...FOXCONN ANALYSIS A startling 17 young workers attempted or committed suicide at the Foxconn production facilities in China between January and August 2010 attracted worldwide attention. This article looks at the historical development of Foxconn Technology Group as a case to reveal the advent of rapid capital expansion in China and its impacts on Chinese workers’ lives. It also provides an account on the social and political origins of the advent of monopoly capital in China through a detailed study of Foxconn production expansion. As a legend of capital expansion in manufacturing industry, Foxconn is important and typical of its speed and its scale in the process of capital accumulation on all regions of China. We attempt to look at this miracle of capital by understanding the enigma of global capital, the nature of the transformative state, and the Chinese growth model that results in rapid capital expansion but precarious working conditions of workers. At stake, we argue that under the global competition context a strong political regime with a divided nature and the making of an unfinished working class contributed to the advent of monopoly capital and the tragedy of working lives. The third stage is the advent of monopoly of capital by merging as well as by relocating their production facilities in all regions of China by particularly tapping into China’s go-west development strategy in the 2000s. The suicide wave in 2010 created a strategic moment when it further expanded...
Words: 1310 - Pages: 6
...“Ethics” of Foxconn A string of suicides occurred at Taiwanese-owned Foxconn in China in recent years has drawn great media attention (BBC, 2010). 20 Chinese universities worked as a team to pursue the story behind the Foxconn which they described as “labour camp” (Chan, 2013). As the major manufacturer of Apple, Foxconn should undertake the due obligations but Apple also cannot avoid its responsibility. A case study “Apple’s efforts fail to end gruelling conditions at Foxconn factories” is presented to scrutinize and evaluate the causes that result in the industrial injuries. Students and Scholars against Corporate Misbehavior (SACOM) suggests that overtime working, poor leadership and absence of working relationship drive the assembly line employees to commit suicide (Heffernan, 2013). However, The Guardian （media source） highlights that the working conditions at Foxconn factories is the main problem. Therefore, “ethics” and “stress” are chosen as the entry points to find the “apple of discord”. Initially, ethics will be introduced for understanding the moral principles and its effectiveness. Resnik (2011) describes the ethics as the “norms for conduct that distinguish between acceptable and unacceptable behaviour”. In business environment, Hanson (2010) believes "business ethics is the study of the standards of business behaviour which promote human welfare and the good". However, when two moral principles have conflicts, ethical dilemmas will exist. For Foxconn, the ethical...
Words: 4631 - Pages: 19
...technology companies in the world. In the mobile phone market, Apple now occupies the third place after Samsung and Nokia (Gartner, 2012). However, from 2006, it has been reported that the employees assembling iPhones, iPads and other devices in contract manufacturers, such as Foxconn and Inventec often work in harsh conditions. Thus, a question has been arisen that whether Apple should be responsible for the actions of Foxconn. According to the case study, this essay will argue that Apple is partially accountable for the actions of Foxconn through analyzing the theory of organizational culture and organizational structure. Analysis of Apple’s influence on Foxconn in terms of organizational culture will be demonstrated firstly. The second part will examine the reasons why Apple will be responsible for the behavior of Foxconn according to the theory of organizational structure. Finally the conclusion will be drawn. Organizational culture Apple is partially responsible for the misbehavior of Foxconn because the culture of Foxconn is partially determined by Apple. Furthermore, social responsibility could be part of Apple’s organizational culture, making Apple want to change the current situation of Foxconn. Organizational culture has become an essential element in our understanding of organizations. It is a complicated theory related to share value and shared meanings in an organization (Linstead, Fulop and Lilley). Myriad attempts have been made to define culture. Schwartz...
Words: 2787 - Pages: 12
...Industrial Relations in China :A Case Study of Foxconn Suicides Abstract As globalization affected the whole world, the contradiction between leaders and labors has become a world-wide problem. In China, a series of employees’ suicides attracted the public and media’s concentration to consider this problem. A Taiwanese electronics corporation, is acting as the protagonist in this issue and now earning an internationally notorious reputation of running sweatshops. This paper analyze the cause of ongoing trend of exploitation of workers in China with the example of Foxconn, and examine the reasons behind those suicides from the perspective of management, workers and related laws. Based on the fundamental information of China, to illustrate my own analysis about this case from ethical and legal point, and to criticize Foxconn’s management strategy, industrial relations and the gaps of Chinese laws. Keywords: workers’ exploitation, China, Foxconn, suicides, inustrial relations 1. Introduction 1.1 Background and significance of the topic With the rapid development of Chinese economy and the increasing globalization of business competition, the various types of enterprises in China have been booming development, rapid increases in the number and size of foreign investment in China to hire to do business, and further reform of state-owned enterprises increase, the private sector, the number and the number of employees of private enterprises in recent years, is also...
Words: 1432 - Pages: 6
...upgraded with more ports. The fully upgraded and loaded router will have capacity of 6.4 terabits per second, so they definitely the customer can select their choices of configuration and capacity. Although not very exhaustive this type of customisation to build router according to the customer capacity needs is important , the beauty the customer can select in a way that he can go for lower capacity but upgrade at later point in time. This is essential in routers product market Yes definitey the Pull system conflicts with the practice of using overseas manufacturers. This is because in order to be effective for Pull system to work the Supply chain lead time should be very minimal so that the firm can immediately react to the new orders. In case of using contract manufacturer overseas the firm will still have to do the traditional forecast of the demand and plan for it as opposed to completely Pull system where the firm will start the product build only after receiving the customer order. But the vision of CISCO is go towards the lean manufacturing 'pull' in order to realize the benefits of reduced inventory across the supply...
Words: 1798 - Pages: 8
...A Suicide Survivor: The Life of a Chinese Migrant Worker at Foxconn Sunday, 25 August 2013 12:50By Jenny Chan, The Asia-Pacific Journal | In 2010, 18 employees working for Foxconn in China attempted suicide. These shocking events focused world attention on the manufacturing supply chains of China's export industry and the experience of working within them. What had driven these young migrant assembly line workers to commit such a desperate act? This article provides a first-hand account of the experiences of one of those who survived a suicide attempt, 17-year-old Tian Yu. Her personal narrative is embedded within the broader context of labour process, work organisation and managerial practice at Foxconn, the Taiwaneseowned multinational whose 1.4 million Chinese workers provide products and components for Apple and others. Factory conditions are further shaped by the company trade union and Chinese government policies. The paper concludes with additional contextualisation indicating the emergence of an alliance of workers, students, scholars and transnational labour movement activists who are campaigning for Chinese workers' rights. Among the most prominent firms in the global supply chain that operates in China is Foxconn, the Taiwanese-owned multinational electronics contract supplier. Foxconn is the trading name for Hon Hai Precision Industry Company and, with a workforce of 1.4 million, it is the largest private sector company in China and one of the world's largest employers...
Words: 9785 - Pages: 40
...several AAA strategies in China to maintain its large profit margins and efficient production process; however, it could do more in the way of adaptation to increase its market share in the Chinese smartphone market. Currently, Apple’s strategy in China primarily revolves around arbitrage. Apple has been using China’s comparative advantage in labor to maintain incredibly high profit margins (as high as 70% on the iPod) and low inventory. China has a “vast, agile” labor force with over 800 million people between twenty-to-sixty years old that can cater to Apple’s constant adjustments to specifications and orders at a fraction of the cost in the United States. Apple has done this by partnering with Chinese electronic manufacturing service, Foxconn, which assembles all of the many components in Apple’s products imported from other countries at a very low rate. Apple has also adapted some of its products to suit demand in the local Chinese market. In particular, Apple has altered its repair and warranty policy to respond to Chinese consumer unrest at Apple’s perceived lack of care for customer service. While not particular to the Chinese market, it also lowered the price of its iPhone 4 to respond to consumer demand for cheaper smartphones in emerging markets. However, within the scope of things Apple could be doing to cater...
Words: 1231 - Pages: 5
...CASE: GS-66 DATE: 06/05/09 CISCO SYSTEMS, INC.: COLLABORATING ON NEW PRODUCT INTRODUCTION On November 13, 2007, more than 100 employees of Cisco Systems, Inc. assembled in classic Cisco fashion: they dialed in from multiple locations around the world for an important meeting. The purpose of the gathering was to get the green light from senior management to manufacture a new high-end router that would make the giant networking company more competitive in an age of surging Internet traffic.1 The project’s code name, Viking, said it all. The router for broadband service providers would break ground in power and speed, reminiscent of the Norse warriors and explorers of Europe during the eighth to eleventh centuries. The meeting represented a culmination of several years of development work by a cross-functional, global team of Cisco specialists in engineering, manufacturing, marketing and other areas. Just months earlier, in mid-2007, Cisco overhauled the project by sharply boosting the router’s speed and capacity. This would allow the company to leapfrog competitors and offer a low-cost, powerful new router platform for the next 10 to 15 years. That day in November, the Viking team was seeking an “execution commit” from senior management in manufacturing. If it got the go-ahead, Cisco would be ready to commit the resources to launch the new product. But the Cisco team knew it faced many challenges. The Viking project would be one of the company’s most complex...
Words: 12040 - Pages: 49
...Introduction Organisations do not evolve by chance, nor are they structured randomly. Over the years, organisations evolve and increase in complexity. The knowledge accumulated and shared has been collectively termed as organisation theory (Crowther and Green 2004). Organisation theory is an area of study whereby organisations serve as the phenomenon of interest for theorisation and explanation. In actual fact, it involves many theories that do not always fit together thus multiple perspectives have to be used to analyse the complexities in organisation. The four perspectives are modernism, symbolic-interpretivism, postmodernism and critical theory. Each perspective provides different manner of interpreting the world which results in different knowledge acquired (Hatch & Cunliffe 2006). Globalisation has enable organisations to enter new markets and reduce business cost. These organisations are known as transnationals because their routine activities have crossed borders. They are able to exert control through ownership and/or through operations (eds. Alvesson, Bridgman & Willmott 2009). In this essay, I will be using modernist and critical theory perspective and related theories to analyse how Apple as a capitalist, exercise power and over its organisation network and external environment. The first section of the essay includes the meta-theoretical frame work of the two perspectives. It also includes how the two different perspectives view power in the organisation...
Words: 2752 - Pages: 12
...| Case Study on Cisco Systems, Inc | Continuous Assessment | Global Supply Chain Management | | | Table of Contents Table of Figures 3 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. 3 Question 2. What are the general operational / supply chain issues in using a Chinese supplier 6 Question 3. Identify and briefly explain the specific risks / rewards in selecting Foxconn as a key subcontractor. 9 Question 4. Recommend, detail and justify operational and supply chain strategies for Cisco. 11 Question 5. Research and reference Cisco's subsequent actions using publically available material and comment briefly 13 Appendices 16 Appendix A 16 Appendix B 17 Appendix C 18 References 20 Project Diary: 26 Table of Figures Figure 2.1 Chinese Traditional Values (Jin et al., 2013). 17 Figure 2.2 Global Rate, Labour and Freight (Kumar et al., 2009). 18 Figure 4.1 Competitive Advantages. (Christopher, M., & Peck, H, 2003)…………...….….....18 Question 1. Using an appropriate operations framework outline the challenges/risks faced by Cisco in introducing a new product. Erhun, Gonclaves and Hopman (2007) state that risk during new product introduction (NPI) process can stem from either an internal or external source, and more critically from either a supply or a demand prospective. The challenge for Cisco during the NPI phase is to utilise an operational framework...
Words: 5304 - Pages: 22
...Strayer University Strayer University | Corporate Responsibility and Marketing StrategiesBy Dattatreya Shodhan | Professor:- Dr. Latasha Bennett | 4/21/15 | Course Title:- BUS508 | | | Corporate Responsibility and Marketing StrategiesBy Dattatreya Shodhan | Professor:- Dr. Latasha Bennett | 4/21/15 | Course Title:- BUS508 | | Table of Contents Introduction 2 Apple’s current position on ethical and social responsibilities 2 Impact of Apple’s suppliers on Apple’s Reputation 4 Methods that Apple can use to be sure its suppliers follow wage and benefits standards in the future 7 Apple’s customers would be willing to pay more for its products if they had to increase selling price in order to provide better wages and benefits for its supplier’s workers. 7 Marketing Strategies 8 Conclusion 9 References 10 Introduction Apple which has been the world leader by producing advanced, electronic goods and technology. The company was established in 1976 by Steve Jobs, Steve Wozniak and Ronal Wayne. Furthermore, we will be talking about company’s ethical and social responsibilities and impacts on its reputation by violations made by Apple’s suppliers and also discuss about its marketing strategies that can be improved. Apple’s current position on ethical and social responsibilities Business ethics is a form of professional ethics which examines moral principle and problems that are arising in the business environment. Organization shapes...
Words: 2054 - Pages: 9
...Leadership is the concept and practice of inspiring members of an organization or a project into pursuing a revolutionary vision set by knowledgeable leader with the aim of achieving an organizational goal. This report will highlight leadership as to how it applies to all levels of management in organisations and the role of leaders to internal and external stakeholders. This report will also identify and evaluate various conceptual frameworks and models that will be used to explore leadership as a concept. Introduction If one could consider an organization as an independent entity, with its plethora of goals and objectives to achieve in line with its mission, then one must also endeavor to find out the lifeblood that keeps the organization running. Such would be leadership; according to a smart definition by Steve Zeitchik, CEO of Focal Point Strategies, leadership is inspiring others to pursue a revolutionary vision within the parameters set, to the extent that it becomes a shared effort, a shared vision, and a shared success by every member of the organization (Focal Point Strategies, 2014). According to Winston and Patterson (2006), a leader is one or more people who selects, equips, trains, and influences one or more followers and focuses the follower on the path of achieving the organization's mission and objectives, causing the follower to willingly and enthusiastically expend spiritual, emotional, as well as physical energy in a concerted coordinated effort to achieve...
Words: 2393 - Pages: 10
...Apple, Inc.’s Ethical and Social Responsibilities Michael A Troyer Strayer University Author Note Professor Dr. Lionel De Souza, BUS508 – Contemporary Business, April 26, 2015 Abstract In this paper, we will discuss the ethical and social responsibility of Apple, Incorporation with respect to its current position and its reputation surrounding these challenges, and whether or not they have met these challenges. We will also look at the current strategies it uses to market its products around the globe. With its ever changing and evolving technological innovations, Apple, Inc. has grown so fast and expanded in such record numbers that that perhaps its business practices are slower to keep pace. Introduction What started out as a desire for a user-friendly computer that would fit into a home by a couple of college dropouts, Apple, Incorporated grew from a garage operation to a multibillion dollar industry that has operations around the globe. Founded in 1976 by Steve Jobs and Steve Wozniak, Apple, Inc. sales in 1978 was reported at $7.8 million. In 1980, just two years later, Apple reported sales of $117 million, (Terrell, 2008) and in its first quarter alone in 2015, Apple reports total sales at $74.6 billion with a net profit of $18 billion. ("Apple - Hot News," n.d.) Apple has indeed grown by leaps and bounds in developing the latest technologies in home computers, listening and video devices, cell phones and their latest, watches. Apple even has the largest...
Words: 2166 - Pages: 9
... 2.4 Offshoring2.5 Key problems in cross cultural teams2.6 Conclusions | pp.8-11 | Chapter III – Analyzing and Explaining Cultural Dimensions3.1 Introduction3.2 Analysis of cultural dimensions and Country Comparisons 3.2.1 Power Distance 3.2.2 Uncertainty Avoidance 3.2.3 Long term orientation 3.2.4 Indulgence 3.2.5 Individualism 3.2.6 Masculinity 3.3 Limitations of Hofstede’s Dimensions | pp.12-17 | Chapter IV – Gamification4.1 Introduction4.2 Defining and Explaining gamification4.3 Gamification’s effects on business4.4 Examples of gamification4.5 Criticism – The dark side of gamification | pp.18-20 | Chapter V – Corporate Social Responsibility5.1 Introduction5.2 Defining and explaining CSR 5.3 The Foxconn and Apple scandal5.4 Recommendations and Actions | pp.21-22 | Chapter VI – Recommendations to Management | pp.23-24 | Chapter VII – Conclusions | pp.25 | References | pp.26-27 | Executive Summary Executive Summary This report provides an analysis and evaluation of the issues an EU company might face during its operations in a third country (non-EU member state), through a review of the current literature on cross-cultural offshoring management, Hofstede’s cultural dimensions and gamification. The methods of analysis used, include a comparative analysis between UK’s culture and Indian culture. The results of the research illustrate that considerable...
Words: 6986 - Pages: 28
...This article is published in a peer-reviewed section of the Utrecht Law Review Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect a Company’s Corporate Social Responsibility Policy? Cristina A. Cedillo Torres, Mercedes Garcia-French, Rosemarie Hordijk, Kim Nguyen, Lana Olup* 1. Introduction 1.1. Background and objectives This article will discuss the different Corporate Social Responsibility (CSR) issues that emerged within four multinationals (Apple, Canon, Coca-Cola and Walmart). There is no clear definition of CSR. In Corporate Social Responsibility, Legal and semi-legal frameworks supporting CSR Lambooy gives an r o verview of several definitions of CSR.1 The European Commission defines CSR as ‘the esponsibility of enterprises for their impacts on society’.2 This is the definition which is the most suitable for the c ontext of the article’s research question. As this article will focus on companies from the US and Japan, the authors also provide an overview of the focus on CSR from the US and Japanese perspective. In the US there is no governmental regulation regarding CSR or business best practices. Instead, according to findings from Bennett American, companies have a marked tendency to use codes of conduct.3 The American CSR perspective could be described as following a principles-based approach, with codes of conduct that prescribe values and principles which company members as a whole should aspire to follow. ...
Words: 16555 - Pages: 67
