Evaluating A Corporate Societal Relationship Preparation

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Evaluating a corporate-societal relationship preparation according to the textbook, the current world economy is increasingly becoming integrated and interdependent; as a result, the relationship between business and society is becoming more complex. In this assignment, you will be researching a Fortune 500 company from an approved company list provided by your professor.

Write a 4–5 page evaluation of your chosen company’s performance with respect to its stated values.

Summarize the company’s primary products and or services. Suggest three ways in which the primary stakeholders can influence the organization’s financial performance. Provide support for your response.

Describe two critical factors in the organization’s external environment that can affect its success. Support your assertions.

Assess the company’s biggest success or missed opportunity to respond to a recent or current social issue. How did it impact company performance?

Integrate at least two supporting resources from the Strayer University Library or other reputable sources. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

• Evaluate the relationship between a business and society based on external environmental factors, stakeholders, and corporate social responsibility issues.

Paper For Above instruction

In an increasingly interconnected global economy, the relationship between corporations and society has become more vital than ever. This paper evaluates the performance of Apple Inc., a leading Fortune 500 company, with regard to its adherence to corporate values, external environment, stakeholder influence, and social responsibility. Apple Inc. is renowned for its innovative consumer electronics, including the iPhone, iPad, MacBook, and a suite of software services, which together define its primary products.

The company's core products revolutionize technology and consumer electronics, generating substantial revenue. Apple emphasizes quality, innovation, and customer satisfaction as its foundational values, which shape its corporate strategies and societal contributions. Its commitment to sustainability and privacy reflects its social responsibility principles, aligning business success with societal good.

Stakeholder Influence on Financial Performance

Three critical stakeholder groups—customers, suppliers, and shareholders—can significantly influence Apple’s financial outcomes. Customers wield influence through their purchasing choices and brand loyalty, directly impacting revenue streams. Suppliers affect production costs and quality, where favorable negotiations and sustainable sourcing can enhance profit margins. Shareholders influence company policies through voting rights and investment decisions, motivating management focus on profitability and growth strategies.

Support for these assertions is rooted in stakeholder theory, which suggests that companies succeed by managing relationships with their key groups (Freeman, 1984). For instance, Apple’s loyal customer base has enabled premium pricing strategies, while supplier sustainability initiatives mitigate risks and improve brand image, ultimately enhancing financial stability.

External Environment Factors

Two critical external factors affecting Apple are technological advancements and regulatory frameworks. Rapid technological change necessitates continuous innovation. If Apple fails to keep pace, its market share could decline. Conversely, leveraging new technologies can bolster competitiveness. Regulatory environments, including privacy laws and tariffs, also impact operations. For instance, recent stricter data privacy regulations in the EU challenge Apple to adapt its data handling practices without compromising user experience. Navigating these factors is crucial for sustained success.

Social Issue Response and Business Impact

Apple has faced scrutiny over labor practices in its supply chain, notably under the "Missed Opportunity" framework. While Apple has implemented supplier codes of conduct, allegations of labor violations persisted, leading to reputational damage. A significant social issue was the company's response to environmental concerns, such as reducing carbon footprint through renewable energy initiatives. These efforts positively impacted its brand image and customer loyalty, translating into robust sales and stakeholder trust.

Conversely, delayed action on labor violations presented a risk, potentially affecting sales and market valuation adversely. The company’s proactive approach in environmental sustainability has demonstrated its ability to turn social issues into opportunities for strengthening brand equity.

Conclusion

Apple’s organizational success is intricately linked with external environmental factors, stakeholder engagement, and its social responsibility initiatives. Effective management of technological developments and regulatory changes, coupled with strategic stakeholder relations and social issue responses, underpin its competitive advantage. This evaluation underscores the importance of aligning corporate values with societal expectations to sustain long-term profitability and reputation.

References

• Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach. Pitman Publishing.
• Johnson, G., Scholes, K., & Whittington, R. (2008). Exploring Corporate Strategy (8th ed.). Pearson Education.
• Apple Inc. (2023). Sustainability Progress Report. Retrieved from https://www.apple.com
• Friedman, M. (1970). The Social Responsibility of Business is to Increase its Profits. The New York Times.
• Porter, M. E., & Kramer, M. R. (2006). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 84(12), 78–92.
• Schwab, K. (2016). The Fourth Industrial Revolution. World Economic Forum.
• Global Reporting Initiative. (2022). GRI Standards for Sustainability Reporting. GRI.
• OECD. (2011). Guidelines for Multinational Enterprises. OECD Publishing.
• US Securities and Exchange Commission. (2022). Form 10-K filing for Apple Inc.
• World Economic Forum. (2023). Global Risks Report 2023. Geneva: WEF.