Monday, 19 November 2012

Apple

Apple as a company are renowned for their odd practices, and their highly desired, highly priced products. In addition to having high prices, apple also have excessive profit margins, leading to them being the most valuable business in the world, in terms of share prices and cash reserves. Part of having these high profit margins, however comes from minimizing production costs by basing production in China, with Foxconn.

Foxconn, although able to produce the parts at low cost, raise serious ethical issues in the manner in which they deal with their employees, such as an employee who was seriously brain damaged doing his job, is being refused payment of his medical costs for not showing up to the factory, even though he is seriously brain damaged and unable to speak.

Apple have been very bad at dealing with these issues, as even though they have the profit levels to allow them to pay costs which ensure ethical staff treatment, they do not. This may eventually lead to their reputation being tarnished, leading to them being unable to charge the same prices.

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