Preview

Apple and Foxconn

Powerful Essays
Open Document
Open Document
1917 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Apple and Foxconn
In the past few years Apple and other electronics manufacturers have been in the news for alleged unethical practices carried out by some of their suppliers. The ethical issues were concerning the 2010 suicides in the Chinese Foxconn factories, which are the main suppliers for Apple, and the IPhone5 strikes that occurred in the beginning of October. All of these events were as a result of the workers' poor living conditions, inadequate health care benefits and a load of overtime hours. Apple's speedy response has been triggered by the growing global concern regarding Foxconn's unethical practices towards its workers. Apple has agreed to work along with Foxconn and the Fair Labor Association in order to ensure that its suppliers in China start carrying out more ethical practices such as hiring more workers, improving living standards, and providing more training. Following the 5 Step Process to Solve Ethical Problems would have helped the CEO of Apple solve the issues at Foxconn, right when they first occurred, back in 2010. The process would help determine an appropriate action plan that is both ethical and beneficial for the stakeholders. It would help establish and encourage appropriate moral grounds throughout the company and it would also encourage the company to continue acting ethically, by regularly auditing its decisions. This decision would be beneficial because being ethical can make a company more favorable, in the eyes of the general public, when compared to its unethical competitors.

Foxconn Technology Group, a subsidy of the Hon Hai Precision Industries Ltd. is one of the world's largest electronics manufacturers. It ranks 43rd among Global Fortune 500 Companies. It manufactures hardware for a prestigious list of clients, including Apple, Amazon, Microsoft, HP, Dell, Nokia and Nintendo. In 2010, a series of suicides at Chinese Foxconn factories garnered media coverage and exposed the unethical practices carried out by them. The suicides were

You May Also Find These Documents Helpful

  • Good Essays

    In January 2012 the New York Times reported poor working conditions at Chinese suppliers, particularly in regards to a dozen suicides. “The facilities of Foxconn are fine, but the management is poor,” revealed Zhu Guangbing, who organized the investigation (Torres, 2012). Critics of Apple note, though, that half of the suppliers since 2007 have violated the suppliers’…

    • 718 Words
    • 3 Pages
    Good Essays
  • Better Essays

    BUS 475 Assignment 2

    • 1327 Words
    • 4 Pages

    There has been no change to Apple Code of Conduct policy since 2014 when Apple started taking previous audit scores into consideration and conduct detailed risk assessments with suppliers who had not been audited in the past before awarding the new business. In 2014, we reviewed 459 suppliers, and factored their responsibility performance into our decisions. This engagement has allowed Apple to address over 700 findings related to labor standards, worker safety, permits, environmental hazards, and chemical management before production began (Apple – 2014 Supplier Code of Conduct). Apple has made significant progress, gaps still exist, and there is more work to do. Apple knows that workers are counting on them and they will not stop until every person in their supply chain is treated with the respect and dignity they deserve (Apple - Supplier Responsibility 2015 Progress Report).…

    • 1327 Words
    • 4 Pages
    Better Essays
  • Good Essays

    China: Chinese Companies

    • 702 Words
    • 3 Pages

    1. What kinds of advantages can Chinese companies obtain if they move production into the United States?…

    • 702 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Imprinted under ethical policies on the website Apple states, “ We are committed to ensuring the highest standards of social responsibility wherever our products are made.” (Apple.com) Apple has fallen short on following through with their ethical policies. One of the companies most controversial supply chains Foxconn, located in Shenzhen, China, is at the forefront of Apple’s unethical issues. Foxconn, reported unethical working…

    • 148 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    In conclusion, I believe that the current state of business requires clarity now more than ever. Technology is advancing at an incredible rate, which requires companies to not only innovate much faster, but also to be able to make decisions faster. As observed by Martin Marietta and the defense industry in general, without an ethical framework to guide companies in their decision making process, fraud, waste and—more importantly—unnecessary mistakes are inevitable. A company’s ethics program is a rudder to steer them through uncertain business conditions. To use an analogy, had many of the companies that issued subprime mortgages had an ethical framework in place to prohibit loans to people that clearly could not afford them, the world would not be in this current economic downturn. The fact is that there were no laws preventing such business decisions. If these companies would have had a relevant ethics program—one that incorporated the tenants of corporate social responsibility, perhaps we would have avoided the…

    • 1481 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Fin 370

    • 713 Words
    • 3 Pages

    HP has been noted to be one of the chief corporations in the area of computer technologies. Ethisphere Institute naming HP as one of the 2009 World’s Most Ethical Companies (HP Global Citizenship: Ethics and compliance, n.d.) was one of the companies latest accomplishments. HP had to make numerous in-house changes in order to acquire an ethical award brought about by ethical mishaps. Noted in Markkula Center (2007), HP unethical corporate conduct landed a payout of 14.5 million dollars as component of a California lawsuit agreement. Part of the resolution prompt HP to rework the ethics and compliance division, develop reporting and partnership efforts, and to make available neutral case management staff (p. 7).…

    • 713 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Exxon Mobil

    • 1633 Words
    • 7 Pages

    Exxon mobile also know as Xom in the New York Stock Exchange is on of the largest producers of fossil fuels. Exxon engages in oil and gas exploration, production, supply, transportation and marketing in a global economy (Bloomberg). They hold over 13 billion barrels of oil in reserve. Exxon also has thirty eight refineries spread over 21 countries (Annual Report). The company also has a thought put capacity of 6.3 million barrels of oil daily.…

    • 1633 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Apple’s position on its ethical and social responsibility should be in direct correlation to Apple 's reputation as it is to the credibility of its products Apple has clearly cited on many occasions the belief that accountability is paramount for them as well as their suppliers. Apple’s supplier code of conduct states their employees are empowered and provided with safe and ethical working conditions. It is their representation that their code goes beyond the industry standards, which should be expected of a company of its magnitude and success. Standing by its products and its impact on its presence in the local communities as well as reducing its negative impact on the environment are all stated in ethical policies and procedures set forth by Apple. In contradiction to its claims of going beyond industry standards it’s documented the business has fallen…

    • 1239 Words
    • 4 Pages
    Better Essays
  • Good Essays

    case study

    • 664 Words
    • 2 Pages

    2- In its response to problems in its contract factories, do you think Apple moved through the stages of corporate citizenship presented in this chapter ? Why or Why not ?…

    • 664 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Apple Inc. said it found more than a dozen serious violations of labor laws or Apple 's own rules at its suppliers that needed immediate correction. The findings were outlined in a company report on audits of 102 supplier facilities conducted in 2009. That was a year in which questions about the practices of one of Apple 's suppliers came into focus after the suicide of a Chinese worker who held a sensitive job handling iPhones. Along with many other technology companies, Apple, based in Cupertino, Calif., relies…

    • 761 Words
    • 4 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Ethics During Change

    • 338 Words
    • 2 Pages

    Companies face many types of challenges, from financial strain to competition. However, ethical challenges can be harder to detect and more difficult to fix because they often aren't visible until the issue has taken over staffs emotions. While there are several ethical issues that face a company, some stand out more than others. (Belcher, 2014)…

    • 338 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Apple Islave Case

    • 1393 Words
    • 6 Pages

    In an attempt to ameliorate, Apple has conducted around 312 audits where more than half of the suppliers have violated at least 70 or more standards of the suppliers code of conduct, and the company web site says that if a supplier does not make changes to after 90 days of being notify about the violations, Apple will terminate the relationship. Nevertheless, less than 15 factories have been terminated since 2007. Also, an advocacy group from Hong Kong report the unsafe conditions at the Chengdu plant, and they specifically pointed out the problem with aluminum dust and poor ventilation, but Apple did not do anything about it. Two weeks later, Chengdu plant exploded because of the aluminum dust. About this incident Nicholas Ashford, an occupational expert from the Massachusetts Institute of Technology said:"… If it were terribly difficult to deal with aluminum dust, I would understand. But do you know how easy dust control is? It is called ventilation. We solved that problem a…

    • 1393 Words
    • 6 Pages
    Good Essays
  • Better Essays

    The Change Petition

    • 2148 Words
    • 9 Pages

    A Washington-based communications worker Mr. Mark Shields deserve to praise who organized The Change petition calls on Apple to release a worker protection strategy for new product releases, saying that injuries tend to spike at times when staff are under the most pressure. Mr. Shields intended to raise Apple’s attention to the workers who worked in poor working conditions. He collected over thousands of signatories from public to support the petition and asked for Apple to do more to ensure its Chinese factory workers can be treated better. The product, iPhone 5 to be made ethically.…

    • 2148 Words
    • 9 Pages
    Better Essays
  • Better Essays

    pay and harsh conditions Foxconn was one of the best places to work for low-skilled workers.…

    • 592 Words
    • 2 Pages
    Better Essays
  • Better Essays

    Sexual Harrasment

    • 1150 Words
    • 5 Pages

    Best Buy, as one of the biggest electronic sellers on the market, becomes in last four years the world`s most ethical company according to Ethisphere Institute. Best Buy`s reputation was almost gone when CEO Brian Dunn was accused form inappropriate conduct, vendors gift, and conflicts of interest in March 2012. The core values of the company were signed right from the beginning of the company. Best Buy realized that by following the ethical management they will get more results so they put the ethics first. One of the most important parts of best buy ethic system is Ethic officer who is responsible for dealing with ethical issues within the company as well as with their external parties. Rules and values for each stakeholder of the company can be found in Core of conducts of the company. However, Best Buy`s reputation was almost gone when Brian Dunn, CEO, was accused form inappropriate conduct, vendors gift, and conflicts of interest in March 2012.…

    • 1150 Words
    • 5 Pages
    Better Essays

Related Topics