The study, despite some damning claims against Apple, is not likely to cool investors’ enthusiasm for Apple stock, which rose by more than 60% in 2010 and has been given a median price target of $397.50, with a high target of $500/share. But are profits and rise stock prices enough in the 21st century?

In a famous article published in 1970, Nobel Prize-winning economist Milton Friedman declared that the responsibility of a corporate executive is “to conduct the business in accordance with their desires, which generally will be to make as much money as possible while con­forming to the basic rules of the society, both those embodied in law and those embodied in ethical custom.”  As for the “rules” that Friedman refers to, he defined those as “the rules of the game, which is to say, … open and free competition without deception or fraud.”

Friedman took a lot of heat from a variety of sources for his seeming disregard for the social consequences of profit-making. But there is little doubt that any successful business, and its investors, follow Friedman’s principle.

Certainly Apple is no exception. The company weathered a storm in 2010 when its main supplier, Hon Hai Precision Industry Co. Ltd., better known as Foxconn, was accused of being responsible for 14 employee suicides as a result of conditions in its factories. Foxconn expects to increase its employee count to more than 1.3 million in 2011.

Since the Foxconn suicides hit the front pages last summer, Apple’s shares have risen by more than 20%. By contrast, shares in Hewlett-Packard Co. (NYSE: HPQ) have fallen by about 3% in the same time frame. HP, which also uses Foxconn as a supplier, was called out in the IPE study as an example of a company that is responsive to health and environmental concerns, as was Britain’s BT Group Inc. (NYSE: BT).

For better or worse, reports like this one from IPE don’t have as much effect on a company or its management as do healthy and growing profits. Apple will weather this storm, just as it did last summer’s. The company will investigate, make some modest changes, and declare victory. Shareholders won’t even notice.

Paul Ausick

In the three months ending March 31, BT recorded a net loss of 977 million pounds ($1.48 billion), compared to a profit of 426 million pounds a year earlier. But, that loss included a 1.3 billion charge in its services division. The company, based on those measurements, made 208 million pounds. There was no news that the CEO or any senior management would be fired or take pay cuts.

Douglas A. McIntyre

BT Group (BT) Raised to Overweight at JPMorgan.
Callaway Gold (ELY) Raised to outperform at JMP Securities.
CBS Corp. (CBS) Cut to Hold at Argus.
Citrix Systems (CTXS) Cut to Underperform at Jefferies.
Duke Energy (DUK) Cut to Perform at Oppenheimer.
Infosys (INFY) Raised to Buy at Deutsche Bank.
Liberty Media (LINTA) Raised to Overweight at JPMorgan.
Netezza (NZ) Raised to Overweight at JPMorgan.
Research In Motion (RIMM) Cut to Neutral at UBS.
VMware (VMW) Cut to Underperform at Jefferies.

JON C. OGG
AUGUST 10, 2009

BT Group (BT) Raised to Overweight at Morgan Stanley.
Cisco Systems (CSCO) Started at Canaccord.
EMC Corp. (EMC) Started at Canaccord.
Hasbro (HAS) Started as Buy at KeyBanc.
Illinois Tool Works (ITW) Raised to Outperform at William Blair.
Mattel (MAT) Started as Buy at KeyBanc.
NetApp (NTAP) Started as Buy at Canaccord.
Omnicom (OMC) Raised to Outperform at Oppenheimer.
Tenneco (TEN) Raised to Overweight at JPMorgan.
Veeco Instruments (VECO) Started as Buy at Merriman Curhan Ford.

JON C. OGG

• EnerSys (ENS) Raised to Buy at Jefferies.
• LM Ericsson (ERIC) Raised to Neutral from Sell at UBS.
• Sherwin-Williams (SHW) Raised to Neutral at Goldman Sachs.
• UDR (UDR) Raised to Outperform at KBW.
• BT Group (BT) Cut to Sell at UBS.
• Builders Firstsource (BLDR) Cut to Neutral at Sun Trust Robinson Humphrey.
• PACCAR (PCAR) Cut to Underweight at HSBC.
• Veolia Environnement (VE) Raised to Buy at Goldman Sachs.

JON C. OGG

May 15, 2009

Reuters reports that Citigroup (C) is looking at buying Chevy Chase Bank.

Reuters reports that the US may need to insure wholesale deposits.

Reuters reports that foreclosures rose 25% in October.

Reuters reports that the head of McDonald’s (MCD) said that the company was well positioned for a recession.

Reuters reports that retailers are seeing more returns of merchandise.

Reuters reports that private equity firms see a grim future for their businesses.

Reuters writes that Intel’s (INTC) earnings warning is an alarm for the tech sector.

The Wall Street Journal writes that Citigroup may replace its chairman.

The Wall Street Journal reports the Senate Republicans are against a Detroit bailout.

The Wall Street Journal reports that Germany has slipped into recession.

The Wall Street Journal writes that New York State has begun looking into the activities of credit default swaps brokers.

The Wall Street Journal writes that Siemens (SI) posted a wider net loss.

The Wall Street Journal reports that the government will back some GE (GE) financial assets.

The Wall Street Journal reports that AMD (AMD) is putting hopes for its future on a new chip.

The Wall Street Journal reports that Qualcomm (QCOM) is pushing its business beyond cellphones.

The Wall Street Journal reports that Best Buy (BBY) warned on earnings.

The Wall Street Journal reports that Morgan Stanley (MS) will make large job cuts.

The Wall Street Journal writes that Microsoft (MSFT) will revamp its online offerings to fight competition.

The Wall Street Journal reports that the $700 billion bailout will now focus on consumers.

The Wall Street Journal reports that the recession may pinch even Wal-Mart (WMT).

The Wall Street Journal reports that "Citic Pacific agreed to a $1.5 billion loan pact that will put it under greater control of its state-controlled mainland China parent"

The Wall Street Journal reports that the SEC wants to limits conflicts of interest at credit rating agencies.

The Wall Street Journal reports that Nasdaq hit a five-year low.

The Wall Street Journal reports that airlines stocks are no longer trading based on the price of oil.

The Wall Street Journal reports that Google’s (GOOG) YouTube will sell video ads for searches.

The Wall Street Journal reports that Anheuser Busch (BUD) approved an InBev takeover.

The New York Times reports that a GM (GM) bankruptcy may be better than a bailout.

The New York Times reports that life insurance companies face cuts in their credit ratings.

The New York Times reports that retirees are trying to cope with falling portfolios.

The FT reports that US regulators are pressuring banks with high dividends.

The FT reports that financial sector losses from the credit crisis are now close to $1 trillion.

The FT reports that property prices in Dubai are plummeting.

Bloomberg reports that BT (BT) plans to cut 10,000 jobs.

Bloomberg reports that oil fell to $55

Douglas A. McIntyre

• American Express (NYSE: AXP) downgraded to Market Perform from Outperform at KBW.
• BT Group (NYSE: BT) downgraded to Underperform at Credit Suisse.
• Darden Restaurants (NYSE: DRI) initiated as Outperform at RBC.
• First Merit (NASDAQ: FMER) downgraded to Underperform at Oppenheimer.
• GlaxoSmithKline (NYSE: GSK) raised to Buy from Neutral at UBS.
• Independent Bank (NASDAQ: IBCP) downgraded to Underperform at Oppenheimer.
• Level 3 Communications (NASDAQ: LVLT) downgraded to Neutral from Outperform at Credit Suisse.
• Microsoft (NASDAQ: MSFT) downgraded to Sector Perform from Outperform at RBC.
• Napster (NASDAQ: NAPS) raised to Outperform at Bear Stearns.
• SanDisk (NASDAQ: SNDK) initiated as Sell at Caris.

Jon C. Ogg
February 11, 2008

The FTSE was off .8% to 5,828. BHP Billiton (NYSE: BHP) was off 2.9% to 14.76. BT (NYSE: BT) was down 6.9% to 244.75 on weak earnings.

The DAXX was trading down 1.2% to 6,769. Infineon was off 15.8% on poor earnings. Man AG was off 4.3% to 81.02.

The CAC 40 was down 1% to 4,771. Alcatel-Lucent (NYSE: ALU) was off 3.5% to 4.16. France Telecom (NYSE: FTE) was up 5% to 23.73.

Data from Reuters.

Douglas A. McIntyre

• ALCOA (AA) opened at new 52-week lows but managed to close above the low; down almost 1% today.
• BT Group (PLC) down almost 8% after U.K. markets were open yesterday and we weren’t.
• Boeing (BA) opened at new 52-week lows but managed to close above the low; still -1% today.
• Cablevision (CVC)… I bet Mr. Gabelli wants that old Dolan buyout offer now.
• Career Education (CECO) down 14% after Sallie Mae terminated its loan program, ouch.
• Cisco Systems (CSCO) down 3.6% more… so much for enterprise tech spending?
• Clearwire (CLWR) down almost 8% to $11.48…post-IPO lows.
• Compuware (CPWR) down 4% to $6.38, after only announcing its earnings date.
• Computer Science Corp. (CSC) closed barely under the $38.65 prior low at $38.61.
• Corinthian Colleges (COCO) fell 30% after Sallie Mae terminated its loan program.
• eBay (EBAY) on Meg Whitman leaving; earnings tomorrow.
• eLoyalty (ELOY) down 8% to $9.02; prior low $9.48.
• Energy Conversion Devices (ENER) down 6% and barely managed to close above 52-week lows on a weak alternative energy sector.

….And that is just through the majors starting with "E".

• ITT Education Serivces (ESI) down 15% after Sallie Mae terminated loan programs.
• Motorola (MOT) still losing ground despite Icahn’s efforts…. guess who is a huge Sprint Nextel wireless phone supplier?

Jon C. Ogg
January 22, 2008

The FTSE fell 4.9% to 5,613. BHP Billiton (BHP) was off 7.5% to 1275. BT (BT) was off 5% to 262.

The DAXX dropped 6.5% to 6,839. Deutsche Bank (DB) was off 7.1% to 72.82. Siemens (SI) was down 7.4% to 85.24. SAP (SAP) was down 8.3% to 30.9.

The CAC 40 was selling off 6.3% to 4,773. AXA (AXA) is off 9.4% to 22.29. BNP Paribas is down 8.5% to 63.52.

Data from Reuters.

Douglas A. McIntyre