many years ago. Jobs continues to practice this philosophy, which is a driving force in
Apple’s mentality and culture. Another aspect of Apple’s culture is that employees form bonds
through their mutually shared experiences of success and failure. People want to be a part of
something special, and Apple does a great job at giving its employees plenty of opportunity to
participate in the company’s goals. The company has embraced its down-to-earth reputation and
refuses to put a barrier between itself and the consumer. This approach has created products that
are affordable and easy to use, along with an ambiance that is welcoming and comfortable. “You
can do anything you want if you work hard enough.” Jobs truly believes this statement, and Apple
employees have been able to put it into action. Today, Apple continues to challenge traditional
values by pursuing technology, creativity, innovation, and social responsibility at the same time.
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You have explained key factors in Apple’s philosophy and culture that have impacted how it
handles ethical decisions. Another important factor is its high-quality standard. With such a
standard, Apple is likely to address quality issues as they arise.
14 / 15 points
2. Why is Apple’s industry so competitive and how could this affect the ethical risks in
Apple’s operations?
Apple’s industry is highly competitive. In recent years, Apple has taken steps in positioning
itself to remain a top-tier company in the technology and consumer electronics markets. The
company’s innovative products and company culture are just as important as its product lines and
competition. The high level of competition puts pressure on Apple to stay on top of the
technological advancements that it needs to continually improve its products. Since its competition
is quick to respond to Apple’s innovations, the company must work hard and be relentless in its
efforts. In addition, Apple’s innovative products will likely become outdated in a relatively short
time, leading to the possibility of security breaches or other problems affecting the safety and
integrity of the products. Although Apple has a good reputation in this area, it is still vulnerable to
security breaches (i.e., Target breach) and other critical risks that come with utilizing new
technology. Apple’s dedication to innovation and unconventional strategies have placed it in a
highly competitive industry. In order to overcome the company’s obstacles and ultimately continue
innovation, Apple must consider its ethical risks.
You did not address the first part of the question – Why is Apple’s industry is so competitive? The
reasons for the level of competition are (1) the technology industry is a race for market share, (2)
products are developed in months, not years, (3) consumers are constantly demanding new and
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better products, and (4) competitive pressure has caused companies to aggressively defend their
intellectual property. You explained how Apple has responded to the competition.
11 / 15 points
3. How do you think Apple has handled the various ethical issues that it has faced in the
past?
Apple is a large and successful company that has made great contributions to the technology
industry. However, Apple has also been involved in several ethical issues and scandals. Two of
these controversies include the sweatshops in China and the use of child labor in other countries.
The company claims to take an ethical stance regarding human rights, yet it has been involved in
human rights violations while manufacturing products on a global scale. In these instances, Apple
did not address the issues and instead continued to use sweatshops and child labor to manufacture
its products. Additionally, Apple has been involved in several lawsuits because of various reasons.
Apple has also received widespread criticism for its refusal to assist the FBI with security concerns
regarding terrorism. In spite of these incidents, Apple is still considered a visionary company that
is innovative and has produced some of the most cutting-edge technology in the world. Apple has
taken an ethical stance in some areas, but in others it has not. In the end, Apple’s success is due to
its ability to identify market trends and respond to them quickly. The company continues to be
innovative and visionary. Although there are shortcomings, Apple is still considered a brand that
stands for excellence and meets the ever-changing needs of its consumers.
The four ethical issues highlighted in the case are privacy, sustainability, worker safety, and
intellectual property. You addressed two of those issues - worker safety and privacy (FBI
example).
16 / 20 points
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