KEY STAKEHOLDERS AND JUSTIFICATIONS
are one group of key stakeholders which Guo should consider in thedecision making process. The well-being and morale of the workers are clearly affected due to thelow wages and work environment. An troubling prospect is that workers may be motivated bymoney to commit suicide, as the employment contracts compensates RMB100,000 the families of anyone who dies on site. The amount is 50 times of the monthly pay of an average employee.
If this issue is not adequately addressed, more suicides could ensue.Guo must also consider the
of Hon Hai and Foxconn. When news of the suicides
broke, share price of Hon Hai fell as much as 5.1% in Taipei, while Foxconn’s
share priceexperienced an 8.5% drop on the Hang Seng Index.
Such negative publicity has possibly led to a
decrease in investor’s confidence in the company’s ability to handle the situation
, which resultedin a drop of the share prices.Finally, Guo should think about the
which Foxconn serves. Foxconn is able to be thesupplier to major electronic companies is because it has managed to keep its costs low. If Guodecides to increase the wages and provides more facilities to the workers, Foxconn mayinadvertently be forced to pass on some of the increased costs to its clients, which may ultimatelyresult in Foxconn losing its clients to its competitors offering lower costs.
BBC News, 2010
Culpan, Tim and Lee, Mark, 2010