Apple and Foxconn Dilemma

Topics: Apple Inc., IPhone, Steve Jobs Pages: 9 (3177 words) Published: April 8, 2013
Apple-Foxconn study
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Problem Regarding Apple supplier- Foxconn4
Real situations5
Apple role-Leadership6
Organization structure8
Measure for improvement10

Apple Inc, nowadays is one of well known leaders in the field of electronics items. This American multinational’s headquarters is in Cupertino, California. Its best known products are Mac lines of computers, the ipod, iphone and ipad. There are many competitors are in the market but the apple is known for its innovation in the product design so it is able to hold the majority of the customer base. The company has approximately 394 retail stores and a presence worldwide. The labor practices are a cause of concern for company for a long time especially in the region and production sites belonging to China and other developing countries. The condition of the worker working with the firms of Apple supplier and other major brand is reported not up to the standards as per of western countries. The major electronics companies outsource their work to China because their workforces are cheap and labor laws are also not strictly as in western countries, so they have a major chance to produce the items as mass production at much cheaper rates. The companies always promise to strengthen the regulatory process so that suppliers cannot exploit the workers but in reality they have secret agreements with suppliers and normal auditing outcomes are done in which falsifying the record and hiding the truth became a common phenomenon of suppliers. Generally it is seen from the behavior of the giant company like Apple that do the exercise to improve the conditions of the workers in their supplier firms only to show the media and avoid criticism only and their main motive is centered only to improve the number of productions at cheaper price. Several laws are passed by the government to check the condition of the worker and various independent regulating agencies monitor the situation but the companies manage to show all practices well according to the policy of giving most of the work of production to supplier of Chinese origin where the norms are not strict as in the USA and UK used to be in general practices. Problem Regarding Apple supplier- Foxconn

From very early Foxconn is the trusted supplier working for many giant companies such as Apple, Dell, H.P, Nokia and Sony. But before the launch of ipad of Apple the company suffer from many cases of suicides which raises the attention of the media towards the plight of labor working in that factory in Shenzhen and Chengdu regions of China. The much reported incident is of the suicides of Sun Danyong, a worker of Foxconn, who committed the suicide on 16 July 2009 after losing the prototype model for the fourth generation model of iphone. In April 2010 four worker committed suicides in single months in the same factory of Foxconn. In May 2012 a blast occurs in the factory of Foxconn in Chengdu due to improper ventilation system of aluminium dust, which claims the lives of four people including Lai Xiaodong and 18 were badly injured. In December 2012 another factory involves in polishing the case of Ipad had burst in Shanghai. All these incidents were the result of the accumulation of aluminium dust and company has learnt lesson from the first incident and if standard producers were followed in all the working units then the second incident which injured 59 workers can be stopped or can be avoided. The company very times promise to do a detail investigation to find the cause and take necessary action to avoid the accident in the future but in reality the company only pay the money to the relative of a deceased person and set up the...

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