apple inc final report
TRANSCRIPT
-
8/6/2019 APPLE INC Final Report
1/23
1
APPLE INC
-
8/6/2019 APPLE INC Final Report
2/23
COMSATS Institute of Information Technology
Corporate Governance
Final Project Report
Submitted To:Sir Javed Zafar
Submitted By:
Muhammad Murtaza Shahid CIIT/FA09-MBE-011/ISBUbaid-ullah-Jan CIIT/FA09-MBE-021/ISB
Muhammad Saqib CIIT/FA09-MBE-013/ISB
-
8/6/2019 APPLE INC Final Report
3/23
Speaker 1
Project Report
Mian Murtaza Shahid
FA09-MBE-011
-
8/6/2019 APPLE INC Final Report
4/23
-
8/6/2019 APPLE INC Final Report
5/23
Products
1. Mac
Mac mini
iMac
Mac Pro
MacBook
MacBook Air
MacBook Pro
Xserve
2. iPad
3. iPod
4. iPhone
5. Apple TV
6. Software
Personal Computer Operating System Mac OS X v10.6 Snow Leopard,
iLife(iDVD, iMovie, iPhoto, iTunes, GarageBand, and iWeb).
iWork(For presentation, page layout and word processing)
operating system Mac OS X Server(Apple Remote Desktop, WebObjects, Java EE
Web application server)
There are some rumors in market that Apple is going to introduce iphone 5.
APPLE has overtaken Google as the world's most valuable brand, say experts.
The internet search giant had occupied the top spot for four years but Apple's sparkling array
of consumer goods has propelled it into first place.
The brand belonging to the maker of the coveted iPhone and iPad is worth 93.5BILLION
according to a global brands agency.
Apple had already shot past Microsoft last year as the world's most valuable technology
company in the annual BrandZ study of the world's top 100 brands.
http://en.wikipedia.org/wiki/Mac_minihttp://en.wikipedia.org/wiki/IMachttp://en.wikipedia.org/wiki/Mac_Prohttp://en.wikipedia.org/wiki/MacBookhttp://en.wikipedia.org/wiki/MacBook_Airhttp://en.wikipedia.org/wiki/MacBook_Prohttp://en.wikipedia.org/wiki/Xservehttp://en.wikipedia.org/wiki/Mac_OS_X_v10.6http://en.wikipedia.org/wiki/IDVDhttp://en.wikipedia.org/wiki/IMoviehttp://en.wikipedia.org/wiki/IPhotohttp://en.wikipedia.org/wiki/GarageBandhttp://en.wikipedia.org/wiki/IWebhttp://en.wikipedia.org/wiki/IWorkhttp://en.wikipedia.org/wiki/Mac_OS_X_Serverhttp://en.wikipedia.org/wiki/Apple_Remote_Desktophttp://en.wikipedia.org/wiki/WebObjectshttp://en.wikipedia.org/wiki/Java_Platform,_Enterprise_Editionhttp://en.wikipedia.org/wiki/Application_serverhttp://en.wikipedia.org/wiki/Application_serverhttp://en.wikipedia.org/wiki/Java_Platform,_Enterprise_Editionhttp://en.wikipedia.org/wiki/WebObjectshttp://en.wikipedia.org/wiki/Apple_Remote_Desktophttp://en.wikipedia.org/wiki/Mac_OS_X_Serverhttp://en.wikipedia.org/wiki/IWorkhttp://en.wikipedia.org/wiki/IWebhttp://en.wikipedia.org/wiki/GarageBandhttp://en.wikipedia.org/wiki/IPhotohttp://en.wikipedia.org/wiki/IMoviehttp://en.wikipedia.org/wiki/IDVDhttp://en.wikipedia.org/wiki/Mac_OS_X_v10.6http://en.wikipedia.org/wiki/Xservehttp://en.wikipedia.org/wiki/MacBook_Prohttp://en.wikipedia.org/wiki/MacBook_Airhttp://en.wikipedia.org/wiki/MacBookhttp://en.wikipedia.org/wiki/Mac_Prohttp://en.wikipedia.org/wiki/IMachttp://en.wikipedia.org/wiki/Mac_mini -
8/6/2019 APPLE INC Final Report
6/23
Peter Walshe, from agency Millward Brown, said attention to detail secured Apple the top
spot.
He said: "Apple is breaking the rules in terms of its pricing model.
"It's doing what luxury brands do, where the higher price the brand is, the more it seems tounderpin and reinforce the desire.
"Obviously, it has to be allied to great products and a great experience, and Apple has
nurtured that."
In the top ten Google was second, IBM third, McDonald's fourth and Microsoft fifth.
The agency uses firms' own opinion of their brand worth as well as consumer opinion to
make its valuations.
About Steve Jobs
Jobs was born in 1955 and was put up for adoption by his unwed parents shortly after
his birth. Paul and Clara Jobs of Mountain view, California, adopted him.
Jobs graduated from high school in 1972 and briefly attended Reed College in Portland
In 1975 he Joined Homebrew Computer Club. After a period of one year in 1976 he
formed Apple Computer Company with Steve Wozniak in a garage in santaclara
California.
In his career he introduced Apple I, Apple II & Macintosh but the failure of macintosh
raised many conflicts among management and Steve Jobs
In 1985 he was forced to resigned from Apple due to conflicts raised with John Sculley.
Jobs married Laurene Powell, on March 18, 1991.
In 1997 he was again joined as interim chief executive officer (CEO) of Apple and after
that Steve Jobs is still CEO of Apple Inc.
He always looked at things from the perspective of what was the users experience
going to be.
Steve Jobs run recycling programs to make Apple an environmental friendly
corporation in order to meet vision. This program includes shipping and
"environmentally friendly disposal" of their old systems. Also the packing is made
smaller and the products are lead free and recyclable.
Steve Jobs said: Innovation distinguishes between a leader and a follower.
http://en.wikipedia.org/wiki/Laurene_Powellhttp://en.wikipedia.org/wiki/Laurene_Powell -
8/6/2019 APPLE INC Final Report
7/23
Steve Jobs real value for Apple has been his willingness to be innovative. Shortly after
his return as CEO Jobs supervise the introduction of the iMac line of personal computers.
CEO Compensation (Year 2010)Apple CEO Steve Jobs' compensation package remained the usual $1 in fiscal 2010, but
the value of the shares he owns has skyrocketed amid the company's ongoing success
with introducing shiny new gadgets many people come to find indispensable.
Apple said in a filing with the Securities and Exchange Commission on Friday it paid a
salary of $1 to Jobs, who rejoined the company in 1997 and has overseen the company's
explosive growth following the launch of the iPod, the iPhone and now the iPad.
As is customary, Jobs got no bonus or perks during the fiscal year that ended Sept. 25,2010. Apple said it reimbursed Jobs $248,000 for company travel on his personal jet, a
$90 million Gulfstream V he received as a bonus in 1999. This is well above the $4,000
Apple reimbursed its CEO in 2009, when Jobs was on medical leave for nearly six
months.
Jobs, however, holds 5.5 million of Apple's shares, which gained about 60 percent in
value during the fiscal year and have continued to rise since. Apple's shares closed at
$333.73 on Thursday, bringing the value of Jobs' personal holdings to $1.84 billion.
Compensation for 2010
Salary $1.00
Bonus $0.00
Restricted stock awards $0.00
All other compensation $0.00
Option awards $ $0.00
Non-equity incentive plan compensation $0.00
Change in pension value and nonqualified deferredcompensation earnings
$0.00
Total Compensation $1.00
http://www.foxnews.com/topics/products/iphone.htm#r_src=ramphttp://www.foxnews.com/topics/apple-ipad.htm#r_src=ramphttp://www.foxnews.com/topics/apple-ipad.htm#r_src=ramphttp://www.foxnews.com/topics/products/iphone.htm#r_src=ramp -
8/6/2019 APPLE INC Final Report
8/23
Bill Campbell
Chairman and former CEOIntuit Corp.
Millard DrexlerChairman and CEOJ. Crew
Albert GoreFormer Vice President of the United States
Steve JobsCEOApple
Andrea JungChairman and CEOAvon Products
Arthur D. LevinsonChairmanGenentech
Ronald D. SugarFormer Chairman and CEONorthrop Grumman Corporation
http://www.intuit.com/about_intuit/executives/bill_campbell.jhtmlhttp://www.intuit.com/about_intuit/executives/bill_campbell.jhtmlhttp://www.jcrew.com/AST/Navigation/MillardDrexler.jsphttp://www.jcrew.com/AST/Navigation/MillardDrexler.jsphttp://www.apple.com/pr/bios/gore.htmlhttp://www.apple.com/pr/bios/gore.htmlhttp://www.apple.com/pr/bios/jobs.htmlhttp://www.apple.com/pr/bios/jobs.htmlhttp://www.avoncompany.com/investor/seniormanagement/jung.htmlhttp://www.avoncompany.com/investor/seniormanagement/jung.htmlhttp://www.apple.com/pr/library/2010/11/17bod.htmlhttp://www.apple.com/pr/library/2010/11/17bod.htmlhttp://www.apple.com/pr/library/2010/11/17bod.htmlhttp://www.avoncompany.com/investor/seniormanagement/jung.htmlhttp://www.apple.com/pr/bios/jobs.htmlhttp://www.apple.com/pr/bios/gore.htmlhttp://www.jcrew.com/AST/Navigation/MillardDrexler.jsphttp://www.intuit.com/about_intuit/executives/bill_campbell.jhtml -
8/6/2019 APPLE INC Final Report
9/23
AUDIT AND FINANCE COMMITTEE
The Audit and Finance Committee consists of three members Campbell, York andD. Levinson. All of the members are independent directors under the NASDAQ and SECaudit committee structure.
The Audit Committee is primarily responsible for assisting the Board by reviewingthe financial statement, services performed by registered public accounting firm andinternal audit department. It will evaluate accounting policies and internal controlsystem that board and management has established. It will appoint independent auditorand will review scope of audit and audit fee.
Audit committee may review with management any equity investments, acquisitionsthat may have any current or future effect on financial condition, operational result,liquidity, capital resources, capital reserves, or other important components of revenuesor expenses.
Nominating and Corporate Governance Committee
Nominating and corporate governance committee consists of three members D.Levinson, Drexler and Gore. The duty and responsibility of committee is to developcriteria for pointing out nominees to the board. Candidates will be judged on base ofindependency, character, sound judgment ability, age, leadership, skills and experience.Committee may direct current members for re-election or can terminate them at anyappropriate reason. It can also consider shareholder nominees for election.
Committee can make suggestions regarding size, structure and formation of boardand also can review corporate governance policiesand may ask for any modifications ifrequired.It can perform such other functions as assigned by law or the Corporationscharter.
The board should conduct a self-evaluation at least annually to determinewhether it and its committees are functioning effectively. The Nominating andCorporate Governance Committee is responsible for coordinating and overseeing theannual board evaluation process in accordance with the charter and principles of thatcommittee.
Compensation Committee
Compensation committee is consisting of four members Campbell, Drexler, Goreand Andrea Jung. The Compensation Committee should conduct and review with theboard an annual evaluation of the performance of all executive officers, including theCEO. This review is used by the Compensation Committee in the course of itsdeliberations when considering the compensation of the CEO and senior management.The CEO performance evaluation is also reviewed by the board to ensure that the CEO isproviding effective leadership for the Company. As part of the annual CEO evaluation,the board and the CEO should conduct an annual review on management
development and succession planning for senior management, including the CEO.
http://tourlwithops%28%27/trading/executive-profile.action?t=AAPL&PersonId=PS00000100&flag=Director%27)http://tourlwithops%28%27/trading/executive-profile.action?t=AAPL&PersonId=PS00000100&flag=Director%27) -
8/6/2019 APPLE INC Final Report
10/23
Speaker 2
Project Report
Ubaid-ullah-Jan
FA09-MBE-021
-
8/6/2019 APPLE INC Final Report
11/23
History
Apple was founded in 1976 in a garage in Santa Clara, California. Apple is the brainchild
of Steve Wozniak and Steve Jobs. They were two college dropouts who attempted to
provide a user friendly computer to a new computer markets. First of all theyintroduced Apple I. Apple was incorporated on January 3, 1977. For more than two
decades, Apple Computer was a manufacturer of personal computers including the
Apple II, Macintosh, and Power Mac lines. Between 1978 and 1980, sales increased from
$7.8 million to $117 million, and in 1980 the company experienced its initial public
stock offering. In 1983, Steve Wozinak left Apple. That same year Steve Jobs hired John
Sculley from Pepsi to be the company's president. Main purpose of hiring John Sculley
was to use its marketing skills.
They thought they would ship 80,000 units by the end of 1984 and had produced them
in advance but their overestimated expectations of the Macintosh sales could not be
met.
Moreover, at the 1985 annual meeting, Jobs and Sculley neglected the fact that 70% of
the company's sales were still due to the Apple II, whereas the Macintosh contribution
was only 30%. Many sophisticated Apple II designers were annoyed and left the
company.
Steve Jobs became angry because of the continuing drop in Macintosh sales (merely
2,500 units in March 1985). He blamed everyone for it except for himself. Steve just didnot see that the problem was with him. In the end he blamed even Sculley and wanted
to lead the company himself.
In May 1985 Sculley dismissed Steve from his positions as the vice president and as the
leader of the Macintosh division. Now Steve Jobs was free of all managerial powers.
Additionally, while CEO of Apple John Sculley ignored Microsoft founder Bill Gates
appeal for Apple to license the Macintosh operating system to Microsoft. Gates
purchased and developed the DOS operating system, which has become theinternational operating standard for more than 90% of all personal computers in the
world.
By the late 1993s, competition from Microsoft's Windows operating system caused the
earnings of Apple to decline, forcing a reduction in the Apple workforce and the
resignation of John Sculley. In 1997 Gilbert Amelio set proposal of purchase of the
company NextStep from Apple founder Steve Jobs. The NeXT operating system was a
vast improvement over the outdated Macintosh operating system. At the time of the
purchase it was hoped that the NeXT operating system could be used to upgrade and
overhaul the Macintosh operating system.
http://en.wikipedia.org/wiki/Apple_Ihttp://en.wikipedia.org/wiki/Apple_IIhttp://en.wikipedia.org/wiki/Macintoshhttp://en.wikipedia.org/wiki/Power_Machttp://en.wikipedia.org/wiki/Power_Machttp://en.wikipedia.org/wiki/Macintoshhttp://en.wikipedia.org/wiki/Apple_IIhttp://en.wikipedia.org/wiki/Apple_I -
8/6/2019 APPLE INC Final Report
12/23
Apple had a multibillion dollars loss during the Amelio tenure. On the 4 July 1997
weekend, Jobs convinced the directors to expel Amelio and Steve Jobs returned as
interim CEO on 16th September. Jobs took immediate control of Apple by creating a
surprising relationship with Microsoft which included releasing a Macintosh version of
Microsoft's popular office software.
Apple implemented other cost saving measures, including canceling the Newton
handheld device and the production of printers. In addition Jobs reduced Apple's
product line of 12 versions of the Macintosh computer that were none profitably. Jobs
refocused Apple to concentrate on two markets: consumer and professional.
The professional series of Macintosh computers was Power Mac desktop series and the
PowerBook laptop series. The consumer series was the iMac desktop series and the
iBook laptop series.
Steve Job's real value for Apple has been his willingness to be innovative. Shortly after
his return as CEO Jobs supervise the introduction of the iMac line of personal computers.
In a world that had seen the personal computer become anything but personal, iMac
was a champion. Under Jobs, Apple is again the innovator of the computer market. His
leadership has led to the adoption of USB and later Firewire ports for digital connection.
-
8/6/2019 APPLE INC Final Report
13/23
Financial Statements
1.Balance Sheet
Period Ending FY2010 FY2009 FY2008
Assets (billiondollars)
(billiondollars)
(billiondollars)
Cash and Short Term Investments 25.73 23.46 22.23
Net Receivables 9.92 5.06 4.7
Total Inventories 1.05 4.55 509
Prepaid Expenses 1.57 3.09 4.75
Other Current Assets 4.82 8.09 2.09
Current Assets Total 41.68 31.56 30.01
Long Term Receivables 0 0 0
Investment in UnconsolidatedSubsidiaries
0 10.53 2.38
Other Investments 25.39 0 0
Property, Plant & Equipment Net 4.77 2.95 2.46
Property, Plant & Equipment Gross 7.23 4.67 3.75
Accumulated Depreciation 2.47 1.71 1.29
Other Assets 3.35 12.99 1.23
Deferred Charges 7.99 8.44 2.08
Tangible Other Assets 1.46 8.98 4.6
Intangible Other Assets 1.08 4.53 5.59
Total Assets 75.18 47.5 36.07
-
8/6/2019 APPLE INC Final Report
14/23
-
8/6/2019 APPLE INC Final Report
15/23
2.Income statement / Profit & loss account
Period Ending 25-Sep-10 26-Sep-09 27-Sep-08Total Revenue 65,225,000 42,905,000 32,479,000Cost of Revenue 39,541,000 25,683,000 21,334,000Gross Profit 25,684,000 17,222,000 11,145,000Operating ExpensesResearch Development 1,782,000 1,333,000 1,109,000Selling General and Administrative 5,517,000 4,149,000 3,761,000Operating Income or Loss 18,385,000 11,740,000 6,275,000Income from Continuing Operations 155,000 326,000 620,000Total Other Income/Expenses Net 18,540,000 12,066,000 6,895,000Interest Expense 18,540,000 12,066,000 6,895,000Income Before Tax 4,527,000 3,831,000 2,061,000Income Tax Expense - - -Net Income From Continuing Ops 14,013,000 8,235,000 4,834,000Non-recurring Events - - -Discontinued Operations - - -Other ItemsNet Income 14,013,000 8,235,000 4,834,000Preferred Stock And Other Adjustments - - -Net Income Applicable To Common Shares $14,013,000 $8,235,000 $4,834,000
-
8/6/2019 APPLE INC Final Report
16/23
Current financial position
First I am going to discuss the balance sheet of the company.
While talking about the assets of the firm, its debtors has increased very much in the
current fiscal year as compared to previous ones due to increase in the credit sales. The
company has introduced new products in the FY2010 and so high deferred expenses
like rent etc, these expenses are maximum in the FY2009. This is showing that the firm
is focusing on making new good relationships with the customers and for that purpose
they have gone to the use of debtors. Further the company does not make any further
investment in prepaid expenses and resultantly the prepaid expenses of the previous
fiscal year have depreciated with the large sum. In the current fiscal year , the company
has showed the behavior of high risk taking, as their liabilities have increased with large
sum, but their assets are also increased with much greater ratio. So, creditors have
healthy cushion/gap for them.
Now I will discuss its income statement. While analyzing its income statement, I found
that, currently, there sale of hardware, software, digital content and applications,
peripherals, and service and support contracts have increased very much, and the
reason is that the companys credit policy is relaxed in current fiscal year , which have
also increased there chances of bad debts. In the FY 2010, there sales have increased
very much and gross profit was 39% , but the %age gross profit is seen to be maximum
in the FY 2009 which is 41% even it was a period of deep recession in world economy.
The reason of maximum sales in FY 2010 is that, the company have introduced new
product which are iPAD, 4th generation iPHONE and MAC OS X Lion and fixed expenses
(i-e- Research and development etc) of these products have decreased the overall %age
gross profit.
-
8/6/2019 APPLE INC Final Report
17/23
New products of company
In the Mobile consumer electronics era. The company introduced
iPHONE
APPLE TV
APP STORE
Macbook Air
Mac Notebook
4th generation iPHONE
Multi touch iPODnano
iPAD
iPOD touch
facetime
iPOD shuffle
Mac OS X Lion
iLIFE
iWORK
Rumors : Some rumors about Apple are that they are going to introduce iphone5.
Annual DividendApple has been hitting new highs just about every day. Yesterday the stock price hit an
intraday high of $333.73, a lofty height indeed. We pointed out earlier thatApple now
has the fourth largest market cap of any publicly traded domestic company, so maybe
it's time to revisit the question of Apple declaring dividends on its stock.
Apple has not declared a dividend since December of 1995. After the last shareholder
meeting, Steve Jobs stated that the money was best left in the bank so there would be no
question of loans if something big was to be bought. "The cash in the bank gives us
tremendous flexibility," explained Steve.A case is also made for keeping the money as preparation for the next big recession.
This doesn't seem to hold much water, however, since analysts predict that Apple will
grow by 18% per year for the next five years. That should provide more than enough
cash, predicting that Apple will report net income of around $21 billion in 2014.
http://www.tuaw.com/tag/AAPL/http://www.tuaw.com/2010/03/23/apple-stock-at-another-all-time-high-market-cap-4th-in-us/http://www.tuaw.com/2010/03/23/apple-stock-at-another-all-time-high-market-cap-4th-in-us/http://phx.corporate-ir.net/phoenix.zhtml?c=107357&p=irol-faq#stock3http://www.edibleapple.com/no-dividends-for-apple-shareholders-jobs-prefers-to-keep-cash-on-hand-for-big-bold-acquisitions/http://www.edibleapple.com/no-dividends-for-apple-shareholders-jobs-prefers-to-keep-cash-on-hand-for-big-bold-acquisitions/http://phx.corporate-ir.net/phoenix.zhtml?c=107357&p=irol-faq#stock3http://www.tuaw.com/2010/03/23/apple-stock-at-another-all-time-high-market-cap-4th-in-us/http://www.tuaw.com/2010/03/23/apple-stock-at-another-all-time-high-market-cap-4th-in-us/http://www.tuaw.com/tag/AAPL/ -
8/6/2019 APPLE INC Final Report
18/23
Earnings per Share:
Apple is able to create better profits for shareholders investment. Its earnings per share
are increasing year by year and are creating shareholders value. In year 2006 EPS was
$2.36. It increased to 4.04 in FY2007 and going on further in FY2008 $6.94, FY2009
$9.22 and FY2010 $15.41. Apple earnings per share are increased with high percentage
in FY2010 as compared to previous financial years
Current business challenges and expected Future challenges
Apple is mainly facing strong business challenges from itscompetitors, and currently
its surviving very effectively and efficiently. Its strong competitors include IBM, DELL,
HPQ, MICROSOFT etc. While among first three of them, APPLE have a highest market
share but Microsoft is on higher level than it. In comparison to the dell, its quarterly
revenue growth is 66.7% while dell have only 19.40%.
Its also facing the challenges ofgovernment regulations which is unforeseen for it. In
the future, it need to have further adaptation to the environment, like they recently
launched new products( i-e- further new products development). They should focus on
more promotion of existing products and on its R&D department. In the long future,
they will suffer tough challenges from its international competitors.
Further, in the future, there will be the increased competition, compressed product
lifecyclesetc
After looking at the companys present financial position in comparison with the
previous fiscal years, i expect that the firm is further going to perform very well,
because a boost in the firms earnings is seen in FY 2010. but the company has
described that its going to launch new products in the next fiscal year which
resultantly decreases its gross margin to about 36% due to increase in costs.
-
8/6/2019 APPLE INC Final Report
19/23
Speaker 3
Project Report
Raja Saqib
FA09-MBE-013
-
8/6/2019 APPLE INC Final Report
20/23
Apples social responsibility nightmare
Apple is making the headlines again lately, and this time, its not with good news.Foxconn, a key electronics manufacturer that assembles Apples iPhones and iPads, hasseen yet another employee suicide: the eleventh suicide effort in the last year, and ninthsuccessful one. Nan Gang, a 21-year old employee of the company, died after jumping offthe four-storey building. But waitthis isnt new. Weve seen this before. The questionis why it is still happening, and happening so regularly.
Last year, the world learned of another worker who took his own life. Sun Danyong, a25-year old recent university graduate reported that one of the Apple prototype phoneshad gone missing. He was subsequently interrogated again and again, and had hisapartment searched. Several days later, he was dead having jumped out of a 12th floorwindow of his building.
In 2006, Apple was shaken by reports in the Daily Mail outlining the details andproviding images of the harsh working conditions where iPods are made. In one of theFoxconn factories, each worker dorm room was found to house 100 low-paid workerswhere there was also a full ban in place on any visits to workers from anyone outsidethe plant. In addition to this, workers were pushed to work for up to 15 hours a day andpunished severely for actions as simple as not standing still in the assembly line. At thetime, Apple investigated the conditions and produced a report announcing that themajority of Apples policies were met, although admitting that there a few areas thatneeded to be addressed.
This incidence takes on even more consequence in light of Apples new shareholders
meeting in February 2010 in which Apple proudly took a strong stand on the leadershipposition and progress it has made in the area of social liability and sustainability. At themeeting, Apple claimed to be the first to work with its suppliers on environmentalissues and worker education and protection.
It looks like Apple, if they want to truly put their money where their mouths are, need totake a harder standpoint on their suppliers on workplace values and the treatment ofworkers. It would appear that the culture of privacy has been successfully enforcedaccording to Apples requirements to the point where an employee would chooseleaping out of a window to his death than face further interrogation by the company he
works for. But what about the workers treatment itself? Surely it can be enforced to afar greater extent. Apple certainly has the power, but do they have the actualcommitment and conviction?
-
8/6/2019 APPLE INC Final Report
21/23
Foxcann Facilities (Photo credit: The Wall Street Journal)
The idea of corporate social responsibility deserves to be challenged. It seems thatpolitical correctness has obfuscated the important business points. It is absolutelycorrect to expect that corporations should be responsible by creating quality productsand marketing them in an decent manner, in compliance with laws and regulations andwith financials represented in an honest, transparent way to shareholders assets tocharities that encourage causes they believe in.
Steven P. Jobs was recently named (again) the awesome CEO on the planet, but is itpossible he could also be cast in the Scrooge role this Holiday Season? On a day when 26year-old It BoyMark Zuckerberg is making headlines for pledging (along with Face bookco-founder Dustin Muscovite) to join the likes of former Microsoft CEO Bill Gates ingiving the majority of his personal wealth to charity, a New York Times news piecerecounts the difficulty non-profit organizations have encountered raising funds throughin-app donations using iOS mobile apps.
By Brian Thurston As more companies are making a case for profits with moresustainable product offerings, who is rising to the forefront? And should we beapplauding those going beyond compliance, while at the same time be concerned withtheir motives? Have you heard? In a heavily circulated press release last fall, researchdone by TDG showed that consumers considered Apple to be the most environmentallyfriendly consumer technology brand, while a study released last year by the Genevabased firm Covalence, which covers the ethical reputation of companies, lists HP andDell number one and three respectively in the best ethical quote score category,whereas Apple doesnt even fall in the top ten. Around the same time Apple announcedthe release of their greenest laptops ever, and unless youve been living under a rock,youve seen how their latest ad campaign has centered on these assertions ever since.So -- is this true? In January of this year, Greenpeace released their latest 'Guide to
http://online.wsj.com/article/SB124827762524772555.html -
8/6/2019 APPLE INC Final Report
22/23
Greener Electronics' report ranking Apple below both Dell and HP (Greenpeace saysthat Apple refused to participate) and in February the As You Sow Foundationcriticized Apple for its lack of public commitment to greenhouse gas reductions, andquestioned Apples transparency, claiming that of the big four IT companies, Apple hasdisclosed the least. post-continues.gif our-sponsor-message.gif Well, if your head isnt
spinning yet, this past week, a GreenFactor study released by Strategic Oxygen and Cohn& Wolfe, revealed Dell to be the number one green technology brand. Confusing? Yes,and youre not alone. Consumer spending is down, and the markets are hemorrhaging,yet new reports and branding campaigns touting sustainability and corporate socialresponsibility seem to still be a favorite flavor for advertising campaigns and appear topop up around us daily. Without question, these reports are important and necessary interms or precision and building credibility. Beyond those working in corporatesustainability, does the consumer, or the companies themselves, even care? The dataappears to be an unequivocal yes.
Apple supply manager arrested for wire fraud, money laundering
Paul Shin Devine, the mid-level manager at Apple charged with selling trade secrets to
Asian parts suppliers, managed to convince a Judge on Wednesday to change his bail
terms. He isnt out on the street yet since his release is on hold until a US$440,00 lien
against his mothers house is posted with the court,accordingto Reuters.
Raphael Goldman, Mr. Devines lawyer, said It appears that it will be very time -
consuming, and difficult if not impossible to transfer these funds from Korea into
the United States.
The Judge ordered Mr. Devine to continue cooperating with authorities in the case and
to help identify any foreign bank accounts he may still have. If you feel he is not doing
that, then you come back and we will talk about it, the Judge told Assistant U.S.
Attorney Michelle Kane.
According to the charge, Devine has sold companys secret information to the suppliers
which were used by them to negotiate favored supply contracts with Apple. It costed
Apple millions of dollars, reported a Market watch story.
The US Securities and Exchange Commission has charged former Apple general counsel
Nancy Heinen with fraud, alleging that she participated in the underreporting of
corporate expenses by $40 million. That underreporting is allegedly on account of
having backdated options grants to Apple executives, including CEO Steve Jobs.
In another statement issued by Anderson's attorney, Jerome Roth, he says Anderson
cautioned Jobs in late January against making a grant of 4.8 million options to six
members of the company's executive team, apparently not including Jobs.
http://www.bloomberg.com/news/2010-08-23/judge-sets-bail-for-apple-manager-devine-uneasy-about-foreign-accounts.htmlhttp://www.bloomberg.com/news/2010-08-23/judge-sets-bail-for-apple-manager-devine-uneasy-about-foreign-accounts.htmlhttp://www.bloomberg.com/news/2010-08-23/judge-sets-bail-for-apple-manager-devine-uneasy-about-foreign-accounts.htmlhttp://www.bloomberg.com/news/2010-08-23/judge-sets-bail-for-apple-manager-devine-uneasy-about-foreign-accounts.html -
8/6/2019 APPLE INC Final Report
23/23
Roth's statement goes on to say Anderson believed Jobs and former general counsel
Nancy Heinen jointly selected the January 17 date, and that the board of directors
consented to that date later in February. As it turned out, the board did not give prior
consent to the initial grant, which meant that the exercise of those options ended up
being more valuable to their bearers than they might have been otherwise.
Anderson has agreed to disgorge the surplus value, which amounts to the rise in value
between January and February - according to the SEC, $3.49 million, plus $150,000 in
fines.
Heinen is also accused of arranging a grant of 15 million options to Jobs in December 18,
2001, which was backdated to Apple's October 19 stock value. An internal Apple
investigationlast December revealed that board meetings that are recorded on Apple's
books as having approved this particular grant, never actually happened. What's more,
another $20.3 million in compensation expenses were never recorded.
San Francisco (AFP)
A former Apple executive who settled charges linked to stock-options fraud said Tuesday he
warned chief executive Steve Jobs about potential accounting problems related to the executive
awards.
"Heinen and Anderson, among other things, violated the anti-fraud provisions of federal
securities laws, made or caused to be made materially false statements to Apple's auditors,
falsified books and records, and caused Apple to falsely report financial results," according to acomplaint filed in federal court in the Silicon Valley city of San Jose, California.
The SEC said Heinen's actions led Apple, known for its fashionable computers and popular iPod
digital music players, to misreport its expenses by nearly 40 million dollars.
The SEC charges follow a high level SEC probe into Apple's stock option practices. Prosecutors
are seeking financial penalties against Heinen and want to stop her serving again as an officer or
director of a public company.
Officials said the SEC would not be bringing any charges against Apple due to its "extensive"
cooperation with the government's probe.
http://www.betanews.com/article/Gore-Certifies-Apple-Boards-Confidence-in-Steve-Jobs/1167410966http://www.betanews.com/article/Gore-Certifies-Apple-Boards-Confidence-in-Steve-Jobs/1167410966http://www.betanews.com/article/Gore-Certifies-Apple-Boards-Confidence-in-Steve-Jobs/1167410966http://www.betanews.com/article/Gore-Certifies-Apple-Boards-Confidence-in-Steve-Jobs/1167410966http://www.betanews.com/article/Gore-Certifies-Apple-Boards-Confidence-in-Steve-Jobs/1167410966