Business presentation Project 1

The Hidden

DRAGRON

Founded in 1974 with US 7500 FOXCONN launches electronic company Hon Hai Precision Industry FOXCONN works with all the biggest company in

the world

Company Background

Found by CEO of Apple and FLA ( Fair Labour Association) in the past 11 years.

Slavery and suicide in Foxconn: ◦ Long working hours ( work week 60 hours)◦ Poor working condition & living condition◦ Less salary ◦ Rights being violated

Introduction

Negative Impacts

Accused exploiting workers◦ Forced to work with no pay

Providing Sexual Service◦ Low salary - engaging in sexual services after

their daytime jobs end to earn more money.

Current Effect:

Effect Apple’s product (embarrassment)◦ Damage brand reputation

Boycott by customers◦ Customers will more keen to other products

Future Effect

Causes

240 hours per month + 40-60 overtime hours per month

Long working hour

monthly working hour

overtime per month

0

50

100

150

200

250

300

China legal hourFoxconn

New comers RMB 1350- Lower than Shenzhen government's mandated

minimum monthly wage requirement of RMB 1500

Average RMB 1650

Low salary

Working area poor ventilated

Dusty air condition

Poor working condition

Uncomfortable living condition*Compact living condition

*randomly dormitory reassignment- breakup friendships , increasing isolation

14% worker not receive fair compensation for unscheduled overtime ( 30 mint increments)

Silent mode -workers are threaded with termination if they

talk on job

Rights being violated

Solutions

creating a compensation *agreement with employees that protects them from losing income caused by a mandate for less overtime

Foxbot:*to replace human employees *to improve the output efficiency

Solutions

Pre 2010 2010 2011 2012 20130

2

4

6

8

10

12

Male Female

Number of suicide employee from pre 2010 to present

Peckham, M. (2013). Report: Over 1,000 Chinese Students Forced to Build PlayStation 4 at Foxconn Plant to Graduate.Time.Com, 1.

(29 July,2013). Apple faces new China worker abuse claims. BBC News BUSINESS . http://www.bbc.co.uk/news/business-23486638.

(2012, October 17). under age foxconn hires teens. Evening Standard. p. 41.

FOXCONN GIVING WORKERS A RAISE. (2012). City AM (London), 15.

Foxconn suffers from an explosion at its plant (Foxconn suffers from an explosion at its plant). (2011). ecPulseRegional Business News, EBSCOhost .

Investor's Business, D. (2012, September 25). A Foxconn. Investors Business Daily. p. A02.

sacom2005 (2013 , February 24). Those Were the Years, When I Was at Foxconn. Reterived October 27 , 2013 , from http://www.youtube.com/watch?v=lhf0tgtXd8c

Mschef26. (2011). Foxconn [PowerPoint slides]. Retrieved fromhttp://www.slideshare.net/mschef26/foxconn-10474294?from_search=1

Stupidmartinez. (2011). Foxconn [PowerPoint slides]. Retrieved from http://www.slideshare.net/stupidmartinez/foxconn?from_search=2

References

Holbrook, E. (2010, November). Beneath the Bell Jar: Companies Confront a Rise in Workplace Suicides. Retrieved from http://www.questia.com/library/1G1-241945227/beneath-the -bell-jar-companies-confront-a- rise-in

Hughes, Rick, K., Andrew, C., Cary, L. (2012). Workplace Trauma . Retrieved from http://site.ebrary.com/lib/taylorscollege/docDetail.action?p00=foxconn&docID =10575591&page=102

Adams, S. (2013). Apple's New Foxconn Embarrassment. Retrieved 20 October, 2013, from Forbes: http://www.forbes.com/sites/susanadams/2012/09/12/apples-new-foxconn-embarrassment/

Hays, J. (April, 2012). APPLE AND FOXCONN: WORK CONDITIONS, PROBLEMS AND CHANGES. Retrieved 20 October, 2013, from Facts and Details: http://factsanddetails.com/china.php?itemid=2282&catid=9

  Holden. (24 September, 2012). Will Foxconn Labor Issues Have Manufacturers Considering China Exit?

Retrieved 20 Ocotober, 2013, from Analysis Intelligence: http://analysisintelligence.com/news- analytics/will-foxconn- labor-issues-have-manufacturers-considering-china-exit/

Xu, K., & Li, W. (2013). An Ethical Stakeholder Approach to Crisis Communication: A Case Study of Foxconn's 2010 Employee Suicide Crisis. Journal Of Business Ethics, 117(2), 371-386.

doi:10.1007/s10551-012-1

522-0

  (11 October,2013). Foxconn admits labour violation at China factory. BBC News BUSINESS .

http://www.bbc.co.uk/news/business-24486684. 

References