Ethical Dilemma at Foxconn
Background
Foxconn refers to one of the key suppliers to the Apple organization in the context of achievement of the targets and standards within the market and industry of operation. It is essential to obtain factors of production from this supplier to enhance the performance of the organization in relation to the achievement of the goals and objectives. Apple developed substantially under the influence of the technological and inspirational leader and chief executive officer, Steve Jobs. Following his death, the leadership of the Apple organization was entrusted to Tim Cook with the aim of steering the organization to another level (Hinks, 2012).
According to a recent article by the Word Press entity, the new leader at the helm of Apple Company is facing significant and substantial ethical dilemma in Wuhan in relation to the Foxconn business entity. This ethical dilemma results from the threats by the Chinese workers within the organization to commit suicide because of the unpleasant working condition by the entity. This proves to be a problem to the organization thus the need to adopt and apply radical or effective measures towards its minimization or elimination thus the process of enhancing performance of the organization within the market. This ethical dilemma affects Apple and its management in relation to efforts in adopting competitive advantage within the market.
Ethical dilemma refers to the condition where an agent of philosophy or individual has he capacity and ability to make two choices, but is capable of achieving one or the other. Ethical dilemma is also moral dilemma in other illustrations to demonstrate the strain an individual has to go through in making the vital decision in relation to morality. According to the news article, the new Apple’s Chief Executive Officer earned approximately $ 378 million in 2011 (Hinks, 2012). This follows the inheritance of a global technology juggernaut based on the creativity and innovation of the employees and other relevant personnel. The business was worth approximately $ 90 billion in relation to cash reserves (Hinks, 2012). Despite this development, the organization still faces problems in the context of one of the key suppliers, Foxconn, thus the creation of ethical dilemma facing the organization and its new leader.
At Foxconn, approximately 150 of the employees are Chinese (Hinks, 2012). These employees threatened to commit suicide because of the adverse working condition at Foxconn Company thus the essence of ethical dilemma to the Apple business entity. Foxconn is the largest electronic manufacturer across the globe. This indicates that the organization is essential to the society and its relevant entities thus the need to enhance its working condition to avoid public invasion into private issues. The employees of the largest electronics manufacturer across the globe threatened to commit suicide via leaping from the roof of their factory to reflect their dissatisfaction of the working environment provided by the organization. In attempts to minimize the effects of the threat by the workers, the managers and local Chinese Communist party officials contributed through coaxing down the employees from the roof following their two-day protest on the top of the three-floor plant.
The situation facing the organization has not developed overnight. According to reports by the Guardian press, the problems facing the organization have their roots from the cases of 2010. In 2010, approximately 18 of the employees in Shenzhen campus owned by the Taiwan attempted to commit suicide. In the process, 14 out of the 18 employees died (Hinks, 2012). Following the deaths of these 14 employees, some of the workers and organizations in charge of labor blamed several factors towards the contribution to the fatal incidence. Some of the factors believed to have caused the deaths of the employees in the attempted suicide include inhuman treatment, long-working hours, and minimal wages to the workers for the services rendered.
Discussion of Specific Situation
Several Apple products continue to contribute in transformation of the lives of the individuals within the society through the influence of technology. This is an indication that Apple business entity is a massive revelation to the population of the globe thus enhancing the living condition and performance of individuals. In contrast to this massive positive relation of the Apple Company and the society, the employees at Foxconn, who contribute substantially to the development of the products at Apple survive and sadly tolerate the adverse working conditions. Several consumers loyal to the Apple Company crave for the products of the organization. Despite this increase in the level of demands for the Apple products and services, there seems to be a dark tunnel in relation to the way in which the products by the organization reaches the market. The working conditions at Foxconn should be a serious issue to the management of the Apple entity because of the massive role it plays in the development and achievement of the products reaching the consumers (Hinks, 2012).
At the beginning of 2012, Apple organization revealed the financial results for the first fiscal quarter (Hinks, 2012). The illustration proved impressive thus beyond the expectations of the analysts. It was essential to focus on the financial merits of the Apple’s financial documentation. These include the increase in the projected revenues and enhanced speculation of the dividend payment. Evaluation of the websites of the Apple organization indicated an increase in the cost of shares by the key suppliers such as Foxconn. The illustration of the financial results by the Apple organization is appealing and positive to the shareholders. Despite this recognition and positive aspect to the shareholders of the organization, the fortunes at Apple entity as reflected in the financial results indicate different meaning to the employees at Wuhan, Foxconn. For some entities, the concept of morality or ethical dilemmas proves to a hindrance to the pursuit of the economic success. The financial strength of the Apple organization is as strong as ever while the moral issues in relation to the welfare at its suppliers is a vital issue of concern thus the increase of interest. The essence of negative media coverage on the issue and working conditions at Foxconn might alter the perception of consumers in relation to the products of the Apple Company available in the market at the disposal of the buyers. This might affect the pursuit of the economic success by the Apple entity thus an ethical dilemma to the new management of the organization with the aim of transforming the entity to another level. Ethical issues influence the competitive nature and capability of the organization within the market. This makes the case of Foxconn Company delicate to the performance of Apple organization within the market and industry of operation.
Ethical Analysis of Issues- Ethical Frames
Apple organization faces critical decisions in the pursuit for the economic success. This relates to the aspect of ignoring what is happening at Foxconn in relation to maximization of its profit or act on the issue to aid the working conditions of the employees at one of its key suppliers. In the analysis of this ethical dilemma and relevant methods of its minimization, the organization has the ability to adopt and implement what is right (Palmer, 2010). This relates to the determination of what is right or wrong in relation to the business interactions and transactions within the market. Examination of the ethical dilemmas proves to be problematic to the organizations because of the need to decide what is right. This calls for the adoption and application of the ethical frameworks or frames in the determination of what is ethical to enhance the performance of the organization. The ethical frames do not provide ethical answers but offers the foundation of the ethical action in relation to unique conditions or situations facing relevant organizations. There are four critical ethical frameworks to enable different organization deduce their ethical actions and situations in relation to the promotion of performance and interaction with the consumers, stakeholders, and suppliers.
Utilitarian Ethical Framework
This refers to a consequences-based ethical framework that focuses on the achievement of substantial or significant good to the maximum population involved. Jeremy Bentham & John Stuart Mill developed this ethical framework through the innovative response (Palmer, 2010). The application of this ethical framework is complicated in that it requires unbiased implementation thus the need to treat human beings in the same or fair way. This is because the majority of the population will find it hard to enhance the performance of the ethical framework through exercising common good to the entire population rather than specific individuals. Organizations have the ability to implement this ethical framework in the achievement of equity in the treatment of the employees within the business entity. This is essential in the maximization of quality working conditions thus the opportunity to increase revenues and profits at the end of the annual financial evaluation.
Rights-Based Ethical Framework
This framework in dealing with the ethical dilemma requires the society or relevant organization to adhere to the moral rights of the individuals involved in the transactions or interactions (Palmer, 2010). In case of organizations, it is essential to promote and respect the rights of the consumers, employees, shareholders, and suppliers in order to address the moral dilemmas within the entities. This framework requires organizations to view individuals in the context as an end to themselves rather than a means to an end. Thus, if the organization believes that it is morally to offer minimal wages to the employees, it is ideal to avoid unethical condition in the low salaries, in accordance with the proposal of the rights-based ethical framework.
Common Good & Duty
This approach focuses on the collective gain thus adoption of what is beneficial to the community (Palmer, 2010). The approach focuses on the promotion and observation of key values and factors guiding the performance of the community and institution thus the need to uphold them at all cost. The proponents of this approach illustrate on the need to uphold the values of the community and institution rather than the personal desires towards the achievement of common good and duty to the entire society.
Virtue Ethical Framework
This approach solely focuses on the individual facing the ethical dilemma (Palmer, 2010). This indicates that the individual in context must decide on the virtue he or she has to implement for the classification of humanity. In the context of the ethical dilemma, it is essential for the individual to adopt and implement an action that relates to the virtues of humanity. These virtues include generosity, honesty, loyalty, and transparency.
In response to the ethical dilemma facing the Apple organization, the business entity seeks to adopt and apply relevant actions in the form of ethical tokenism. According to reports by Telegraph, it is ideal to note that Apple organization continues to work on numerous initiatives to counteract the outside pressure that hinders its development and competitive capacity within the market. As n approach to curb the ethical dilemma, the organization published a list of all the key suppliers. The key suppliers to the organization are 156 including Foxconn. This documentation represents all the supply chains of the organization thus inclusion of the stakeholders in the operations of the organization. To supplement this documentation of the list of suppliers, Apple is also a member of the Fair labor Association thus becoming the pioneer technology company to participate in such activity (Hinks, 2012).
The aim of the Apple organization is to enhance the rights of the employees of the key supplier, Foxconn. This makes it critical to work with the Chinese labor rights advocates in the promotion of the working conditions proving to be the main source of ethical dilemma. The organization also contributes towards the elimination of the ethical issue through cooperation with the environmental groups. To enhance the achievement of the goals and objectives in the application of the rights-based ethical framework, the organization allows outside monitoring process in the context of the key suppliers’ factories. The main objective of the new management of Apple organization is to ensure that there is no misinterpretation of the corrective actions to mean just ethical tokenism. The situation at the Foxconn enables the organization to lead through examples rather than the enviable economic success within the industry (Hinks, 2012).
Based on these corrective measures and interaction between the Apple organization and Foxconn business entity, there have been improvements in relation to the working conditions to the Chinese workers protesting for the lack of the quality environment. This relates to the information provided by the Fair Labor Association, in the United States, Foxconn, and key supplier to the Apple organization fulfilled on the agreement proponents. This is through the enhancement of the working conditions in relation to the two plants in Chengdu and Shenzhen. These improvements continue to raise the demand and influence of consumers in relation to the iPhone and iPad products within the market and industry of operation. The improvement and relevant solution to the ethical issue continue to improve the case of dominance by the Apple entity thus the opportunity to compete effectively and efficiently in the market and industry of operation. It is also essential for the two organizations in the form of Apple and Foxconn to operate together towards the elimination of the problems or challenges facing the workers. This is through embracing of the challenges facing Foxconn by Apple Company thus the ability to work together in the enhancement of the conditions for the workers of key supplier to the development of the Apple products (Hinks, 2012).
Lessons Learned
Several lessons are learnt from this ethical dilemma facing the Apple Company. One of the lessons is the need to make the right decision in handling the ethical dilemma. The process of making decisions on the right choices or actions is problematic to the organizations. To enhance this process, it is essential to adopt and implement any of the four ethical frameworks. The four ethical frameworks include rights-based, virtue, common good and duty, and utilitarian ethical frameworks. Apple Company adopts and integrates the concept of rights-based ethical frameworks to improve the performance and working condition to the workers or employees at the Foxconn Company. This is essential for the increase in revenues and relationship with the consumers thus influencing both stakeholders and shareholders effectively and efficiently.
Another lesson learnt from the case of the ethical dilemma facing the new management at Apple Company is the influence of the ethical issues facing employees at Foxconn on the perception of the consumers. Apple organization continues to lead in the technological industry because of the innovative products and services to consumers. This makes it critical to handle the operations with honesty and transparency. The negative media coverage of the events at Foxconn is a reflection of the challenges towards the achievement of the potential increase in the financial strength of the organization. Apple must embrace the situation at Foxconn company in order to eliminate the poor working conditions thus improve the performance of the employees within the context of the key supplier.
References
Paul Hinks. (2012). Apple’s new leader faces ethical dilemmas at Foxconn. Retrieved from http://leaderswedeserve.wordpress.com/2012/01/31/apples-new-leader-faces-ethical- dilemmas-at-foxconn/
Palmer, D. E. (2010). Ethical issues in e-business: Models and frameworks. Hershey, PA: Business Science Reference.
