Cultural Differences In International Business Group 5 Final Presentation(Bus...
Apple and Foxconn's Issues Presentation
1.
2. 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.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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”
17. 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.
18. 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.
19. 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 yua
n($349) per month, higher than the 900 yuan
($143) three years ago.
20. 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
21. 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.