Reduce, Reuse, And Recycle:
How Apple has made Sustainability its Corporate Social Responsibility
May, 2013
Emily Callahan-Hughes ecallahanhughes@gmail.com
Abstract
Corporate Social Responsibility and Sustainability are important growing factors in business today. With ever improving technology, it is important the technology companies have efficient ways to produce and dispose of their vast technologies. Apple is one company that has continued to expand their CSR as well as their technology. And in a world where technology is vital in life and social means, Apple accepted the challenge. This case study explores the success of Apple’s
CSR campaign, without the aid of social media.
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Introduction
Corporate Social Responsibility (CSR) is the view of a corporation and its role in society that assumes a responsibility among firms to pursue goals in addition to profit maximization and a responsibility among a firm’s stakeholders to hold the firm accountable for its actions. Within this, there are five identifiable trends that motivate CSR to be what it is today. Growing affluence can be somewhat of a problem for companies. If the company is stationed in an affluent area, the consumers expect more. Ecological sustainability is aided by growing affluence. Consumers want to make sure that products are not harming the Earth in anyway. Globalization is a big push for companies. They can expand their market, but with it they need to create products that abide by the country’s laws and regulations. Placing factories and creating new jobs in other countries can raise the standard of living for the citizens there. The free flow of information is that people are constantly connected to the internet and communication. This allows people to contact and form groups to protest and whatnot. And finally, Brands. Brands are important to consumers; they only want the best and up to date technology. In addition to the five identifiable trends, there are four parts that make up strategic CSR.
Strategic CSR is the incorporation of a holistic CSR perspective within a firm’s strategic planning and core operations so that the firm is managed in the interests of a broad set of stakeholders to achieve maximum economic and social value over the medium to long term.
First, the incorporation of a CSR perspective in the planning process. Each company needs to acknowledge and create a CSR plan. Second, any actions taken directly relate to the core operations. All the decisions the company makes should reflect some notion of their CSR plan.
Third, incorporating stakeholders perspectives. The ideas and concern of the stakeholders needs to be known and made useful in the CSR plan. Fourth, that the company can shift from shortterm to medium long term with stakeholders and resources. For the company to be successful, they need to be able to project their plans into a more long-term goal. This should also be made up of the ideas and concerns of the stakeholders, as well as how the company uses its resources.
Both the five identifiable trends and the four parts of strategic CSR make it the functioning program it is today.
Since 2009, Apple has been reporting their carbon footprint in order to reduce their emission and to be a “green” company. Although Apple has created a successful CSR campaign,
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they have done so without the help of social media. This case study explores the success of
Apple’s CSR campaign, without the aid of social media.
Background
Apple is a technology retailer . The company is based out of Cupertino, California since
1976, and has become the world’s leading technology retailer. Starting with desktop computers, the company has branched out into laptops, tablets, MP3 devices, and cell phones. Apple reportedly employs 307,520 employees with jobs in all 50 states. In total, Apple has created or supported 598,500 jobs in the United States, according to their website.
There are three arguments for CSR. Each argument focuses on a different part of CSR, claiming that it is more important than the others. The moral argument for CSR is that a company cannot create just for money. Their product needs to do something better for society.
And the company cannot just focus on the money, they need to focus on satisfying the consumers, or else they will not exist. This is important, because the products are for the consumers, if they do not feel it benefits them and/or their concerns, they will not want it. The rational argument argues, that no matter what the morals of CSR may be, that ultimately, a company sides with the rational expectations of society. The rational argument follows the sanctions and laws given, but can also use those to see how the public opinion will change. The economic argument in the one argument that most supports CSR. This argument sees both the value in the company’s economic placement, but also in the well-being of society. This is the argument that takes more than one side, it is a combination view. A company needs to decide on what CSR argument they will follow and stick to it.
Stakeholders are any group or individual who can affect or is affected by the achievement of the organizations objectives. For Apple the stakeholders are comprised three different categories. First the organizational stakeholders include employees, managers, stockholders, and unions. These are important because they are internal stakeholders. They are involved directly in the company. They can also be occasionally in the economic stakeholders grouping as well.
Second, are the economic stakeholders. This group is made up of customers, competitors, creditors, distributors, and suppliers. The economic stakeholders affect the money, whether it is the cost of the service, competing prices, or purchasing. Third, the societal stakeholders are made up of government/regulators, communities, nonprofits, NGOs, and the environment. This
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group influences how the company functions and what they need to abide by. The economic stakeholders are the most important. These are the people that can make or break a company. If no one is buying the product, the company will cease to exist. Next are the organizational stakeholders. They are the people that keep the company going and can make it a success. Lastly, the societal stakeholders. The societal stakeholders can be interests of the economic stakeholders; they can also be guidelines for the products. These can be encompassed in the economic stakeholders group through the customers, but are not a top priority.
According to Werther (2011) “Strategic CSR is the incorporation of a holistic CSR perspective within a firm’s strategic planning and core operations so that the firm is managed in the interests of a broad set of stakeholders to achieve maximum economic and social value over the medium to long term”. Stakeholder advocacy is usually found in CSR matters when a stakeholder encourages a certain plan or motives for a CSR plan in a firm. Advocacy usually comes from consumers, investors, or external activist, but can also be pushed by internal factors such as employees or founders. Stakeholders care about CSR because it affects the society they live in. Stakeholders want a company that is aware of what is going on in society and communities and can help take action. With technology most advocacies are done online or through other media mediums. Although Apple has their CSR program on their webpage, they do not use any other social media means. Social media is where most advocacy groups are big and rallying others for their cause. Apple had refused to join Twitter and Facebook, which keeps the company slightly removed from the public. Apple is one of the one computer and technology companies that does not use social media. Computer companies such as Dell, HP, Acer, and
Toshiba all use Twitter as a way to connect with their stakeholders. Although Apple is running programs like recycling old technology and trying to be efficient for the environment, they do not connect with their stakeholders very well.
Findings
During this study of Corporate Social Responsibility and Sustainability, I researched
Apple’s strategy and response to current industry trends and events. CSR and Sustainability are growing fundamentals in businesses across all industries. Apple uses its own approach that is unique to the technology industry, and many other industries.
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Apple is a leading technology retailer. The company is based out of Cupertino, California since 1976, and has become the world’s leading technology retailer. Starting with desktop computers, the company has branched out into laptops, tablets, MP3 devices, and cell phones.
Apple reportedly employs 307,520 employees with jobs in all 50 states. In total, Apple has created or supported 598,500 jobs in the United States, according to their website. Apple started their CSR campaign in 2009. Since then, they have continued to measure and report their carbon footprint. These measurements and reports include their facilities, and the manufacturing, transportation, use, and recycling of their products. In addition, Apple also uses renewable energy.
According to Babin (2011), “Today, corporate social responsibility (CSR) is a priority item on the agenda of almost every business organization” (p.28). Companies not only involve themselves in CSR for the good of the community, but also as a way to secure the company.
There are five environmental driving forces in CSR today that propel Apple to take a greater interest in CSR. As mentioned earlier those forces are growing affluence, ecological sustainability, globalization, free flow of information, and brands. According to Werther (2005):
When the competitive strategies of multinationals rely on global brands, corporate social responsibility (CSR) offers insurance against management lapses. The practical need for
CSR as brand insurance comes from changing social expectations, affluence, and globalization. Corporate actions that violate societal expectations damage, even destroy, brand image among networked stakeholders who are affluent enough to buy branded products and services. (Abstract)
A brand must uphold their image and what they provide to the public. If they damage their image, they can lose their stakeholders, investments, and the company. It is also important for companies to take in a stakeholder perspective. Knowing what the public wants, can help give the company long term goals and involvement in society.
For Apple, taking an interest in CSR meant starting a new campaign. This campaign focuses on the impact that their company and products make on the environment. According to the Apple (2013) website, “Apple reports environmental impact comprehensively. We do this by focusing on our products: what happens when we design them, what happens when we make them, and what happens when you take them home and use them.” Apple not only focuses on what happens during their time with products, but also what happens after a product is bought by
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a consumer. Part of Apple’s CSR approach is creating products that are better for the environment. In Apple’s ecological sustainability aspect, this is same idea is found. According to
Apple (2013), “To accurately measure a company’s environmental footprint, it’s important to look at the impact that company’s products have on the planet.” Consumers are concerned about the environment and only want or will favor products that are not as harmful and are made more efficiently. Part of Apple’s CSR plan is to make products that when used by consumers, are more efficient. They acknowledge this aspect of their campaign stating:
We know that the most important thing we can do to reduce our impact on the environment is to improve our products’ environmental performance. That’s why we design them to use less material, ship with smaller packaging, be free of many toxic substances, and be as energy efficient and recyclable as possible. (Apple 2013)
Apple continues to achieve success through researching ways to make their products better for the environment and better for the consumer.
The Apple brand is well known in the technology industry. The name is just as renowned as the technology they produce. As the world’s leading technology computer, their products are the most purchased out of any other technology company. Consumers are aware of brands and will tend to stick with certain brands over time. Apple is constantly upgrading their technology for consumers to upgrade to. One of Apple’s greatest strengths is that they have accomplished the task of making more environmentally friendly products by not using harsh chemicals and making them out of recycled materials:
Manufacturing innovations such as unibody construction have allowed MacBook and iPad products to become thinner while being even more resilient. And the latest iMac features a process called friction-stir welding, which helps enable iMac to use 68 percent less material and also generate 67 percent fewer carbon emissions than earlier generations. (Apple 2013)
In turn, their loyal consumers upgrade their products over time, and new comsumers buy into the customer because of their ability to make eco-friendly products. The target market for Apple is consumers that are interested in products that help the environment, letting Apple charge more for their products. Customers appreciate that Apple is doing what no other companies in their industry are doing. According the Apple website (2013), “as we continue to grow faster than the rest of the industry, we’re doing it with products that are friendlier to the environment than ever,
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and we remain committed to creating products that have the least amount of impact on the environment”. Apple is managing to the competitive edge alive by being ahead of their competitors in the technology industry. Apple is producing products to a better standard than other companies. According to Babin (2011):
Providers with data centers and related technologies must be able to demonstrate energy efficiency that exceeds the levels set by buyers and required by governments. For example, a provider should be able to demonstrate reduced carbon emissions through power management that is more efficient than the buyer could achieve. In accordance with environmental responsibility, outsource providers must increasingly comply with government and industry standards. (p. 29)
Apple is consistent with this assessment done by Babin. Not only do they report all their carbon emissions on their website, but they go above the standards required. According to Apple (2013),
“Apple measures the greenhouse gas emissions associated not only with producing products but also with their use by our customers. We know of no other company in our industry going this far in measuring and disclosing its carbon emissions”. Apple not only reports their carbon emission, but does more research into it, and reveals more information than any of their competitors. They are giving the public full access to what their company impact is on the environment. Apple (2013) states, “we’re still the only company in our industry whose entire product line not only meets but exceeds the strict energy guidelines of the ENERGY STAR specification”. In addition to having energy efficient products, Apple (2013) also “eliminated
BFRs from thousands of components, putting us years ahead of others in our industry. And we use mercury-free LED backlights and arsenic-free glass in every display we make”. Apple is constantly making sure they are innovative and in the lead with their CSR program.
Another strength for Apple is the quality of the technology. Apple products are so popular because of their ability to resist viruses. The standard at which they keep their product is a standard that many other companies cannot attain or achieve. Apple’s strategy is to keep consumers happy with their products and to make products that help consumers. They uphold this value by constantly upgrading software and issuing new models. The factories that produce the products are run efficiently and produce the products fast enough for consumers to constantly purchase them. The efficiency in which they produce their items is also viewed with what they
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do for the society with their items. They make them the most environmentally friendly as possible, that almost never breaks.
Apple has taken the opportunity to take their competitive advantage one step further.
Apple has also expanded their market in globalization terms, making it world-wide; and with this comes job outsourcing. Factories are now found in Germany and Ireland and can provide jobs for citizens in those communities. So not only are they making better products, but they are providing jobs for citizens in other countries. Apple’s competencies include its capabilities to compensate its employees. The employee program at Apple is known to be fair. The factory workers are compensated and trained to high standards. According to Apple (2013), “Apple is committed to ensuring that working conditions in our supply chain are safe, workers are treated with respect and dignity, and manufacturing processes are environmentally responsible”.
While providing these jobs can attribute a higher cost of living in those areas, the workers can also buy into Apple products. Fortunately for Apple, their product does not need to change in different locations. Their products can be used anywhere. This also aids in their CSR effort. According to
Babin (2011):
In our research we found that buyers and providers who collaborate on CSR initiatives create strong business value in the outsourcing relationship, and create social value for the communities in which they operate. (p.28)
Taking the company and its products world-wide means that they can contribute those locations and areas. Their CSR campaign extends to their new locations and can help people world-wide.
For Apple, the greatest challenge would appear to be the task of incorporating a stakeholder’s perspective. Although Apple is concerned with their affects on the environment, and helping consumers to lessen the impact as well, not much else has to do with the stakeholder.
They continue to make their technology, not asking for input from consumers. Apple does not involve itself with social media what so ever. They do not have a Facebook, Twitter, etc. Most companies, such as Dell, HP, and Toshiba, have all taken to social media. Social media is an easy and free way to interact with consumers and get feedback on products. It is also an easier way to reach the consumer with a CSR campaign. Apple has its CSR plan available on the website for the company. There it has pages for all the different tactics they have taken to better the company. According to Chaudhri (2007), “the number of companies with CSR information on their Web sites is strikingly low and that these leading companies do not leverage the Web
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sites to their advantage in terms of the quantity and style of CSR communication”. Although
Apple does not reach out to their consumers via social media, making the CSR information available online still puts them at an advantage. Apple’s lack of social media, however, does not seem to harm them, or their CSR campaign, in any way.
Apple is not the only technology company looking to turn green. Other companies within the technology industry have taken great strides to make their companies more environmentally friendly and efficient. Along with Apple there is: Hewlett Packard, Dell, Toshiba, and Acer. All of these companies have web pages dedicated to their environment effort. Each company keeps records and reports of their impact on the environment as well as what their products effects are.
In addition, each company is concerned with recycling and taking care of used products in the most efficient manner. Recycling old products has become a great program for technology companies to run. They are able to dispose of the old products safely, but also recycle their parts into new products. Not only is recycling part of their CSR campaigns, but so is social media.
These technology companies use social media as a way to connect with their consumers.
Technology Trends for 2011(2011) says that:
While only a few brands currently sell directly through Facebook (including Victoria's
Secret, 1-800-Flowers.com, and Delta Airlines), look for "f-commerce" to take off in the next year. By allowing Facebook visitors to shop without leaving the site, brands add a social influence to the transaction -- and bring a concrete return on investment to social media. (p.1)
Companies can use social media to their advantage. The companies that connect Facebook to purchasing can have consumers on Facebook share their purchases with their friends. This can promote other people to purchase Another trend that is continuing is the e-reader. Technology companies are producing e-readers and tablets for consumers to read and use on the go. Apple’s tablet is the iPad, which comes in standard and mini. The tablet can be used as a computer on the go. According to Technology Trends for 2011 (2011), Research indicates that e-readers lead to an increase in reading. With initiatives like Worldreader, e-readers are even bringing books to more people in low-literacy countries such as Ghana”. This trend in technology can also help aid CSR campaigns.
Social activism is a great way for companies to get involved in their communities and an aspect they can add to their CSR campaign. As it stands now, Apple is not involved in any social
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activism. However, that does not mean that competitors in the technology industry are not involved. According to Chang-Ping (2009):
We found that 68.1% of high-tech industries in Taiwan are in accordance with business ethics and norms of conduct. Businesses take their responsibility practically by participating in public welfare activities. The more responsibilities they fulfill; the better image they have. High-tech industries should target the social responsibility as their first goal and secondly improve their corporate image to increase the economic performance.
(Abstract)
Businesses that partake in social activism are a great asset to their community. The technology industry is especially important because they offer a way to communicate this activism worldwide, and expand it into other communities. Activists use technology as a way to spread the cause and to inform more people about it. After researching the technology/computer industry and the social activism movements of Idle No More and Tar Sands Action, it would appear that the two are not connected. The supporters of these movements are more foundations such as the
David Suzuki Foundation and the Farmer’s Union. Many companies do not get involved with social activism because it makes them a target for activism. King (2013) of Kellogg Insight states:
…the more active a company is in promoting its CSR efforts and the more highly regarded it is, the more likely it is that it will be targeted by social activists. In effect, protesters who seek to increase general awareness about a social issue have incentives to go after businesses that will maximize their chances of garnering media attention and creating public awareness. Top corporations are targeted regularly for this reason.
Consumer based companies need to be careful of what they support, in the chance it might offend some of their other consumers. Companies will often not support an activism campaign if it could affect their image or brand. King (2013) even singles out Apple’s previous history of being the subject and victim of social activism saying:
Apple is far from the only company to have been accused of using sweatshop labor to fabricate its electronics devices, for example, yet its positive brand image and popularity offer protesters a useful cudgel.
Companies that use sweatshop labor and unfair conditions can be singled out by social activism.
However, because Apple has many loyal customers, and high quality products, they can protect
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themselves. Although being involved in the community is key to a successful CSR plan, joining into social activism that can harm the company, is better left unjoined.
The information pertaining to Apple and the other various findings in this research study are intended to present more information so that persons interested in forming an opinion on whether Corporate Social Responsibility and Sustainability are public relation practices or a foundation of business ethics.
Conclusion
This case study explored the success of Apple’s corporate social responsibility and sustainability campaign without the use of social media. The conclusion was that the campaign was successful, but more could be done. Social media is an easy and cost-free way for companies to reach out to their consumers. Although Apple has been extremely successful without, there is always the question of if they could be better with it. Could Apple benefit from a connection with their stakeholders? From an online presence? That question can only be answered if Apple chooses to join the social media world. For now, they can continue what they are doing, and continue to be just as successful as they have been. Future studies could look at Apple’s success with social media, should they chose to participate.
References
Babin, R., Briggs, S., Nicholson, B. (2011). Emerging Markets Corporate Social Responsibility and Global IT Outsourcing. Communications Of The ACM, 54(9), 28-30.
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Chaudhri, V. (2007, November). Communicating Corporate Social Responsibility on the Internet
A Case Study of the Top 100 Information Technology Companies in India. Management
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Cheng-Ping, C. (2009). The relationships among corporate social responsibility, corporate image, and economic performance of high-tech industries in Taiwan. Quality &Quantity,
43(3) , 417-429. doi:10.1007/s11135-007-9117-z
King, B. (2013, March 4). Managing the Reputational and Market Risks of Social
Activism. Kellogg Insight . Retrieved from
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http://insight.kellogg.northwestern.edu/article/managing_the_reputational_and_market_ri sks_of_social_activism/
Technology trends for 2011. (2011). Machine Desgin, 83(10), 28.
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Werther, W. B., & Chandler, D. (2011).
Strategic Corporate Social Responsibility: Stakeholders in a Global Environment (2nd ed., p. 40). N.p.: Sage.
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