Topic > Ethical issues at Foxconn - 1273

Further investigations 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 management techniques military (Xu & Li, 2013 ). Due to Foxconn's exclusive focus on maintaining business relationships by meeting demand for Apple's technical products, the resulting mistreatment of employees was exacerbated and generated 80–100 hours of forced overtime per week (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 drag on any company's bottom line. However, after both companies attempted to deny blame, subsequent developments indicate that taking responsibility was the best path to recover from reputational problems and focus on long-term growth. Therefore, the biggest benefit for both companies was the increased reputation resulting from greater transparency and the adoption of business models focused on the well-being of the entire supply chain.