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This case related on human rights violations in an organization that never bother about the workers health, safety, and environment issue. Fourteen workers' was commit suicides eight months ago, that are the workers' work in Foxxconn's Shenzhen factory, which is, operate in China. From the company internal audit investigation, Apple found that the intention to commit suicides by the worker is because their health problem due to affected by chemical product that use by the company. Also fined that the company worker are underage of 16 years old workers that is youngest age for employment in China.
The company workers were hiring by the employment agency, which is workers, has to pay recruitment fees for the agencies in order to get the job. In this case, all the workers passed through the process refer to appendix 2; sub agencies will recruit the worker from different country such as Vietnam or Cambodia and hand over them agency to agency to countries such as Taiwan, Malaysia, or Singapore fro the factories to hire them. To get the job workers has gone the hiring process and paid excessive recruitment fee to the agencies who force them o paid to gain employment, the total cost equal to their many month wages.
Auditors found that 10 more factories hired underage workers' in china, from the auditors research they stated that total number of underage worker are 91 across all factories and they claimed that the factories managers are not aware about the hiring of underage workers due do recruitment done by the agencies and vocational colleges which provide false information or identification to those who seek for workers. Factories were issue false payroll document to reflect higher wages. Apple has contributed $3.4 million to help educate workers who had been injured or exploited on the job.
1.2 Ethical issue in the case
Ethical issue that identify in this case is human rights and working condition concerns is inÂ its global supply chain in China, some of the companies were misused the poor legal environment and working conditions in China, Lack of respect for the dignity, rights for the workers. The factory cause harm by indirectly abusing human rights or by misleading with others who violate human rights.
1.3 Problem in the case
Problem that identify in this case is that the factory did not have a proper workers, in that cases they seek help from the employment agency to hire foreign workers who need the job. Agencies take advantages on their need, misuse the power, recruit underage workers, and charge them high level of fees. The ethical dilemma facing from the firms is whether they should do business in totalitarian Countries, such as China, that routinely violates the human rights of their workers and foreign workers.
The issues of chemical related health problems were seriously impact the employees health. Apples Company use any hazardous substance by replacing it with a substances that fall above its normal conditions of use, is not only dangerous affected employees but also others stakeholders will be seriously impact. Some of chemicals can cause damage to the reproductive system of employees, leading to cancers, infertility. For women, it will cause menstrual disorders and damage to offspring.
Apple prohibits practices that threaten the rights of workers we've taken action toward ending unreasonable recruitment fees, for the hiring process of underage workers, and prohibiting unequal treatment on the suppliers. Its latest report, published in January,Â detailed that higher level of "core violations" of labor and human rights, including number of underage workers. Shareholders also get serious impact on this issue. Once customers do not prefer with their company product, automatically the production of sales will drops. This can make shareholders to feel nervous. They already lost confident and tend to withdrawal the funds and leave the company.
2. Stakeholder Analysis (Step 3)
2.1 Identify Stakeholders
What does the organization mean for the stakeholder
What does the stakeholder mean for the organization
Factory has hired the underage workers with higher wages provided to run the business without giving any priority to their workers health, Causes the workers to commit suicides because of chemical related health problem.
An employee helps organization to develop greater services are effective and more efficient in work. Provide knowledge and contribute their unique skills and energy without bothering their health problem and human rights.
The organization gives authority to the manager to grant privileges to a staff and able to accessÂ company information and make own decision making.hightly paid by the organization for the growth of the business
Â A manager who is well informed about his employees' activities, expectations, opinions, and grievances can take corrective action. Directly involved in the business behalf of the management and ensure that the company operates within the legal framework.
CompaniesÂ often use an employment agency to find suitable candidates and then hire those candidates who recommended by the agency.Â Indirectly make a profit for the agency by recruitment fees
Agency play main role for the organization to help hire or recruit workers from many countries and flexibility for both worker and employer on hiring process
Give relevant and accurate information to the auditors to do the report and finalized the financial statement of the organization, help the auditor to verify a company's records to ensure all the information matches up to what was provided.
Auditors is the one who make a report to the members on the account examined by him/her and on every balance sheet, profit and loss account and on every other document related to the company by the information given.
3. Weighing the Options (Step 4&5)
3.1 Alternative way to solve the problem.
Purposes of this essay and in reference to Human Right Violation concern, being morally imaginative, the notion of a moral imagination and a systematic approach linking performance or outcomes with a creative problem solving process and alternative route of action. Apple's own audit confirms that the workers in Foxconn factory face harsh condition at workplace. The workers needs a strong, international, and legitimate voice on human rights issues to stop recurring abuse at foxconn factory.
By putting people first, the Chinese government must makes sure that respects and protects the human rights is implement, gives priority to the protection of the workers rights to subsistence and development, on the basis of facilitating sound and rapid economic and social development. To protect human rights, the basic framework is teaching human rights in primary and secondary school must be implementing around the world, it will help the younger generation to learn about dignity and worth of the human in this world. A ground for them to grow the knowledge about freedom, justice, and peaceful life of human rights and protect themselves.
For the basic principles of human rights, youngster should able to know their rights and responsibilities to defending them and voice on human rights issues.Introduce the Universal Declaration of Human Rights, explaining that it is a list of rights for all people in the world and children's rights as well. All human beings have a right to life; whether or not a law has been passed to endorse that right, in this circumstance educate them about the humanitarian law to understand the awareness of human rights. Helps them to brainstorm some important decisions to protect themselves independently.
Once the youngsters aware about their rights to protect them, it will be a problem for the stakeholders in a way that they face problem in shortage of workers, can't hire underage workers. Therefore, they should minimize the productive capacity of their workers. Provide enough work to employ all those looking for jobs, so that they move around the world to improve their economic opportunities, so that the will not cheated by the agencies.
3.2 Identify ethical theory in the case
According to Boatright, (2009) justice is an important aspect of moral concept with a range of application, not only evaluavate the actions of individual but also social, legal, political, and economic practices. Justice also concern with the righting of wrongs, teat people justly is to give them what they need and deserve. Justice is relevant to business ethics. In a business ethics right play an important role and indeed virtually in all moral issue, employees and employer have their own rights. Based on John Rawls, and David Miller theory on egalitarian theory of social justice describe as the protection of equal access to liberties, opportunity and rights. Human rights are included in the following areas, general freedom, dignity, security, equality, freedom of though; the rights do work by free etc. (Beauchamp and Bowie, 1979).
Apple should have implemented justice among its supply chains. If Apple has made it a compulsory practice among its supply chains then perhaps frequent cases of human rights violations will not occur among its supply chains without its knowledge. The management of Apple has in fact asked those factories to comply with the rules and regulations set out but these factories refused to comply. By injecting a dose of feminist approach and empathy to management style can help to understand the plight of other individuals and will not resort to actions that can cause sufferings to others.
Kant's virtue theory is the utilitarian and deontology approach, in ethics would object to child labor, its practice violate to treat the children respect.violat their rights to the end of production and economic growth Hartman and Desjardin, (2011). Virtue theory probes exclusively human morality, it is a pure theory which offer support and fairness for future moral studies on human beings. (Kant, 1999). According to Hartman and Desjardin, (2011) virtue can be defined as the character trait that would be a good and meaningful human life. Such as being fairy, cheerful, having integrity, honesty, tolerate etc.Virtue ethics emphasizes more affective side of the individual character, and also fully understanding of life within business, rather than describe people as good or bad , right or wrong.
The factories that never comply with the laws and regulation should be not in role of character of virtue ethics which they did not concern of human rights of their workers, the factories were created the chemical-related health problems. The factories they want to gain for the competitive advantages and they were purpose on increasing their productivity but they never concern about their workers have working at the environment in safety and healthy.
Corporate Social Responsibility
CSR focus on more explicitly or the relation between the organization its external stakeholders. Three reasons why corporation should care about social responsibility is pragmatic reason, ethical reason and strategies reason. (Trevino and Nelson, 2010). Corporate Social Responsibility refers to the responsibly that a business has to take society in which it operates. Corporate Social Responsibility as the responsibility of enterprises for their impact on society, in order to fulfill their corporate social responsibly they should integrate human rightssed. Describe corporate conduct which is ethical and has regard to social and environmental interests as well as financial considerations, commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life have relationships only shareholders but also other stakeholders (including employees, their families, business partners, suppliers, creditors, consumers and local communities), the broader community and the environment.(Mirshak, 2007).
Apple Company should fulfill their corporate social responsibilities and intergrate human rights, consumer concers ans aslo environment and ethicsal concern into their business.Big corporation like apple to stop corporate misbehavior itsprimirdial that consumer become responsible buyer.
4. Guidance (Step 6)
4.1 Additional option and perspective to prevent the corruption.
Corruption become one of the leading problems for businesses all over the world in public or private sectors.Coruption is detrimental to all types of company business in large or small and multinational or local. Several ways to solve corruption in an organization are, provide training, awareness, and face-to-face training program on business ethics to difference group of employees and their role within the organization. The training can help the employees to how businesses effect form the corruption and helps to improve awareness of important behavior that endorse by the company and provide basic insight of these issues.
Government should take the follow steps to prevent corruption such as, adequate anti-corruption measures and implemented on public sector infrastructure project and make is as legal requirement. Also, implement within their own organization and adequate how to control prevent extortion. Ensure that paid reasonable wages to public sector employees provide reporting mechanism so that people can report corruption in a safe and confidential manner.
Organization must follow compliance elements in place such as complete assessment risk whenever there is a significant business change in the organization. Management should not tolerate corruption in any form, must support the anti-corruption compliance program and be well-informed about the effectiveness and strategies for compliance and anti-corruption initiatives. Additional preventive and detective controls must be established in response. If there is a high degree of corruption risk in a relationship
Conducting background checks to understand if they are susceptible to corruption and unethical conduct. Policies and procedures that address corruption implement communication and reporting processes must be up-to-date. Provide have channels of communication where employees can get answers and get relevant information on policies and procedures. In addition the organization must also have regular compliance assessment and monitoring activities to ensure that policies, procedures, and controls to prevent corruption and bribery are in place and working.
5. Conclusion (Step 7)
5.1 Make a Judgment
Apples Company had created lot of issues that can really affect the stakeholders. These issues not only impact them but also get to impact their own organization. It is essential to use these theories to estimate and evaluate the company. Besides that, theories also can find out how the company impacts the stakeholders. After analysis these issues, I was noted that every of the Apples Company are greatly obey the legal laws. There have several ways to overcomes these issues. Although they have ways to resolve the problem, but before that gave lots of problem for every sides of people. Apples Company must get the right penalty from government law and also forfeiture of rights with temporarily stops the business. Could have done better in resolving the issue by taking into consideration the majority of people involved but Apple need to tone down the soft approach that it takes in handling the unethical issues involving its manufacturers.