Apple's Labor Issues and Public Relations Miseries - Case Study Example

Customer Inserts His/ Her Name Customer Inserts Grade Course Customer Inserts Tutor’s Name 28 March 2013 Over the past years, Apple’s public relation has been good. This enabled the business to grow, and show case a variety of products like iPhone, iPod, iTunes, the Apple store, and others. This report analyses the importance of public relations, and gives an overall view of what actions Apple should take. This report bases its findings on an article by Antony Agnello, ‘Apple Labor Issues ,and Pr Miseries: The Company Takes Action to Improve Labor Conditions at Its Manufacturing Partners ,but Its Pristine Reputation Is Tarnished’1. Public relation is a tool that most companies employ to enhance their image to the public. Public relations involve representation of the company’s activities in the most suitable way through media platforms. Good public image is important because it ensures that business customers are retained based on trust. The business environment and markets are extremely competitive. Companies should come up with ways that will make them unique to the public, and the media as a whole. Positive image ensures that the sales of the company increase while negative image reduces the sales of a company6. The public is also entitled to give their opinions about a company. However, this opinion is subject to direct or indirect influences which include beliefs, religion, commerce, art among others. Apple and Partners recently faced accusations of using cheap labor, and paying low taxes to boost the performance of the business1. Recently, a research was done on Foxconn, a Chinese based Company, which is in partnership with Apple. This investigation came up after there was an explosion in a factory that injured eighteen and four ware left dead. 1Anthony, Agnello. “Apple’s Labor Issues and PR Miseries.” InvestorPlace. Published on February 10, 2012 ,and accessed on 28 March 2013. http://www.investorplace.com/2012/02/apples-labor-issues-,and-pr-miseries-aapl-msft-dell-mmi/. 6Lippmann, Walter. Public Opinion. Australia: Wilder Publications, 2010 The findings of China Labor Watch were Foxconn labor force composed of children employed for internship. Foxconn also overworked their employees according to the report. The working environment at the company based in china showed it was not favorable. This report contributed to the low sales of the then realized iPhone 3. These accusations caused the public opinion against Apple products to fall. This is because the public felt as though Apple was lying to them. They felt they exploited children ,and used them to cut their cost, in order to make high profits. The employees’ health is not considered at all by some suppliers of Apple products especially in china. For example, in 2010, about 137 workers were injured after been authorized to use a poisonous substance to clean the screens of iPhones. Many electronic companies in the world like Dell, Lenovo, Motorola ,and others have also faced accusations of big profits ,and unsatisfying working conditions9. The violation of human rights accusations against Apple dominated the press in 2012. This saw formation of online organizations that encourage the public to file petitions with them. The significant part was that this complains did not come from activists ,but they came from loyal customers of Apple. Mr. Tim Cook, current CEO of Apple, defended the company against the alleged accusations. He said that the company has a code of conduct that governs suppliers. It provides standards on the matter of labor, safeties of employees ,and other important issues. He continues to say that Apple has conducted detailed audits on companies, which people presume not to act within the limits of the code of conduct1. Thereafter, apple takes corrective measures in case of problems rising. 9Wingfield Nick. “Apple's Suppliers Pressed to Improve Workers.” New York Times, 2012: 11- 12 The code of conduct of suppliers issued by Apple was helpful ,and reliable. The only big question is what measures or methods do Apple use to ensure that their suppliers abide by the code of conduct. In this case, of Foxconn it was clear that Apple waits to hear that a problem has come up so it acts. This means that the code of conduct given to suppliers is not a good reason to justify the human rights violation in Apple’s suppliers in china. In the case of Foxconn, Apple appointed FLA (Fair Labor Association) to audit ,and investigate on the issue of labor3. The report of FLA showed that indeed the accusations were true. At Foxconn, the employees’ age was between sixteen ,and twenty-six. This decision by the management of Apple to audit its subsidiaries could raise many questions. These include whether the company had previously been audited ,and whether Apple conducts routine checks on its subsidiaries to ensure their activities went on as required. Therefore, Apple action is not the best ,and furthermore the audit report just proved that there was high child labor in the Foxconn. This ruined their public image further. After auditing the companies, Apple found out that sixty-two companies did not comply with the rules ,and regulations of employees’ working hours3. Apple decided to cut it businesses with two of its supplier. The company had taken this effective step although, considering the percentage, Apple could do more. These were only two companies out of sixty-two. There was a high possibility that the remaining companies would continue using the same ways to earn profits. Apple needed to come up with other ways of ensuring that the remaining companies would follow all the rules ,and regulations stipulated2. 3Dong, Lee. “Apple’s Labor Issues ,and PR Miseries.” Cornell university press, 3 (2012): 1- 10. Other businesses should learn from Apple experience on the issue of labor ,and its ruined public relation. It is important for businesses to monitor closely the operations of their branches. This is because the reputation of the small branches could ruin the reputation of the parent company. Companies should also employ skilled ,and qualified workers to avoid accidents caused by lack of knowledge. The managers of businesses should ensure they provide favorable working conditions that would enable them continue with their without any disturbances8. Employee motivation is the key to good performance of the business ,and therefore they should not overwork employee as Foxconn did. Public relation is an important tool used by organizations in order to maintain good relationships with the public8. Various models including ‘the four models of public relations by Grunig’ could be used to enhance good public relations, where the public acts according to wishes of the organization. Grunig says, the theory of communication is a tool that organizations can use to strengthen their relationship with the public ,and effectively come up with ways to solve issues that arise. The four communication models of public relations developed by Grunig include press agentry model, public information model, ,and two-way symmetric model ,and two-way asymmetric model Apple needs to win the trust from the public back in order for it to report the same profits it made before the accusations arose3. The four models by James E. Grunig of public relations would be the best tool that Apple could use to enhance its public image. There are many factors relating to public relations that Apple must consider in remaining successful. 8Seitel, Fraser. The Practice of Public Relations. New York: Prentice Hall, 2011 The first model is the Press agentry5. This is where an individual or management influences the public to ensure that they act according to the wishes of the organization. The type of communication used in this model is one-way. This includes the media. The purpose of this model is to ensure the delivery good faith of the organization in order to earn the interest from the public. This model would be useful to Apple since it is a big organization, which needs to retain its customers to avoid losing them to their competitors. The management could come up with ways of ensuring that they can directly manipulate the public to continue buying their products. For example, an apology to the public could be a method they could use. Apple could also use the media to advertise their existing, and new products to create public awareness. The second model is public information model5. This occurs when an organization uses both the media, and another one-way communication tool to pass information concerning the organization. Apple leaders could use this model in the organization. The reputation of the company had not only tarnished in the public’s eyes as well as the eyes of the employee. Apple required a public relation officer in order to ensure that the relationship between the management and employees improves. This would help avoid future conflicts that may occur between management, and employees. The third model is the two-way symmetric model5. This model uses an imbalanced two-way communication method. The main objective of this model is to persuade the public to behave the way the organization desires .This model is different from the first model because it uses research to find out which ways can be used to persuade customers. Apple can apply this model to ensure it stays in touch with its customers. 5Grunig, James ,and Hunt, Todd. Managing Public Relations. Australia: Wadsworth Publishers, 1984. Apple’s public image was deteriorating; therefore, it needed a way to ensure the public opinion changes. This method would ensure that the organization influences the opinion of the public so that it changes for the best. Apple would benefit from using this model because they would be in a position to understand the behavioral patterns of the customers. The fourth model is the two-way symmetric model5. This model uses a balanced two-way communication. Its main is to change the behavior of both the public, and the organization. It enhances contact with customers because information flows from sender to receivers. This method would help Apple keep in touch with their customers. They can also ensure that they easily receive complains from them ,and ideas of how to better the company. Understanding which is model is the key concept of this model. The advances in technology help in the realization of the need to use these models4. In the current evolution of the internet, this model ensures organizations do not use a one-way communication method. Social media sites such as Facebook ,and Twitter have enabled organizations to communicate with the public easily. According to businesses, social media could be used as a platform where they market their products4. The cost used o acquire the customers is minimal ,and this method is effective. This would enable the organization to cut advertisement cost ,and use the various funds to do other activities of the business. For example, Apple ,and partners could employ social media to create awareness of their products ,and use the funds to employ skilled employees. 4Duhe, Sandra. New Media ,and Public Relation. United States of America: Peter Lang Publishing, 2012. In the era of social media, the opinion of Apple could continue been damaged. Most of the people today use social media platforms to communicate. The information on the platforms the world through social media. It should be noted that information that changes hand could be includes politics, businesses ,and sharing public of ideas. The story of Apple could spread across manipulated, and this could lead to wrong information passing from one person to the other. A positive thing about the social media that Apple could adopt is they could use it to influence their public to buy their products. Many companies strive to ensure they protect their public reputation2. Technology ensures that most organizations achieve this goal. The public would view organizations as good listeners if they post issues on social media platforms ,and address them. This enhances the image of the business. The organization should also ensure to give genuine information ,and openly engage in discussion in social media platforms7. Organizations could use the internet to understand their customers. They could identify gaps in the market ,and come up with ways of filling them2 In conclusion, the reputation of apple became bad after people accused their branches in china of using child labor. This cost the company ,and it reported fewer sales than in previous years. Apple’s image enhancing is possible if the Grunig’s model is put into consideration. The internet could also be used to establish good customer relations. Organizations should ensure the come up with the right steps of ensuring they maintain a positive public opinion 2Dietrich, Divine ,and Livingston, Gerald. Marketing in the Round: How to Develop an Integrated Marketing Campaign in the Digital Era. United States of America: Que Publishing, 2012. 7Moore, Malcolm. “Apple's child labor issues worsen.” The telegraph. Published on February 15, 2011 ,and accesses on 28 march 2013. Bibliographies Agnello, Anthony. “Apple’s Labor Issues ,and PR Miseries.” InvestorPlace. Published on February 10, 2012 ,and accessed on 28 March 2013. http://www.investorplace.com/2012/02/apples-labor-issues-,and-pr-miseries-aapl-msft-dell-mmi/. Dietrich, Divine ,and Livingston, Gerald. Marketing in the Round: How to Develop an Integrated Marketing Campaign in the Digital Era. United States of America: Que Publishing, 2012. Dong, Lee. “Apple’s Labor Issues ,and PR Miseries.” Cornell university press, 3 (2012): 1- 10. Duhe, Sandra. New Media ,and Public Relation. United States of America: Peter Lang Publishing, 2012. Grunig, James ,and Hunt, Todd. Managing Public Relations. Australia: Wadsworth Publishers, 1984. Lippmann, Walter. Public Opinion. Australia: Wilder Publications, 2010. Moore, Malcolm. “Apple's child labor issues worsen.” The telegraph. Published on February 15, 2011 ,and accesses on 28 march 2013. Seitel, Fraser. The Practice of Public Relations. New York: Prentice Hall, 2011. Wingfield Nick. “Apple's Suppliers Pressed to Improve Workers.” New York Times, 2012: 11-12 Read More