Concept of Business Society and Planet

Question: Discuss about the Concept of Business Society and Planet. Answer: Introduction: In the era of 19th Century, the concept of business was only to earn revenue and maximizes the profit of the organization. But in twenty-first century, business is more than only earning profit. Nowadays, one of the most important aspects of business is the responsibility towards the society and the social values. Corporate social responsibilities help a business in different ways. It creates goodwill for the company, attracts more investors, helps to retain employees, etc. This report is based on two companies that are Apple and Huawei. Both the companies are well known in their industries for the business as well as for their social responsibilities and values. Apple first started its business in United State in the year of 1976 and it is spreading now around 20 countries in all over the world (Menzel, 2013). It is obvious that Apple'siPhone 6S is running well in the market, but according to an industry watchdog, the Chinese laborers who make it are toiling in poor working conditions. The report also alleged that workers lived in cramped dorms and the factory failed to provide adequate job safety training. Through financial and business news reports we have noticed that Pegatron has gone to produce more peripheral products o Apple. On the basis of our research, the main reason of Apple to concentrate more on Pegatron for its production is low cost by way of lower labor costs. The activity of Apple in China is extended beyond labor issues. The company has been pushed up its manufacturer and supply chain partners towards a small carbon footprint. The manufacturing giant Pegatron employees around 100,000 people own the factory cited in China Labor Watch report. The compliance rate was lower in this year at the Sanghai Pegatron factory and this is found by China Labor Watch. Actually, the way of calculation of Pegatron is in a more favorable light due to the calculation of additional expenses which is tried by them. Our report considers how the labor costs are lower and what this mean for workers. Differences between Apple and Huawei in terms of the issues dealt in t he social reports presented by the companies and profundity of the coverage on distinct issues: Apples report on corporate social responsibility (CSR) conducted by Lisa Jackson- the vice president of department of environmental initiatives is mainly released through the providing an in-depth report of environmental responsibility. On the other side, Huaweis CSR report comes under the corporate report that provides information regarding the companys financial performance, social responsibilities and winning contracts. Huawei in Australia works with a couple of local charities, universities and campaigns which works on to raise fund. Apples environmental initiative report on the other hand only states all of the CSR activities and initiatives governed and undertaken by the company (Kaplan Montiel, 2016) Although there is a major issue of low wage rate in China, the environmental report of Apple is good in the industry. According to the expert, apple is definitely a big international company but according to the watchdog of industry, the Chinese laborers cannot meet his requirement as they are in poor condition. Only 65 percent of the wages guidelines are followed by the Chinese factories. Apple also has a deal with the issue of child labor in China. Apple has three facilities by which it requires a review of all employment which has been recorded for the financial year to complete the hiring process analysis of underage people who is able to get employment in China (Pun Chan, 2013) On the other side, Huaweis report discloses companys programs like Tour de Cure, leadership program for the indigenous youth and building e-health training service across pacific islands under an estimated value of 50,000 Australian dollars. It is therefore indicative of the fact that the company felt the need to maintain their responsibilities in context of social health most importantly (Makinda, 2014). Apple is providing low wages service to their employees in China because the apple manufacturing process and another electronic company is much popular in China. In China, apple does not make iPads and iPhones for making much money with this because there is low wages productivity in the market. The activity of apple in china boosts more issue of labor. Figure: low wage rate system in China Source: https://www.businessinsider.in/china Apple and Huawei both the companies are affecting the industry as well as the country. In China, people are affected by the company because of low wage rate. Due to low wage rate, people of China cannot meet their daily requirements. These are providing services to the whole country and also to the industry. Chinese are not able to buy products due to wage rate system. People are met their requirement by the companies. Huawei is providing better products to the whole country. Apple also provides better products to the country but due to the low wage problem of China, it cannot provide best to the industry of China. Both the companies are affecting the industry and the country in a different way. Zadek Principles: Zadek has compared both the companies and found some quality principle of social accounting approach. Zadek describes some useful principle of both the companies consistently. As per social approach, the companies are providing better services to the people of the society. They are giving full satisfaction with their products and also make some marketing plan related to accounting approach. Both the companies are spreading over the worldwide and doing international marketing for the better utilization of resources. According to Zadek et.al 1997, both the companies met its criteria and going as a wide range in whole countries. All the principles are met the criteria of Zadek et.al1997 because they fulfill the requirement of the company other than low wage rate productivity. The companies have aims to reach their business to its goals and maximize the profit of the company. (Myers, 2013). According to Zadek et.al 1997, the two companies can be compared with each other because they are not wholly same in nature. If we evaluate the framework of the two companies, both the companies are scoring high within the country. The companies are high grosser in the industry. There is a little difference between the companies. Firstly, Apple is the largest technological company second largest mobile manufacturer in the world. On the other hand Huawei is the largest telecommunication manufacturer in the world. The annual worldwide revenue of the apple is around $233 billion for the ending of fiscal year September 2015. Whereas, Huawei earns an annual profit around $34.2 billion. So we can say that apple is more convenient company than Huawei. Companys social report (Mission value and business Principle): Corporate Social Responsibility (CSR) of apple is the program which releases the report of environmental responsibility and also includes the details of CSR programming. There are 18 factories and 280,000 workers are offered free courses by the apple education and development program. The environmental responsibility report 2015 of apple covers the fiscal year 2014. It highlighted the progress which we have made. There are three priorities which are set up by us where we have belief that the most impact can be made by apple; (Ferrell Fraedrich, 2015). At first, it reduces the impact by using several energy sources of the climate change and has driven the efficiency of energy in our products. Second is the resource of precious conservation. The last one is experimental use of greener material in our process and product. The current mission statement of the company is apple designs Macs which is the best computer use for personal use in the world. In the online stores of apple, there are various kinds of apple products are available like iPods and iTunes. It has its personal apple store in the Smartphone of apple and iPhone. In todays era, the company is growing its business day-to-day because today is the era of competition and the market become more competitive. It has some business principles in the market. The basic principle is simple and equals effectiveness of products. In earlier, the feature of apple was not so developed, but in modern day it has so many principles for future preference. In earlier the computer of apple wer e as a monitor but in modern day it changes to an LCD model of computer and their sizes are also different (Montgomerie Roscoe, 2013). On the other hand, the Huawei focuses on their business to get improvement in the market. They want to attract the people of the society with their products. They want more improvement in their services to provide better facility to the people. Previously the company was not so genuine because in that day there was a lack of techniques and tools but in modern day the company has grown up well and giving full satisfaction to the people of the society. The company has mission to develop their business in the market because nowadays market becomes very competitive. Company is using so many different tools and techniques to make their mission succeed Huawei is the green site solution company of India which encompasses an initial variety that axis from (I) measurement of innovation, (II) supply chain (Zhang Vialle, 2014). Reflection and Conclusion: From the above discussion about the social reporting of the two companies that is Apple and Huawei, I have learnt that the growth of both the companies are reflecting the market strategy and also reflecting the people of the society. Although there is an issue of underage wages, people buy the companys product in more quantity according to their choices. Although Apple considers as growing international companies, there is an issue of low wage rate in China. They are trying to solve the problem of low wage rate and it can be grow up in future. I learned that the company is also reflecting the society and it fulfills the all needs of the people. In future, it might be very successful more than today and the low wage problem will also be reduced. According to the theory of sustainability, Apple is more convenient than Huawei because it has more earning during the year. Both the companies give more concentration to the needs of the societys people. The Chinese government is trying to solve the problem of low productivity of wage rate. If this wage rate problem reduces in China, the industry will much grow up and people can meet their all needs in the society. While discussing the report I have seen that their performances are different in all the countries. Zadek has compared both the companies in a different ways. From the above discussion, I have learnt that both the companies are widely reflecting the society and the industry as well in different ways. Apple gives more reflection to the China because of low wage rate but it also faces problem by this issue. 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