The relationship between Apple and Foxconn displays a strong primary example of the ethical issue. She eventually would get a job with the company, but in its Taiyuan plant, a 10-hour bus ride away. She left her 1-year-old daughter back in Shangqiu with her mother and hasn't seen her since she left home. After several suicides and suicide attempts at Foxconn's factories, including this one in Shenzhen's Guanlan neighborhood, the company installed netting to discourage employees from jumping off its buildings. A 21-year-old worker at one of the two Foxconn plants in Shenzhen, whose family name is Liang, said managers there are often abusive. Coursework Writing Service that You Will Like. And in response to the wave of press coverage about and activist condemnation of the conditions at those plants, Apple Chief Executive Tim Cook took offense at any suggestion that the company is indifferent to the workers in its supply chain. There are other, less obvious issues adding to tensions in these teeming facilities. Henan province, of which Zhengzhou is the capital, has a population of 94 million. From the outside, the dorms look like apartment buildings you'd find in an American city. Whether or not it works, Apple has done all they can. Guards prevent visitors from entering. ZHENGZHAO, Henan province, China -- If you want to understand why iPhones are made in this corner of the world, look no further than Li Yue. She's referring to people like Li Yue, the new Foxconn recruit I met who hopped on the bus to Taiyuan. Supervisors forced workers to overwork, toilet breaks during the shift were not allowed, employees had to attend unpaid meetings, and day and night shifts caused physical and mental issues whereas one day off within two weeks did not give the possibility to recover (Chan, 2013b). The employees were working for long hours and under poor environment, which was detrimental to their health (Seele, 2012). -Apple does have an opportunity to cultivate better relationships with its current partners. But the new … Similarly, Apple agreed to help Foxconn develop a counseling center so that workers could vent and express themselves (Weir). The streets near Foxconn's Zhengzhou dormitories are lined with vendors, selling food and clothes. It's fair to say that for most of them, the only time they'll hold a iPhone 5 is when they're putting one together. In this paper we are going to address ethical issue faced by Company Apple (Foxconn) Labor conditions, we are also going to study effect of these issues on stakeholders of the company; in the last we are going to list some recommendations to avoid these kinds of ethical issues. Li Yue, a 21-year-old student, waits outside a recruiting kiosk outside a plant run by Foxconn in Zhengzhou, China. The life cycle of an iPhone isn't all that different than that of a Samsung or an HTC phone, and nearly every modern mobile phone is made by Asian contract firms, where worker rights aren't protected by federal and state laws as they are in the United States. Ben Sin … Foxconn, which makes products for Apple and plenty of other tech giants, including Dell and Hewlett-Packard, is huge, employing 1.1 million people in China. And Apple's PR moves on this issue have involved more than just words. From the outside, the buildings are modern, if a bit ordinary. On the other hand, Foxconn is a Chinese multinational company that attains contracts to manufacture electronic products for different companies around the world (McCullough, 2012). Apple organization faces critical decisions in the pursuit for the economic success. Liang, who puts parts on iPhone motherboards, got in hot water with his boss for a mistake a few months earlier. They are nondescript brick structures, often 12 stories high, row after row of them. That's particularly true as Foxconn opens new factories in inland cities, where opportunities are scarce. © 2020 EssayTyping.com. There, I hired a three-wheeled, engine-powered cart, something that might be called a "tuk-tuk" in other parts of Asia, though here it seemed to be known as motorized tricycle. The company has hired a group to audit workplace conditions, the Fair Labor Association or FLA, as a result of the issues raised in recent months. As a result, his boss told him to write up a note about the mistake that was then posted on a bulletin board. 4 Recommendations (300 words) 5 Limitations. Be respectful, keep it civil and stay on topic. Consider Zhengzhou. The report said that some workers weren't compensated for their overtime. But she still lined up for the interview, during which recruiters asked the most basic questions and look for scars and tattoos, according to Li. Orange trash bins with Foxconn's logo dot the campus. Apple and Foxconn both said this issue has been corrected. The relationship between Apple and Foxconn is that Apple outsources the production activity of its products to Foxconn. The company also noted that workers could complain through its union. Foxconn was the main social actor cited in most news coverage. Foxconn said "a personal dispute between several employees escalated into an incident involving some 2,000 workers," leading Foxconn to suspend operations at the plant for a day. [HOT] Apple And Foxconn Ethical Issues Essays . Ethical Issues Associate with the Company "Apple (Foxconn) Labor Conditions Ethical Issues Associate with the Company "Apple (Foxconn) Labor Conditions Introduction The problems of business ethics are as old as entrepreneurship. Apple, who is the largest client of Foxconn, has also been thrust into limelight after being accused of ignoring the issue and being indifferent to the workers in its supply chain. Apple denies claims that staff experience poor working conditions in the Foxconn factory. After listening to workers here, as well as at Foxconn's Shenzhen plant and Pegatron's Shanghai facility, a complex picture of working conditions emerged. The purpose of the paper is to provide the overview of the ethical issue, analysis of the dilemma using ethical lenses, and provide some recommendations to reduce the issue. Foxconn, which makes products for Apple and plenty of other tech giants, including Dell and Hewlett-Packard, is huge, employing 1.1 million people in China. If it does not lead to ethical solutions, then their best option is to find a new supplier who will treat employees with dignity and respect. Other than the vendors, most of the people walking these streets work at the Foxconn factory. digging-for-rare-earths-the-mines-where-iphones-are-born. Nearly every worker with whom I chatted had a complaint. Foxconn, for its part, has tried to address issues as they’ve come up, making its factories safer and increasing pay to improve morale. After media reports surfaced about Foxconn allowing overtime in excess of Chinese law, which limits overtime to 36 hours a month, her boss has limited her opportunities to work longer shifts. Apple has defended its ethical standards after a newspaper reported factories in China rely on child labour, 24 hour days and unsafe conditions to manufacture iPhones, iPads and computers. All Rights Reserved. Late Sunday night, the Taiyuan factory, with more than 79,000 workers, was roiled by violence. The issues culminated in 2010 when 14 employees working for the company committed suicide as a result of the pressure emanating from their job. -A Supplier Code of Conduct is used to set standards for suppliers such as Foxconn to follow government laws and international business policies. But Foxconn, in a statement to CNET made prior to the riot that occurred over the weekend, acknowledged problems and said it is working to improve conditions. Ma tries to add as much overtime as she can to supplement her salary. There, it's a lively street scene outside, as residents socialize, while occasionally picking up a snack or shoes from the kiosks that line the roads. You might think the complaint sounds familiar. The work itself, Ma said, isn't really all that bad. Apple has recently done audits of these companies and given pay raises to the workers there. PS5 restock news: Inventory updates for for GameStop, Best Buy, Walmart, Amazon and Target, Xbox Series X inventory update: Get restock news for Amazon, Best Buy, Target, Walmart and more, Shopping for under-$100 holiday gifts? Ethical Dilemmas There were many ethical dilemmas after the Foxconn Apple scandal was exposed. Despite this, Foxconn ultimately faced many ethical issues as a supply chain of Apple’s products. Apple declined to comment on the riot. After all, many of us in the West aren't happy with our pay either. But the union is a toothless organization, whose leaders are appointed largely by management. Wages may be high compared with other jobs in China, but they are sometimes barely enough to cover rent in the huge dormitories in which employees typically live, and still leave workers with money to send to family members in villages who live on even less. But after she pays rent for a bunk bed in a dormitory room that she shares with seven other Foxconn workers and purchasing food that she often buys at Foxconn's canteen, there's generally no money left to send back to her home. “A recent review of our operations at our facility in Zhengzhou did identify some workforce compliance issues,” wrote Allanjit Singh, a spokesman for Foxconn, in an emailed statement. Rows of motorcycles are lined up outside in what must be employee parking, and the sidewalks on this side of the gates are almost entirely empty as workers assemble gadgets inside. Day 2: We look at the environmental concerns raised by mining for the raw materials of the iPhone and what happens to iPhones when people get rid of them. She puts in eight-hour days, five days a week, and tries to get as much overtime as possible. Meeting that demand has required an epic buildup of materials, infrastructure, and labor, all while satisfying Wall Street's need for bigger, more historic profits. Both Foxconn and Pegatron, another contract manufacturer that assembles iPhones in China, declined my request to visit their facilities. While impressions of working for Foxconn vary, one feeling is constant. These are your best options, Discuss: Riots, suicides, and other issues in Foxconn's iPhone factories, From rocks to recycling: The life of an iPhone, Foxconn addressed several workplace concerns, Watchdog group once again blasts Foxconn, Apple over labor, iPhone 5 sales top 5M units over first weekend, Apple says, Apple supplier Foxconn confirms worker riot at Taiyuan factory, iPhone 5 full review: Finally, the iPhone we've always wanted. "Foxconn is not perfect, but we have made tremendous progress," the company said, pointing to the hiring of mental health professionals and an expansion of extracurricular activities for employees. Apple is not ignoring the issue. And she had read articles online about the working conditions at the company's plants. ), "It's very hard to get a job at Foxconn," Li said, with her pink purse and a grocery bag full of food in her hand. A New York Times investigation of the manufacturing of Apple products in China in January painted a picture of a company that wants to improve the workplace at its partners such as Foxconn but "falters when it conflicts with crucial supplier relationships or the fast delivery of new products.". But even when Apple and Foxconn looked at its worst, Apple made headlines for all the right things (from an investor's standpoint): Its big profits and its popular new gadgets. There's plenty more action on the other side of the factory. "The employees always say the people outside want a job," one employee told me in an interview, "and the people inside want to quit.". In conclusion, Apple's and Foxconn's violations were unacceptable. But the job comes at a price. Not a specific job, mind you. The Washington D.C.-based Fair Labor Association is currently carrying out an Apple-sanctioned extensive study of work conditions at Apple's top eight suppliers in China, including Foxconn, the world's largest manufacturer with close to 1.2 million workers in China alone. The driver suggested we simply walk through the Foxconn gates, past the security guards. "Foxconn can always get more people to work for them.". Essay about Foxconn and Apple 1630 Words | 7 Pages. Chinese media report Foxconn plans to employ 300,000 workers here within a few years, but it's still all Foxconn and Apple can do to keep up with demand. They move among cities such as Taiyuan, Zhengzhou, Shenzhen, and others where iPhones are made as needs arise. This issue is very important to consider for Foxconn, and even for Apple as the company is always committing to provide safe and healthy working conditions, fair wages, treat their employees with dignity and respect. Critics dispute that Foxconn has done much of anything to improve working conditions. Workers like Li are in such abundance that they've become a resource in much the same manner as aluminum or plastic. Apple is perceived as one of the dominant technological and innovative company providing the world with its technology. It cited "inadequate training and protection" for employees using chemicals in the production process. Foxconn, for its part, has tried to address issues as they’ve come up, making its factories safer and increasing pay to improve morale. Discussion threads can be closed at any time at our discretion. "I am required by the factory to do overtime," says a 26-year-old man whose family name is Zhang outside the gates at Pegatron's Shanghai factory. However, Apple has taken the right approach in correcting all of the issues at Foxconn. On the unethical side poor working conditions there have gone on for years with numerous accidents and fatalities. But not overwhelming. The idea of receiving higher pay hasn't dawned on her. Ma works in the service department, logging the defects of iPhones pulled from the assembly line into a computer. For her, the answer is overtime. What makes life hard at the giant plants that make iPhones and other staples of high-tech life? Foxconn and Pegatron both produce products for many other companies; this might be a huge factor in Apple ignoring the underlying issues. Li, wearing a white T-shirt and blue jean shorts and carrying a pink parasol to beat the heat on a scorcher of a June day, was among a group of a dozen or so candidates applying for a job with the Taiwanese firm. "In addition to this ambitious project with the FLA, we've been making steady progress in reducing excessive work hours throughout our supply chain," the company said in its statement. "We track working hours weekly for over 700,000 workers and currently have 97 percent compliance with the 60-hour maximum workweek specified in our code of conduct.". SACOM interviewed 60 workers in Zhengzhou, detailing continuing problems at the Foxconn plant. A CNN documentary team went there and filmed the companies average work day. Despite this, Foxconn ultimately faced many ethical issues as a supply chain of Apple’s products. And the group even found that some workers need to acquire an "off-duty permit" for a toilet break. Both the US and Chinese newspapers framed the case as a China-specific problem, ignoring global social justice and world economy aspects. A 26-year-old woman sits down with me at a food court on the ground floor of one of the dormitories. And she's terribly worried about rumors that property management company that runs the dorms in which she and 85 percent of the Zhengzhou workforce live is going to increase its rent. Apple Inc. is a multinational American technology company which sells consumer electronics that have been claimed by critics to combine stolen and/or purchased designs that it claims are its own original creations. The Apple-sanctioned March 2012 report on Foxconn, which audited three of the company’s factories, found at least 50 issues violating the FLA code of conduct and Chinese labor law. And Pennsylvania. "Of course, everyone would like to make more money, but there is no way to ask for that," Ma said. Excavators move dusty, dry earth, while skeletons of long factory buildings and 12-story dormitories form a changing skyline. I didn't try to walk into buildings, where I'm certain I would have been stopped. Similarly, Apple agreed to help Foxconn develop a counseling center so that workers could vent and express themselves (Weir). On the other hand, Foxconn is a Chinese multinational company that attains contracts to manufacture electronic products for different companies around the world (McCullough, 2012). Among the hundreds of companies producing and selling consumer electronics, Apple is frequently cited as the poster child of companies partnering with factories in China that are engaged in unethical and inhumane labor practices.“Your Conscience Calling” (shown here) was a graphic used in a February 2011 Wired Magazine article about Foxconn. She spoke more than passing English. On January 29th the CNN report appeared which displayed graphic images of the Foxconn factory. She only gives her family name, Ma, for fear of retribution from her employer, Foxconn, for talking with a journalist without permission. Still, the iPhone is iconic. While Chinese authorities are investigating the cause of the riot, Foxconn said that it "appears not to have been work-related." "They pay more than other companies.". The two of them haven't talked since she left home. It's not as if Li, who just finished her first year as a student at Henan Police College, didn't have much going for her. The ethical issues that are presented are low working conditions, low wages and long working hours. She was bright and engaging. When I point out that Apple, which had $117 billion in cash on June 30, more than the gross domestic product of Bangladesh, might be able to afford paying Foxconn more so its workers could earn a larger paycheck, Ma just shrugged. Apple is a multinational company based in the United States. Cited Work Adams, S. (2012). She earns the 1,550 renminbi, or $244, a month that was common for Foxconn entry-level workers here before the August 1 raise. Apple on Monday denied most of what is in a report which alleges that the iPhone-maker and its manufacturing partner Foxconn violated Chinese labor … When a major new product such as the iPhone 5 is heading to stores, even more stress is put on that fast-growing manufacturing chain. The company provided a statement last night. But the grounds themselves are clean, if a bit dusty. In order to calm the global uproar, Foxconn agreed to raise the worker’s salaries (though not by much). Apple Chief Executive Tim Cook at the iPhone 5 launch. These are two separate entities operating in different geographical areas. Apple has become the first American company to reach US$1 trillion in market capitalisation – US$1,000,000,000,000 in stockmarket value. It may have been more than she bargained for. Both Foxconn and Apple have expressed condolences about last week's deaths, but the former has yet to respond to an email for further comment. 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