Read the case below. Then answer the following questions:

1. Identify 3 stakeholders in this situation. Describe in detail Apples ethical responsibility to each stakeholder using the ethical theories of utilitarianism, rights theory, virtue ethics where appropriate. Then describe in detail each stakeholders attributes (legitimacy, power, urgency). Use specific evidence from the case to support your answers.
2. Evaluate Apples actions in this case. Are they adequate from a business ethics perspective or should Apple engage in different or additional action(s)? Defend your answer using information from part a) and the idea of Corporate Social Responsibility.

With its highly coveted line of consumer electronics, Apple has a cult following among loyal consumers. During the 2014 holiday season, 74.5 million iPhones were sold. Demand like this meant that Apple was in line to make over $52 billion in profits in 2015, the largest annual profit ever generated from a companys operations. Despite its consistent financial performance year over year, Apples robust profit margin hides a more complicated set of business ethics. Similar to many products sold in the U.S., Apple does not manufacture most its goods domestically. Most of the component sourcing and factory production is done overseas in conditions that critics have argued are dangerous to workers and harmful to the environment.

For example, tin is a major component in Apples products and much of it is sourced in Indonesia. Although there are mines that source tin ethically, there are also many that do not. One study found workersmany of them childrenworking in unsafe conditions, digging tin out by hand in mines prone to landslides that could bury workers alive. About 70% of the tin used in electronic devices such as smartphones and tablets comes from these more dangerous, small-scale mines. An investigation by the BBC revealed how perilous these working conditions can be. In interviews with miners, a 12-yearold working at the bottom of a 70-foot cliff of sand said: I worry about landslides. The earth slipping from up there to the bottom. It could happen.

Moreover, the environmental group Friends of the Earth has criticized Apple for their tin mining practices. In addition to issues concerning problematic labor practices, Friends of the Earth discovered that these current methods of mining tin had significant effects on the local environment. For instance, they discovered that tin mining endangers coral and sea life by releasing silt into water resevriors. This has the effect of killing coral reefs and seagrass eaten by turtles, driving away fish, and ruining fishermen's livelihoods. Tin mining also requires forest clearing which leads to damage to farmland soil due to rises in the soils acidity. This prevents farmers from growing crops needed sustain themselves and others who depend on these crops for food.

Other cellphone companies identified as using similar tin mining practices have been upfront about their involvement in this issue and their efforts to address it. For example, Nokia released the following statement: the presence of Indonesian tin in our supply chain procedures or ultimately in our products is likely we cannot rule out the possibility that tin mined at Bangka-Belitung [a tin mine in Indonesia] may be in our supply chain As we are committed to ensuring that all materials used in our products come from socially and environmentally responsible sources, we are working to establish greater clarity about the situation there We are also part of the EICC-IDH Tin Working Group, which brings together a range of stakeholders to address concerns about the impact of tin production in Indonesia.

Apple defends its practices by saying it only has so much control over monitoring and regulating its component sources. The company justifies its sourcing practices by saying that it is a complex process, with tens of thousands of miners selling tin, many of them through middle-men. In a statement to the BBC, Apple said the simplest course of action would be for Apple to unilaterally refuse any tin from Indonesian mines. That would be easy for us to do and would certainly shield us from criticism. But that would also be the lazy and cowardly path, since it would do nothing to improve the situation. We have chosen to stay engaged and attempt to drive changes on the ground.

This response has not satisfied critics, however. Craig Bennett, the Director of Policy and Campaigns for Friends of the Earth responded to Apples statement by saying Apples cowardly public refusal to give a straight answer to concerned customers is totally at odds with its competitors and contradicts its own CEOs commitment to be more transparent about Apple supply chains.

In an effort for greater transparency, Apple has released annual reports detailing their work with suppliers and labor practices. While more recent investigations have shown some improvements to suppliers working conditions, Apple continues to face criticism as consumer demand for iPhones and other products continues to grow.