Foxconn's Labor Practices


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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.

Case Details:

Price:
Case Code : HROB141 For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Themes

Human Resource Management / Business Ethics & Corporate Governance
Case Length : 17 pages
Period : 2006-2010
Pub Date : 2011
Teaching Note : Available
Organization : Foxconn Electronics Inc.
Industry : Electronics Manufacturing
Countries : China

Abstract:

The case primarily deals with the growing concern over the numerous suicides at Foxconn which raised doubts about its labor practices. The case charts the growth of Foxconn into the league of top players of the world in the electronics manufacturing industry and provides multitude of contradictory viewpoints of various stakeholders like employees, suppliers, government, media, non-for- profit organizations, etc. It provides scope for an analysis of the labor practices at Foxconn and the probable reasons for the suicides. The case unfolds the steps taken by Foxconn to counter the suicide problem and provides Foxconn management's responses to allegations of poor labor practices. How various stakeholders play their part, react and counter-react to these measures is also seen.

Issues:

» Discuss the importance of good labor practices.

» Discuss the ill-effects of poor labor practices on the laborers' welfare.

» Elucidate how media reports of poor labor relations can affect the company's image.

» Discuss how media reports can build pressure from various groups affects customers of the firm.

» Analyze how a leading firm balances costs and negative publicity to keep various stakeholders happy.

» Analyze and discuss how the Chinese government acts when one of its leading manufacturing firms is accused of poor labor practices.

» Discuss the importance of having a strategy for good labor relations in place

Contents:

  Page No.
Introduction 1
Background Note 2
The Burgeoning Issue 3
Measures and Reactions 5
The Road Ahead 7
Exhibits 9

Key Words:

Human Resource Management, HR Practices, Labor Practices, Business Ethics, Foxconn, Company Image, Stake Holder Theory, Low Cost Manufacturing, Publicity, Industrial Relations, Sweatshop, China

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