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Foxconn: Not Entirely an Ocean Away OSR Journal of Student Research Volume 2 Article 15 2014 Foxconn: Not Entirely an Ocean Away Shana Fee Follow this and additional works at: https://scholarworks.lib.csusb.edu/osr Part of the Business Commons Recommended Citation Fee, Shana (2014) "Foxconn: Not Entirely an Ocean Away," OSR Journal of Student Research: Vol. 2 , Article 15. Available at: https://scholarworks.lib.csusb.edu/osr/vol2/iss1/15 This Article is brought to you for free and open access by the Office of Student Research at CSUSB ScholarWorks. It has been accepted for inclusion in OSR Journal of Student Research by an authorized editor of CSUSB ScholarWorks. For more information, please contact [email protected]. Fee: Foxconn: Not Entirely an Ocean Away 87 Foxconn: Not Entirely an Ocean Author Interview Away Which professors (if any) have helped you in your research or creative activity? Shana Fee Dr. Kathie Pelletier has helped me in my research. Keywords: Foxconn, China, Apple, Inc., social responsibility, human resource frame, ethics, What are your research or creative interests? organizational culture My research interests are toxic leadership, corporate social responsibility, business ethics, counterfeiting in the supply chain and socially responsible industrial engineering. What are your plans after earning your degree? What is your ultimate career goal? I plan to a rotational program at a pharmaceutical company and hopefully get involved in its supply chain functions. Ultimately, I want to become an operations manager at a medical device company like Medtronic, Abbott, or Roche. OSR Journal of Student Research│ Volume II, Issue 1, Winter 2014 Published by CSUSB ScholarWorks, 2014 1 OSR Journal of Student Research, Vol. 2 [2014], Art. 15 88 Overview: Corporate Social Responsibility, Why is This Relevant? Here and Abroad As Mueller (2011, p. 334) argues, Foxconn, a division of Taiwanese “multinational corporations are ultimately electronics giant Hon Hai Precision, has recently responsible for insuring humane working come under scrutiny both in the United States and conditions in their foreign manufacturing in China for a string of suicides by factory workers operations.” Apple’s relationship with Foxconn is in its numerous plants throughout mainland China. rife with controversy and should be the subject of Apple, Inc. is one of the many American some serious reframing so as to analyze those electronics companies that contracts with Foxconn problems with multiple lenses. Similarly, Low, for manufacturing due to the comparatively cheap Ang, and Ang (2013, p. 568) argue that “a business labor overseas. For the following analysis, one which subcontracts to another business also passes might consider the concept of corporate social on its social responsibility to others and would responsibility and how it pertains to corporations undoubtedly be held responsible for their whom operate on two sides of the globe. Preuss suppliers’ irresponsible actions.” For both (2013, p. 579) defines corporate social domestic operations and foreign operations, there responsibility, or CSR, as “a philosophy – and a should be no double standard in worker treatment corresponding set of tools – according to which a merely because the two groups are an ocean apart. company acknowledges and manages responsibilities to a wider group of stakeholders The Human Resources Frame and the than just the providers of capital.” In light of the Deprivation of Life Itself recent suicides at Foxconn, Apple has tried to distance itself from the scandals. But are Apple Bolman and Deal (2008, p. 117) note that and Foxconn truly a world apart? “the human resource frame centers on what organizations and people do to and for one Primary Problematic Organizational Factors another.” This frame relies on assumptions pertaining to “fit” between human needs and Terry Gou, CEO of Hon Hai Precision and organizational requirements. However, if one founder of Foxconn, has defended the conditions were to view Foxconn through this lens, he or she for workers in Foxconn plants in Longhua and would discover that the organization’s Shenzhen by arguing that the increasing number of assumptions rely less – if at all – on the “fit” and suicides can be explained by the increase in more on the organization’s requirements. As China’s GDP (Chang, 2010). However, external demands for Apple products skyrocket with each forces such as Chinese regulations are not the only new version or update, workers in Foxconn factor contributing to these problems; internal factories are subjected to pressure and harsh factors on all levels within the factories have treatment at the hands of management. Xu and Li become the subject of scrutiny in recent years as (2012, p. 5) note that this “management system the very structures and policies that govern the directly causes worker alienation, resulting in company have come into light. Foxconn operates workers’ collective trauma, and making workers’ under a strong vertical coordination structure, suicide a choice of using life as an expression of which emphasizes rules, control systems, and silent resistance.” In much similar fashion, authority. The company conducts itself much like Argyris suggested that workers adapt to these a machine bureaucracy with large operating core types of frustration through many different means, and, though few in number, dictatorial including resistance (Bolman & Deal, 2008, p. management and leaders in the strategic apex. 128-131). Furthermore, one could argue that Foxconn functions under Theory X assumptions that treat Cogs in a Machine workers as lazy, incompetent, and necessitating leadership. At Foxconn, the workers themselves An investigation undertaken by the U.S.- are, in every sense of the phrase, interchangeable based Free Labor Association, or FLA (2012, p. 8- parts of the machine. 12), found several troubling factors: workers’ OSR Journal of Student Research│ Volume II, Issue 1, Winter 2014 https://scholarworks.lib.csusb.edu/osr/vol2/iss1/15 2 Fee: Foxconn: Not Entirely an Ocean Away 89 average hours per week exceeded the and factory loyalty or contentment. To improve organization’s recommended 60 hours per week; the occupational well-being of its employees, exceedingly low wages; violations of government Foxconn could reduce working hours, provide regulations that interns could not work night shifts breaks, and appropriately compensate for or overtime; and lapses in communication leading voluntary – or, in some reported cases, involuntary to unsafe working conditions. Employees also – overtime. But even that is not sufficient; face lack of trust from leadership. There is a “strict Herzberg’s theory about the dichotomy between ban on communication on the shop floor” (Chang, hygiene factors and motivator factors argues that 2010), and workers there are surrounded by workers need to feel that their work is meaningful security guards, face policies regulating their and that they can learn, be recognized, and achieve behavior, and are subjected to body searches and (Bolman & Deal, 2008, p. 153). Fulfilling work physical abuse (Pun & Chan, 2010, p. 25-26). This and clean and safe working conditions would militaristic control over employee lives is a subtract from the monotony and make workers feel product of what Chang (2010) refers to as “social as though they are more than cogs in a machine. detachment, alienation and despair that are the result of an efficient – but ultimately unsustainable “A Culture of Secrecy” – system.” There is a pressing need to reframe how the organization views human capital. For The symbolic frame seeks to define illustrative purposes, let us consider that Foxconn organizational culture beyond paychecks, has considered moving further inland to China’s emphasizing factors that contribute to a Henan Province so as to reduce the rising costs of meaningful work experience. Bolman and Deal’s labor in the local governments and workers in definition reads: “a distinctive pattern of beliefs, Shenzhen (Barboza, 2010). Employees are values, practices, and artifacts, developed over painted as disposable and interchangeable parts; time, which defines for organizational members Foxconn will go where these “raw materials” are who they are and how they do things” (Pelletier, cheapest. 2013d). According to Barboza and Duhigg (2012), a former executive of Apple’s supplier Theories and Methods to Improve Employee responsibility group said that “there’s a real Occupational Well-Being culture of secrecy here [at Foxconn] that influences everything.” But the company also Foxconn operates under Taylor’s uses theater. It puts on displays of organizational “scientific management” principle, which seeks to theater for audiences both internal and external: maximize efficiency but in doing so makes internal theater reinforces culture, while external workers feel dehumanized (Pelletier, 2013a). theater is designed to showcase to external According to Pun and Chan (2012, p. 405), “on the constituents and critics that the company is factory floor, work stress associated with the conducting business in a lawful and responsible ‘scientific’ production mode and inhumane manner (Pelletier, 2013b). However, the FLA’s management is intense.” Maslow’s hierarchy of investigation of Foxconn was preplanned (Lucas, needs shows that physiological (survival) needs Kang, & Zhou, 2012), so Foxconn prepared ahead are at the base of the pyramid, meaning that those of time, with management as actors and workers needs should be satisfied first before workers
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