UBMM1013 MANAGEMENT PRINCIPLES

Introduction Nowadays, more and more companies pay attention to achieve social responsibility in order to increase their public image. One of the ways that is adopted by many companies to become more socially is green management which is referred to using various policies to reduce much of environmental problems when the managers woke up to and concerned for the impact of their organization on the natural environment. The environmental problems of various pollutions, global warming, solid waste, ozone layer depletion and so on arise and endanger sustainability of economic along with the rapid development of industries. Therefore, the practices of green management are needed as soon as possible. Green management practices can not only be done by large organizations, but even for small organizations since it can increase the public image of the companies and thus will affect peoples perspectives and the investors behavior. In short-term, going green means that the management assists in saving the natural environment, however in long-term, the costs will be reduced and thus the profits can be increased as well as they will try to achieve green management through waste minimization, and improving energy efficiency. That will make a win-win complexion. By contrast, those companies that always cause pollutions would be criticized as companies of social irresponsibility, their public image will be damaged, even affect sales amount of their products. To study the green management practices, an internationally organization, Apple, is chosen. Apple is built by Steven Wozniak and Steven Jobs since 1st April 1976. Its products include MacBook, iPod, iPhone, iPad, and it also provides some online services like iTunes and iCloud. Since its products were sold all over the world and net sales achieved to $63.5 billion in the financial year of 2010, its policies about environment protection are certain to carry weight by public, even have some level of impact on the behavior of its suppliers.

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Content An organization should have economic responsibility to their stakeholders such as investors, employees and customers. The sustainability of a business could be benefit direct stakeholder because when a business has a secure future since the primary purposes for a business organization to exist are to produce products and services desired by customers, to maximize profits for owner and direct stakeholders, and to provide jobs for employees. Obviously, the company has an ethical obligation to meet these responsibilities. Legal responsibility governing every aspect of the company operations includes consumer and product laws, environmental laws, and employment laws. Government set down the laws to stricter the environmental standards and to voluntarily change the production processes in order to do less harm to the environment. Ethical responsibility includes behaviors that are not necessarily codified into law and may not serve the corporations direct economic interests. Ethics are considered the moral choices made by a person and also a set of rules or principles that defines right and wrong conduct. Ethical behavior conforms to those accepted standards of social or professional behavior. To be an ethical organization, decision makers should act with equity, fairness and impartiality, respect the rights of individuals and treat individuals differently only when relevant to the organizations goals. Discretionary responsibility is also known as philanthropic responsibility. Discretionary responsibility is voluntary and guided by a companys desire to make social contributions instead of guided by economics, law or ethics. It is philanthropic contributions that offer no direct financial payback to the company and are not expected. It makes the social have expectation to the company which enable the company to be a good corporate citizen. All the activities are regardless of their product or service. The activities may include charity run, charity dinner, or some recycling campaigns which are held in the office or company. Multi-function in Apples products
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Recently, Apple had launched a new product, iPad. It has provided multi-function such as e-book reader, two cameras for FaceTime and HD video recording, Wi-Fi, 3G, theater and music repository. It means that consumer who has a iPad can need not to purchase e-book reader, camera, mp3 or mp4, and even the DVD player since it has gathered the functions of various products. In other words, it has fulfilled the different desire of the customers in the same time. Actually, this business strategy got a huge success as 7.33 million of iPad had been sold out in the first quarter of financial year of 2010 (1st October 2010 31th December 2010). Extension of batteries life Apple has successfully developed a longer-lasting battery and it is treble lasting when compare with others. It could charge up to 1000 times and normally the other battery just charged 200 to 300 times. It means that the consumers could save money since they will need not to buy new battery frequently, which is a primary requirement of consumers in making decision for choosing their new technological products. Moreover, Apple is also concerned with the energy efficiency because they found that most of the greenhouse gas emissions Apple accounts for is brought by when the people plug in their products and start to use them. The experience about designing the software and hardware system gives Apple a convenience to achieve this mission. For instance, the power consumed of Mac mini is one-sixth of power consumed by a typical light bulb. Such design can satisfy the demand of consumers since it can reduce the expenditures of electricity and thus can reduce their living expenses. In long-term, it can help this company to increase sales of their products Packaging Apple has also developed a smaller and lighter packaging which has ability to protect the products as well. For example, the new version of MacBook is 53% smaller than the first generation of MacBook. This kind of efficient packaging design not only enable the company to reduce the raw materials needed in and waste brought from the productions process, it also helps to reduce the emissions produced during product
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transportation since a vehicle can carry more products and thus reduce the boats and planes used. Obviously, the smaller packaging decreases the cost of production such as fees for warehouses used and materials used as well as make their product easily carried by customers. For another example, the packaging for iphone3GS is almost entirely recyclable, and its retail box is made primarily from bio-based materials, including fiberboard containing 90 percent post-consumer recycled content. In addition, its packaging is extremely material efficient, allowing more units to be transported in a single shipping container. The paper used in packaging of every units of iPhone 4 are reduced from 136g to 120 g compared with iPhone 3GS. Apple iPhone packaging now getting smaller and smaller with each and every generation, it is more economical and environmentally. No Plastic Bags Policy On other hand, Apples retail stores had implemented a no plastic bags policy in order to cut back on unnecessary packaging in the year of 2009. Plastic bags are difficult and costly to recycle, they will break down into tiny toxic particles that contaminate the soil and waterways and penetrate the food chain when animals accidentally ingest them. They clog up gutters and drains causing water and sewage to overflow and become the breeding grounds of germs and bacteria that cause diseases. Therefore, this policy taken by Apple can help to significantly reduce the pollutions caused by throw away plastic bags since the quantities of products sold by Apple are over millions. Fulfill the legal requirement Apple uses Life Cycle Assessment (LCA) to calculate greenhouse gas emissions for each product. This procedure is defined as part of the internationally recognized ISO 14000 which is an environmental management standard. The production of Apple Inc. is certified by ISO 14001. It first achieved ISO 14001 certification for the
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manufacturing site in 1996. The Natural Resources and Environmental Protection Act requires that manufacturers of new televisions, computer and printers must have established an electronic recycling program by April 2011. (Roger Mock, 2011) As one of the manufacturer of technology production, Apple offered Electronic Waste Takeback Program which was established as part of Michigan Law which refers to proper disposal of hazardous materials. Hazardous material can damage our health by increasing cancer risk, damaging our body system and even lead to death. Apple is in compliance with the European Restriction of Hazardous Substances (RoHS) Directive, which restricts the use of lead, mercury, cadmium, hexavalent chromium, polybrominated biphenyls and polybrominated diphenyl ether. Besides European RoHS Directive, Consumer Product Safety Improvement Act of 2008 (CPSIA) also revised the limits of contents of lead in the surface coating of consumer products, that is less than 90ppm since 4th of August 2009. Besides European RoHS Directive, Apple also complies with the Registration, Evaluation, Authorization and Restriction of Chemicals Regulation EC 1907/2007 (REACH). REACH is a European Community Regulation on chemicals and their safe use. With the publication of the candidate list for authorization on 28th of October 2008, the European Chemicals Agency identified a set of substances of very high concern (SVHC) that manufacturers must disclose to customers if used in their products above 0.1 percent. Based on the current version of the candidate list for authorization, Apple products do not contain SVHC above 0.1 percent. In June 2009, Apple and another 13 top smart phone companies had signed an agreement on the standardization of mobile phone charger which was approved by European Commission. By using the standardized charger, 51,000 tons of electronic waste and 1360 thousand tons of greenhouse gas will be reduced. Toxic substances removal
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To minimize the environmental impact, Apple refers to precautionary principle to reduce and eliminate environmentally hazardous substances from their products. There are three important elements of this principle: preventive action, voluntary elimination and proactive search for safer substitutes. They planned to completely eliminate the use of hazardous substances such as PVC and brominated flame retardants (BFRs) in its products by the end of 2008. They have worked with the manufacturing partners to eliminate BFRs and harmful toxic. Finally, all Apple products are now free of BFRs and PVC, after this Apple plans to eliminate all forms of chlorine and bromine. The effects of hazardous substances can be skin irritation, asthma, losing consciousness, cancer, infection from bacteria and other microorganisms, and on occasion, death. So, it is necessary to eliminate these harmful substances. Facilities report Apple carefully manages the environmental impact of its facilities, and as a result they represent only 3 percent of its assessed GHG emissions, which are come from the production, transport, use, and recycling of products. Apple now discloses full product lifestyle emissions and carbon footprint; it primarily reports on their facilities as a gauge of its environmental impact. For purpose to reduce the environmental impact, switching off the light and recycling office waste are not enough. There is the biggest impact of this company on the environment when using Apples products. Thats why Apple focuses on their products design and innovation. Apple has taken significant steps to lessen greenhouse gas emissions produced by its facilities worldwide.

Code of ethic

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Code of ethic is a formal document that states an organizations primary values and the ethical rules it expects managers and non-managerial employees to follow. The code of ethics for Apple is Ethics: The Way We Do Business Worldwide, 2005. It is applying to all employees, including its top management. Apples stated policy includes expectations about to maintain high standards of business conduct, to be ethical in business dealings, to avoid conflicts of interest, to respect confidentiality, to conduct business within the law and to conduct business which benefits communities. Apple now requires suppliers to commit to their comprehensive Supplier Code of Conduct as condition of their contract with the since Apple is committed to ensuring that the highest standards of social responsibility throughout their supply base. Apple requires suppliers to provide a safe work environment, so suppliers must eliminate chemical hazards or minimize the use of some harm materials according the legal requirement. Recycling Program Apple recycling program was starting at year 2005. In year 2005, Apple decided to hold a free-recycling program for its iPod digital music player. Their customers can bring the iPod to any of Apples 100 retail stores in the US for free environmentally friendly disposal. Besides that, those who had brought their iPod to recycle will receive 10 percent discount on the purchase of a new iPod on that day. This program maintain until year 2010. In year 2010, Apple announced the updated program which is increasing the products included new iPod, iPhone, iPad and Mac that can be sent to Apple retail stores for recycling. They have two categories on the recycling program which are computer reuse and recycling as well as iPod and mobile phones recycling. For computer reuse and recycling program, they undertake the community to solve the environmental problems, especially the pollutions which may be caused from Apples productions. People can bring their old Mac batteries or computers whether they are working or nonworking. If it can reuse, then they will be given an Apple Gift Card which can be
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used to purchase Apples products. Otherwise, they will recycle it responsibly at no cost to the customer. Apple also accepts the computers which are non-Apple-brand because Apple contracts with WeRecycle! to process recycling for those products. They need to, however, purchase a prepaid shipping label. iPod and mobile phone recycling is a program which similar to the two programs above. If the person doesnt live near any Apple retailer store, he or she can online to Apple website fill out the form and recycle the iPod or mobile phone by mail. In Asia Pacific, Apple cooperates with Li Tong Recycle for the purpose of convenience the customer. The customer can properly recycle Apple-branded waste electronic equipment with free of charge. Li Tong Group provides a service for consumers to recycle Apple-branded electronic products and equipment in Asia in an environmentally friendly way, safe and secure and free of charge. Commuter Alternatives Program Apple having a Commuter Alternatives Program, this service is only provided in U.S. over ten years. At Apple headquarters in Cupertino, California, the company pays $100 per month of employees' bus, train, light rail, vanpool, and other transit costs through its Apple Commuter Alternatives Program. There have more than 800 Apples employees ride their free biodiesel commuter coaches daily. Apple will provide lockers, showers and turn-up subsidies for their employees who cycle, walk or run to work. Apple maintains a database of the employees addresses and working schedules for those who interest to ridesharing. In year 2007, Apple offered free shuttle services for its employees as their workers transport between strategic points in the Bay Area and the Cupertino. The shuttle service includes 12 stops in the city of San Francisco and 14 additional stops at points around the Bay Area. In the buses provide seats with individual power connectors to run as well as charge notebooks while in-transit, and every bus comes equipped with Wi-Fi for internet connectivity. Apple estimates that these programs have eliminated the use of 1559 single-occupant cars per day. Findings and recommendations
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Although Apple established a lot of policies to put green management in practice, we found that it encountered some environmental problems. First of all, Apple was attacked by Chinese environmental groups in the middle of 2010 since they disclosure there has pollution problems at its factories in China where its components are assembled. According to the related report, the environmental regulations are more lax than western countries and its malpractice in supply chain resulted in a series workplace poisoning and communities being polluted by heavy mental. This incident was exposed after the workers of Wintek were poisoned by a chemical solvent called N-Hexane in 2008. The workers were directed to use NHexane to clean the phones screen instead of alcohol since N-Hexane is cheaper and more effective than alcohol regardless it would harm peoples health. Certainly, this criticism hit Apple as it would like to establish a green supply chain which refers to all of the suppliers of raw materials, manufacturers, distributors and retailer must meet three principles that are no pollution and waste gas, no any harmful materials and no side-effect in either peoples health or environment. Obviously, Apple never thought that this incident would bring a lot of criticism as the CEO, Steve Jobs, also keep silent on the criticism from the Chinese environmental groups until February 2011, they admit their mistake in Apple Supplier Responsibility 2011 Progress Report. In fact, it is not the first time Apple has been criticized for pollutions problems in its supply chain. We submitted that Apple should improve its monitoring for whether or not its suppliers are doing the green management practices. It should harshly lay a ban on using harmful materials in the procedures of manufacturing and frequently assesses its suppliers performance on green management. Those assessments should also be having high transparency since hiding some truth that will affect the image of companies is usual.

Furthermore, the recycling program seemed to be known by western citizen rather than eastern citizen. We take a skeptical attitude for the consequence of that recycling program as Apple showed that over 60% of its products have been recycled.
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That is because we are difficult to find the related information from the websites of various newspapers and it means that the promoting power is not strong enough. In addition, we found that Apple take different policies about recycling program in different countries. In some countries, consumers can obtain some discount on purchasing its products if they bring in their old Apples products for recycling as well as some consumers in other countries can just attain the free services for recycling their waste electronic equipment and products. Different policies will also confuse the consumers about what recycling services Apple provides in their countries. Actually, this recycling program is good for reducing the waste of its products and will effectively increase pollution. We submitted that Apple should enhance its promotion for this program through the multimedia in order to enable more people knowing the existence of this program. It can hold some events to attract consumers in response to this program. In addition, we noticed that even Apple has introduced a longer lasting battery in his products, but this is only for the Mac Book Pro, how about the other products? The battery that have longer life than others company can help to decrease the impact to environment when disposal battery and produce new battery. According to database, the built-in battery in Mac Book Pro is the 3 times long life than the same product produced by other companies. Since Apple are produced many types of products such as iPad, iPhone, Macintosh computers, and others. They are suggest to use this longer lasting battery to all others products. Large amount produce in longer lasting battery can reduce the damage to environmental compare with using normal battery.

Lastly, Apple products mostly produced by as toxic substances such as arsenic, brominated flame retardants (BFRs), mercury, phthalates, and polyvinyl chloride (PVC). All of this material also poisoned the environment no matter when it is produce or disposal. Apple already notice this problems in their products, now they are try to stop using this kinds of material in their products, but it is not an easy thing
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to find a material that can replace all of this toxic substances yet not harm to the environmental. Therefore, we suggest that Apple can try to slow down the speed they release new products. And the second way to solve this problem is, Apple can come out a product that can be upgrade the software when every time they have new idea to launch. This way can help them to make profit and continue their business at the same time no need to produce so many new products when they have new idea and they can save time to think how to recycle the old products. They can put more effort in other green management, to increase their company image in social and distribute in saving the earth.

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Conclusion We can see that the Apple have put a lot of efforts in the green management. No matter is related to the product (e.g. no plastic bag) or workers (commuter alternatives programs) or even environment (reduce using material that will harm to environment).They are strict and having high demand in environmental safe program. They are not only meet government requirements, but they are exceeding it and still continue to improve their products to make the harm to environment become less and less. Although like this, but most of the programs is more active in the U.S, which is Apples headquarter located instead of others country that they are involved in. Since they are a international company, they are suggested to apply the same program in green management to the subsidiary in others country but not only focus in U.S. The programs that can be implement such as the commuter alternatives programs that are used in U.S. Even they are not perfect, but their effort in this aspect is far enough compare with other companies in Malaysia. Other companies can take Apple as a role and together try to save the environment.

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