The essential role employees play as brand ambassador for corporation. Foxconn is subsidiary company of Hon Hai. The news in this spring, it showed that Foxconn’s employees suicide in its dorm in China. Some medium reported that Foxconn didn’t have good welfare of personnel and that its employees always work overtime. Because of those reports in Asia, Foxconn’s stock price falls next day and some customers had bad image with this company. Moreover, Foxconn is the OEM of Apple Corporation. Apple required Foxconn provide its salary statement and the welfare of Foxconn.
Hon Hai’s president, Terry Gou, tried to fix its company’s reputation. He gave his employees better salaries and provided them more promotional opportunities. These events impacted Foxconn to respect for the corporation responsibility and improve its welfare of personnel. Also, Foxconn adjusted some policies in company to balance its employees and managers relationship for building better reputation in the OEM industry.
I remember reading a story about this company from one of the major news carriers online (I believe it was CNN Money). As I was trying to find the article, I found another small article reported by CNN a few days after your post that the company had just raised workers' pay a second time following the spate of suicides at its factory. Do you think this companies CR affects Apple's reputation at all?
ReplyDeletehttp://articles.cnn.com/2010-10-07/world/china.foxconn.raises_1_china-labour-bulletin-geoffrey-crothall-beijing-suicide-research?_s=PM:WORLD