Ethical Issue Facing The Technology Industry Commerce Essay

Ethical affair adverse industry (Charlie). We chose to booty a attending into the technology industry for our ethical analysis. We chose this industry because in today’s world, technology has become a massive aspect in our accustomed lives. Accustomed technology is growing and become a bigger allotment in the apple and the way it runs. Belief is authentic in the concordance as, “the conduct ambidextrous with what is acceptable and bad and with moral assignment and obligation.” So we capital to attending into an industry that has had issues and would be annual our time attractive into.

Some issues that face the technology industry for companies like Apple, IBM, and Google are assembly issues as able-bodied as the affairs practices. Specifically for Apple, a big affair that they are adverse is their both assembly and affairs practices. Apple has their articles fabricated beyond in places like China while the ambition of a aggregation should be to access jobs in the countries that they are in. Apple is additionally demography advantage of China and the actuality that the boilerplate artisan makes beneath $200 per week. Apple has absitively to do this; however, because if they fabricated their iPads in the United States, they would bulk over $1,100. So yes, they may be accomplishing the bodies a favor in agreement of bulk by creating these iPads overseas, but at the aforementioned time they are demography advantage of a country in China because they apperceive how bargain the activity bazaar is there. We accomplish articles beyond because Chinese accomplishment jobs are paid 1/30th of the United States boilerplate salaries for accomplishment jobs (Thompson, Derek).

These businesses, abnormally Apple, are churning out articles on a quick, approved basis. So what Apple has done is created a massive accumulation allowance on their articles so that they can accumulate creating new products, which are about software updates, instead of aloof acceptance bodies to advancement their software solely. Apple has fabricated it so that their 32 gb iPad 2 sells for $729, but back you add up their activity and actual costs to accomplish these iPads, it deserted comes out to about $325. This gives Apple a accumulation allowance of about 54% and allows them to acquire barter buy cast new articles instead of aloof acceptance them to advancement the software on their articles that they purchased aural the accomplished year (Thompson, Derek).

Companies like Google are adverse issues of actuality ambiguous and charge to actualization added Accumulated Amusing Albatross because their chump is the best important aspect of their company. Aloofness International ranked Google as the affliction in its survey, they say that Google is the affliction back it comes to apropos their users privacy. Congress was additionally warned about applications that Google was business on Capitol Hill because bodies acquire that there were aloofness and aegis risks. Google additionally does not acknowledge its conflicts of interest; they accumulate their barter in the dark, additionally not accomplishing their amusing responsibility. Google says that they assignment for the bodies that use their armpit but Google absolutely works for advertisers on their sites. Bodies who use Google pay annihilation to use it, so Google has a battle of absorption of whether they’re alive for their users, who are their customers, or the advertisers on their site. This makes users of Google acquire a apocryphal faculty of aegis while application the armpit and can put users at accident of actuality defrauded. Google is all about who will accomplish them the best money, and not about accomplishing things the appropriate way. They say they authority auctions for application keyword searches to the accomplished applicant but to whoever makes Google the best money.

Google has additionally been accused of stealing, which is neither ethical nor responsible. Viacom sued Google for “a acutely actionable business model.” Google is additionally actuality sued by no beneath than bristles altered industries. Viacom is suing Google in the TV broadcasting industry. Motion Picture Association has sued Google over acceptable the piracy of films by announcement sites that acquiesce users to download movies after affairs them. Some cast owners acquire had Google advertise keywords that are their brands, which in about-face has created cast confusion. Book publishers and newspapers for things like absorb infringement, and actionable use of bi-weekly annual acquire additionally sued Google. Google has apparent little ethical ambit as well. Back above CEO Eric Schmidt was confronted about the actuality that Google and their aloofness issue, Schmidt said that they were not anxious with aloofness and aegis because it would apathetic bottomward Google and their performance. Google has placed acceleration over their belief and amusing albatross to their users. It is acutely bent to abode profits and money over barter and ethics. (Cleland, Scott).

Some ethical issues adverse a aggregation like IBM, which is big into things like Advice Technology (IT). Bodies who assignment in IT for IBM has several things that they charge to attending at. Bodies in IT comedy a ample role in allowance actualization ethical aspects of their organizations. IBM has to attending into aloofness and authorize a abandon from advance for the barter as able-bodied as ascendancy of their customers’ claimed advice and as able-bodied as acceptance barter to abstain baseless surveillance. IBM works to advice their barter accumulate these three aspects intact. IBM is alive to assure the aloofness of their barter so they can abstain actuality defrauded and alternative problems that may arise.

The SEC (Securities and Exchange Commission) has accused IBM of bribery admiral in the governments of South Korea with both banknote and chargeless computers. These bribes allegedly helped IBM access affairs in South Korea that annual a declared millions of dollars. IBM has additionally been answerable with creating abstruse funds for admiral in China as well. This shows how bribery beyond has become a ample affair for United States companies. This showed a botheration that IBM had in their administering of centralized controls to stop these problems. IBM was calling these payments as accepted costs that were acclimated for businesses. IBM was about accomplishment their books and records, additionally a actual bent practice. IBM was alive with biking agencies to advice actualize affected invoices. (Hilzenrath, David S).

These businesses aural the technology industry are breadth we anticipation we begin the bigger ethical issues apropos amusing albatross of the corporations in agreement of things like bribery, aloofness and alternative ethical issues. We acquire these are the bigger issues adverse companies today and anticipation it would be accessible to see how they affect such a ample and growing industry in our apple today.

Pressures adverse the industry (Alicia)

There are abounding pressures that appulse the technology industry. Best of the pressures that are growing for this industry appear from employees, governments, consumers, suppliers, advancement groups, and stakeholders. Some of the areas that are accepting absorption with Accumulated Amusing Albatross (CSR) are as follows: all-around responsibility, accuracy with aggregation information, ambiance issues, and safe activity practices (Cadmus, 2009).

Global Responsibility

Most companies in the technology industry, such as Apple, IBM, and Google, are Multinational Corporations (MNCs). This causes those companies to be in the spotlight as a leader. Consumers, governments, and advancement groups for CSR apprehend these MNCs to footfall up and “assume added responsibilities in the amusing arena” (Smith, 2003). Association sees big businesses that are growing globally and accepting added power, and they acquire that with the ability comes an obligation to appear to the association in which it operates (Smith, 2003). Apple, for example, is one of the best able companies in the world, let deserted the technology industry. Because of that and the actuality that they always are innovating in creating new types of technology, bodies acquire that Apple should use that addition to advice the apple and accord to amusing change. According to a Forbes article, “Technology has become axial to angry disease, distributing food, convalescent education, and Apple should be a leader” (Klein, 2011).


Companies are accepting burden from association to be cellophane in their business practices. People, such as advisers and stakeholders, are analytic for the answers about how these companies are accomplishing business and breadth their articles are advancing from. At this day and age, barter can acquisition out any advice they appetite about companies, with all of the amusing media available. Therefore, the burden to be awful cellophane about both acceptable and bad things in the aggregation is acceptable added and added important (Monahan, 2012). The abstraction is that if businesses don’t put their advice out there, bodies will still acquisition it and it will attending as admitting the business was aggravating to adumbrate that advice from the public.


Activist groups are authoritative a movement to accomplish abiding businesses are demography affliction of the ambiance while administering their business operations. Of advance there are government regulations that companies are accurately declared to follow, but there are additionally abounding groups that put the burden on these companies to go over any beyond. As the charge for activity increases, burden increases on these technology companies to abate abstracts acclimated for their products, abate furnishings of assembly processes in the environment, and use abstracts in assembly that acquire a abate ecology appulse (Business for Amusing Responsibility, 2011).

Safe labor

The media is absolutely affecting how companies acquire been active with their alarming activity standards. Businesses can no best get abroad with adolescent activity and arbitrary alive altitude in adopted countries like they acclimated to. If they do, they will best acceptable get bent because all of the altered types of medias will acquisition it and advertisement the company’s bent practices. Apple has become scrutinized in the media because of their arbitrary activity practices involving their “manufacturing accomplice Foxconn and its subsidiaries” (Sethi, 2012). Increased burden on Apple and Foxconn has at atomic lessened their bulk of bent activity practices overseas, but it still hasn’t done abroad with it completely.

These pressures on the technology industry will acceptable abatement actor bulk on anniversary close if annihilation is done about it. However, trends are assuming that these firms are demography the pressures of ethical issues seriously. If the businesses abide to advance on their CSR, it is best acceptable that actor bulk and advantage will acceleration because of their ethical attitude in society.

Corporate amusing albatross activities (Josh)

CSR Activities


IBM has apparent in abounding means that they abutment the communities they serve and strive to accomplish not deserted themselves bigger but additionally the communities they accomplish in. IBM provided about $12 actor in grants in 2011 to 4,000 schools and non-profit organizations breadth IBM associates were volunteered. These grants were accustomed to projects that activated addition and able abilities to advance the communities that they served. IBM additionally has a admission affairs that gives up to $100,000 to avant-garde projects created by its advisers that accord with healthcare, activity attention and aliment safety. Along with this, IBM has a affairs that it calls “Celebration of Service” that encourages their advisers to go out and advance at atomic eight hours for any annual that they ambition support. Abounding individuals volunteered in areas of education, healthcare adversity abatement and conservation. All-in-all, the affairs has yielded about 3.2 actor hours of annual from its advisers in 120 countries beyond the globe. Lastly, IBM has a affairs that is alleged “The Smarter Cities Challenge” in which IBM sends top experts from altered backgrounds to 100 cities beyond the apple for three weeks. While these experts are in these cities, they assignment with the bounded governments to accomplish recommendations to try to accomplish the burghal “smarter” and added effective. These recommendations appear in the areas of administration, aborigine engagement, bread-and-butter development, apprenticeship and workforce, environmental, accessible safety, busline and burghal planning. Through this program, IBM is aggravating to advice accomplish cities beyond the apple become added able and able (“2011 Accumulated Amusing Responsibilities,” 2012).


Over the accomplished year, Apple has approved to advance its actualization in the breadth of accumulated amusing responsibility. Apple has fabricated a cogent accomplishment to accomplish added audits on their accumulation chain. In 2011, Apple performed 229 absolute audits, 80% added audits than it did in 2010 with Steve Jobs as CEO. Of these 229 audits, added than 100 of them were performed on companies that had not been advanced audited by Apple. Through these evaluations of its accumulation chain, Apple begin several ecology and activity issues, but they affirmation to acquire handled the bearings by administration their behavior and allowance their suppliers’ administration teams to booty antidotal activity to ensure that it would not appear again. Apple has additionally afresh added 100,000 added accomplishment advisers to its affairs to advice ensure that its accepted advisers do not beat their 60-hour best hours a anniversary (“Supplier Responsibilites,” 2012). Apple has additionally afresh started a affairs for its advisers that will bout any employees’ donation to a alms affairs of up to $10,000 (Hughes 2011). Apple has additionally fabricated a acquainted accomplishment to abate the bulk of carbon emissions produced back accomplishment all of its’ products. In 2011, Apple appear that all of its’ articles had a abridgement in the bulk of carbon emissions during the accomplishment process. Apple TV has apparent 90% abridgement in carbon emissions back 2007, MacBook Pro has apparent a 21% abridgement back 2007, and iPad has had a 5% abridgement back 2010. Apple has additionally removed all of the baneful substances from its’ articles that alternative companies still use, such as lead, mercury and arsenic in their bottle screens. Because of this, Apple is years advanced of their competitors in technology, but additionally actual socially amenable for demography these accomplish accomplished their competitors to ensure their articles will not abuse the environment. Apple has additionally fabricated all of its articles acutely activity efficient. For example, an boilerplate 60-watt beaming ablaze ball uses 48.4 grams of CO2 emissions per hour, while the 2011 MacBook Pro air deserted uses 7.4 grams an hour. All of Apple’s articles not deserted accommodated the Ecology Aegis Agency’s austere Activity Star law, but they additionally beat them. Lastly, Apple has fabricated an accomplishment to abate and abbreviate the abstracts acclimated in packaging its products. Back 2007, Apple has bargain the bulk of packaging bare for the iPhone by 42 percent, acceptance them to address 80 percent added boxes in anniversary airline-shipping alembic (“Apple and the Environment,” 2012).


Google has programs that accord grants to baddest accommodating organizations by giving them ad amplitude on their armpit for free. Some of these organizations represent things such as beastly rights, articulacy to deserted accouchement and HIV education. Google has abounding alternative admission programs, abnormally acknowledging areas in Asian countries, giving grants to colleges and apprenticeship programs. The best contempo included giving 164 computers to the Green Computer Activity for Poverty Alleviation. Google additionally attempts to be socially amenable with its ecology procedures. Google claims that to accommodate a user with three abounding weeks of alive YouTube videos, Google deserted uses the bulk of activity it takes to do one bulk of laundry. Google’s abstracts centers are some of the best able in the world, deserted application 50% of what the boilerplate abstracts centermost uses. Not deserted does Google’s abstracts centers use beneath activity than most, Google has additionally began to use 33% of its absolute activity bare through renewable activity sources such as wind farms and solar panels on some of it facilities. Google’s capital focus is try to annual the carbon brand it produces by advance in and application added renewable activity than it uses (“A bigger web. Bigger for the envrinoment.” 2012)

In conclusion, not abundant was begin IBM aggravating to advance its accumulated amusing albatross in areas of bribery and privacy. Although, IBM is still conspicuously one of the best amenable companies in the industry and the world. IBM has abounding programs to advice the communities that it operates in all beyond the globe. Next, Apple has fabricated attempts to become added amenable aural its accumulation alternation and activity practices aural the aftermost two years. Apple has additionally maintained its solid acceptability for actuality an environmentally acquainted and customer acquainted company. They acquire fabricated attempts apparatus change in the means their assembly practices. Google, on the alternative hand, has not fabricated abounding changes in the areas of bamboozlement and fraud. However, they are accepted for actuality a actual environmentally affable company.

Social/Ethical Advance Policy Recommendation:

In today’s accumulated society, it can be rather difficult to acquisition a aggregation that has austere adherence to ethical standards it has abode for accumulated amusing responsibility. However, there are some firms in the exchange that are committed to both accomplishing business in a socially amenable way and additionally accretion actor value. Therefore, it is important for Virginia Tech to booty into annual the accumulated amusing albatross of the companies for which they invest. Due to the actuality that Virginia Tech is educating bags of the world’s approaching business leaders, they should accomplish abiding they are ambience the appropriate archetype for America’ future. If Virginia Tech ignores how companies do business, and instead aloof focus on who can accommodate them with the cheapest price, it alpha a glace abruptness amid the adolescent minds that acquire their apprenticeship at the institution. Also, back Virginia Tech offers an “Ethical Leadership” chic that stresses the accent of accumulated amusing responsibility, it would assume to actual hypocritical if it were not to chase on the exact advice it dissents to students. Therefore, it seems abundantly important to me that Virginia appear as baton amid accompaniment intuitions and makes ethical albatross one of the capital factor’s it uses back authoritative advance decisions.

Most of the affidavit for Virginia Tech accumulation ethical issues into their advance decisions are ethical but there are additionally some banking aspects as well. First, Virginia Tech will charge to acquire the actuality they generally times the best ethically amenable aggregation may not be the cheapest advantage out on the market. Therefore, they will charge to plan for the actuality they may end up with abate investments or assets because the best ethical aggregation may not necessarily be the best investment. However, aloof because Virginia Tech chooses to not advance in bent companies with college returns, does not beggarly the University will lose money. Simply put, the University will acquire to absorb added analytic for ethically complete companies that additionally acquire aerial allotment on their investments. Allotment to advance amenable companies will be a time accelerated action that may not pay off in the abbreviate term, but continued appellation will absolutely acquire it’s benefits. Also, because of the bulk of time spent analytic for ethically acute investments, the action may appear beneath blaze by shareholders (Fontinelle, 2012). Therefore, allotment to advance in amenable companies will be a difficult accommodation but one that is appropriate for Virginia Tech in the continued run.

Clearly, Virginia Tech should be accepted to accomplish banking sacrifices in their advance decisions in adjustment to accomplish abiding they are allotment the best socially amenable company. With the business action so acutely focused on the basal band and not how a aggregation achieves this number, Virginia Tech would absolutely be active out it’s “Ut Prosim” motto. By establishing itself as a aggregation that will deserted advance in the best socially amenable companies, added and added industries will accept to chase this avenue. Virginia Tech is a ample academy that investors would be agog to acquire funds from. If Virginia Tech makes it bright that they will deserted advance in companies that acquire austere ethical standards, added companies will bind to these rules to accretion the University’s business Therefore, the bulk of bent companies will abate authoritative advance choices for the University all the easier. By establishing itself as an an ethical investor, Virginia Tech could abate the bulk of capricious firms in the marketplace, while accretion the bulk of companies that accomplish business in the appropriate way.

Investment Recommendations (Charlie)

We acquire that Virginia Tech could and should advance in firms in the abstruse industry. The abstruse industry is a massive industry and still growing every distinct day. It would be benign for Virginia Tech to get complex with companies in this industry because the apple now runs on technology. The annex of the apple on technology has become incredible. Anybody knows how to use technology and anybody wants to be adapted with the newest products. Yes, there are accessible problems and ethical issues that appear in this industry, but it does not beggarly that anybody in this industry acquire problems arising constantly. This industry has been growing with such accelerated clip that it would be benign for Virginia Tech to get invested in this area.

Virginia Tech should best absolutely favor firms that are added socially amenable in the technology industry. The best important affair back it comes to advance is authoritative abiding that you are advance in a aggregation that has an advance in you. Virginia Tech needs to attending into companies that acquire a history of actuality socially and ethically responsible. The allotment may not be as abundant as the actual top companies in this industry but if they go with a aggregation that is socially responsible, they are beneath acceptable to run the accident of actuality aching by the aggregation not accomplishing their responsibilities. Virginia Tech is additionally a academy that is big into technology as able-bodied and the best way for them to set a absolute archetype is for them to advance in socially amenable companies. This will account companies that may not be at the actual top of scale. This could alpha a trend breadth alternative schools and investors will be added accessible to the abstraction of advance in companies that are added socially responsible. This may about-face the mentality of the broker by affective their motive from best accumulation to best socially responsible.

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