APPLE AND FOXCONN:

ETHICAL ISSUESORLANDO, ALGERLINES, LISA, LEON, ANTHER

ETHICS

Ethics concern an individual's moral judgments about right and wrong.

Making the right decisions is imperative, because it is influenced by the culture of the company.

The decision to behave ethically is a moral one; employees must decide what they think is the right course of action.

Example: behaving ethically creates long-term profit.

THE IMPORTANCE OF PRACTICING GOOD ETHICS IN A BUSINESS.

attract customers to the firm's products; creating an increase in sales.

make employees want to stay with the business; creating a reduction in labor turnover and therefore increase

productivity attract more employees wanting to work for the business,

reduce recruitment costs and enable the company to get the most talented employees

attract investors and keep the company's share price high, thereby protecting the business from takeover.

Foxconn

Foxconn is the owner and CEO of three Chinese factories :Guanlan, Longhua, and Chengdu and is also supplier for Apple products.

Fair Labor Association (FLA) is dedicated to protecting workers’ rights around the world.”

FLA’s main responsibilities are to ensure the labor standards of wherever their products are made are met.

Foxconn Unethical Issues Investigation Investigation entailed: the health, safety, fair treatment and respect of

Foxcann employees. all three factories exceeded both the FLA code

standard of 60 hours per week including overtime.

Safety treatment ranging from hand injuries to factory vehicle accidents.

practicing without a compensation package that protects workers from losing income caused by reduced overtime.

Foxconn makes a commitment Compensation package that protects workers

from losing income caused by reduced overtime.

Overtime will be paid fairly as well as work-related meetings outside of regular working hours and retroactive pay will be paid to any worker due to unpaid overtime.

Documenting accidents is another factor Foxconn will improve on by insuring supervisors and workers to report all accidents resulting in an injury.

Globalization

Globalization is the trend of the world's economies to act as a single interdependent economy. It can also be described as the elevated mobility of people, education, ideas, goods and money across nationwide boundaries to make the world more intertwined in a sense.

Globalization: Apple and Foxconn Pertaining to Apple Inc and Foxconn, globalization

has been very kind, but at the same time had it negative effects.

When employing overseas, the company must ensure those companies follow the same rules as those on the United States territory.

Apple imposes strict rules on its overseas companies and counterparts than their own governments, especially in its ethics or human rights responsibilities.

Staying ahead of their globalization plans guarantees their continued progress in the market and its bottom line.

“What The Foxconn Robots Mean For Globalization”

This particular article talks about Foxconn building its own robots to replace its over 10,000 worker.

The story also relates to China’s economic growth and the march for globalization.

If China is successful with this replacement, there will be a huge gaping hole on the economic ladder.

“Delegation in Relations to Globalization” Delegation can be used with globalization because it touches on

trade, foreign, and direct investments. With trading, management can assign workers to go and visit other areas of interest along with foreign interest. Forms of Delegations

Direct Investment- allowing workers to research all investments that will directly empress on the company.

Technology- in the rim of allowing employees to voice their opinion pertaining to systems and databases used daily.

Innovation- it produces the possibility of growth and a new way of seeing things. Innovation for the Apple Corporation will enhance the companies’ movement for the future.

Diversity -the essence because it introduces the rim of differences and togetherness. Diversity as a delegation is a plus to any company, for that reason: this is a wonderful way of growth, as well.

Technology

As technology becomes more prevalent, globalization is a large consideration in a company’s success.

Companies outsource goods and services overseas because of cheaper cost and faster service.

With factories overseas meeting the supply and demand requirements of companies and consumers, many technological companies have chosen to move their massive manufacturing operations overseas.

Apple’s Human Resouce’s Needs Encourage Foxconn to add state- of –the –art machinery to help workers make apple

products.

Install safety regulations at Foxconn.

Incorporate a union that will protect workers at Foxconn

Give reasonable wages to employees and overtime pay so they can live comfortable too.

Give breaks at the job and vacation time to employees.

Make the dormitories more comfortable and enjoyable to live in as well as their work environment.

Stop employing underage workers and stop hiding them when it’s inspection time.

Make Apple consumers feel empathy towards the workers that actually make their favorite product.

Working Conditions In Foxconn Foxconn hide underage teenagers during a Fair Labor Association tour of their Chinese

factory.

Workers were exposed to harmful chemicals while working. One example such as n-hexane which is used to clean iPhone screens.

A deadly blast at Foxconn's Chengdu factory last May 2012 was no accident but only occurred due to lack work place safety.

Many Asian contract firms are not protected by federal or state laws like in the United States.

Students & Scholars Against Corporate Misbehavior (SACOM) discovered that Foxconn did not pay workers for overtime.

Low-paid factory workers have to meet their set targets, producing Apple products every 30 seconds and if a worker is 20 minutes late their pay gets deducted.

Foxconn workers receive “ hellish work schedules.” Foxconn’s dormitories are unbearable and Apple is looking to hire 300,000 more workers

to meet demand.

Abuse in Foxconn’s Factories

The pressures of meeting demands for Apple products and work environment it caused workers to commit suicide.

Workers rebelled and destroyed guard offices at Foxconn using fire hoses and truned over cop cars so the factory had to be shut down, and the violence stopped when the policemen arrived with guns.

Eight employees live in a small cramped dormitory room with one toilet which at times does not work.

The work environment is not safe for workers and it usually lead to workers losing their lives to an explosion and committing suicide which is becoming a repeated trend in Apple’s overseas factories.

Managers will yell at workers to increase production at the Foxconn and these workers putting together these products by hand without any help from machinery like in the United States.

Foxconn workers are receiving “hellish work schedules”

A Glimpse Inside Foxconn’s Factory

A Tour of Foxconn’s Factory

Child Labor

Foxconn Illegally hired underage workers.

Age Range of workers: 14-16 China’s legal working age is 16 years

old. There are 106 workers who are children

and are working at eleven factories to create Apple products with their own hands.

Regulations The company advised that this is not only a violation

of China's labor law, it is also a violation of Foxconn policy and immediate steps have been taken to return the interns in question to their educational institutions.

Employees are forced to work excruciating hours with little to no breaks and for little pay. Many regulations are not followed and often times, employees either contract life threatening diseases from the chemicals and hours.

The Taiwanese company that runs the factories, is committing to reducing weekly work time to the legal Chinese maximum of 49 hours.

Minimum Wage

Starting Salary is $2 an hour. They reportedly made about $244 a month and

were forced to work overtime if they didn't complete their projects.

They know that workers sleep in a tiny dorm (six or eight to a room) for $17 a month.

At the Foxconn Shenzhen plant, the minimum wage reached 1,800 yuan ($286) to 2,200 yuan($349) per month, higher than the 900 yuan  ($143) three years ago.

Secretive Pay-Roll

Investigators found 90 facilities that deducted wages to punish workers, prompting Apple to order the reimbursement of employees.

Mandatory pregnancy testing was found at 34 places of work, while 25 tested for medical conditions such as hepatitis B. At four facilities, payroll records were falsified to hide information from auditors, and at one, a supplier was found intentionally dumping waste oil "into the restroom receptacle

Changes of Income

The CEO of Foxconn also wants to change the entrance labor wages from $2 an hour to $635 by the end of the Chinese calendar. When Foxconn saw 11 deaths of employees at Foxconn’s Shenzen factory, jumping from high buildings in the first few months during 2010 and wanted to resolve this issue by having pay raises to prevent anyone else to kill themsleves.

STEVE JOBS INTERVIEW ABOUT FOXCONN

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