Social Responsibility and organizational sustainability

With a dramatically changing community landscape, Corporate Social Responsibility (CSR) and organizational sustainability has gotten more important currently than ever before. CSR means is what a business does to its society for the well-being of others than required in an economical and legal sense.CSR encompasses the organization’s expectations in terms of social economics, legality, morality, and philanthropy at any given time (Archie Carroll, 1991). A CSR or sustainability report can also enable companies to externally communicate with their stakeholders about their goals regarding sustainable development and CSR. (Niknamian,2019). Consumers today are more concerned enough on both green ecological and social issues, and therefore, they are taking more responsibility for strategic organizational sustainability. Each company’s approach to achieving this varies due to differences in capabilities, resources, knowledge, expertise, etc.
This assignment will discuss the long-term sustainability, CSR, and financial performance of Apple Inc. (Apple), which is an enterprise with headquarters based in California that deals with consumer electronics and software. It was founded by Steve Job and Steve Wozniak in 1976. By the year 2011, Apple became the biggest MNC in both revenue and profit. Apple Inc. is considered a Big Tech Technology company, among others such as Google, Amazon, and Microsoft Company.






Apple Inc.’s corporate social responsibility (CSR) programs and initiatives are led by Lisa Jackson, Vice President of Environmental Initiatives, reporting directly to CEO Tim Cook. More than 1 million people work in the Apple supplier facilities and as such, the company’s operations have considerable implications on society. Apple Inc. CSR policy includes providing support to local communities, empowering and educating staff, labor and human rights, encouraging employee safety and health as well as carbon emission and supplier responsibility.
Supporting Local Communities
The Global Volunteer Initiative was introduced in 2011 to inspire staff to serve in the local community. In 2018, this network spends over 250,000 hours voluntarily, with a donation of over 125 million USD to organizations worldwide. (Dudovskiy, 2019).
In the Philippines, the company launched a 100-kilowatt rooftop solar project in an educational premise for disadvantaged children.
The tech giant added a 50-kilowatt solar power system and a 260-kilowatt-hour battery to supply clean electricity to the off-grid fishing community in Thailand.
Labour and Human Rights at Apple
Apple Inc. enforces The Supplier Code of Conduct which is referred to as the toughest in the electronics industry. Since 2008 educated more than 19.4 million employees of its suppliers on their rights.
In 2018, Apple Inc. removed five material suppliers from its supply chain for failing to pass or not being willing to participate in human rights audits.
The multi-tech company interviewed over 52000 supplier employees about their workplace experience.
Apple Educating and Empowering Workers
Since 2008, the company provided training courses to about 4 million people.
The Apple Inc. has a competitive employee benefits practices. Like expectant mothers can take up to four weeks before a delivery and up to 14 weeks after a birth, while fathers and other non-birth parents are eligible for up to six weeks of parental leave.
The tech giant has suppliers paid back USD 32.2 million recruitment fees to their 36,599 employees since 2008.
Environmental Policy
Apple Inc. has a complex supply chain, but its product range is relatively limited compared to some other multinationals. The core areas of the product manufacture and device use, which make up most of its 25.1m metric tonnes of CO2 footprint, are still a work in progress.
Carbon Neutral
Apple Inc. is carbon neutral for its operations; including business travel and employee commute, and is progressing toward an urgent goal to be carbon neutral across our entire businessincluding the full life cycle of our productsby 2030.
The company has managed to reduce its carbon footprint by nearly 35% because its emissions peaked in 2015.
Apple’s carbon footprint in 2019

Source: Environmental Responsibility Report 2020 of Apple Inc.

Waste Reduction and Recycling by Apple Inc.
Since 2008, Apple Inc. offers recycling programs in 99 % of the countries it operates and the company has diverted more than 508 million pounds of electronic waste from landfills.
Supplier sites are committed to achieving a zero-waste increase of 53% in 2019.
In 1994, John Elkington has first put forward the concept of “Triple Bottom Line” (TBL). It refers to an approach or framework recommending that organizations commit or focus on environmental issues just as they do on matters regarding profits (Kenton, 2012). The Triple Bottom Line concept can be divided into three P’s People, Profits, and Planet. TBL is considered a comprehensive approach to measuring the impact and success of an organization, then just profits and returns to shareholders. Therefore, Apple just like other companies is committed to addressing its social performance, focusing on the three P’s of Triple Bottom Line. (Azevedo & Barros, 2017).
For Apple Inc. to achieve its human interaction interdependency and relationships, it engages itself in providing its employees with affordable healthcare insurance through health and safety programs and flexible work schedules (Dudovskiy, 2019). The planet aspect also brings into consideration the production of services and products meeting the industry’s health and safety standards. Apple Inc. has worked to ensure the safety of its products, the users, and the community by advancing the performance of its products. Apple Inc. thinks of the CSR policies, but it also feels the element of making a profit; however, profit will only be formed when all stakeholders are satisfied, and this would bring in the aspect of people and planet (Dudovskiy, 2019). Thus, by being socially responsible, Apple Inc. is in the best position to increase its target market by covering a more extensive market base and get direct to the consumers.
Sustainability Development
According to the research of Mckinsey, companies that focus on sustainability and triple bottom line deliver higher financial returns to shareholders in the medium and long term. Therefore sustainability is not only a “do good” strategy but also a financially rewarding strategy.
Apple and Sustainable Sourcing
Apple Inc. uses all the fibre in the product packaging to be 100% responsible sourced.
All the suppliers of tin, tantalum, tungsten, gold, and cobalt smelters and refiners participate in third-party audits.
The company is partnered with The Conservation Fund to protect 36,000 acres of sustainable forest in North Carolina and Maine and more than 13,000 metric tons of wood were harvested responsibly.
Apple Inc. targets to contribute to the transition of up to 1 million acres of forest, across five southern provinces, into responsible management by 2020.
Apple Supplier Responsibility
Apple Inc. is the world’s largest IT Company by revenue assessed 1,142 suppliers in 49 countries in 2019.
It has high-performing supplier facilities increased by 13% in 2019.
Apple Inc. has shown an upward trend in financial performance for quite a long time. On analyzing Apple’s revenues using information sourced from its public financial statement for the FY ending September 2021, the company had total global revenue of $365.8billion, which comprised $297.4 billion from devices and $68.4 from services.
Figure 1: Apple’s total global revenue split by Devices and Services between 2011 and 2021

Source: CMA Analysis from Apple 10K data.
The revenue trend began to shift from 2016 to 2020, during which the growth in total revenue is mainly from Services and the Devices revenue was relatively stable. showed a sharp rise in Apple’s global devices revenue from $221 billion in 2020 to $297 billion. According to Apple’s 10K, the biggest contributor to the growth in revenue was an increase in iPhone sales, linked to Apple introducing two new iPhone variants during the same financial year, the first and fourth quarters of 2021, and a rewarding mix of iPhone sales.
Figure 2: Apple Devices and Services Gross Profit Margins 2011-2021

Source: CMA Analysis from Apple 10K data
As per Apple’s 10K reports, Figure 2 shows Apple’s gross margins, which have been stable since 2013 on an overall basis, ranging from 38% and 42%. In 2017, Apple started reporting gross margins separately for Devices and Services and as Figure 2 highlights, device gross margins have declined slightly since then. By contrast, services have experienced a considerable increase in gross margins from an already high base of 55% in 2017 to 70% in 2021 and now stand at double the size of gross margins earned on Devices.

From the analysis of CSR policy, sustainability report and key business principles, Apple Inc. is in the forefront, thriving to achieve a successful Corporate Social Responsibility (CSR) programs and initiatives. Apple has three ways in which it APPLE INC. CSR 8 is unique from other competitors in the same market and industry. Apple Inc. thinks differently; it has a different management style and its design. Apple Inc. is highly performed in the technology industry, which has enabled them to gain a competitive edge compared to its rival companies.


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