Transcript
CSR Policies & Initiatives:In the wake of mass staffs
suicide
OUTLINESVision, Mission, StrategyCSR of FoxconnMarket Forces AnalysisStakeholders Engagement & Phase Model
Key Issues & GapsRecommendationsConclusion
FOXCONN TECH. GROUP
HON HAI PRECISION INDUSTRY CO.
Founded 1974, TaiwanWorld largest contract manufacturer of 3C products
500 largest global Co.Taiwan, HK, London, China
VISIONTotal Cost AdvantagesVertical IntegrationsDevotion to greater social harmony and higher ethnical standards
MISSIONProvide electronics users the most cost-effective, high quality 3C products possible
STRATEGYDevelop strategic relationship with industry leaders
Focus on the development of global logistics capabilities
Expansion of production capacityVertical IntegrationMaintain technology advance and flexible production capabilities
New Products
CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
OF FOXCONN…
Foxconn Global Social & Environmental Responsibility Committee – an Executive Director was appointed to lead this group.
Some areas of the CSR of Foxconn:
(A) EmployeesWork Life Balance, Program provides
e.g. caring for newborn babies & managing family finance
Employee Education, e.g. Industrial Engineering Academy in ShenZhenSource: Foxconn, 2008, Corporate Social & Environmental Responsibility Report.
…CSR OF FOXCONN (CONT’D)
Advance Degree Education – there are 10,000 have participated under Foxconn’s sponsorship.
Supplier Employee Education & Development – for line operators.
Occupational Health and Safety – 700,000 employees world-wide, safety culture: “zero incidents and zero injuries” focus on prevention
(B) EnvironmentEnergy conservationReducing emissionsTree plantingRecycling
…CSR OF FOXCONN (CONT’D)
(c) Community Initiatives“Yongling Foundation” was
established in Taiwan & work together with China Communist Party in China – medical care, education, poverty, alleviation, culture & safety.
Support for minority populations
…CSR OF FOXCONN (CONT’D)
Charity world-wide
Christmas 2008 in the Wilson de Oliverira Nursery
Adopt a child Campaign 2008 South America
Donations to S.O.S Santa Catarina 2008
…CSR OF FOXCONN (CONT’D)
(D) Supply Chain SER ManagementFoxconn screen supplier, will terminate business relationship if they involve the following:
Child laborForced or prison laborRelease of poison or hazardous
materials to the environment or violate environmental laws
Working conditions that damage employee health
…CSR OF FOXCONN (CONT’D)
Buyers Pressure
80% Bottom line
MARKET FORCES – The BUYERS
STAKEHOLDER ENGAGEMENT
Stakeholder
Communication
Results/IssuesDegree
of Power
Employee
Satisfaction Survey,Employee Hotline,Presidents Letter Box
Proper work environment, barrier free communication
Weak
Customer
Customer Audits,Business Meetings
Code of Conduct, CSER audits,
Strong
NGO Scheduled Meetings,Annual CSER Review
International forums, Carbon disclosure Project & hazardous substances
Strong
Shareholder
BOD Meetings Increased ROI Strong
SUSTAINABILITY PHASE
RejectionNon
ResponsivenessCompliance
Efficiency- Systematic
Attempts to use resources
effectively for decreasing costs
Strategic Proactivity- Proactive Sus.
Strategy as source of CA
Sustaining Corporation
KEY ISSUES“No. of Suicide incidences increase in
Foxconn”;
Public blaming on CSRComplaint on harsh working environment & militaristic working style
“More than 40 France Telecom employees have taken their
lives since 2008”http://www1.voanews.com/english/news/europe/France-Investigates-Suicides-at-Telecommunications-Company-90571979.htmlhttp://www1.voanews.com/english/news/europe/France-Investigates-Suicides-at-Telecommunications-Company-90571979.html
SUICIDE RATES (PER 100,000), BY COUNTRY, YEAR, AND GENDER.
Note: Number of suicides per 100,000 of the population. * Selected rural and urban areas in China; ** Hong Kong SARSource: World Health Organization, Most Recent Years Available. Data as of May 2003. Downloaded in August 2005 from WHO web site at: www.who.int/mental_health/prevention/suicide/suiciderates/en/print.html
MaleMale FemaleFemale
13.0 %13.0 %
14.8 %14.8 %
GAPS BETWEEN ISSUESIssue in China Business Unit
Policy
Long working hours Claim to do 100 hours extra for overtime
Has policies sanctioning any practice of compulsory overtime and all overtimes are results of employees' voluntary participations
Harsh working conditions Militaristic working style
Has conducted a non-tolerance policy to anyone who imposes any kind of physical punishment to her employees/subordinates
RECOMMENDATIONS Strengthen & Expand their BCP.
- Risk management for terrorist / disease at their plants worldwide
Innovation in technology, reduce consumption and labour requirements.
Pay more attention to stakeholder - employees
Cultural /Social Study on community values Damage control for bad press received on employee treatment
– can jeopardize relations with suppliers
Strengthen & Expand their BCP. - Risk management for terrorist / disease at their plants
worldwide
Innovation in technology, reduce consumption and labour requirements.
Pay more attention to stakeholder - employees
Cultural /Social Study on community values Damage control for bad press received on employee treatment
– can jeopardize relations with suppliers
RECOMMENDATIONSScreen employees to detect those
having psychological problems or those with family history of depression.
Minimize OT by raising basic salary
Piped in music to create a stress less working environment (Muzak & Hawthorne Studies – improved productivity, less stressful)
Engage independent and reputable external audit committee to Audit their HRM policies and implementations and NGO’s
Screen employees to detect those having psychological problems or those with family history of depression.
Minimize OT by raising basic salary
Piped in music to create a stress less working environment (Muzak & Hawthorne Studies – improved productivity, less stressful)
Engage independent and reputable external audit committee to Audit their HRM policies and implementations and NGO’s
CONCLUSION Foxconn adopts good CSR &
employee practice as evidenced by their many contributions to the local community and by the above average facilities provided at their campuses.
The recent happenings are not a direct result of any practices, uncommon to the working conditions in China.
Employee suicide statistics in European countries are as high but have not drawn worldwide attention.
QUESTIONS ???
THANK YOU
top related