The Social Performance of an Organization

The dynamic and active transformation of an organization's mission into daily operations that are consistent with the accepted and approved social ideals is referred to as social performance (Dimba, 2013). Giving the needy financial and non-financial services, as well as increasing the quality of their products and services, are some of the important social values that businesses like Apple Inc. uphold (Gupta, 2013). Apple's internal and external environments, stakeholders, and corporate social responsibility (CSR) all play a role in whether it succeeds or fails. This paper seeks to discuss the structure, nature and the types of services and products of Apple Inc. and the critical factors in the external environment of the company that affects its achievement. Besides, the paper discusses ways in which principal stakeholders can impact the financial performance of the company.

The Structure, Nature, and Types of Services or Products of Apple

Apple Inc. is a famous American based multinational organization that is involved in designing, manufacturing, selling and marketing of software, mobile phones, personal computers, media services, portable digital music players along with other applications and services (Apple, 2012). The conventional primary products of Apple Company include the iPod, Macintosh line of computers, iPhones, the iOS operating systems, and the Mac computers among other electronic devices. The services and products of Apple Inc. are known to be unique and of high quality and thus making it preferred by many customers (Apple, 2012).

The products of Apple are more competitive in the market since they offer an exceptional experience to the clients or users than other companies. For instance, the iPhones manufactured by the company utilizes the iOS that is an in-built operating system for the Smartphone’s of the company. Computers in the business also utilize Mac OS that is inbuilt. Such factors make Apple’s products unique since no other manufacturer uses such an operating system.

Furthermore, the company utilizes advanced technology machinery and systems while manufacturing their products. With these said the organization succeeds in several economies throughout the world (Krar & Gill, 2005). The company’s products satisfy more customers when compared to the competitors and thus having a competitive advantage. Besides, the company has been able to maintain local clients and those from other nations are satisfied by offering them with unique and quality products.

Key Factors that Affect Apple’s External Environment

Various factors affect Apple's external environment and have effects on the company’s success or failure. These factors include the political environment in which the company operates, which is not under the control of the company. Political factors encompass the geopolitical uncertainties, terrorism, work permits, and issues affecting health that would have a significant effect on the sale of the company's products locally and across the sphere. Since Apple Inc. has outsourced in various enterprises across the human race, cases of instability would lead to the delay in manufacturing. Henceforth, it may interfere with the supply of its products and reduced quality of services offered by Apple.

The second factor is changes in the technology across the globe that renders most technologies obsolete. Technological changes require that the company becomes more innovative in its processes and products to keep up with the competition (Krar & Gill, 2005). Therefore, failure to use the right technology would affect the success of the company by increasing the cost of production and reducing the number of sales hence decreasing the company’s profitability.

Role of Stakeholders in influencing Financial Performance of the Organization

Apple Inc. has various stakeholder groups that help the business grow and develop. The primary stakeholders for the company include the company’s employees, the consumers, investors, suppliers, and distributors. Each of these stakeholders influences the financial performance of an organization. The primary stakeholders have a direct influence on the company’s financial performance as they carry out the company’s activities in the process of production. Thus, their motivation can determine the company’s financial performance. Investors have an influence too on the financial performance of a group as they provide financial resources to the company for investment purposes and, also, for running the business efficiently. Secondary stakeholders have an indirect influence on the financial performance of the organization. Secondary stakeholders include the media and pressure groups, competitors, the law regulator, and any form of social ecology related to the company. Therefore, these various stakeholders influence the performance of the company through improving the brand image and value, for example, the consumer's perception of the brand impacts the sales of the product.

Additionally, stakeholders help in the reduction of potential liabilities for the company through the outsourcing of duties to suppliers and distributors. Moreover, the stakeholders such as the employees in human resource and procurement department assist in resource management, which helps in the financial performance of the company by the administration of employees and the raw materials from the suppliers. The stakeholders such as the law regulators influence the company’s financial performance. For instance, the laws can be changed and affect the business negatively to the point of closing the premises, for example, when the company’s product has been prohibited or the taxation on its raw material increased augmenting the cost of production. Also, the stakeholders assist in improving the profitability of the company through the increase in sales levels and cheaper supply of raw materials which reduces the cost of production. The stakeholders also increase the market for the company through referrals, loyalty to company products and even marketing, which improves the financial performance of the company.

Controversial Corporate Social Responsibility Concern Associated with Apple

Corporate Social Responsibility (CSR) is an organization’s initiative to be responsible for its environmental effects on social well-being. It involves the company incurring some short-run obligation that does not result in a direct financial benefit to Apple; alternatively; it provides a positive social as well as an environmental benefit (May, Cheney, & Roper, 2007).

The success of Apple is partly because the company can satisfy its various stakeholders and also carries out CSR activities. The Foxconn issues have been well-known across the globe to be the company’s most controversial corporate social responsibility activity. Apple has been accused of having dealerships with various suppliers who usually violate the human rights by offering lousy working conditions for their employees. For example, in the year 2012, there was a blast at Foxconn that killed four employees, and some others were left injured. Additionally, the employees said that they work very long hours without being compensated or even paid for the overtime. They also have to stand for very many hours that they can barely walk. The company forces the employees to use the poisonous chemicals to clean the iPad screens, which are against the health standards and laws. The chemical compound left two employees dead.

Foxconn is Apple's primary supplier, which operates in an environment where health and safety laws are not implemented well. Employees of the company are reported to attempt severally to commit suicide due to work-related problems. Furthermore, Foxconn was accused of engaging in activities that pollute the environment such as the pollution they caused to a river in Jiangsu City, China. Despite that, the Apple’s company has been conducting business with Foxconn having full knowledge that they violate the law. Therefore, a good CSR is an essential factor for the organization’s overall success.

Conclusion

Apple has been very cautious with how it works with its internal environment, external environment, stakeholders, and its CSR; therefore, making it very successful in the market despite its minimal rate of poor CSR activities. Nevertheless, the company needs to improve the CSR operations it undertakes to ensure it gives back more to the community to increase its levels of profits. More CSR activities will lead to customer, supplier, and distributor loyalty hence increasing retention (Gupta, 2013). Additionally, the company should avoid doing businesses with suppliers and manufacturers that have negative reputation since this leads to Apple’s image and brand deterioration. The company also requires following all the regulations of each country it operates to avoid incurring penalties which will make the environment of operation conducive.



References

Apple. (2012). Annual Report. Retrieved from http://investor.apple.com/secfiling.cfm?filingid=1193125-12-444068

Dimba, B. (2013). Culture and organization performance. Encyclopedia of Corporate Social Responsibility, 728-730. doi: 10.1007/978-3-642-28036-8_557

Gupta, A.D. (2013). Corporate social performance. Encyclopedia of Corporate Social Responsibility, 574-576. doi: 10.1007/978-3-642-28036-8_8

Krar, S. & Gill, A. (2005). Exploring advanced manufacturing technologies. NY: Industrial Press.

May, S., Cheney, G., & Roper, J. (2007). The debate over corporate social responsibility. Oxford: Oxford University Press.