CSR Policies & Initiatives: In the wake of mass staffs suicide

OUTLINES
Vision,

Mission, Strategy CSR of Foxconn Market Forces Analysis Stakeholders Engagement & Phase Model Key Issues & Gaps Recommendations Conclusion

China . London. Founded 1974. Taiwan. Taiwan World largest contract manufacturer of 3C products 500 largest global Co. HK. GROUP HON HAI PRECISION INDUSTRY CO.FOXCONN TECH.

high quality 3C products possible .VISION Cost Advantages Vertical Integrations Devotion to greater social harmony and higher ethnical standards Total MISSION Provide electronics users the most cost-effective.

STRATEGY Develop strategic relationship with industry leaders Focus on the development of global logistics capabilities Expansion of production capacity Vertical Integration Maintain technology advance and flexible production capabilities New Products .

CORPORATE SOCIAL RESPONSIBILITY (´CSRµ) OF FOXCONN« .

g. .g. 2008. Corporate Social & Environmental Responsibility Report. e. Industrial Engineering Academy in ShenZhen Source: Foxconn. Some areas of the CSR of Foxconn: (A) Employees  Work Life Balance. Foxconn Global Social & Environmental Responsibility Committee ² an Executive Director was appointed to lead this group. Program provides e. caring for newborn babies & managing family finance  Employee Education.

 Occupational Health and Safety ² 700.  Supplier Employee Education & Development ² for line operators.«CSR OF FOXCONN (CONT·D)  Advance Degree Education ² there are 10.000 employees world-wide.000 have participated under Foxconn·s sponsorship. safety culture: ´zero incidents and zero injuriesµ focus on prevention .

«CSR OF FOXCONN (CONT·D) (B) Environment  Energy conservation  Reducing emissions  Tree planting  Recycling .

education. culture & safety. poverty.«CSR OF FOXCONN (CONT·D) (c) Community Initiatives  ´Yongling Foundationµ was established in Taiwan & work together with China Communist Party in China ² medical care. alleviation.  Support for minority populations .

«CSR OF FOXCONN (CONT·D)  Charity world-wide Christmas 2008 in the Wilson de Oliverira Nursery Adopt a child Campaign 2008 South America Donations to S.S Santa Catarina 2008 .O.

«CSR OF FOXCONN (CONT·D) (D) Supply Chain SER Management Foxconn screen supplier. will terminate business relationship if they involve the following:  Child labor  Forced or prison labor  Release of poison or hazardous materials to the environment or violate environmental laws  Working conditions that damage employee health .

MARKET FORCES ² The BUYERS 80% Bottom line Buyers Pressure .

CSER audits. Business Meetings Scheduled Meetings. Presidents Letter Box Customer Audits. Employee Hotline.STAKEHOLDER ENGAGEMENT Stakeholder Communication Satisfaction Survey. Carbon disclosure Project & hazardous substances Increased ROI Degree of Power Weak Employee Customer NGO Shareholder Strong Strong Strong . barrier free communication Code of Conduct. Annual CSER Review BOD Meetings Results/Issues Proper work environment. International forums.

Proactive Sus.SUSTAINABILITY PHASE Rejection Non Responsiveness Compliance Efficiency . Strategy as source of CA Sustaining Corporation .Systematic Attempts to use resources effectively for decreasing costs Strategic Proactivity .

html .KEY ISSUES ´No.voanews.com/english/news/europe/France-Investigates-Suicides-at-Telecommunications-Companyhttp://www1. Public blaming on CSR Complaint on harsh working environment & militaristic working style ´More than 40 France Telecom employees have taken their lives since 2008µ http://www1.com/english/news/europe/France-Investigates-Suicides-at-Telecommunications-Company-90571979. of Suicide incidences increase in Foxconnµ.voanews.

0 % Note: Number of suicides per 100.000 of the population. AND GENDER. YEAR.SUICIDE RATES (PER 100. ** Hong Kong SARSource: World Health Organization.8 % 13.000). * Selected rural and urban areas in China.who. Data as of May 2003. Male Female 14. Most Recent Years Available. BY COUNTRY.int/mental_health/prevention/suicide/suiciderates/en/print. Downloaded in August 2005 from WHO web site at: www.html .

GAPS BETWEEN ISSUES Issue in China Business Unit Policy Long working hours Claim to do 100 hours extra for overtime Has policies sanctioning any practice of compulsory overtime and all overtimes are results of employees' voluntary participations Harsh working Has conducted a nonconditions tolerance policy to anyone Militaristic working style who imposes any kind of physical punishment to her employees/subordinates .

RECOMMENDATIONS Strengthen & Expand their BCP. reduce consumption and labour requirements.employees Cultural /Social Study on community values Damage control for bad press received on employee treatment ² can jeopardize relations with suppliers . .Risk management for terrorist / disease at their plants worldwide Innovation in technology. Pay more attention to stakeholder .

RECOMMENDATIONS Screen employees to detect those having psychological problems or those with family history of depression. less stressful) Engage independent and reputable external audit committee to Audit their HRM policies and implementations and NGO·s . Minimize OT by raising basic salary Piped in music to create a stress less working environment (Muzak & Hawthorne Studies ² improved productivity.

Employee suicide statistics in European countries are as high but have not drawn worldwide attention. .CONCLUSION Foxconn adopts good CSR & employee practice as evidenced by their many contributions to the local community and by the above average facilities provided at their campuses. The recent happenings are not a direct result of any practices. uncommon to the working conditions in China.

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