Ethical Issue Facing The Technology Industry Commerce Essay

Ethical issue facing industry (Charlie). We thought we would take a look in to the technology industry for our ethical analysis. We decided this industry because in today's world, technology has turned into a massive aspect inside our every day lives. Everyday technology is growing and become a bigger part on the globe and the way it operates. Ethics is defined in the dictionary as, "the self-control dealing with what is good and bad and with moral responsibility and responsibility. " So we wanted to look into an industry that has had issues and would be worth our time looking at.

Some conditions that face the technology industry for companies like Apple, IBM, and Google are production issues as well as the advertising practices. Specifically for Apple, a big issue that they are facing is their both development and selling procedures. Apple has their products made abroad in places like China as the goal of your company ought to be to increase jobs in the countries that they are in. Apple is also taking advantage of China and the fact that the common staff member makes under $200 weekly. Apple has made a decision to do that; however, because if indeed they made their iPads in america, they would cost over $1, 100. So yes, they may be doing the individuals a favor in conditions of price by creating these iPads abroad, but at the same time these are taking benefit of a country in China because they understand how cheap the labor market will there be. We make products abroad because Chinese manufacturing jobs are paid 1/30th of the United States median incomes for manufacturing careers (Thompson, Derek).

These businesses, especially Apple, are churning out products on an instant, regular basis. So what Apple did is created a massive profit margin on their products in order to keep creating new products, that are essentially software improvements, instead of just allowing people to upgrade their software solely. Apple has managed to get so that their 32 gb iPad 2 markets for $729, but when you add up their labor and materials costs to make these iPads, it only comes out to about $325. This gives Apple a profit percentage of around 54% and allows them to have customers buy completely new products rather than just allowing them to upgrade the program on their products that they purchased within days gone by 12 months (Thompson, Derek).

Companies like Yahoo are facing issues to be deceptive and need showing more Corporate Public Responsibility because their customer is the most important facet of their company. Privacy International ranked Yahoo as the most detrimental in its review, they say that Yahoo is the worst when it comes to respecting their users privacy. Congress was also warned about applications that Google was marketing on Capitol Hill because people believe that there were personal privacy and security hazards. Google also will not disclose its conflicts of interest; they keep their customers at night, also not fulfilling their sociable responsibility. Google says that they work with the people that use their site but Google really works for advertisers on their sites. People who use Google pay little or nothing to utilize it, so Google has a turmoil of interest of whether they're doing work for their users, who are their customers, or the marketers on the site. This makes users of Yahoo have a fake sense of security while using the site and can put users at risk of being defrauded. Yahoo is all about who will make sure they are the most money, rather than about doing things the correct way. They state they maintain auctions for awarding keyword searches to the best bidder but to whoever makes Yahoo the most money.

Google has also been accused of stealing, which is neither moral nor liable. Viacom sued Google for "a obviously illegal business design. " Yahoo is also being sued by a minimum of five different industries. Viacom is suing Google in the TV broadcasting industry. Motion Picture Relationship has sued Yahoo over assisting the piracy of motion pictures by promoting sites that allow users to download movies without buying them. Some trademark owners have had Google sell keywords that are their brands, which in turn has created brand confusion. Reserve publishers and papers for things like copyright infringement, and against the law use of paper headlines also have sued Google. Yahoo has shown little moral compass as well. When former CEO Eric Schmidt was confronted about the actual fact that Yahoo and their level of privacy concern, Schmidt said that these were not worried about privacy and safeguard because it would slow down Yahoo and their performance. Google has placed rate over their ethics and interpersonal responsibility to their users. It is clearly unethical to place earnings and money over customers and ethics. (Cleland, Scott).

Some moral issues facing a company like IBM, which is big into things such as IT (IT). People who work in IT for IBM has several things that they need to check out. People in IT play a sizable role in helping shape ethical aspects of their organizations. IBM has to look into privacy and set up a freedom from intrusion for the customers as well as control of their customers' private information and as well as allowing customers to avoid unwarranted monitoring. IBM works to help their customers keep these three aspects intact. IBM is working to protect the privacy of the customers so they can don't be defrauded and other issues that may come up.

The SEC (Securities and Exchange Percentage) has accused IBM of bribing officials in the governments of South Korea with both cash and free computer systems. These bribes supposedly helped IBM obtain deals in South Korea that worth a supposed millions of dollars. IBM has also been incurred with creating hidden knowledge funds for representatives in China as well. This shows how bribery overseas has become a big issue for United States companies. This proved problems that IBM had in their department of internal handles to avoid these problems. IBM was dialling these payments as legitimate bills which were used for businesses. IBM was essentially forging their literature and documents, also a very unethical practice. IBM was working with travel firms to help create artificial invoices. (Hilzenrath, David S).

These businesses within the technology industry are where we thought we found the largest ethical issues relating to communal responsibility of the corporations in terms of things such as bribery, personal privacy and other ethical issues. We imagine these are the biggest issues facing companies today and thought it would be helpful to observe how they have an impact on such a large and growing industry inside our world today.

Pressures facing the industry (Alicia)

There a wide range of pressures that impact the technology industry. A lot of the stresses that are growing because of this industry result from employees, government authorities, consumers, suppliers, advocacy groups, and stakeholders. Some of the areas that are receiving attention with Corporate Friendly Responsibility (CSR) are the following: global responsibility, transparency with company information, environment issues, and safe labor techniques (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 maintain the spotlight as a innovator. Consumers, government authorities, and advocacy organizations for CSR expect these MNCs to step up and "assume wider duties in the communal area" (Smith, 2003). Contemporary society sees big businesses that are growing internationally and gaining more power, plus they assume that with the power comes an responsibility to wait to the city in which it operates (Smith, 2003). Apple, for example, is one of the most powerful companies on the globe, let alone the technology industry. Due to that and the fact that they continuously are innovating in creating new types of technology, people believe that Apple should use that invention to help the world and donate to social change. According to a Forbes article, "Technology has become central to fighting with each other disease, distributing food, enhancing education, and Apple should be a leader" (Klein, 2011).


Companies are obtaining pressure from modern culture to be clear in their business procedures. People, such as employees and stakeholders, are trying to find the answers about how precisely these businesses are conducting business and where their products are coming from. At this era, customers can find out any information they want about companies, challenging social marketing available. Therefore, the pressure to be highly clear about both bad and the good things in the business is becoming increasingly more important (Monahan, 2012). The idea is the fact that if businesses don't put their information out there, people will still find it and it will look as though the business was trying to hide that information from the general public.


Activist categories are making a activity to make sure businesses are taking care of the surroundings while doing their business businesses. Certainly there are authorities rules that companies are officially supposed to follow, but there's also many organizations that position the pressure on these businesses to go over any beyond. As the necessity for energy increases, pressure boosts on these technology companies to lessen materials used because of their products, reduce effects of production functions in the surroundings, and use materials in creation that have a smaller environmental impact (Business for Friendly Responsibility, 2011).

Safe labor

The media is absolutely influencing how companies have been operating with the unsafe labor requirements. Businesses can no longer get away with child labor and unfair working conditions in foreign countries like they used to. If they do, they'll most likely get captured because most of the different types of medias will see it and broadcast the business's unethical routines. Apple has become scrutinized in the mass media for their unfair labor tactics relating their "making partner Foxconn and its own subsidiaries" (Sethi, 2012). Increased pressure on Apple and Foxconn has at least lessened their amount of unethical labor practices abroad, but it still hasn't done away with it completely.

These stresses on the technology industry will probably lower shareholder value on each firm if there is nothing done about it. However, trends are showing these businesses are taking the pressures of moral issues significantly. If the businesses continue steadily to improve on their CSR, it is most likely that shareholder value and profitability will rise because of their ethical position in population.

Corporate interpersonal responsibility activities (Josh)

CSR Activities


IBM has shown in many ways that they support the neighborhoods they serve and make an effort to make not only themselves better but also the areas they operate in. IBM provided nearly $12 million in grants in 2011 to 4, 000 universities and non-profit organizations where IBM people were volunteered. These grants or loans were given to projects that applied technology and professional skills to enhance the communities that they offered. IBM also offers a give program that gives up to $100, 000 to progressive jobs created by its employees that package with healthcare, energy conservation and food safe practices. Additionally, IBM has a program that it telephone calls "Celebration of Service" that induces their workers to venture out and volunteer at least eight time for any cause that they wish support. Many individuals volunteered in regions of education, healthcare devastation pain relief and conservation. All-in-all, this program has yielded practically 3. 2 million time of service from its employees in 120 countries across the globe. Last but not least, IBM has a program that is called "The Smarter Metropolitan areas Challenge" where IBM transmits top experts from different backgrounds to 100 cities throughout the world for three weeks. While these experts are in these locations, they work with the local governments to make tips to try to make metropolis "smarter" and more effective. These suggestions come in the regions of administration, citizen proposal, economical development, education and workforce, environmental, public security, transportation and urban planning. Through this program, IBM is wanting to help with making cities across the globe are more effective and successful ("2011 Corporate Community Tasks, " 2012).


Over the past calendar year, Apple has tried out to improve its appearance in the region of corporate social responsibility. Apple has made a significant effort to execute more audits on their supply chain. In 2011, Apple performed 229 total audits, 80% more audits than it have this year 2010 with Steve Careers as CEO. Of these 229 audits, more than 100 of these were performed on companies that had not been recently audited by Apple. Through these assessments of its supply string, Apple found several environmental and labor issues, but they state to have taken care of the situation by enforcing their procedures and helping their suppliers' management clubs to take corrective action to ensure that it could not happen again. Apple has also lately added 100, 000 more creation employees to its program to help ensure that its current employees do not surpass their 60-hour maximum time weekly ("Provider Responsibilites, " 2012). Apple in addition has recently started an application because of its employees that will match any employees' donation to a charity program of up to $10, 000 (Hughes 2011). Apple has also made a mindful effort to reduce the quantity of carbon emissions produced when processing most of its' products. In 2011, Apple reported that all of its' products had a decrease in the amount of carbon emissions through the developing process. Apple Television set has seen 90% decrease in carbon emissions since 2007, MacBook Pro has seen a 21% lowering since 2007, and iPad has already established a 5% reduction since 2010. Apple in addition has removed all the toxins from its' products that others still use, such as lead, mercury and arsenic in their cup screens. As a result of this, Apple is years before their competition in technology, but also very socially in charge of taking these steps past their competition to ensure their products won't harm the environment. Apple in addition has made most of its products extremely energy conserving. For example, the average 60-watt incandescent light bulb uses 48. 4 grams of CO2 emissions per hour, while the 2011 MACBOOK-PRO air only uses 7. 4 grams one hour. Most of Apple's products not only meet the Environmental Safety Agency's rigid Energy Star regulation, nevertheless they also go over them. Lastly, Apple has made an effort to lessen and reduce the materials used in packaging its products. Since 2007, Apple has reduced the amount of packaging necessary for the iPhone by 42 percent, permitting them to send 80 percent more boxes in each airline-shipping box ("Apple and the Environment, " 2012).


Google has programs that give grants to choose charitable organizations by giving them advertising space on the site free of charge. A few of these organizations symbolize things such as dog protection under the law, literacy to deserted children and HIV education. Yahoo has a great many other offer programs, especially helping areas in Asian countries, giving grants or loans to colleges and education programs. The newest included providing 164 computer systems to the Green Computer Action for Poverty Alleviation. Yahoo also attempts to be socially accountable with its environmental procedures. Yahoo promises that to provide a user with three full weeks of loading YouTube videos, Yahoo only uses the amount of energy it takes to do one fill of laundry. Google's data centers are some of the most efficient on the planet, only using 50% of what the common data middle uses. Not only does Google's data centers use less energy than most, Google has also started out to utilize 33% of its total energy needed through renewable energy resources such as breeze farms and solar panels on a few of it facilities. Google's main target is try to offset the carbon footprint it produces by investing in and using more green energy than it uses ("A better web. Better for the envrinoment. " 2012)

In conclusion, very little was found IBM striving to boost its corporate sociable responsibility in regions of bribery and level of privacy. Although, IBM is still notably one of the very most responsible companies in the industry and the planet. IBM has many programs to help the communities that it performs in all across the globe. Next, Apple has made attempts to become more dependable within its supply string and labor practices within the last 2 yrs. Apple has also maintained its solid reputation to be an environmentally mindful and consumer conscious company. They have got made efforts implement change in the ways their development practices. Yahoo, on the other hand, has not made many changes in the regions of deception and scams. However, they are recognized for being truly a very green company.

Social/Ethical Investment Insurance plan Recommendation:

In today's corporate society, it could be rather difficult to acquire a firm that has demanding adherence to honest standards it includes place for corporate and business interpersonal responsibility. However, there are some firms in the marketplace that focus on both doing business in a socially sensible way and also increasing shareholder value. Therefore, it is important for Virginia Technical to take into consideration the corporate communal responsibility of the companies that they invest. Due to the fact that Virginia Technical is educating a large number of the world's future business market leaders, they should make sure they are placing the right example for America' future. If Virginia Tech ignores how companies conduct business, and instead just concentrate on who provides them with the least expensive price, it start a slippery slope among the young brains that receive their education at the organization. Also, since Virginia Technology offers an "Ethical Management" class that stresses the importance of corporate social responsibility, it could seem to be to very hypocritical if it weren't to follow on the exact information it dissents to students. Therefore, it seems incredibly important if you ask me that Virginia emerge as leader among point out intuitions and makes moral responsibility one of the main factor's it uses when coming up with investment decisions.

Most of the reason why for Virginia Technology incorporating moral issues to their investment decisions are ethical but there are also some financial aspects as well. First, Virginia Tech should accept the actual fact they often times times the most ethically dependable company may well not be the cheapest option from the marketplace. Therefore, they'll need to arrange for the fact they could end up with smaller investment funds or profits because the most moral company may not automatically be the best investment. However, just because Virginia Tech decides to not invest in unethical companies with higher dividends, does not signify the University will eventually lose money. Simply put, the University must spend more searching for ethically sensible companies that also reap high returns on the investment funds. Choosing to investment dependable companies will be a time intensive strategy that might not pay off for a while, but long term will definitely have it's benefits. Also, as a result of timeframe spent searching for ethically smart investments, the process will come under open fire by shareholders (Fontinelle, 2012). Therefore, choosing to purchase responsible companies is a difficult decision but the one which is right for Virginia Tech in the long run.

Clearly, Virginia Tech can be expected to make financial sacrifices in their investment decisions to be able to be sure they opting for the most socially in charge company. With the business strategy so plainly focused on the bottom line rather than how a company achieves this number, Virginia Technical would truly be living out it's "Ut Prosim" motto. By creating itself as a company that will only invest in the most socially dependable companies, increasingly more business will choose to follow this avenue. Virginia Technical is a huge institution that buyers would be enthusiastic to receive cash from. If Virginia Technology makes it clear that they can only invest in companies which may have strict ethical requirements, more companies will oblige to these rules to gain the University's business Therefore, the quantity of unethical companies will diminish making investment choices for the University or college all the simpler. By building itself as an an honest investor, Virginia Technical could diminish the quantity of irresponsible firms in the marketplace, while increasing the amount of companies that perform business correctly.

Investment Tips (Charlie)

We believe that Virginia Technical could and really should invest in firms in the technological industry. The technical industry is a massive industry but still growing each day. It might be beneficial for Virginia Tech to get involved with companies in this industry because the earth now operates on technology. The dependency of the world on technology is becoming incredible. Everyone understands how to use technology and everyone wishes to be kept up to date with the latest products. Yes, there are possible problems and honest issues that happen in this industry, but it generally does not imply that everyone in this industry have problems arising constantly. This industry has been growing with such immediate pace that it might be beneficial for Virginia Tech to get invested in this area.

Virginia Tech should most definitely favor companies that will be more socially sensible in the technology industry. The main thing when it comes to spending is making sure that you are investing in a company that comes with an investment in you. Virginia Tech needs to look into companies that have a history to be socially and ethically responsible. The returns might not be as great as the top companies in this industry but if indeed they go with an organization that is socially sensible, they are less inclined to run the risk of being harmed by the business not satisfying their responsibilities. Virginia Technical is also a school that is big into technology as well and the simplest way to allow them to set a positive example is for them to invest in socially responsible companies. This will gain companies that might not be at the very top of scale. This could start a trend where other classes and investors could be more open to the thought of buying companies that are usually more socially responsible. This may turn the mentality of the investor by moving their purpose from most revenue to most socially liable.

Also We Can Offer!

Other services that we offer

If you don’t see the necessary subject, paper type, or topic in our list of available services and examples, don’t worry! We have a number of other academic disciplines to suit the needs of anyone who visits this website looking for help.

How to ...

We made your life easier with putting together a big number of articles and guidelines on how to plan and write different types of assignments (Essay, Research Paper, Dissertation etc)