Running head: APPLE’S CSR AND MARKETING STRATEGIES 1 APPLE’S CSR AND MARKETING STRATEGIES 9 Apple’s CSR and Marketing Strategies Student`s name: Institution of Learning: Apple’s CSR and Marketing Strategies Introduction Founded in 1976 by Steve Jobs and Steve Wozniak, Apple is the world’s largest technology company. The company’s marketing strategies have enabled it to revolutionize various industries. This have improved the company’s brand name. Apple has several corporate social responsibilities initiatives that improve the company’s competitiveness. Some of the most successful products of the company include iPod, iPad, iTunes, and iPhone. Apple outsources its production activities to foreign companies. Therefore, it is vital for the company to ensure that the activities of the suppliers do not tarnish the image of the company. The company’s supplier code of conduct has regulations and standards that the suppliers must adhere to. However, from time to time suppliers engage in unethical activities (Hiscock, 2012). Apple’s Ethical and Social Responsibilities Global warming due to environmental degradation is one of the major problems that threatens humanity. Industrial operations are the major activities that lead to environmental degradation. Therefore, it is vital for companies to ensure the sustainability of their operations. Apple is one of the companies that strives to ensure the sustainability of its operations and products. Apple was the first company to stop the production of cathode ray tubes (CRTs) in 2006. CRTs contain approximately 1.4 kg of lead, a highly toxic compound that leads to neurological problems. Manufacture of packaging material leads to greenhouse gas (GHG) emissions. Apple uses very little packaging material in its products. This reduces the environmental impact of the production of the packaging material (Lannuzzi, 2011). Apple also strives to reduce the amount of toxic compounds in its products. Electronic cables contain PVC, whereas displays contain mercury. Apple reduced these toxic compounds in its products. In addition, Apple recycles its products. The company offers customers who return old products for recycle a discount while purchasing a new product. This has reduced the environmental impact of Apple’s products significantly. (Reinhold, 2011). Apple has various initiatives that strive to improve the health of the less fortunate. The company has collaborated with other companies to form the (Product)Red. (Product)Red is a global fund that raises funds that help in tackling Aids, malaria, and tuberculosis in developing countries. The initiative requires companies to develop products that increase awareness of the diseases. The company should donate a certain proportion of its revenue to the sales of the product to the initiative (Shimp, 2008). Since its enrolment into the initiative, Apple has helped in raising millions of dollars using the (Product)Red iPod Nano and the (Product)Red iPad cover. Thus, ...

1. Running head: APPLE’S CSR AND MARKETING
STRATEGIES
1
APPLE’S CSR AND MARKETING STRATEGIES
9
Apple’s CSR and Marketing Strategies
Student`s name:
Institution of Learning:
Apple’s CSR and Marketing Strategies
Introduction
Founded in 1976 by Steve Jobs and Steve Wozniak, Apple is the
world’s largest technology company. The company’s marketing
strategies have enabled it to revolutionize various industries.
This have improved the company’s brand name. Apple has
several corporate social responsibilities initiatives that improve
the company’s competitiveness. Some of the most successful
products of the company include iPod, iPad, iTunes, and
iPhone. Apple outsources its production activities to foreign
companies. Therefore, it is vital for the company to ensure that
the activities of the suppliers do not tarnish the image of the
company. The company’s supplier code of conduct has
regulations and standards that the suppliers must adhere to.
However, from time to time suppliers engage in unethical
activities (Hiscock, 2012).
Apple’s Ethical and Social Responsibilities
Global warming due to environmental degradation is one of the
major problems that threatens humanity. Industrial operations
are the major activities that lead to environmental degradation.
Therefore, it is vital for companies to ensure the sustainability
of their operations. Apple is one of the companies that strives to
ensure the sustainability of its operations and products. Apple

2. was the first company to stop the production of cathode ray
tubes (CRTs) in 2006. CRTs contain approximately 1.4 kg of
lead, a highly toxic compound that leads to neurological
problems. Manufacture of packaging material leads to
greenhouse gas (GHG) emissions. Apple uses very little
packaging material in its products. This reduces the
environmental impact of the production of the packaging
material (Lannuzzi, 2011). Apple also strives to reduce the
amount of toxic compounds in its products. Electronic cables
contain PVC, whereas displays contain mercury. Apple reduced
these toxic compounds in its products. In addition, Apple
recycles its products. The company offers customers who return
old products for recycle a discount while purchasing a new
product. This has reduced the environmental impact of Apple’s
products significantly. (Reinhold, 2011).
Apple has various initiatives that strive to improve the health of
the less fortunate. The company has collaborated with other
companies to form the (Product)Red. (Product)Red is a global
fund that raises funds that help in tackling Aids, malaria, and
tuberculosis in developing countries. The initiative requires
companies to develop products that increase awareness of the
diseases. The company should donate a certain proportion of its
revenue to the sales of the product to the initiative (Shimp,
2008). Since its enrolment into the initiative, Apple has helped
in raising millions of dollars using the (Product)Red iPod Nano
and the (Product)Red iPad cover. Thus, its involvement in the
initiative has improved the lives of thousands of people.
Ethics and Social Responsibilities Violations
Apple outsources the production of almost all its products to
international locations. This reduces the cost of production.
Foxconn is Apple’s largest supplier. The company manufactures
iPads and iPhones. It has almost 1 million employees who work
in 15 factories. Foxconn also supplies other major electronic
companies, which include Sony and Dell. In 2006, Chinese
newspapers reported that Foxconn’s workers worked for very

3. long hours. In addition, in between 2009 and 2010, 13
employees of the company committed suicide. Investigations
revealed that the employees may have committed suicide due to
poor management style of the company. One of the employees
committed suicide shortly after losing an iPhone 4 prototype.
The company used a military style of management. It imposed
penalties to employees who violated their rules and regulations.
Revelations of the suicides necessitated Apple to react to the
accusations to avoid tarnishing its image. Steve Jobs, the CEO
of the company at the time, reacted by claiming that Foxconn
was not a sweat shop. Foxconn has excellent facilities in its
factories. It has a swimming pool, tennis courts, and movie
theatres. In addition, the company organizes fishing, mountain
climbing expeditions, and various tournaments. However, its
employees cannot enjoy the facilities since they work for very
long hours. The employees work for 70 hours a week. This is 10
hours more than the hours that Apple’s Supplier Code of
Conduct recommends (Christopher, 2012).
Apple’s Supplier Code of Conduct requires suppliers to provide
safe working conditions. However, the employees of various
suppliers work under unsafe environments. In May 2010, 2 2
employees died and 16 others incurred serious and minor
injuries due to an explosion at Foxconn. Apple and Foxconn
carried and investigation to determine the cause of the
explosion. However, they did not publish their findings. This
may be an indication that the employees worked in unsafe
environments. In addition, in 2011, Apple admitted that 137
workers of Wintek, an Apple supplier in Suzhou, China,
suffered from n-hexane poisoning. N-hexane is a toxic
compound that the company used to clean the touch screens of
iPhones. N-hexane poisoning led to several serious health
conditions. The workers received between $12,000 and 21,000
as compensation. However, they complained that the
complained that the compensation that the company offered was
not enough. In addition, the company requested employees who
requested received compensation to resign from their positions

4. (Christopher, 2012).
Apple’s products are very expensive. Therefore, its suppliers
are expected to provide their employees with good
remuneration. However, research shows that the suppliers
provide their workers with very little pay. The workers may
work for long hours without overtime payment. In addition, the
workers in various supplier factories have poor working
environments. Apple may ensure that the employees adhere to
wage and benefits standards by educating the employees on
their rights. This would enable the workers to demand for their
rights if the suppliers do not meet Apple’s standards.
Apple may also request its suppliers to provide details of the
wage and benefits it offers its employees. The company should
impose certain penalties to suppliers who do not meet its wage
and benefits standards. This would encourage companies to
adhere to the standards. Since suppliers may provide inaccurate
information on the wage and benefits that they offer their
employees, Apple may visit the company’s premises and
interview workers to prove the accuracy of the information.
The U.S. provides Apple with one of the largest markets for its
products. Despite the fact that Apple is an American company,
it outsources almost all production activities to foreign
locations. The company has approximately 43,000 employees in
the U.S. and 20,000 employees in foreign locations. In addition,
suppliers of the company have tens of thousands of employees.
The number of U.S. citizens that the company employs is
significantly lower than the number that other major American
companies such as General Electric or Exxon Mobil employ. In
2011, the company made $400,000 per employee. This amount
was higher than what other major American companies earned.
(Duhigg & Bradsher, 2012). This highlights the profitability of
the company. However, despite the company’s profitability, its
pays its employees about $11 per hour. The company is capable
of improving the contractual terms with suppliers to enable
them increase their workers’ pay without the need for its
customers to pay more for its products. The company can easily

5. absorb the excess payments and retain its position as one of the
most profitable companies per employee in the U.S. However,
pursuit of profits limits the company’s willingness to increase
the contractual terms. Therefore, customers would not be
willing to pay more enable the suppliers of company increase
the pay of its employees. In addition, U.S. citizens would not be
willing to pay more as outsourcing limits the amount of jobs
that the company creates in the U.S. economy.
Apple’s Marketing Strategy
Apple marketing strategy strives to show that the company is
selling more than a product. It strives to shows that the
company is selling a much exciting product. The company has
successfully used this strategy for several decades. The
company used this strategy to market one of its first products,
the Apple II. The company claimed that the people would work,
play, and grow with the personal computer. When Apple
launched the iPod, it did not provide its customers with a series
of facts and figures on the product. The company claimed that
the product enabled customers to have 1,000 songs in their
pocket. Apple continues to use this strategy to market its
products. This enables the company to create a ‘buzz’ prior to
launch of a new product. This improves the company’s
competitiveness.
Apple has a pricing strategy that targets high-end customers.
Customers in this market segment value quality instead of price.
This enables it to charge high prices for its products. The
company designs high quality products that would appeal only
to this market. This strategy makes the company to lose certain
customers. However, it increases the loyalty of the existing
customers. Referrals by the loyal customers enables the
customers to recoup the loss in revenue due to the customers it
ignored.
Apple has attained its dominance in the market due to its
effective market strategy. Apples develops high quality
products. Its marketing campaigns highlight the level of

6. sophistication and quality of its products. Apple has retail
stores in various major cities around the globe. Sales in the
stores account for a sizeable percentage of the company’s
revenue. In addition, the stores enable the company to move
closer to its customers. Apple’s stores are very luxurious. The
luxuriousness of the stores maintains the brand image of the
company.
Measures that would improve Apples competitiveness
Apple strives to meet the need of its current customers. The
company introduces new products that incorporate the
technology or features of previous products. The company
incorporates very few additions. This strategy has enabled the
company to maintain the loyal customers. When the company
introduced the new iPad Air and iPad Mini, it did not consider
the include features that would have satisfied new customers.
Instead, the devices had similar screen technology. This
strategy has prevented Apple from breaking its boundary and
acquire new customers. Apple should ensure that new products
have new features. On the other hand, Samsung does not shy
away from introducing new products that have new features. In
2013, the company introduced several products that had new
features. This enabled it to capture new customers. The Gear
watch is one of the major products that enabled the company to
acquire new customers. Samsung’s strategy enabled it to push
out old products due to very slight variations. However, this
strategy is risky. Samsung has reaped huge benefits due to its
willingness to take risks. It is currently the market leader in the
smartphone market. Apple may improve its competitiveness in
the smartphone market by developing innovative products at a
faster rate.
Apple’s strong brand gives it a competitive edge in the market.
The company relies on rapid innovation to attract and retain
customers. However, after the death of Steve Jobs, the company
has not been able to produce innovative products at a rate that

7. would make customers yearn to own the products. This is
slowly diluting the strong brand of the company. IPhone 5S, the
company’s latest iPhone had only minor refinements compared
to the previous version. This made rivals taunt the company for
lack of major advancements in the product. To ensure that the
company does not lose its ‘premium’ and ‘innovative’ brand,
Apple should split its advertising strategy according to the
region. To tackle this problem, the company should advertise its
new products that have little additions to new markets. This
would ensure that the new products do not cannibalize the
lucrative developed markets. Rolex is one of the companies that
has successfully used this strategy to maintain its brand
premium. The company creates only premium products. This is
due to the fact that creating low-end products would dilute the
brand of the company.
Conclusion
Outsourcing is a contemporary global phenomenon. This
necessitates companies to ensure that suppliers do not engage in
activities that may tarnish their reputation. Apple uses its
supplier code of conduct to ensure that the suppliers do not
tarnish their reputation. Apple’s strong brand gives it a
competitive edge over other companies in the industry.
References
Christopher, E.M. (2012). International Management:
Explorations across Cultures. London: Kogan Page Publishers.
Duhigg, C. & Bradsher, K. (2012, January 21). How the U.S.
Lost Out on iPhone Work. The New York Times. Retrieved on
31 January 2014 from:
http://www.nytimes.com/2012/01/22/business/apple-america-
and-a-squeezed-middle-class.html
Hiscock, G. (2012). Earth Wars: The Battle for Global
Resources. Hoboken, NJ: John Wiley & Sons.
Lannuzzi, A. (2011). Greener Products: The Making and
Marketing of Sustainable Brands. Boca Raton, FL: CRC Press.

8. Reinhold, A. (2011). . Switching to a Mac for dummies.
Hoboken, NJ: John Wiley & Sons.
Shimp, T.A. (2008). Advertising, promotion, and other aspects
of integrated marketing communications. Mason, OH: Cengage
Learning.