Question

Describe Apple Incs, internal and external stakeholders. In the description, include the actions taken by the stakeholders to date to influence the political process and advocate for the business’s interests.

Answer 1

Apple’s Stakeholder Groups

Apple considers the interests and concerns of a number of key stakeholders in its policies and programs for corporate social responsibility. Stakeholder groups impose varying demands in different aspects of business. In Apple’s case, the following stakeholders are the most significant:

1. Customers/Consumers
2. Apple’s Employees
3. Investors
4. Employees of Suppliers and Distributors

Customers/Consumers. Apple prioritizes customers as its top stakeholders in devising corporate social responsibility strategies. This stakeholder group is composed of individual and organizational buyers of Apple products. The main interest of customers is to have effective and efficient products that are reasonably priced. Apple products have higher price points. However, Apple’s premium pricing strategy is acceptable because it matches the high quality and aesthetics of these products. The company also has environmental programs for recycling and responsible sourcing to address customers’ demands for business sustainability. Thus, Apple’s corporate social responsibility efforts satisfy the interests of customers as the top stakeholders of the business.

Apple’s Employees. Employees are the second-priority stakeholders in Apple’s approach to corporate social responsibility. This stakeholder group is composed of employees at Apple’s facilities. The main interests of these stakeholders are proper compensation and career development. Employees as a stakeholder group are important because they directly determine Apple’s human resource capabilities to innovate and develop profitable products. The firm addresses the interests of its employees through compensation packages competitive in Silicon Valley. Thus, Apple’s corporate social responsibility efforts satisfy the concerns and interests of employees as a major stakeholder group.

Investors. Investors are typically major stakeholders and determinants of corporate social responsibility programs in businesses. In Apple’s case, investors are interested in maximizing the returns on their investments. The company effectively addresses this stakeholder group through excellent financial performance. For example, Apple is now one of the most profitable companies in the world. The firm maintains high profit margins. Apple also has a strong financial position, which involves high liquidity through large amounts of cash. The company has also managed to avoid debt. Based on these corporate social responsibility conditions, Apple effectively satisfies the interests of investors as stakeholders.

Employees of Suppliers and Distributors. Workers in Apple’s supply chain are also significant considerations in the company’s corporate social responsibility efforts. These workers are indirect stakeholders in Apple’s business, but determine the firm’s corporate social responsibilities. The main interest of this stakeholder group is similar to the interests of Apple’s own employees, such as proper compensation and job security. Also, this stakeholder group is interested in ethical employment practices. To address these interests, Apple has a Supplier Code of Conduct. The company monitors and imposes requirements on the employment practices of firms in its supply chain. Part of Apple’s policy is to terminate business relations with suppliers that continue to fail or refuse to satisfy this Code of Conduct. Apple’s 2014 assessment of suppliers shows that 92% of suppliers now comply with the 60-hour workweek rule. Thus, to a certain high degree, Apple’s corporate social responsibility efforts satisfy the interests of the stakeholder group of suppliers’ workers.

Apple manages engagement in the public policy process and have internal teams that coordinate those efforts. Strategic decisions about advocacy are made at the highest levels, including Apple’s Executive Team and CEO Tim Cook. All public policy expenditures are reported to the Apple Board of Directors and reviewed annually by the Audit and Finance Committee of the Board.

Apple does not make political contributions to individual candidates or parties, and we do not have a political action committee (PAC).

Apple’s government affairs group engages with government officials and policy makers at the federal, state, and local levels on legislation, regulations, and policies that affect us. In addition to advocacy by Apple employees, Apple retains outside consultants to support our engagement with government officials and policy makers.

Federal, state, and local lobbying regulations may require entities and individuals who engage in public policy advocacy to register and disclose relevant activities and expenditures. Some procurement lobbying efforts also require registration and disclosure. Apple complies with all such regulations.