apple

Who Is Apple?

Mission Statement:

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

Who Is Apple?

Since its inception, Apple has evolved into a broad-based consumer electronics company. In the past several years, Apple has been at the forefront of innovation within consumer electronics, launching key products geared towards the high-end mobile market (the iPhone) and the home entertainment industry (Apple TV).

On June 9, 2008, Apple announced the iPhone 3G, which featured increased speed, improved design, and lower pricing.

The iPod has grown faster than any other music player in consumer electronics history, accounting for half of the company's revenue from the sales of hardware and content.

Its rising brand equity has generated a "halo effect" contributing to increases in sales of Mac desktops and laptops and the opportunity to penetrate existing markets.

Its popularity among consumers has turned the tech company into one of the highest revenue per square foot retailers in the world.

Who Is Apple?

Top Selling Products:

•iPod•iPhone•iMac•MacBook•iPad•Mac Pro•Mac Mini

Who Is Apple?

Primary Competitors:

•Hewlett Packard (HP)•Dell•Samsung

•Microsoft•Sony•RIM (Blackberry)

Environmental Timeline

1990 – Apple’s environmental policy is released and implemented.

1992 – Apple becomes a founding member of the U.S. EPA ENERGY STAR program, developed to identify and promote energy-efficient computers and monitors.

1994 – The first voluntary Apple product take-back program is initiated in Germany, with gradual expansion to other regions.

1995 – PVC in packaging materials is phased out.

2000 –All Apple manufacturing sites are ISO 14001 certified worldwide, signifying that Apple has a structured environmental management system (EMS) in place to manage the environmental impact of our operations.

2001 – Apple starts voluntary phase out of tetrabromobisphenol A (TBBPA) in all plastic enclosure parts greater than 25 grams.

2002 – Apple becomes a founding member of U.S. Federal Energy Management Program (FEMP), which introduces energy efficiency requirements for the off mode of computer products.

Product take-back solutions are implemented in the U.S. and Japan.

2004 – Phase out of substances included in the European Restriction of Hazardous Substances (RoHS) Directive is initiated.

2005 – The Apple Supplier Code of Conduct is implemented.

2006 – Apple is the first computer manufacturer to entirely replace CRT displays with material-efficient and energy-efficient LCDs.

2007 – First products with bromine-free printed circuit board laminates are introduced.

2008 – Apple introduces the unibody MacBook and MacBook Pro, made from recyclable aluminum and glass enclosures with arsenic- and mercury-free displays and BFR- and PVC-free internal components.

Apple achieves a recycling rate of 41.9 percent (as a percentage of weight from 2002 sales).

2009 – iPhone 3GS ships free of BFRs, PVC, arsenic and mercury and includes a power adapter that outperforms the strictest global energy efficiency standards.

All Mac notebooks and desktops earn EPEAT Gold status.

CSR CSR History

CSR CSR History

In October of 2003, Greenpeace contacted Apple concerning their chemicals policy.

In November of 2004, Apple met with Greenpeace for the first time to discuss Apple’s chemicals policy.

In September of 2006, Greenpeace launched the Green my Apple campaign.

In December of 2006, Apple makes first official comment on the Green my Apple campaign.

In May of 2007 Steve Jobs responds with an open letter about Apple’s environmental policy.

“We want Apple to be at the forefront of green technology, and to clearly show other companies how to do it the right way.” – Greenpeace

CSR History

Annual Shareholder Meeting:

At the February 25, 2010 Annual Shareholder Meeting, two petitions were made asking Apple to introduce new environmental governance measures.

Proposal No. 6 and Proposal No. 7 of the Annual Shareholder Meeting asked for Apple to release an annual sustainability report and to establish a committee on the board to address Apple’s corporate sustainability policies.

CSR History

Apple Shareholder Response:

Apple stated that it already takes adequate measures to report on its environmental performance, arguing that sustainability information provided on the Apple website “represents the most comprehensive accounting of any electronics company’s carbon footprint.”

“The board believes that updates like these provide shareholders with a great deal of relevant information in a more timely manner than an annual report.”

Current Issues

Primary Focus Areas:

Removing hazardous chemicals from current and future product lines

Increasing amount of electronics recycled

Level of importance for releasing an annual sustainability report

Transparency of Apple’s current CSR policies and programs

Proposal

To raise awareness of Apple’s green initiatives, we propose that Apple promote a new campaign called iWorld that will encourage recycling nation-wide through a free computer take-back program and rebate offer. Through the potential monetary benefits, Apple seeks to educate customers on the importance of recycling, Apple’s current CSR initiatives, and Apple’s supplier relationships.

Goals

Company Wide CSR Goals:

Increase the amount of products recycled through Apple’s own take-back program

Increase publicity through updated website, television, and in-store advertisement

Expand Supplier Employee Education and Development (SEED) program in supplier facilities overseas

Form a partnership with Best Buy to expand recycling program

Convert Customers “Once you go Mac you can’t go back”

Weight Recycled as % of Past Sales

Transparency

To increase public awareness of Apple’s current policies and programs, we advise that Apple make the following changes to increase the success rate of the iWorld campaign:

An annual report should be published on the CSR section of Apple’s website. The annual report will be in addition to the current updates Apple currently provides customers and shareholders.

An easy to find link to access Apple’s CSR pages should be moved to the homepage of Apple.com and Applestore.com to increase foot traffic.

A new section of the Apple.com should be added solely for the purpose of the iWorld campaign. The iWorld campaign section will include updates on the campaign, how customers can get involved, and will be user interactive.

The iWorld section of the Apple.com website will have an open discussion forum that readers/customers can respond to. The forum will include a question and answer section as well as a user CSR idea section.

Rebate Program

To encourage participation by new and current Apple customers, we advise Apple implement a three year recycling rebate program as part of the iWorld campaign. The rebate program would include the following:

FREE take-back recycling program for all computer brands

Take-back program for mailing in electronics would have no processing fee

For every laptop or desktop computer that is recycled, a rebate of 10% off any one apple product will be issued in a form of a rebate card that can be used within one year of the date issued. This rebate code can be used at any Apple store or on Apple.com.

SEED Program Expansion

Purpose of SEED:

To support the educational aspirations of manufacturing workers

To provide access to English-language education, technical certifications on computer hardware and software, and associate-level degree programs in various topics

To improve the lives of many people working in manufacturing operations

SEED Program Expansion

Layout of pilot program in China:

Launched in summer of 2008

Six classrooms (four in factory buildings and two in dormitories)

Classrooms are furnished with 500 iMac computers

Programs Offered:

English-language

Five computer software courses

Seven associate degree programs

SEED Program Expansion

Results from pilot program in China as of 2009:

A total of 14,800 workers have participated in the programs

7120 took the English-language courses

7561 completed technical skills courses

119 students are currently working towards their associate degrees with a graduation date of 2010.

Since hosting the pilot project, the plant has received the highest employee morale and lowest employee turnover statistics compared with other sites.

SEED Program Expansion

Expansion Plan:

Location: Taiwan

Number of Classrooms: 6

Number of Computers: 500

Start Date: January 1, 2012

Programs Offered: English language, computer software, and associate degrees

Training: Training will be done by current US Apple employees in a 2 week workshop.

SEED Program Expansion

Funding:

A replica of the SEED program in China will be placed in Taichung, Taiwan with the same cost structure.

Additional funding that will go towards more computers, classrooms, and educational programming will be determined by the amount of rebates used in the iWorld campaign.

Ex: If a customer buys a $2000 laptop and receives 10%, that 10%, equaling $200, will be the amount allocated on Apple’s behalf to the SEED expansion initiative.

Best Buy Partnership

Current Best Buy Recycling Practices:

Regardless of where you bought it, what brand it is, or how old it is Best Buy will take your e-waste and recycle it.

Exchange select gently used electronics for a Best Buy gift card.

Partnership:

Form partnership with Best Buy by August 1, 2012

Goal with Best Buy is to provide consumers with increased access to e-waste recycling collection sites.

Timeline

August 1, 2010 Begin iWorld rebate offer

August 1, 2011 Release annual recycling and rebate results

January 1, 2012 Start SEED expansion in Taiwan

August 1, 2012 Release annual results

August 1, 2012 Best Buy Partnership

August 1, 2013 iWorld rebate offer ends

Short-term

June 1, 2010 – Begin construction of iWorld section of Apple.com

July 1, 2010 – Begin media campaign for iWorld and recycling rebate

July 15, 2010 – Install update onto Apple Store’s inventory computers for new rebate tracking program

August 1, 2010 – Begin iWorld campaign and rebate program

January 1, 2011 – Begin SEED expansion in Taiwan (infrastructure and promotion)

August 1, 2011 – Release annual results

September 1, 2011 – Begin communication with Best Buy

Long-term

January 1, 2012 Begin SEED program in Taiwan

August 1, 2012 – Form partnership with Best Buy

September 1, 2013 – Release rebate program results for all 3 years

January 1, 2014 – Expand SEED program to two more facilities

Financial Breakdown

Current Advertising Budget: $500,000,000

Financial Breakdown

PRODUCT COST OF COMPONE

NTS

RETAIL PRICE

PROFIT PROFIT WITH

REBATE PROGRAM

iPhone 8 GB

$265 $599 $334 $267.20

iPod 30 GB

$151 $299 $148 $118.40

iPad 16 GB

$260 $499 $239 $191.20

17 in. MacBook

Pro

$898 $2,299 $1401 $1120.80

With the recycling rebate program, Apple overall, will be taking a 20% profit cut from its product revenue, due to customers getting a 10% price cut, and Apple matching that 10% for the SEED program expansion fund.

Financial Breakdown

Current cost of recycling and transporting e-waste: $2.3 million (per year)

Predicted average cost of recycling program for all 222 U.S. Apple Stores with iWorld campaign = $3.2 million (per year)

Breakdown:Cost of recycling e-waste = $2,850,000 (for 19 million pounds)Cost of transporting e-waste = $340,992 (monthly store pickups)

Additional expenses predicted after rebate program begins: $900,000 (per year)

Financial Breakdown

SEED Employee Two Week Training Cost:

Cost of airfare per employee roundtrip to Taichung, Taiwan: $1500

Hotel expenses per employee: $910 (double occupancy)

Total Cost Per Employee = $1410

iWorldGo Green One Apple At A Time

Sources

greenpeace.org/apple

2010 Annual Meeting Of Shareholders Overview of Proposals

http://www.greenbiz.com/blog/2010/02/25/green-surprises-apples-shareholder-meeting

2008 Supplier Responsibility Progress Report

http://www.greenbiz.com/news/2010/01/20/apples-board-opposes-calls-green-reforms

2009 Environmental Update

http://www.csrwire.com/csrlive/commentary_detail/26-Dell-vs-Apple-vs-HP-vs-Who-s-Really-the-Greenest-

http://www.apple.com/environment

A Greener Apple – Letter from Steve Jobs

2010 Progress Report

Sources

2009 Progress Report

http://news.yahoo.com/s/zd/20100407/tc_zd/249898

http://1800recycling.com/2010/04/costs-e-waste-recycling/

http://www.businessinsider.com/chart-of-the-day-tech-companies-ad-expenses-2009-10

http://electronicrecyclers.com/about_customerservice.aspx

www.mass.gov/dep/recycle/reduce/fac53c7.pdf

http://www.thebizofcoding.com/2007/01/how-much-does-an-ipod-cost-app/

www.bestbuy.com/recycling

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