COMMUNITY SERVICE

(MPU 1082U4)

TITLE

: CORPORATE SOCIAL RESPONSIBILITY (CSR)

NAME

: Leong Kah Chun

STUDENT ID : 2072016010064
LECTURER NAME: NURFARAH ADILAH BINTI ZUPPRI
SUBMISSION DATE: 6th APRIL 2016

CONTENT
TITLE

PAGE

1.

INTRODUCTION

34

2.

COMPANY BACKGROUND

56

3.

ETHICS IN THE WORKPLACE

7 10

4.

CSR

11 14

5.

MANAGEMENT ON CSR

15 16

6.

CONCLUSION

17

7.

REFERENCE

18

Corporate social responsibility

2

Corporate social responsibility is a concept whereby a company integrates social and

environmental concerns in their daily business operations and in their interactions with
stakeholders on a voluntary basis. Stakeholders are the individual or bodies that have
interest or always pay attention to a company. For example, they are consumers,
employees, shareholder, suppliers and voluntary bodies.
Corporate social responsibility is a very broad concept that addresses many and various
topics such as human rights, corporate governance, health and safety, environmental
effects, working conditions and contribution to economic development. Corporate social
responsibility also means being a good steward of society's economic and human
resources.
There are some purposes of a company to commit in corporate social responsibility. As a
company, consumers normally are their source of income and profit. By contributing in
corporate social responsibility, a company may gain more consumers awareness and
retention. Nowadays, consumers are more concern about ours earth. They will have a
Green and Ethical consumerism. If a company did well in corporate social
responsibility in aspect of environment, for example, recyclable packaging, Eco care
product, maximizing waste of production and others. This will attract mare consumers
attention on their products and have a good image of that company.
Then, good corporate social responsibility will also gain media interest and good
reputation. If a media is reporting about the company which did well in corporate social
responsibility will like a free advertisement for that company and share what is they
concern about the social and environment to increase public about some social and
environment problem that we are facing. This also will gain good reputation of a
company. It will lead to increase the confidence of investor to invest in that company.
When a company getting more and more investors which means they will have more
capital for them to getting bigger and continuous growth of the company in now and
future.

Last but not least, companies which concern about benefits and welfares of their
employees will attract, retain and maintain a happy workforce. Therefore, employees may
stay longer and this will reduce the costs and disruption of recruitment and retraining.
Employees are also have better motivations and more productive.

Company Background
Apple Inc. is an American multinational corporation that designs and markets consumer
electronics, computer software, and personal computers. It also is the largest technology
company in the world and the second largest company by market capitalization. The
company best-known hardware products include the Macintosh line of computers, the
iPod, the iPhone and the iPad.
Apple was established on 1st of April, 1976 by Steve Jobs, Steve Wozniak and Ronald
Wayne. At the beginning, they wanted to sell the Apple I personal computer kit. Steve
Jobs was own 45% of the company, Steve Wozniak with 45% and Wayne with the
remaining 10%. At that time, Jobs and Wozniak were young with little to no assets;
Ronald Wayne was older with personal assets and was scared to put these at risk. This
resulted in Wayne selling his share of the company back to Jobs and Wozniak for a price
of 800$. Today, Waynes share of the company would be worth over 3 billion dollars.
The founders Steve Jobs and Steve Wozniak created the Apple was not at 1st of April
1976 with the release of Apple I. This company incorporated January 3, 1977, in
Cupertino, California. Apple Computer was a dominant manufacturer of personal
computers. Their products including the Apple II, Macintosh, and Power Mac lines, but it
faced recession of sales and low market share during the 1990s.
Steve Jobs, who had been ousted from the company in 1985, returned to become Apple's
CEO in 1996 after his company NeXT was bought by Apple Inc. He brought with him a
new corporate philosophy of recognizable products and simple design. With the
introduction of the successful iPod music player in 2001, Apple established itself as a
leader in the consumer electronics industry, removed the word Computer on 9th of
January, 2007.
The first version of the iPhone became publicly available on June 29, 2007 in selected
countries. On January 27, 2010, The Apple iPad was announced. During September 2010,
Apple had 46,600 full time employees and 2,800temporary full time employees
worldwide and had worldwide annual sales of$65.23 billion

On August 24, 2011 Steve Jobs resigned his position as chief executive officer of Apple
before his long battle with pancreatic cancer. The cancer took his life on October 5, 2011.
On September 9, 2015, Apple announced the iPhone 6S and iPhone 6S Plus with 3D
Touch, the iPad Pro, the fourth-generation Apple TV, and the fourth-generation iPad
Mini. On March 21, 2016, Apple announced the iPhone SE and the smaller iPad Pro.
Apple has established a unique reputation in the consumer electronics industry. This
includes a customer base that is devoted to the company and its brand, particularly in the
United States. Fortune magazine named Apple the most admired company in the United
States in 2008 and in the world in 2008, 2009, and 2010.

Ethics in the workplace

Apple is committed to ensuring that working conditions in Apples supply chain are safe,
that workers are treated with respect and dignity, and that manufacturing processes are
environmentally responsible. Apples suppliers ("Suppliers") commit, in all of their
activities, to operate in full compliance with the laws, rules, and regulations of the
countries in which they operate. This Supplier Code of Conduct ("Code") goes further,
drawing upon internationally recognized standards, in order to advance social and
environmental responsibility.
Apple requires that Suppliers implement this Code using the management systems
described below. Apple may visit (and/or have external monitors visit) Supplier facilities,
with or without notice, to assess compliance with this Code and to audit Suppliers wage,
hour, payroll, and other worker records and practices. Violations of this Code may result
in immediate termination as an Apple Supplier and in legal action.
The Apple Supplier Code of Conduct is modeled on and contains language from the
Electronic Industry Code of Conduct. Recognized standards such as the Universal
Declaration of Human Rights (UDHR), and standards issued by organizations such as the
International Labour Organization (ILO), Social Accountability International (SAI), and
the Ethical Trading Initiative (ETI) were used as references in preparing this Code and
may be useful sources of additional information. A complete list of references is provided
at the end of this Code. As an extension of the Code, Apple maintains a series of detailed
Standards that clarify our expectations for compliance.
Labor and Human Rights
Suppliers must uphold the human rights of workers, and treat them with dignity and
respect as understood by the international community.

Anti-discrimination. Suppliers shall not discriminate against any worker based

on race, color, age, gender, sexual orientation, ethnicity, disability, religion,
political affiliation, union membership, national origin, or marital status in hiring
and employment practices such as applications for employment, promotions,
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rewards, access to training, job assignments, wages, benefits, discipline, and

termination. Suppliers shall not require a pregnancy test or discriminate against
pregnant workers except where required by applicable laws or regulations or
prudent for workplace safety. In addition, Suppliers shall not require workers or
potential workers to undergo medical tests that could be used in a discriminatory
way except where required by applicable laws or regulations or prudent for
workplace safety.

Fair Treatment. Suppliers shall commit to a workplace free of harassment.

Suppliers shall not threaten workers with or subject them to harsh or inhumane
treatment, including sexual harassment, sexual abuse, corporal punishment,
mental coercion, physical coercion, verbal abuse, or unreasonable restrictions on
entering or exiting company-provided facilities. Suppliers shall prohibit
harassment and unlawful discrimination in the workplace.

Prevention of Underage Labor. Child labor is strictly prohibited. Suppliers shall

not employ children. The minimum age for employment or work shall be 15 years
of age, the minimum age for employment in that country, or the age for
completing compulsory education in that country, whichever is higher. This Code
does not prohibit participation in legitimate workplace apprenticeship programs
that are consistent with Article 6 of ILO Minimum Age Convention No. 138 or
light work consistent with Article 7 of ILO Minimum Age Convention No. 138.

Prevention of Involuntary Labor and Human Trafficking. Suppliers shall not

traffic in persons or use any form of slave, forced, bonded, indentured, or prison
labor. This includes the transportation, harboring, recruitment, transfer, or receipt
of persons by means of threat, force, coercion, abduction, fraud, or payments to
any person having control over another person for the purpose of exploitation. All
work must be voluntary and workers shall be free to leave work or terminate their
employment with reasonable notice. Workers must not be required to surrender
any government-issued identification, passports, or work permits as a condition of
employment. Suppliers shall ensure that third-party agencies providing workers
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are compliant with the provisions of the Code and the laws of the sending and
receiving countries, whichever is more stringent in its protection of workers.
Suppliers shall ensure that contracts for both direct and contract workers clearly
convey the conditions of employment in a language understood by the worker.
Where workers are required to pay a fee in connection with obtaining
employment, Suppliers shall be responsible for payment of all fees and expenses
in excess of the amount of one month of the workers anticipated net wages. Such
fees and expenses include, but are not limited to, expenses associated with
recruitment, processing, or placement of both direct and contract workers.

Working Hours. Except in emergency or unusual situations, a work week shall

be restricted to 60 hours, including overtime, and workers shall take at least one
day off every seven days. All overtime shall be voluntary. Under no circumstances
shall work weeks exceed the maximum permitted under applicable laws and
regulations.

Wages and Benefits. Suppliers shall pay all workers at least the minimum wage
required by applicable laws and regulations and provide all legally mandated
benefits. In addition to their compensation for regular hours of work, workers
shall be compensated for overtime hours at the premium rate required by
applicable laws and regulations. Suppliers shall not use deductions from wages as
a disciplinary measure.

Ethics
Suppliers must be committed to the highest standards of ethical conduct when dealing
with workers, suppliers, and customers.

Business Integrity. Corruption, extortion, and embezzlement, in any form, are

strictly prohibited. Suppliers shall not violate the Foreign Corrupt Practices Act
(FCPA), any international anti-corruption conventions, and applicable anticorruption laws and regulations of the countries in which they operate, and shall
not engage in corruption, extortion, or embezzlement in any form. Suppliers shall
9

not offer or accept bribes or other means to obtain an undue or improper

advantage. Suppliers must uphold fair business standards in advertising, sales, and

competition.
Disclosure of Information. Suppliers must accurately record and disclose
information regarding their business activities, structure, financial situation, and
performance in accordance with applicable laws and regulations and prevailing

industry practices.
Whistleblower Protection and Anonymous Complaints. Suppliers shall create
programs to ensure the protection of Supplier and worker whistleblower
confidentiality and prohibit retaliation against workers who participate in such
programs in good faith or refuse an order that is in violation of the Apple Supplier
Code of Conduct. Suppliers shall provide an anonymous complaint mechanism
for workers to report workplace grievances in accordance with local laws and
regulations.

10

Corporate social responsibility of Apple Inc.

Apple Inc. is carrying out their several corporate social responsibilities on the aspect of
environment and their workers welfare. Apple Inc. strives to leave the world better than
human found it, they are partnering with The Conservation Fund to protect and create the
type of forests which are used in their packaging. They have developed a renewable
micro-hydro project to power their data center in Prineville, Oregon. Besides, they are
also building a solar farm in China to offset energy used by offices and retail stores.
Apple Inc. believes that it is their responsibility to make sure that while they are creating
beautiful products, they are also caring for the beautiful planet. Their goal is to make not
just the best products in the world, but the best products for the world.
Apples 2015 Environmental Responsibility Report, covering fiscal year 2014, highlights
the progress they have made. They have set three priorities where they believe Apple can
make the most impact:
Reduce the impact on climate change by using renewable energy sources and driving
energy efficiency in the products.
Conserve precious resources so all can thrive.
Pioneer the use of greener materials in Apples products and processes.
At Apple, they are deeply committed to make sure everyone in the supply chain is treated
dignity and repetition they deserve. They work hard every year to improve working
conditions, provide educational opportunities, push for higher standards of living, and
protect human rights.

Renewable resources
Apple goal is to power all their corporate facilities around the world with 100 percent
renewable energy as they do all in their data centers. Plus, they are not content with just
purchasing clean energy from existing sources. They want to go even further by creating
new sources that add clean energy to the grid. For example, they have partnered with
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First Solar to create a solar project in Monterey County, California. When it comes online
in 2016, this 2900 acre facility will generate 130 megawatts of clean energy which is
enough to power Apple Campus 2, all their other California offices, all 52 retail stores in
California, and the data center in Newark, California. The company commitment to
renewable energy not only in California but also extended overseas. In China, they have
undertaking a ground-breaking renewable energy partnership with SunPower, Tianjin
Zhonghuan Semiconductor, and other companies to build a renewable solar energy
project in Sichuan Province. It will generate up to 80 million kilowatt per hours per year
of clean energy. It is far more than the energy used by all their offices and retail stores in
China combined. This project is being developed to complement the natural environment,
paying special attention to preserving the grasses that feed the indigenous yak population.
Beside of solar energy, they also generate renewable energy by wind power, micro-hydro
power, fuel cell farm, geothermal power.

Care of the forest

They are using paper more efficiently. The best way to preserve paper is to use less of it.
So they are designing the packaging to be smaller and to use more recycled paper, and
they are developing technologies that use paper more efficiently. For example, the
packaging for iPhone 6 takes up 34 percent less volume than the first generation iPhone
packaging. And over two-thirds of the paper used for iPhone, iPad, iPod, Mac, and Apple
TV packaging comes from recycled content.
They are also committed to protecting and creating as much sustainable working forest as
is needed to produce the paper in the product packaging. Through their work with The
Conservation Fund, they are permanently protecting more than 36,000 acres of working
forest in the eastern United States. The collective of annual production from these forests
is equivalent to nearly half the virgin fiber used for the packaging in fiscal year 2014.
They are also working with World Wildlife Fund on a new multiyear project to
significantly increase responsibly managed forests across China. This project aims to
protect as many as one million acres of responsibly managed working forests that provide
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fiber for pulp, paper, and wood products. In fiscal year 2014, over 80 percent of the paper
and corrugated cardboard used in our iPhone, iPad, iPod, Mac, and Apple TV packaging
came from certified sustainably managed forests, controlled wood sources, or recycled
materials. We will not stop until 100 percent of the fibers we use meet these standards.
Recycling
If not recycled properly, electronic waste can be a serious health and environmental issue.
For other company to make a quick profit, unethical recyclers sometimes dump e-waste
or use dangerous techniques that can leak toxins and harm the environment. That is why
Apple is committed to helping people recycle responsibly. Every Apple Retail Store in
the world accepts Apple products for responsible recycling. Their Reuse and Recycling
Program also allows customers in several countries to bring in their older devices in
exchange for credit toward a new model. They have set up recycling programs, such as
providing free shipping on e-waste returns and organizing collection events and ongoing
take-back programs with governments and universities in 99 percent of the countries
where they sell their products. Since 1994, they have diverted more than 508 million
pounds of equipment from landfills.
Employees training
Apple is preparing their workers for the workplace and beyond. Workers may not have
access to a quality education in some places where the products are made. So they
provide training in factories to help workers be better informed, offer classes to help them
take the next steps in their careers, and partner with vocational schools to increase the
standard of education. They want their workers to be successful in their factories, but
they also want to help them explore new opportunities. Thats why they developed the
Supplier Employee Education and Development (SEED) program. They set up
classrooms in supplier facilities where workers can take free courses in subjects as
diverse as computer skills, graphic design, English, and human resources management.
Each classroom is equipped with Mac computers and video conferencing capabilities, and
they provide iPad devices loaded with classes similar to those offered through SEED.

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After their primary education, many students in China attend vocational schools. To help
make sure these schools are teaching students the skills they need to succeed created a
school credentialing system in partnership with local government, Dell Inc., and Stanford
Universitys Rural Education Action Program

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Management on CSR
Environmental Policies
The Apple Supplier Code of Conduct includes the following parts on environmental
policies:

Wastewater and solid waste emissions: the Apple Code specifically states that
wastewater and solid waste should be treated as required by applicable laws. The

EICC is more general on this issue;

Air emissions: the Apple Code specifically states that air emissions should be
treated as required by applicable laws. The EICC is more general on this issue;

Environmental permits and reporting;

Pollution prevention and resource reduction.
Hazardous Substance Management and Restrictions: apart from a general part
similar to the EICC, the Apple Code states that suppliers have to comply with
Apples Regulated Substances Specification (069-0135). These specific
requirements are included under Hazardous Substance Management and
Restrictions in Apples Code: Suppliers must comply with the most recent
version of Apples Regulated Substances Specification, 069- 0135 and with any
applicable laws and regulations prohibiting or restricting specific substances. To
ensure safe handling, movement, storage, recycling, reuse, and disposal, suppliers
must identify and manage substances that pose a hazard if released to the
environment and comply with applicable labeling laws and regulations for
recycling and disposal.

In addition to the Apple Supplier Code of Conduct, the document on Ethics presents the
following statements on environmental health and safety. Apple will:

Comply with applicable environmental, health, and safety laws and regulations in

those countries in which they do business;

Adopt their own corporate standards for protection of human health and the

environment
Provide a safe work environment by integrating a comprehensive program of
safety training an evaluation.
15

Strive to anticipate future environmental, health, and safety risks and regulatory
requirements, and have a proactive approach to dealing with them whenever
appropriate.

Apple has adopted the precautionary approach and claims that throughout the complete
production process, from design through manufacturing, use and recycling, it ensures that
its products and activities are environmentally sound. It focuses on four areas: product
design, manufacturing, energy efficiency and recycling. Since 2001 all Apple computers
and displays have earned the Energy Star Rating.

Conclusion
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In the conclusion, Apple Inc. will keep on developing for the new Apples product to be
better. It also still will be the largest technology company in the world and many be
become the largest company by market capitalization.
Better means they are never done. They will push themselves every day to develop
innovations that reduce carbon footprint, use cleaner and safer materials, and show that
whats good for the planet can also be good for business. At Apple, they will continue to
put nature at the center of business and design principles. They promise to keep the
updated on the journey. Their goal is to make not just the best products in the world, but
the best products for the world.

References

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https://sites.google.com/a/email.vccs.edu/bus100mlmuseappleinc/home/apple-inccode-of-conduct
http://www.somo.nl/publications-en/Publication_1963
http://www.apple.com/environment/
http://www.apple.com/supplier-responsibility/labor-and-human-rights/
http://www.apple.com/supplier-responsibility/empowering-workers/
http://lexicon.ft.com/Term?term=corporate-social-responsibility--(CSR)
https://www.nibusinessinfo.co.uk/content/business-benefits-corporate-socialresponsibility

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