英国企业管理dissertation—富士康员工自杀的评估：An evaluation of the response of Foxcoon to suicides

富士康科技集团是全球3C（计算机、通讯、消费性电子）代工领域规模最大、成长最快、评价最高的国际集团。集团旗下公司不仅于亚洲及欧洲的证交所挂牌交易，更囊括当今捷克前三大出口商、大中华地区最大出口商、富比士及财富全球五百大企业，及全球3C代工服务领域龙头等头衔。集团多年来致力于研发创新，以核心技术为中心，包括：纳米技术、绿色制程技术、平面显示器技术、无线通讯技术、精密模具技术、服务器技术、光电 / 光通讯技术材料与应用技术及网络技术等。集团不仅具完善的研发管理制度，更在智权管理上努力耕耘，积极地以提升华人之国际竞争力为己任；截至2005年底已在全世界共获超过15，300件专利，因此集团不仅在美国麻省理工学院的全球年度专利排行榜中，是全球前二十名中唯一上榜的华人企业。

Introduction 

 

Foxconn technology group is the world's 3 c (computer, communications, consumer electronics) is the largest and fastest growing foundry field, evaluation of the highest international group. Corp., the company not only in Asian and European stock exchange traded, more from today's top three exporters, the greater China region's largest exporters in the Czech, Forbes and fortune global five hundred companies, and 3 c global foundry services etc. Group over the years dedicated to research and development innovation, centering on the core technology, including: nanotechnology, green manufacturing technology, flat-panel display technology, wireless communication technology, photoelectric technology, precision mould technology, server/materials and application of optical communication technology and network technology, etc. Group with perfect r&d management system not only, more hard work on the intellectual rights management, actively in order to enhance the international competitiveness of Chinese as own duty; Around the world by the end of 2005 has got more than 15300 patents, so group in the United States at the Massachusetts institute of technology not only global annual patent list, is the only Chinese in the world's top 20 companies. 

 

Foxcoon, recognized as the largest multinational company of manufacturing and exporting electronic components, accepts quantity of orders from its fixed clients include major International electronic and information technology companies such as Apple Inc designing iPhone, iPad and so on. (CNN Money, 2012)  However, the rapid progress in manufacture also brought numerous negative impacts to Foxcoon, such as the increasing suicide rate of workers, intense conflicts with competieors.  Meanwhile, the response of Foxcoon to theses events whether excellent or not is defined as crisis management.  This article is to evaluate the action Foxcoon took after encountering incessant suicides covering three aspects: working conditions, labour insurance and mental health of workers; And, an comparatively rational conclusion will be drawn in the end. #p#分页标题#e#

 

Main body 

 

-Allegations of poor working conditions 

Although the company has created splendid interests in these years, the basic working conditions for most employees seems to remain the same as before, even after experiencing several suicide events.  For instance, in 2010, the branch factory in Shenzhen was described as possessing a large kitchen providing 60,000 meals, and spending 30 million yuan on medical treatment and 70 million establishing a free laundry centre for all employees, but purposed on ensuring the high working efficiency of staffs instead of concentrating on authentically improving their life quality. (Foxcoon, 2012)  Besides, staff also complained toughly about dinners in their mess hall while the fact that Foxcoon utilize eggs crawling with maggots to provide breakfast for its workers. (Nddaily, 2010)  For another, it was reported that employees had to share only their fairly little rooms with others even there were more than 10 people. Worsely, life would be tough for the labours especially in summer and winter for that no air-conditioner is supplied. Most employees cannot stand these and unfortunately, some of them jumped from high above and used this action to express their intense protest to the managers of Foxcoon.  After realizing that the increasing number of suicides is almost out of control, managers in Foxcoon was forced to review their errors and promised to provide a significant raise in payment and introduced the new 'no-suicide contract' to prevent other workers from committing suicide. (Zaobao, 2010)  However, management like these actions has fairly effects on settling the whole problem, even worse, further information focused on the inside story of employees real states exposured to the public in a while. As a result, this successfully proboked the world's wrath, some of Foxcoon's major producers stopped their cooperation for most of their customers required improving benefits for the basic staffs or they might refuse to purchase goods produced by sweatshops.  

 

The current logistics service has developed rapidly, the strategic logistics management to become the new trend, wal-mart using strategic management thought successfully improved the level of logistics management, at the same time, the company use JIT purchasing firm stand a place among the fierce market competition in the United States, through wal-mart, a study in this paper, through the logistics cost management and the JIT production and development of the advanced nature and characteristics of JIT purchasing, analysis of wal-mart success, logistics management of China's enterprises should draw lessons from the advanced strategic cost management idea, strategic goal oriented, applying the idea of value chain and supply chain management, and other strategic management process optimization of logistics cost management. #p#分页标题#e#

 

According to the China federation of logistics and purchasing, the Chinese logistics yearbook (2005) reported in China since 1992, annual logistics costs account for the more than 20% of GDP, well above other countries and regions. Therefore, has great reduce logistics cost and improve the efficiency of the national economy. For enterprises, saving raw materials is the "first profit source" of the enterprise, reduce labor costs is the "the second profit source" of the enterprise, and after this, reduce logistics cost is known as the "third profit source" of the enterprise. In the current fierce market competition, how to apply the advanced concept of strategic cost management to the logistics cost management activities, has become the best choice to effectively reduce logistics costs. 

 

Wal-mart as the largest private employer and one of the world's largest retail chains. Put forward "help customers save every cent" the objective, realize the price of the cheapest commitment. Wal-mart "everyday parity" efficient logistics cost control system is one of the world "wal-mart, a retail king" the management idea and marketing strategy for a long time, it shows the customer a kingdom of ultra low-cost sales, and hidden behind it is the super efficient cost control, especially the advanced logistics cost management system, making the cost leading strategy into not simple imitation by other enterprises, long-term, is deeply rooted in the enterprise's core competitive ability. 

 

Just-in-time production - (Just in Time) combines the advantages of single production and batch production, created a many varieties, small batch mixed production under the condition of the mode of production of high quality and low consumption. The basic idea is: "only when needed, the amount of as required, you need to have products", namely the pursuit of a zero inventory or stock minimum production system. It to production on time as the goal, to avoid the waste of overproduction and other aspects, the selection and adjustment, equipment, personnel at the scene of the production control technology using kanban system to achieve timely production, working procedure before the traditional production mode of delivery is back working procedure, to process after the process according to the "kanban" forward the pickup, to reduce cost, simplify the plan and improve the control purpose. 

 

From the source control the purchase cost. Wal-mart to avoid all the intermediate links buying directly from the supplier's factory, supplier is regarded as his first "workshop", and pay attention to establish good long-term cooperation relationship with suppliers, process reengineering, it helps the suppliers to purchase at the lowest prices. 

 

Wal-mart has 30 distribution center, more than 2000 freight trucks, relative to other trade store replenishment once two weeks on average, wal-mart average replenishment twice a week; It also USES the global positioning satellite and other high and new technology has formed a unique and effective supply chain management system. #p#分页标题#e#

 

JIT aims to eliminate invalid labor and waste, including inventory, the lowest amount of waste at least, the shortest time to prepare, production lead time is the shortest, machine failure rate and the lowest minimum batch, etc. Unlike traditional inventory management principle, principle of JIT inventory management performance for: just-in-time inventory management is a kind of directly facing the demand management. That is to say, what the user needs to specification, the quality of the goods, what we sent. This relative to the traditional EOQ inventory management mode has a lot of advantages. 

 

-Labour insurance

To protect the right of workers, governments published one system to provide material help such as subsidies and paid vacations while under certain circumstance including illness and death during their work.  Therefore, workers will be required to signature on the labour contrast in the presence of other witness.  

As one international company, Foxcoon should obey the law and guarantee the legitimate rights and interests of its staff. However, whether every employee signed their contrast or not was a mystery;  meanwhile, even they complied with the code, as one feature story goes, the company refused to deposit housing accumulation found for their staff. This means the legal rights of their employees were violated, therefore, as mentioned, some of them decided to suicide to express their complaint which infers senior managements never try to hear what a worker prefer to voice. (Caixun, 2010)  After that, Foxcoon declared to raise the salary by 30% but cancelled the previous 'no-suicide contract' in order to avoid negatively encouraging employees to take actions of killing themselves to obtain the compensation. (Canada meet, 2010)  Else, as is known, most workers replied that their payments were from their overtime working, so Foxcoon limited the time for at most three hours per day. (Barboza, 2012)  These managements reached an agreement with other partial international companies.  Nevertheless, due to the news blackout from both company and government, it is difficult to judge these deals were accomplished indeed as a final. Although Foxcoon issued several statements to ensure their staff's basic labour insurance, the suicides did not stop under that situation but become worse and worse unexpectedly.  Therefore, although Foxcoon tried to offset their problems by raising salary, providing labour insurance and so on, it might be a long way for the staff to accept the whole improvements. In 1998 the United States takes the lead in putting forward accenture, the concept of the Fourth party logistics, Fourth party logistics, especially for the first party, second party and third party logistics planning, consulting, logistics information system, supply chain management, and other activities, is an integration of the supply chain. But in fact, the fourth party logistics does not actually take specific logistics operation. This article obtains from the concept of fourth party logistics analysis of the basic features of the fourth party logistics and the problems existing in the development of fourth party logistics in our country. #p#分页标题#e#

 

The fourth party logistics integration management consulting and the ability of third-party logistics service providers. Responsibility to undertake multiple functions and process of supply chain operation. Its scope of work is far beyond the traditional third-party logistics transportation management and warehouse management operations. 

 

Make full use of a number of service providers to provide services, including the third party logistics information technology supplier, call center, contract logistics providers, telecom multiplication service providers, and so on. As a result, the fourth party logistics by providing a comprehensive supply chain solutions to meet today's company facing the demand of the broad and complex. 

 

The development of the service function and status of the third party logistics and improve is the key to develop the fourth party logistics. In China, due to the third party logistics companies and small and scattered storage and transportation company, the third party logistics enterprises have a plenty of traditional logistics enterprise transformation, some come from foreign wholly owned companies and joint ventures, is still in transition period of development. Therefore, the third party logistics in the whole logistics market share is very low, is in the United States, the third party logistics industry also accounts for only 7% of the whole logistics market. In the short term, therefore, not have the ability to integrate logistics resources. 

 

China's logistics infrastructure and equipment conditions and the development of fourth party logistics requirements there is a certain gap. China initially formed by railways, highways, waterways, civil aviation and pipeline transportation system composed of five kinds of mode of transportation, infrastructure, technology and equipment, the management level, the respect such as transportation market has achieved great development, but also can't meet the needs of the development of fourth party logistics. 

 

The current supply chain management and technology of China is not yet mature, supply chain and logistics management specialty is scarce, the enterprise's organizational change management ability is poor, at the same time, the whole logistics infrastructure backwardness, the smaller size of the customer, also can't afford to the fourth party logistics services. The development of fourth party logistics must be highly developed in the third party logistics and supply chain can be developed on the basis of outsourcing is very popular. Network is a precondition for the fourth party logistics to carry out. The use of information network technology can control each link of logistics supply chain, the most effectively integrate the logistics resources, improve the operational efficiency of the logistics, reduce logistics cost. At present due to the immaturity of information technology, the investment costs of partial high makes the informationization level is low, the lack of can achieve all enterprises and third-party logistics enterprises on supply chain information sharing of public information platform. Talent is the soul of the enterprise, the fourth party logistics enterprises especially need a lot of logistics talents. Competition between the logistics industry, not only need to have the advanced technology and abundant capital, but also has a number of highly qualified logistics talents. Fourth party logistics development requires the logistics personnel not only have the basic knowledge of logistics and the rich actual combat experience, but also IT, human resource management, technology integration, such as comprehensive knowledge and ability, China's current serious shortage of this kind of high quality logistics talents. #p#分页标题#e#

 

-Spiritual harm 

When one employee is working in the workshop, he or she would have to stand there doing the some work for at least 12 hours without a break. (BN, 2008) What is worse, workers are not permitted to talk while working in it. People, particularly youth, cannot bear such grim condition while the company states that this limit was designed to guarantee the work efficiency. (BN, 2008)  Furthermore, it was mentioned that security departments always embrace both physical and mental violence as an instrument to force employees to succumb, while it is of high possibility that these violent action are tacitly expected by the senior managers. And this was confirmed by the police station but finally seems to be no measures to desist from the tragedy or even prevent another event. (Wang, 2010)  Discrimination against mainland Chinese workers by their Taiwanese co-workers was another serious problem for Foxcoon, while lack of working relationships also contributed to a psychological loss that might be the last straw that breaks the camel. (FS, 2010)  After realizing these crisis, managers of Foxcoon arranged over 700 psychological doctors to focus on the mental health of its staff. Regrettably, even until now, the authentic effect of this action has not been published for all the information was declared fictional by Foxcoon in the end. (TAL, 2012)

 

Conclusion 

To summarize, while negative news concerning suicides has been presented, Foxcoon firstly promised to advance the working condition, raise salary and require employees to sign the "no-suicide contrast" which was finally cancelled, then it was forced to declare protect labour insurance and limit overtime working, and eventually focusing on the mental health of its staff by increasing 700 psychological doctors.  However, quantities of serious problems has not been settled as the suicides did not end.  Meanwhile, Foxcoon chose to hide the news instead of administration information transparency which infers that the attitude of the company manager cannot be considered as positive as other excellent crisis managers such as Apple. 

 

Reference list 

 

Barboza (2012) Foxconn Plans to Lift Pay Sharply at Factories in China

Available at: 

http://www.nytimes.com/2012/02/19/technology/foxconn-to-raise-salaries-for-workers-by-up-to-25.html 

 

Beijing News (2010)

Available at:  

http://big5.ifeng.com/gate/big5/tech.ifeng.com/it/detail_2010_05/21/1538643_0.shtml 

 

Business News (2008)

Available at: http://tech.sina.com.cn/it/2006-06-15/0452990962.shtml 

 

Caixun (2010) 

Available at: http://content.caixun.com/NE/02/1j/NE021jmf.shtm #p#分页标题#e#

 

Canada meet (2010) 

Available at: http://www.canadameet.com/news/china/2010/0526/24006.html 

 

CNN Money (2012) 

Available at:http://money.cnn.com/magazines/fortune/global500/2010/snapshots/11204.html

 

Financial Stocks (2010) 

Available at:  http://hk.stockstar.com/2010/05/2510087523186.shtml 

 

Foxcoon (2012) 

Available at: http://www.foxconn.com.cn/GroupProfile.html 

 

Nddaily (2010) 

Available at:  http://gcontent.oeeee.com/0/62/062ddb6c727310e7/Blog/1da/513324.html 

 

This American Life (2012) 

Available at:  http://www.thisamericanlife.org/radio-archives/episode/460/retraction 

 

Wang (2012) Beijing News 

Available at:  

http://big5.ifeng.com/gate/big5/tech.ifeng.com/it/detail_2010_05/21/1538643_0.shtml 

 

Xinhua Net (2009) 

Available at:   http://news.xinhuanet.com/politics/2009-07/27/content_11781464.htm

 

Zaobao (2010)

Available at: http://www.zaobao.com/zg/zg100527_003.shtml