Topic > Ethical Sourcing Case Study - 1457

Further investigation revealed that Foxconn had been guilty of unsafe and unfair work environments long before the incidents, which included the use of long working hours, discrimination and military management techniques (Xu & Li, 2013). Because of Foxconn's exclusive focus on maintaining business relationships by meeting demand for Apple's technical products, subsequent employee mistreatment was exacerbated and generated 80–100 hours of forced overtime (Xu & Li, 2013). However, in an effort to combat the negative publicity, each company denied responsibility for the incidents, which ultimately added fuel to the media fire (Xu & Li, 2013). Since then, each company has adopted increased regulations designed to maintain efficiency while recognizing limitations on working hours and increased spending on compliance audits (Chandler & Werther, 2014). However, as Foxconn continues to sustain its global leadership and Apple's profits remain unchanged, the downsides associated with the incidents at Foxconn have not transcended the results. From a profit perspective, increased spending and resulting changes in working methods represent the biggest disadvantage for every company