Stakeholders play a critical role in the growth and ultimate success of a company. Any organization’s top management must consider the needs or demands of stakeholders, such as employees, customers, creditors, suppliers, government, and the whole community. Apple Inc.’s most significant stakeholders include customers, employees, investors, and employees of suppliers and distributors. The corporation has grown to become one of the biggest and most successful companies in the global technology industry, thanks to its commitment to meeting these stakeholders’ needs.
One of Apple’s leading priorities as it devises its corporate social responsibility strategies are customers or consumers who constitute individuals and organizations that purchase products. (Dess et al., 2021). Apple’s customers demand that products purchased be effective, efficient, and reasonably priced. To meet this demand of customers, Apple Inc. has come up with a premium pricing strategy and is in line with the quality and aesthetic expectations of customers (Thompson, 2017). This strategy meets customers’ demands and has also played a critical role in attracting customers who are instrumental in achieving the company’s revenue and profitability goals of the company
The second-priority stakeholders of Apple Inc. are employees who are taken into account when it comes to the company’s approach to corporate social responsibility. This stakeholder group encompasses individuals working at Apple’s facilities. The major demands of Apple Inc’s employees are career development opportunities and proper compensation (Thompson, 2017). Apple relies heavily on this stakeholder group in the innovation and development of profitable products (Froud et al., 2012). Thus, the company has over the years managed to meet the demands of employees by providing competitive compensation packages.
Investors are also key stakeholders of Apple Inc., given their role in determining the company’s corporate social responsibility programs. Apple Inc’s investors’ key demand is the maximization of returns on investment. The company is committed to and often strives to achieve excellent financial performance to meet this demand (Thompson, 2017). That this demand has been met is evident in the fact that Apple Inc. is currently one of the most profitable companies globally. According to Thompson (2017), Apple Inc has also met investors’ major demand by maintaining high-profit margins and having a strong financial position involving high liquidity through huge amounts of cash. The company has also moved a step further to meet investors’ key demand by avoiding debt.
Employees of suppliers and distributors also play a key role in Apple’s corporate social responsibility efforts. Employees of suppliers and distributors are considered indirect stakeholders with a say in the company’s CSR activities. This stakeholder group has specific demands revolving around proper compensation package and security of their jobs (Thompson, 2017). Another key demand of these stakeholders of Apple Inc. is ethical practices when it comes to employment. Apple Inc. has a Supplier Code of Conduct through which it meets most of these demands by employees of suppliers and distributors. With this code in place, Apple Inc. closely monitors whether suppliers and distributors’ employment practices are in line with it (Hower, 2016). The company has since come up with a policy that emphasizes termination of business relations with suppliers and distributors with unethical employment practices.
Stakeholders play a crucial role in the growth and success of a company. Apple Inc is a household name in the global technology industry and attributes its success to meet the needs of stakeholders. Apple Inc. meets the demands of its key stakeholders, including customers, employees, investors, and employees of suppliers and distributors. It has specific strategies and interventions through which it meets the demands of each of these stakeholder groups. In turn, these stakeholders serve the corporation to their best, thus promoting its success.
Dess, G., McNamara, G., Eisner, A., & Lee, S.-H. (2021). Strategic management: Creating competitive advantages (10th ed.). McGraw-Hill Higher Education.
Froud, J., Johal, S., Leaver, A., & Williams, K. (2012). Apple business model. Manchester: CRESC Working Paper, (111), 1-29. https://hummedia.manchester.ac.uk/institutes/cresc/workingpapers/wp111.pdf
Hower, M. (2016, February 18). Stakeholder engagement secrets from Apple, Levi’s and Wrigley. https://www.greenbiz.com/article/stakeholder-engagement-secrets-apple-levis-and-wrigley
Thompson, A. (2017, January 29). Apple Inc. stakeholders: A CSR analysis. http://panmore.com/apple-inc-stakeholders-csr-analysis