Foxconn's Labor Practices


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Case Details:
Case Code : HROB141
Case Length : 17 pages
Period : 2006-2010
Pub Date : 2011
Teaching Note : Available
Organization : Foxconn Electronics Inc.
Industry : Electronics Manufacturing
Countries : China

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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

In 1974, Gou founded Hon Hai Precision Industry Company Limited (Hon Hai) with US$7,500. Hon Hai was involved in making plastic switches for TVs. Over the years, it became a specialist in manufacturing mechanical and electrical parts at a very low cost. The company became a multinational firm with a presence in various countries and dealing in electronics contract manufacturing across the globe...

The Burgeoning Issue

According to reports, this was not the first time that Foxconn had been exposed for its unscrupulous labor practices.

In mid-2006, a British newsweekly The Mail on Sunday reported the problems faced by laborers at Foxconn. This report said that Lei Huang, a worker at Foxconn, had told activist reporters that the working conditions and hours were not employee friendly...

Measures and Reactions

The tragic news of the suicide attempts and deaths only elicited repeated responses from Foxconn that it was not at fault and that it had in place a Code of Conduct (Refer Exhibits VI & VII) and Business Policy and SER Guidelines which it said it religiously followed...

The Road Ahead

Few Reports citing figures of suicide rates in China threw up interesting facts. It was noted that the percentage of suicides at the enormous plant was far lower than the national average and that given the strength of employees in the factory city, the few suicides that had occurred could have happened anywhere regardless of the labor practices being followed...

Exhibits

Exhibit I: China's Low Cost Advantage (1995-2007)
Exhibit II: List of Recent Awards
Exhibit III: CAGR of Foxconn
Exhibit IV: Labor Contract Law of the People's Republic of China (September 2008)
Exhibit V-A: Labor Law of the People's Republic of China (March 2007)
Exhibit V-B: Labor Law of the People's Republic of China (March 2007)
Exhibit VI: Foxconn's Global Code of Conduct (CoC)
Exhibit VII: Business Policy and Social & Environmental Responsibility (SER)
Annexure I: History of Foxconn


  

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