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Primary and secondary stakeholder groups, their roles, and relationships

The specific course learning outcomes associated with this assignment are:�
� Analyze the relationship between business and society, and the ways in which they are part of an

interactive system.�

� Recommend ways stakeholders can influence the destiny of both business and society.�
� Analyze the various primary and secondary stakeholder groups, their roles, and relationships.�
� Compare and contrast the concepts of corporate social responsibility and citizenship.�
� Analyze ways ethical challenges affect the multiple functions of business.�
� Use technology and information resources to research issues in business and society.�
� Write clearly and concisely about business and society using proper writing mechanics.�

Introduction
The global economy at present is such that there is huge interdependence on economies.
Both large and small economies are heavily relying on each other. Unlike in the past where
business and society appeared to exist independently, there now appears to be a heavy

Social Performance of Organizations 2
integration between the two. As a result, when one is affected, there is a ripple effect on the
other. For instance, the stability of any society will have a direct impact on the performance of
business. This discussion has focused on the increasingly complex relationship between business
and society as seen through the lens of the Apple Inc.
Apple Incorporation
Apple Inc has been credited and hailed for the massive contribution made towards growth
in the communication sector. To date, Apple still boasts of being among the top companies in the
industry and among the most successful. Over the years, the company remains a trend setter
coming up with unique business strategies that have seen scale to great heights (Cullen, 2013).
The year 2007 was phenomenal year for the multinational company. This is the year
when the company made its debut release of its very first smart phone, the I-phone. It was a
gadget of its own kind and no other company as yet had come up with a similar invention.
Business Strategies
Apple has employed a number of strategies aimed at helping the business achieve
projected goals. Identification of gaps in the market is one of the most successful strategies that
the organization has employed. In all markets, there is often an information gap which when
filled a need then arises. In this case, Apple conducts market surveys and researches from time to
time. The feedback received from the relevant and target audience forms a platform for the next
invention. It is highly essential to understand every market, what they have and what they need
(Hill, 2014). It is also imperative to note that markets vary and that the needs and gaps are not
always the same. As such, customization for each market to meet the specific needs is crucial.
This can only be achieved when a market survey and research is done. This strategy has formed a

Social Performance of Organizations 3
strong pillar for Apple Inc. It becomes necessary to understand the needs of the market. Through
meeting these needs, it will be possible to foster good relationship between business and the
society.
The Role of Technology
Apple Inc. has capitalized on technology, making it central to all her inventions.
Recognizing the dynamic nature of technology, Apple has remained in sync with the changing
trends. This is with the realization that such trends are what is found to be appealing to the
clients. The idea behind the I-Phone was very fascinating, having being one of its kinds in the
market. The heavy reliance on digital aspects got the market excited making the product to
appeal to the target audience. Apple has also made gainful contributions to the market. In a bid to
stay in sync with the developments in the market, other industry players have followed closely in
these footsteps. As a result, the market has a wide variety to choose from (Tar, 2013).
Challenges Faced
Although Apple Incorporation continues to ride up high in the market, it still faces some
challenges in its line of operation. The company has been unable to level its prices to meet the
market standards. Most of her products are classified as expensive in comparison to similar
gadgets from other industry players (Hassan, 2013). Although Apple insists that the high cost is a
reflection of the quality of the product, the aspect of price remains a challenge. This is because it
limits the number of people who can access her product giving them an opportunity to go for the
alternative.
Apple Inc also continuously battles with accusations of exploitation of her workers.
There have been accusations of poor working conditions among employees. The company has

Social Performance of Organizations 4
also been put on the spot for failure to strictly adhere to set work ethics (Tar, 2013). As result,
recent years have seen a drop in the popularity of the company as sales dwindle in some of its
key regions.
Stakeholder’s Influence
There are a number of ways in which stakeholders can affect the financial performance of
Apple Inc. If stakeholders refuse to support the decisions of the management, then the finances
will be affected (Tar, 2013). Sometimes, stakeholders may sabotage an organization by opposing
any decisions made. When that happens several times, the finances of the company will head
south. On the other hand, having stakeholders who act as patriots of the company will go a long
way. Stakeholders, can in more ways than one act as brand ambassadors of the company. If they
promote the products of the company, they are likely to encourage the public who will in have
confidence in the products of the company.
Stakeholders also play a crucial and instrumental role in fostering the relationship
between a business and society (Adrian, 2007). As already discussed, it is not possible especially
in today’s business environment to separate business and society. The two exist together and
depend heavily on each other. Stakeholders have a role to influence the society positively by
speaking positively on the products of the company.
Stakeholders also help the company to carry out market research that will help identify
the needs of the market. Markets are heavily dynamic and the needs change every so often. It is
imperative for any company to keep in tandem with the needs of the market. This is the only sure
way that a company can create a niche for itself while successfully managing stiff competition.
Having identified the needs of the markets, it may be necessary to tailor-make the products of the

Social Performance of Organizations 5
company to suit the needs of each market. Apple has managed to establish the needs of each
market while customizing to ensure that the needs of their clientele are properly met. Rolling out
similar products for each market might lead to a huge blow to the company as some markets
might not be receptive to the product. Apple Inc can only be successful if they tailor-make their
products based on the information and feedback given by the stakeholders.
As a multinational, Apple Inc has put measures in place to prevent unethical behavior.
One is through use of contracts that define the code of conduct while in the industry (Ruth,
2014). For example, there are some employees who seek to move across the industry and are
therefore likely to disclose the secret strategies of the company. Contracts therefore act as
guidelines through which such unethical behavior is prevented.
Controversial CSR Associated with Apple Inc
Despite being at the helm of the telecommunications industry, Apple Inc has encountered
its fair share of challenges. Some of these pitfalls have threatened to drive the sales of the
company on a downward trend. One of the issues that Apple has been confronted with is the
working conditions of the factories in various parts of the world (King, 2016). On more occasion
than one, Apple was accused of not providing conducive working environment for her workers.
The company was accused of failure to have factories that meet the standard requirements hence
endangering the lives of her workers.
In the recent past, there are various issues that have been raised which are indicative of
violation of employee rights. For instance, in the 2014 when I-Phone 6 was launched, employees
would be logged in for more than 15 hours and would work back to back an entire week without

Social Performance of Organizations 6
rest. As a result, cases of employees collapsing due to fatigue and heat coming from the
machines in the factory were common (Petter, 2011).
Other reports that have emerged is that some of the fire exits of the buildings that house
Apple’s factories are totally blocked. This makes them inaccessible and in case if an emergency,
there may be fatalities. Apple has remained on the defensive only highlighting its good
performance. In the year 2015, the company announced a billion profit, one of the highest to be
reported in the corporate sector.
It is crucial for Apple’s management to realize that they can no longer wish away the
complaint constantly leveled against the company. As earlier discussed, stakeholders of a
company play an integral role in ensuring that a company remains afloat (Artur, 2013). There are
external and internal stakeholders all of whom play a contributory role towards the success of the
company. The manner in which the organization treats her employees has direct impact on the
performance of the company.
Apple must review and relook at her work policies to ensure that they accommodate their
employees. They must also reform that policies to ensure that their factories meet the standard
requirements. Ideally, corporate social responsibility is meant to improve the rapport and
relations that a company has with its public (Pompper, 2015). The relationship between the
company and its stakeholders is supposed to be strengthened through CSR. It is a platform that is
meant to ensure warm relations between all the stakeholders of the company.
Conclusion
Although Apple has been riding high in its performance, it can no longer continue to bury
her head in the sand. The issues that have been raised ought to be addressed before they cause

Social Performance of Organizations 7
any further damage. Although the company may be a giant in the telecommunication industry,
bad reputation could push it down to her knees. It will be necessary for the organization to back
to the drawing board and seek to correct the misconceptions. The main platform that keeps a
company afloat is its good relations with the public. Despite the good quality of its product,
brushing shoulders the wrong way with her stakeholders could see the company’s many years of
investment tumble down within no time. Consultations with all the stakeholders must therefore
be a priority for Apple Inc if they are to regain lost confidence and popularity.

References

Adrian, H. (2007). Strategic management: theory and application. California: John Wiley and
Sons.
Artur, L. (2013). Media Convergence Handbook. New York: Springer

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Cullen, J. (2013). Multinationals management. London: Sage
Hassan, M. (2013). Apple Inc.: an analysis. London: Sage.
Hill, C. (2014). Strategic management theory: an integrated approach. New York: Prentice Hall.
King, D. (2016). Organizational Behavior. London: Oxford University Press.
Petter,G. (2011). Corporate Social Responsibility, Governance and Corporate Reputation. New
York: Springer.
Pompper, D. (2015). Corporate Social Responsibility, Sustainability and Public Relations.
London: Routledge
Ruth, W. (2014). Empowering Organizations through Corporate Social Responsibility. London:
Oxford University Press.
Tar, A. (2013). Apple SWOT analysis. New Jersey: Springer.

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