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Foxconn and Apple Crisis

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Sam Wasserman

on 10 October 2012

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Transcript of Foxconn and Apple Crisis

Foxconn and Apple Crisis By: Sam Wasserman and Marci Ponto What is Foxconn? Apple Foxconn How Did They Respond? Denial: Foxconn did nothing and didn't admit that anything was wrong PRSA's Code of Ethics Apple How Did They Respond? Corrective Action: Apple took steps to repair the damage of the crisis
Sent issue to Fair Labor Associations
CEO of Apple visited Foxconn factories
Media invited to tour factories Problem With This... Although Apple responded, this has been going on since 2010. The conditions may be improving, but they are still poor. One Apple executive was quoted saying, “We’re trying really hard to make things better, but most people would still be really disturbed if they saw where their iPhone comes from.” -Foxconn is Apple's main supplier of its products The Crisis -News was released saying that the conditions at Foxconn were poor -There was a string of suicides in 2010 -Foxconn denied allegations -Apple responded in 2012 Foxconn is a China based technology manufacturer that makes iPhones and iPad. There has been between 9 and 13 incidents of employee suicide due to the poor working conditions and long hours. "We are certainly not running a sweatshop"
- Terry Gou (Foxconn Chairman) Honesty: When confronted about the poor conditions and suicides of the employees, Foxconn was not honest about what was happening in the factory, which resulted in nothing being done. Therefore, they weren't "adhering to the highest standards of accuracy and truth". Independence: Foxconn refused to hold itself accountable for the actions of its company and rather denied that anything was wrong. Corrective Action: Foxconn hired counselors for the employees as well as a 20% pay raise Full Apology: CEO of Apple Tim Cook released a letter to his employees and later media that stated
"We care about every worker in our worldwide supply chain. Any accident is deeply troubling, and any issue with working conditions is cause for concern. Any suggestion that we don’t care is patently false and offensive to us". -Foxconn should have commented on the suicides when they first happened Recommendation -Foxconn should have improved working conditions -Foxconn should have issued full apology -Apple should have stepped in sooner
-If your factory has a bad reputation, you have a bad reputation -Apple should have taken control of the situation if they saw that Foxconn wasn't -Should not have gone on for this long
Full transcript