CONSISTENCY OF APPLES CULTURE IN APPLE V.

FBI CASE

Consistency of Apples Culture in the Apple Inc. v. FBI Case

Emily Mastroianni & Maria Pangori

John Carroll University

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I. Literature Review

Reflection of the Culture of Apple in the Apple vs. FBI Case

Instance: Apple v. FBI

According to the New York Times, in February 2015, the Justice Department and the

Federal Bureau of Investigation (FBI) insisted that Apple Inc. would unlock an iPhone used by

one of the two attackers who killed 14 people in San Bernardino, California (Benner, 2016). A

debate quickly arose and a court case was filed. The F.B.I.s demand would force Apple to

threaten the security of its customers, yet at the same time, would allow the U.S. government to

obtain vital information regarding terrorist threats to the country. Apple believes that if they

were to create a way to unlock this particular iPhone, this back door technique could be used

on any iPhone, consequently threatening the security of any iPhone user. Apple advised the FBI

in several circumstances and complied with search warrants in regards to this case, but according

to the CEO of Apple Inc., Tim Cook, the government is asking Apple to hack [their] own users

and undermine decades of security advancements that protect [their] customers if they were to

unlock this phone (Cook, 2016). As a result, Apple refused to offer assistance and, therefore, the

FBI found a way to break into the phone themselves.

Research Question:

Did Apple maintain their values throughout their responses during the entirety of the legal

situation with the FBI?

Organizational Culture & Its Components:

Before delving into Apples organizational culture, it is first important to define

organizational culture and understand the role it plays within the organization. A consistent

definition of organizational culture throughout many research sources is, a complex set of
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values, beliefs, assumptions, and symbols that define the way in which a firm conducts its

business (Barney, 1986, p. 657). These can be implications as simple as how the members of

the organization communicate with one another, to how the organization deals with change,

conflict, or as in the case of Apple, a crisis. Katherine Miller (2015), author of our text, states,

In using a cultural metaphor for the investigation of an organization, we are looking for the

qualities that make an organization what it is. She further makes a comparison between Apple

and Google, forming the assumption that culture is what sets organizations apart from one

another (p. 71). Michael Watkins (2013) of the Harvard Business Review has aligning thoughts,

as he believes there is a universal agreement that organizational culture exists and that it plays a

crucial role in shaping behavior in organizations. Focusing on the idea of culture being shaped

by behavior leads us to Edgar Schein, a major researcher in the field of organizational

development. He proposes that an organizations culture can be analyzed at three levels: artifacts

and behaviors, espoused beliefs and values, and underlying assumptions (Schein, 2004, p. 26).

These three distinct levels provide a way to depict an organizations culture to the members of

the culture themselves and to others outside of the organization. (Schein, 2004, p. 25).

The artifacts of an organization are explained as the visible products of the group, such

as the architecture of its physical environment; its language; its technology and products; its

artistic creations; its style, as embodied in clothing, manners of address, emotional displays, and

myths and stories told about the organization; its published lists of values; its observable rituals

and ceremonies; and so on. Although this list is long, these specific components must be

recognized because artifacts can be difficult to decipher (Schein, 2004, p. 25). The behaviors, or

how an organization acts, is also a part of the first level of culture. Because behaviors of
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employees and leaders in an organization are usually manifested outwardly, they are visible

depictions of the values defined in the second level (Miller, 2015, p. 75).

The next level of Scheins analysis of culture are the values an organization possesses.

When an organization is founded, the values of the leaders of the organization can strongly

influence the group and individual values (article from class, 90). When values are shared by

mostly members of an organization, the derived beliefs and moral and ethical rules remain

conscious and are explicitly articulated because they serve the normative or moral function of

guiding members of the group in how to deal with certain key situations, and in training new

members how to behave (Schein, 2004, p. 29). However, Schein (2004) stresses that these

values can sometimes be espoused values because the members stated, conscious values and

how they behave dont always match.

The last level of culture, basic assumptions, is simply the core assumptions that

individuals in a group hold about the world and how it works. Schein explains basic assumptions

as both nonconfrontable and nondebatable because they are just a natural part of the way an

organization behaves (Schein, 2004, p.31).

Apples Culture:

Apple was created and co-founded by the late Steve Jobs, who in many ways, can be

viewed as a hero of the company. In our book, Katherine Miller (2015) refers to Deal and

Kennedys explanation that successful companies are grounded in strong cultures and are

composed of four main parts: values, heroes, rites and rituals and a cultural network. Deal and

Kennedy define a hero to be, the individuals who come to exemplify an organizations

values, which is the exact role that Steve Jobs played within Apple (pg. 72). In fact, when Jobs

started, he sought to bring a new culture to Apple, one that would create an enduring company
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with motivated people and revolutionary products (Rossano & Yoffie, 2012, pg. 4). The values

that he instilled in this organization are what ultimately shape its culture and are expressed

through both artifacts and behaviors.

Atmosphere:

The atmosphere of Apple, down to the framework of its stores to the dress of its

employees, reflects its organizational culture. In one employee interview, Apple was described

as a fun place to work with loose rules, and as many people know through experience, Apple

stores are friendly, open spaces where visitors are actively encouraged to play with the products

on display (Chazin, 2015; Tobak, 2011). In fact, Jobs originally created the layout of the stores

based on how customers would prefer to shop and what would be easiest for them, which is

reflective of how all of their products are made as well. An interesting aspect of the retail store

atmosphere of Apple was their initiative to remove physical cash registers from most stores in

2006. The registers were replaced with Easy Pay systems, which employers utilize through a

specially equipped iPad touch (Chazin, 2015). This process eases and personalizes the buying

experience for the customer, as well as diminishes the retail feel of the Apple store. Along with

these structural aspects, Apple store employees also dress more relaxed. Wearing just solid

colored T-shirts allows the customers to not feel inferior. In Tobaks (2011) interviews with

previous employees, one stated that an Apple manager even showed up to a meeting barefoot,

and no one cared or even noticed. These artifacts illustrate the stores carefree and casual

atmosphere (Kane & Sherr, 2011).

Value: Innovativeness

Business Insider writer, Steve Tobak (2011), in interviews with current and previous

Apple employees, discovered the companys Think Different mindset that isnt just a tagline,
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but captures the very culture of Apples inner workings. This multimillion-dollar campaign was

used as a marketing strategy to catch the consumers attention through visuals of historical

geniuses such as Albert Einstein or Amelia Earhart, or through the use of catchy slogans such as

it just works (Rossano & Yoffie 2012; Lashingsky, 2012). This value of innovativeness is first

of all noticeable in Apple products such as the Macintosh, iPod, iPad and iPhone. According to

Rossano & Yoffie (2012), when the iPhone was released in January 2007, Jobs stated:

Today, were introducing three revolutionary products of this class. The first one is a

widescreen iPod with touch controls. The second is a revolutionary mobile phone. And

the third is a breakthrough Internet communications device...these are not three separate

devices, this is one device, and we are calling it the iPhone (p.9).

Combining three ideas into one product reflects Apples drive to always go outside of the box.

According to Meirui Piao and Brian Kleiner (2015) of the Department of Management at

California State University, innovation ensures the success of the company (pg. 3). In the

ever-changing world of technology, electronic companies must always be on their toes, and

when Apple discovers there is a need that is not developed, it will be the first company that

satisfies this need in the market (Kleiner & Piao, 2015, pg. 4). Apple is good at launching these

products because they focus on the next big thing which is figuring out what people want -

even when they dont know it themselves (Tobak, 2011). Yet, part of this innovative strategy is

not over supplying their products. Jobs, when he first started with Apple, was adamant about

narrowing product lines, therefore the company sells a single brand, with fewer products and has

only a few hundred stores, allowing innovation to take form in each of its few, but well-known

products (Kane & Sherr, 2011).

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The value of innovativeness truly relies on the type of employee that is hired by Apple,

and surprisingly, these are not always graduates of Ivy League schools, but a variety of people,

who are meticulously chosen as the creatives. They form a segmented, stratified

organizational structure which is one of the companys most formidable assets (Tobak, 2011).

Innovation is what makes Apple, Apple. Its evident in their products, employees, and most

importantly, their mindsets. Steve Jobs once said, My job is to not to be easy on people. My

job is to make them better. My job is to take these great people we have and to push them and

make them even better, coming up with more aggressive visions of how it could be (Tobak,

2011). This value of Jobs trickled down into the employees and became one of the greatest

values of Apple.

Value: Customer Centrality

Apple lives by a unique sales philosophy: not to sell, but rather to help customers solve

problems. Apple employees are to serve their customers and make their needs the only thing

that matters. The training manual in 2007, which is still in use today, lays out the steps of

service through the acronym APPLE:

Approach customers with a personalized warm welcome,

Probe politely to understand all the customers needs,

Present a solution for the customer to take home today,

Listen for and resolve any issues and concerns, and

End with a fond farewell and an invitation to return

Based off of this Approach method, it is required that at least two employees speak with a

customer within 30 seconds of their arrival. The employees approach in a friendly manner and

focus solely on people who need assistance rather than getting in the customers way (Chezin,
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2015). Apple employees Probe instead of trying to forcefully sell. They utilize a soft sales

touch: they will never push for a sale and simply stand around the store to answer questions and

demonstrate features on the devices only if a customer asks (Lashingsky, 2012, p. 150).

Lashingsky, Kane & Sherr, and Yoffie all references a quote from the Apple training

manual that states that a retail employees job is understand all of your customers needs--some

of which they may not even realize they have. The idea of putting the customer first in the

Apple store is taken to an entire new level in which Apple store employees are intensely trained

to always make sure that the language they use toward customers is positive. For example, a

former Apple store employee remarked that he was forbidden from correcting customers who

mispronounced a product name because it would make them feel patronized, and was also

trained to use words like it turns out rather than unfortunately if there was a problem

(Chazin, 2015). The Genius Bar located in all Apple stores, allows for the customer to receive a

full, personal experience. The Genius Bar was created based off of a Four Seasons concierge

desk to coincide with the idea of giving the customer the best experience rather than trying to sell

something (Chazin, 2015). Apples customer-first approach is what sets them apart from their

competitors and other retailers. Chazin (2015), who helped Steve Jobs rebuild Apples product

and marketing efforts, clearly summarized Apples approach:

What Apple knows- and other retailers seem to forget- is that a companys lasting

relationship with their customers is tied to the moments before, during and after their

purchase. Apples careful cultivation of that experience is one of the many tightly

managed elements of the Apple brand and part of their unique magic. By doing more

than is required to surprise and delight customers, Apple store customers not only switch
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from competitive products but also become lifelong, repeat customers, fans and

evangelists

Value: Secrecy

Embracing secrecy has always been the biggest value at Apple. In 1981, when IBM

entered the PC market, they were an open system that other producers could clone. This is

right when Apple decided that they would only rely on their own designs and even refused to

license its hardware to third parties (Yoffie, 2012, p. 2). The secrecy began. Every organization

has its secrets, but with Apple everything is a secret (Lashingsky, 2012, p. 32). Apples rationale

behind holding secrecy as such a key value is that it is essentially what allows Apple to gain a

huge amount of press and coverage and buzz the moment a new product is released. This is

only possible if every little detail is kept a secret before the launch (Lashingsky, 2012, p. 34).

Apple remains true to this value always and considering the sheer number of people,

companies, and news outlets that would give anything for a tip, virtually nothing leaks until

Apples ready to spill it (Tobak, 2011). Additionally, if secrets are announced about products

before they are fully ready to launch, it gives the competition time to respond, raises customer

expectations, and opens [the] company up to the carping of critics who are bashing an idea rather

than an actual product (Lashingsky, 2012, p. 37).

Secrecy is held at both internal and external levels, at the headquarter and retail levels,

and even between different departments of the organization. All elements of the value of secrecy

are shown through artifacts and behaviors. The first artifact is that the headquarters of Apple,

located in Cupertino, California, is purposely not visible to the untrained eye (Lashingsky,

2012, p. 32). The campus of the headquarters forms a closed compound (Lashingsky, 2012, p.

33). Additionally, on special projects, special locks and extra doors are installed to make sure
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what the team is working on is completely hidden (Lashingsky, 2013, p. 39). An artifact that

doesnt exist is organization charts, because Apple feels that it includes information about other

sections within the organization that will tempt employees to lose focus on their project and

break the secrecy (Lashingsky, 2014, p. 42). Employees even wear security badges and have key

cards restricting them to only enter their designated areas (Lashingsky, 2012, p.43;Yoffie, 2012,

p. 5). All of Apples products and technologies are considered artifacts of secrecy. The fingerprint

and number passcodes are purposely placed out of reach of Apple employees because as Tim

Cook, the CEO, states, Apple believes that the contents of their customers iPhones are none of

their business (Cook, 2012).

Looking into the specific behaviors that define Apples value of secrecy start right with

the interview process at the headquarters. After a rigorous and long interview process, recruits

that are hired have no clear idea of what their role or job will be within Apple. Because they

arent yet indoctrinated, in the eyes of the leaders of Apple, they cannot be trusted yet with the

information (Lashingsky, 2012, p. 34; Yoffie, 2012, p. 4). Bob Borchers, a marketing executive,

describes the process of the first day of working at Apple: You sit down, and you start with the

usual roundtable of who is doing what. He further states that half the folks cant tell you what

theyre doing, because its a secret project theyve gotten hired for (Lashingsky, 2012, p. 34). At

orientation, employees are also clearly and strictly told that if they reveal any part of any of

Apples secrets, they, no questions asked, will simply be fired. (Lashinsky, 2012, p. 36). Many

of the projects at Apple require employees to sign an agreement where they are prohibited from

talking about it to anyone, including their families (Lashingsky, 2012, p. 39). Additionally, a

popular behavior among the engineers of Apple is that they will not talk about their work but,
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rather, keep to themselves. In fact, at the headquarters, it is said that nobody knows anybody at

Apple (Lashingsky, 2012, p. 38).

Even in retail stores, employees themselves have stated that they are ordered to not

discuss rumors about products and technicians are forbidden from prematurely acknowledging

widespread glitches (Kane & Sherr, 2011). From personal experience with going to an Apple,

the behavior of the employees at the Genius Bar illustrate their value of secrecy. When they

receive a phone to check, they dont tell the customer what was wrong or how they would fix the

problem, but, rather, give them a receipt and tell me to come back in an hour. They then take the

phones to be fixed to the back, so none of their work is seen.

The value of security has also made its way into Apples products by adopting the use of

encryption. Encryption is used to ensure, or attempt to ensure privacy in communications and

has been around for thousands of years. Its sole use in todays society is to give power to the

individual in order to protect their secrets from the government and ultimately allow them their

right to privacy (Vagle, pg. 108). According to Tim Cook (2016), Apple has used encryption

to protect [their] customers personal data because [they] believe its the only way to keep

[their] information safe. Apple is deeply committed to living up to the expectations of safety

and privacy that their customers expect from them, which leads to the reasoning behind Apples

stance in the Apple vs. FBI case.

Apple vs. FBI Culture

Both Apple as an organization and the FBI as an organization have their own sets of

values that define their culture. However, ironically, the shared value of secrecy is what caused

the clash between them. Apple holds the value of secrecy as something internal to protect their

innovation, but also carries that secrecy over, externally, to their product which gives the
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customer protection and privacy from the outside world and even Apple themselves (Cook,

2012). The F.B.I. on the other hand, is solely focused on protecting all people, which in some

cases, like this one, means invading privacy, creating back doors and risking the trust of U.S.

citizens for safety. Masse and Krouse (2003) in their Report for Congress summarize the

essential purpose of the FBI and their culture of prevention:

The FBI and its supporters recognize the need for substantial change that builds on

existing strengths, but substantially redirects FBI activities from a reactive posture to

crimes already committed toward a proactive posture with a clear focus on preventing

terrorist attacks on U.S. interests (p. 14).

Like this quote suggests, the FBI is very willing to take any and all measures needed to prevent

any further terrorist attacks, similar to that in San Bernardino, even if that meant seeking Apples

intelligence, capabilities and most importantly, secrets.

Research Question: Did Apple maintain their values throughout their responses during the

entirety of the legal situation with the FBI?

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II. Methods:

When approaching our research question, we acknowledged that obtaining original

research would be a difficult task. Since our research question is focusing on Apples responses

throughout this case and whether or not their responses align with their values previously

mentioned in our literature review, we realized that the best methodical approach to answering

our research question would be a content analysis. The situation between Apple and the FBI

lasted over a time period of 43 days and responses were made through messages to the public,

interviews, direct quotes, legal documents and published articles. Most of the vehicles used to

relay Apples messages are from trade journals or legal documents. This is a list of sources that

will be likely used:

USA Today, New York Times, & other news sources

Apple Official Website

Hearing Document: Apple Inc. motion to vacate order compelling Apple Inc. to assist

agents in search, and opposition to governments motion to compel assistance

o February 25th 2016: Gibson, Dunn & Crutcher LLP

FBI Press Releases

The next step in our methods will be how we approach analyzing each piece of content.

Our focus in this research project has been Apples company culture. We discussed in the

literature review that Apple is built on three core values: innovativeness, customer centrality, and

secrecy. In regards to the legal situation between Apple and the FBI, we believe that the core

values of customer centrality and secrecy are the values that will be most representative of

Apples culture throughout their responses. Therefore, when analyzing the responses we will be
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coding the articles according to the aspects that make up these values and ultimately make up

Apples culture.

The first thing we will look at is Apples main motive in choosing not to assist the FBI in

establishing new technology in order to obtain a back door to the iPhone. We will interpret if

their position and reasoning was clearly stated in their first ever statement made by CEO Tim

Cook titled, A Message to Our Customers, on their website, and whether or not that position

and reasoning stays consistent throughout every other response following in the next 42 days.

Consistency is a key part of any companys culture, including Apples culture, and often leads to

success. Once Apple introduced their first ever iPhone to the world, they have consistently

enhanced, improved and developed their products to where they are today with the iPhone 6, IOS

9, iPad, iPod, Mac etc. Apples ability to stay consistent has given them the loyal customer base

and success that they have as a company, which is why analyzing their ability to stay consistent

in their responses and messages with the FBI and government is important.

Once we have established Apples position in responding during this situation, the next

step is to identify who is speaking in the document or article. The speaker, or whoever is

communicating Apples response, will allow us to establish if the document is one of authority.

For example, Apples first response to the FBIs order to unlock the attackers phone was

published as a statement on Apples website by the CEO, Tim Cook. Therefore, because this

primary source was a statement from the man in the highest rank of Apple, we can acknowledge

that this source is trustworthy and reliable. It is important to establish which documents or

articles are most authoritative, trustworthy, and reliable in a legal situation like this because, for

instance, there is a risk that secondary sources include statements relayed by employees at

Apples retail stores. Retail employees at Apple, although still trained in the culture of Apple,
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may not be as aware and educated about how Apple is representing themselves to the public. We

want to simply recognize that if, perhaps, two responses from the case dont align in cultural

values, who is speaking could possibly impact the alignment.

Additionally, although we established Apples core values of customer centrality and

secrecy, we find it necessary to examine each response, document, or article and identify more

generally what values we see expressed. After identifying this, we then will be able to clearly see

if the values of customer centrality and secrecy are present, if they are emphasized more so than

other values, if either customer centrality or secrecy is more prevalent, and if the value/s are

consistent throughout the entirety of the response, document, or article. Our next coding

elements of identifying words/phrases and the tone within the responses will help establish the

sense of the values expressed more clearly.

The next step that is vital in helping identify if Apple is actively trying to maintain their

values is analyzing the specific words and phrases that are being used in the responses. In order

to establish if Apple is consistent in their responses, identifying the following words and phrases

in the content analysis will help unfold our research question. Also, identifying the frequency of

these words or if similar words are used will determine how strong or how weak their alignment

with their culture is in their responses.

Words/phrases indicating the value of SECRECY:

Security, data security, privacy, personal safety, encryption, safe, safeguarding, protect

Because of the situation, we recognize it is vital to identify whether these words relating

to secrecy are directed toward the customers or toward the company of Apple. This will

be the first step in helping us distinguish if Apples collective response was really for the

security of their customers.

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Words/phrases indicating the value of CUSTOMER CENTRALITY:

Personal safety, our customers, permission, your IPhone, none of our business, risk, respect, best

interest of everyone

Once we are aware of the words that represent Apples values of secrecy and customer

centrality, we will also look at the tone of these responses which can also be found by looking at

the words used. Analyzing the tone will show how deeply Apple cares for the victims of the San

Bernardino attack, as well as the rest of the American people who are now at a higher risk

because of their decision to not unlock the phone. Are their responses more apologetic or

defensive? Do they show that they understand the depth of the situation and the potential danger

there is in not complying? Not only are we concerned with Apples tone in regards to the

victims, but also with the FBI, the Department of Justice and the government as a whole.

Although these are the entities that Apple is at head with, it is important to recognize Apples

tone when referring to a response, statement or court order made by the FBI; are they respectful

like they are with their customers or are the defensive? Looking at Apples tone when it comes

to each response can reflect their company culture and values.

Not only is it important to recognize the tone in which Apple responds to the FBI, but

also whether or not they are mentioning the FBIs standpoint in their argument or just simply

reusing the same responses without taking into account what the FBI has said. Its important for

Apple to show that they are listening rather than robotically answering, especially with a delicate

situation like this one.

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Appendix: Coding Sheet Example

In our methods section, we have explained the main points we will be looking for as we dissect
and analyze each piece of content. The following is an example of a coding sheet we would use
for each of Apples responses:

Response One:
Source:

1) Whos speaking:

2) What values:
Are the values expressed consistent?

3) What words:
Are similar words being used? How frequently are they being used?

4) What tone:

5) Was the FBIs response mentioned?

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