Stakeholders

Stakeholders Affiliation: Introduction According to fortune magazine, Apple is listed as the number one company when it comes to issues of innovation (CNN Money 2012). Apple is an internationally recognized technology company with suppliers even from China. It deals with technology products ranging from laptops to phones. It is recognized for the production of iPhone.
It being a multinational company, it has many stakeholders due to it being named the largest publicly traded company in the world with over $60 billion in revenue and profits (Gupta 2011). This therefore means that its management (which until his demise was being held by its founder Steve Jobs) has to run the company meticulously in order to maintain such profits and satisfy their stakeholders.
Recently however, the company has been having ethical issues with their clients, the latest being that their iPhones’ iOS is pulling out addresses from the owner’s address book without their permission. This is a breach of privacy and security that are supposed to be enjoyed by the owner of the iPhone. A breach of privacy is one of the worse ethical codes to happen.
The company has also been receiving criticisms due to their labor contracts where they even have child labor in their numerous company factories. It also has environmental malpractices as well as business ones. These are not only ethical but also legal issues that can bring the company down if nothing is done to combat them.
The different stakeholders in the company will be affected differently by all these legal and ethical misconducts of the organization. The shareholders of the company will lose money once the company starts dropping in market share. Some will even sell their shares and this will start sinking the company. Apple has over 70% of its shares being held by institution and mutual fund owners (Gustin 2012), hence when they decide to sell their shares, the company will go under.
Once the company starts losing its revenue and profits, the other stakeholders to be affected are the employees in the company including even the company workers. There will be massive layoffs in a bid to avoid incurring more loses and try to save a little to help the company recover to its glorious position.
The company’s investors who are also among the stakeholders will also start pulling out to go invest in another company that is not marred by ethical and legal misconduct and may soon start paying damages in court when lawsuits start being filed as a result of the misconduct. Once the investors pull out, that is the beginning of the end of the company and it will start heading to the ground.
Conclusion
The company’s management should therefore come up with ways to prevent future ethical and legal misconduct and also start damage control measures immediately on the already threatening ethical and legal misconduct in the recent past. This will involve working hand in hand with the media as it is the one that can make or break the company and within a very short time.
The above measures and also other decisions have to be made while involving the stakeholders. This will ensure that they also own whatever decisions that will be made and hence they will not pull out from the company. If this will not happen, then they might pull out in a bid to save their investments and hard-earned cash.
References
CNN Money. (2012). World’s Most Admired Companies. CNN, Fortune and Money. Retrieved on 17th February 2012. http://money.cnn.com/magazines/fortune/mostadmired/2011/index.html
Gupta, P. (August 9, 2011). Apple briefly passes Exxon as largest U.S. company. Reuters. Retrieved on 17th February 2012. http://www.reuters.com/article/2011/08/09/us-apple- exxon-idUSTRE7784RX20110809.
Gustin, S. (February 16, 2012). Are Your iPhone Apps Taking Your Address Book Without Permission? TIME Business. Retrieved on 17th February 2012 from http://business.time.com/2012/02/16/is-your-iphone-stealing-info-about-you-and-your- friends/?iid=biz-main-lede