Foxconn: Global Ethical Issues

         Foxconn is a Fortune 500, Taiwanese-owned, multi-national business, who specializes in what the Chinese refer to as the '3C', Computers, Communication and Consumer Electronics. Since China opened foreign trade 1978, it has remained a top location for direct investment, pulling in 47.3% of total overseas investment. Foxconn attracts large companies, such as Sony, Hewlett Packard , Dell, Microsoft and Apple. Foxconn has perfected the lowest cost solution. Shareholders expect to make maximum return on investment, which Foxconn always delivers. These constraints on the company lead them to have conflicts between profit and social responsibility. Weakness in Foxconn's Corporate Social Responsibility has lead to 11 suicides. 

             The report describes "militaristic" style of management within Foxconn with long hours. Workers are described as depressed, lacking necessary social interactions .Foxconn did establish better living quarters within the compound but only to monitor the workers. The workers are scheduled opposite to the roommates, so there are no interactions. The workers simply go to work, eat then sleep. The places to eat are in walking distance to increase work time. Little thought was put into the health of the workers.

           In total , 13 of Foxconn's workers decided to jump off the factory building resulting in 11 deaths and 2 serious injuries. All workers were new recruits between the ages of 18-24. Although the suicide rate is not strange for China, the incident has brought attention to contracting companies like Apple. Since the suicides, Foxconn increased the workers were pay by 67%. Apple and Foxconn are currently working toward better conditions for workers.

          Reading this article, there are several ethical issues which would certainly be addressed if Foxconn was within the United States. If a company is contracting a foreign-owned company, should they have an ethical obligation to the workers?  Should Americans respect companies like Apple, HP and Sony who use this company for cheap labor despite the harsh working conditions? Should the culture of the physical location determine the companies ethics? These are all complex ethical decisions that each individual  as well as government must decide. 

          Apple noticed the bad publicity and is working toward better conditions, but I am sure it will come at a cost. They must hire new employees and pay them so the product and competition with have to increase prices.  A cost for consumers or for Apple, but ultimately the highest cost is on the workers who felt there was no help and decided to commit suicide. .  Fair Labor Association has stepped in and conducted audits of Foxconn's factory conditions. Half of Foxconn workers spent more than 60 hours a week at the factory. Apple plans on being in compliance by 2013 , as far as 48 hr weeks for workers Some think these incidence will bring labor reform to China. The International Trade Union thinks once the auditors and other authorities have left  the workers will go back to the same conditions. 

           Ultimately, China must make changes for conditions and Apple increase prices to remedy the issue. China is the place for cheap labor and the reason we find the 'made in china' tag on almost everything we own. Americans like their availability and quantity with their products. I love my Mac but I loved it at $2,500 not at $5,000 or above. I doubt I would buy it at a higher price and Apple knows that, and it the reason why the Chinese people are "exploited". China is also not in debt, but at a surplus because they "exploit" their own people. This is a complicated ethical issue that I am conflicted with.