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The FoxConn Suicide : Case Study

The FoxConn Suicide : Case Study

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Published by: Hesty_Oktariza_633 on Jul 16, 2011
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06/30/2013

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 The FoxconnSuicides
A Case of OrganizationalBehavior’s Project
Lectured by : Mr. Irfan HabsjahPrepared by :
HESTY OKTARIZA
014200900073
MGT 2009 Class 3
President University
 
 C  a s  e n al   y s i   s   of   e  ox c  onn  S  ui   c i   d  e s 
2010
About
Foxconn Technology Group is a Taiwanese multinational company with itsmain plant operating in Shenzhen, China. Foxconn is hands down the largestmanufacturer of electronics, computers and computer components in the world.They produce items such as the Mac mini, iPod, iPad, iPhone, Dell Computers, HPmotherboards, Wii, Xbox 360,, Playstation 3, Amazon kindle, and Cisco Equipmentwhich are just the few name of their clients. This behemoth company employs asmall army of employees, over 300,000 in its Shenzhen campus factory alone.The Group's principal activities are manufacturing, processing and sellingcomputer, communications and consumer electronic (3C) products. Productsinclude computer terminal, computer, electronic calculator and peripheralequipment, as well as thermal modules and consumer electronic products.Operations are carried out in Taiwan and other countries. The Group exports itsproducts to Asia, the United States of America, Europe and other countries.
Foxconn Business Philosophy
Since 1974, Foxconn had always been guided by three Foxconnian visions;
Through the most efficient "Total Cost Advantages" to make comfort of electronic products usage an attainable reality for all mankind;
Through the proprietary one-stop shopping vertical integrated eCMMSmodel to revolutionize the conventional inefficient electronics outsourcingmodel;
Through the devotion to greater social harmony and higher ethicalstandards to achieve a win-win model for all stakeholders includingshareholders, employees, community and management.
 
 
 C  a s  e n al   y s i   s   of   e  ox c  onn  S  ui   c i   d  e s 
Issue on Organizational Behavior :
Why have suicides spiked at AppleiPad supplier Foxconn in China?
A ninth employee killedhimself Tuesday at theChinese electronics supplierFoxconn, which makes theApple iPad and Sony Ericssonphones, turning attention toworking conditions at thefirm's huge complex.
ByPeter Ford,Staff Writer / May 25,2010 , BeijingA spate of suicides among Chineseworkers making the Apple iPad, Sony Ericsson phones, and other electronic items hasdrawn fresh attention to working conditions in the factories supplying consumersworldwide with must-have gadgets..At 6.20 on Tuesday morning, 19-year-old migrant worker Li Hai threw himself to his deathfrom the roof of a building at electronics manufacturer Foxconn in the southern boom townof Shenzhen. He was the ninth company employee to kill himself this year. Two other would-be suicides have survived their injuries. Foxconn’s massive complex, employingmore than 400,000 people, has a reputation for strict discipline, says Geoffrey Crothall,spokesman for the Hong Kong based “China Labour Bulletin,” which monitors workingconditions inChina. “It’s a tough place to be and you have to be tough to survive.”TerryGou, founder of Foxconn’s Taiwanese parent company Hon Hai Precision Industry,insisted Monday that his firm does not run “a blood and sweat factory.”
Pays social security, offers cheap housing
By Chinese standards, Foxconn is not a bad employer. The company pays social securitycontributions for its employees, offers cheap housing and food, and pays overtime at thelegal rate. It has no difficulty attracting young migrant workers from the countryside.Company officials, professing bafflement at the recent suicides, recently took reporters ona tour of the newly built dormitories and swimming pools that Foxconn offers its workers.But a report in the respected “Southern Weekly” newspaper in Guangzhou, China, earlier this month, written by an intern who spent a month working undercover at Foxconn, painted a grim picture of alienation.Workers are required to stand at fast-moving assembly lines for eight hours without a break and without talking, the journalist reported. Workers, sharing sleeping accommodations

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