Apple Inc.’s Ethical Success and Challenges
CASE NOTES FOR INSTRUCTORS
The Apple Inc. case examines the ethical successes and challenges that the company faces in the
highly competitive technology industry. Because Apple is so admired for its products and
services—and has consistently scored top place in Fortune magazine’s “Most Admired
Companies”—students might not realize that the company experiences ethical issues daily. This
case introduces students to several business ethics issues, including corporate culture,
sustainability, privacy, and intellectual property.
QUESTIONS AND DISCUSSION
1. Explain how Apple’s philosophy and organizational culture have impacted how it handles
ethical decisions.
Apple bases its success on “creating innovative, high-quality products and services and on
demonstrating integrity in every business interaction.” To realize its philosophy, Apple has created
2. Why is Apple’s industry so competitive, and how could this affect the ethical risk in Apple’s
operations?
The technology industry is a race in which Apple and other tech firms are competing against one
another to win the top prize: market share. Due to technological advances in the last few decades, a
product that once took years to develop might take a matter of months. Additionally, consumers
who have become used to this fast pace—particularly the millennials who grew up around
3. How do you think Apple has handled the various ethical issues that it has faced in the past?
Students’ answers will vary. Those who think that Apple handled its ethical issues well could make
several arguments. In terms of privacy, one could argue that Apple needs to remain competitive. As
long as it does not abuse the information, then there is no harm in collecting information about its
iPhone locations. Apple has also taken strides to become a more sustainable company. Not only
does it build its products with less toxic substances and more recyclable materials, but it also offers
ADDITIONAL RESOURCES
• By contracting its manufacturing out to countries like China, Apple gets the advantage of
lower labor costs. However, it also experiences increased risks regarding oversight. The