This article is about a shareholder suing the enormous American computer company. The shareholder is accusing the company about the dividends. The shareholder wants the apple company to engage in charity in charity by giving out huge sum of money to its investors. According to shareholder apple should give out up to 137 billion U.S dollars to its investors. David Einhorn who is suing apple argued that the company’s size and its cash reserves rose to 98 billion dollars because the company engaged in unacceptable practices of hoarding cash, this was done due to the perceived depression, Apple stipulated a depression so they engage in business malpractice of hoarding with the view of playing safe.
David Einhom noted that the is company strong and is extra ordinary and produces wonderful products which included iphone and ipads which has broad maker, and large customer base. Einhorn stipulates that in spite of these important advantages about apple company there are good suggestions that are crucial, on how the company can pay its shareholders well while still be able to carry out its plan and activities
By hoarding large sums of money apple wanted to safeguard itself in times of perceived difficult times, apples cash reserves has grown exceedingly and the company according to David Einhorn should reduce the cash by giving away the perpetual stock of up to a given percentage, although Apple has agreed to discuss with Einhorn, this only was done after the hedge fund took legal action against apples proposed changes in charter. Many apple shareholders have since heeded to Einhorn appeal and they have requested the company to return cash to shareholders, they argued that they have since noted Apples capital allocation policies and they are appealing to the company to act.
The apple company has its large cash sums invested outside the country and the company also owes the government a lot of money. This has trapped Apple Company in huge financial debt; apple owes the government large sums more than any other private company in United States. Apple Company is a perfect example of a company that does not adhere to well laid business ethics, first by hoarding its cash reserves it went contrary to business ethics of non hoarding, the tendencies of the company to hoard could cause other unforeseen problems such as inflation which may be dangerous.
Apple display of not paying dividends well to its shareholders is another example of skewed situation of wrong business ethics. The shareholders being the contributor of capital ought to have been put in priority, the amount of money paid to shareholder notably was too small compared to company’s big profitability and its turnover margin. Apples treat to shareholder Shows Company’s poor relation. It is not appropriate for apple to pay its shareholders’ dividends many years after the company had operated; paying of shareholders should start soon as the company is fully operational and has started earning some profits, this is not according to business ethics.
My own opinion about apples behavior in is that it acted contrary to the required norm. A good company should not engage in any kind of hoarding be it goods or cash this leads to more issues which had not foreseen. Pay of dividends to all shareholders equally is important is crucial a good should pay all its dividends in time as soon as it earns profits. One of the pertinent questions is what are some of ethical issues that the apple company should address in order to regain its credibility and its reputation in the public image?