Essay Ethical and Governance Issues Raised

3238 Words Jul 19th, 2010 14 Pages
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Essay Sample: Page 2
Secondly, there is a supply chain risk associated with the increasingly bad reputation of the Chinese manufacturers, given China’s rapidly changing labour market. Younger workers are becoming overly optimistic in their career options and are not willing to work in factories (Rein 2010a). With the growing bad reputation of the factories, the manufacturers are finding it increasingly difficult to recruit employees and retain good staff. As a result, maximum production outputs may not be utilised and there are greater costs and loss of efficiencies involved with worsening quality control of production due to staffing difficulties.

Apple’s executives have been short-sighted in their drive to maximise profit. Shaun Rein (2010b) notes that “true leadership is about bettering the lives of the people around you” rather than simply making money at any price. While it can be argued that Apple can only do so much, for example, set out strict agreements on code of conducts of manufacturers, Apple can also be blamed for the lack of regulation of these agreements and pursuant action taken on breaches. Given the cases noted above, it is clear Apple’s executives can do more in its governance to become great leaders. It is also noted that evidence exists that governance to the ends of bettering the lives of stakeholders, as seen with Nike, may actually lead to profit maximization rather than be an overbearing cost on companies.

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