The writer had chosen the case and the title of the case is 'Apple Finds Human Rights Violations in Supply Chain'. In this case, the writher had found out few facts that are "14 labourers suicide at Foxxconn's Shenzhen factory in China, in 18 facilities Apple's audit revealed a system in which workers were made to pay recruitment fees that bonded them to a modern-day indentured servitude, and the auditors found 10 factories that hired the workers are under age of 16, and this underage hires totalled of 91 across all factories". (Tippin,2011)
The ethical issue in this case are "the factory forcing workers into debt to gain employment, hired workers under the age of 16, recruitment is often funnelled through agencies and vocational colleges which provide false identifications to those who need the work and the factories falsified payroll documents to reflect higher wage payouts to workers". (Tippin,2011)
In this case the arguing is between Non-Government Organisation (NGO) and business. In this NGO is referred to the Fair Labor Association. The Fair Labor Association (FLA) saying that "workers everywhere have the right to a safe and fair work environment". (Arthur, 2012) This means that every worker have their right to have a safety and reasonable working environment for them to work, as workers have to work almost 40 hour per week in their work place. Some workers need to work more than 40 hour per week but they salary is very little. In this issue from point of view of the FLA is not fair for the worker. In point of view for the businessman is happy because they can save some money.
What does the organisation mean for the stakeholder
What does the stakeholder mean for the organisation
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Apple will pay workers salary and give them opportunity to develop their skills.
Workers bring their skills or knowledge to Apple in order Apple can run their business.
Apple can give more business to employment agency to run the business as Apple needs a lot of worker. This is because Apple is a multinational company.
Employment agency will help Apple to recruit and bring more workers for them.
Apple is a source of income to the auditors.
Auditor will help Apple to find out the errors and frauds in the company especially to prevent false account.
Sources of supply for the goods to Apple.
Apple will need a lot of the goods, as huge customer to supplier.
Weighing the options
Duty and rights are connected because some people will think that their prime duty is to look after the rights of other people. As to what rights to people have, this will become needed for a person to explain the concept of rights and describe it. (Gavai,2010) So people can have their right to do certain action that can freedom to do but have to make sure that the action will not harm to others people. For example, everybody have their rights to speak out their thought and at the same time, they will expect others people will not disposed their rights.
There are few types of rights in rights theory. One of the rights that related in this case is human rights. According to Gavai (2010), human rights is "include the right of life, right to health and medical care right to work and right to receive a living wage and etc". People have their own right to decide their life and no other person can control for that. Besides that, people also have their rights to have a safety and reasonable working environment in their workplace.
In this case, supplier of Apple cannot hire those children under 16 years old. Child on this age, they should study in the school to get knowledge and enjoyed their school life. Children working at this age are too early for them. Development of the country will be affected if have a lot of labour child. This is because children do not have sufficient knowledge to help to develop the country. A country needs a lot of knowledgeable people to develop become an advanced country. A country that less of child labour, it is benefit to all the people that stay in the country. This is because all the working adults are knowledgeable and they are able to create some idea to help country become stronger in the finance sector. A country that strong in the finance, they are able to let people to stay in healthy and happy. The countries will less of criminal cases all the people staying in safety environment.
Always on Time
Marked to Standard
Apple has to take care of the worker not only their health as well as worker mental. Buying insurance for the worker is one of the benefits for them, if the workers get any diseases that need to stay in the hospital, workers no need to worry about the medical fees. For taking care the worker mental, employment have to give the sufficient rest time for them. Workers are happy if the employment can provide a room that can let the worker sleep or watching movie during rest hour. Labour is most of the important tool for a company. Without healthy labour, the company cannot run smoothly and can turn to bankruptcy in some of the day. A country financial problem will occur when all the company facing bankruptcy. This is because all the people do not have income to maintain their living. At the end of the day it can harmful for the people in that country.
Corporate Social Responsibility
According to Tawiah and Baah, "Corporate Social Responsibility(CSR) can be define as the strategic decision of an organisation to voluntary act upon the social factors that have the potential of militating against the fulfilment of corporate goals". The CSR principles are focusing on the company can contribute to society well-being, valued employees, pay workers a fair and reasonable wages also provide safe and healthy working environment to the workers. (Kwek,Ho & Kwong, 2011) Nowadays, businessman doing their business not only to make money and at the same time, they also need to care about the environment. A company need to take care of the people that need help when company are achieving their vision and get profit from the business. Company can provide scholarship to those poor students who is get an excellent result in the public examination.
In this case, Foxconn are not doing their Corporate Social Responsibility (CSR), because they did not care about the worker's health and family. As the workers are hardworking to earn money is pay for their family living expenses, but Foxconn do not pay the salary that workers deservedly. Foxconn not only need to take care about the worker at the same time also need to care about their family. Besides that, Foxconn should do more charity work like fund raising to help the poor people. By doing this, Foxconn can have a good reputation and indirectly can get more business from society. The society will think that a company that always do charity work is a good organisation because they have a good heart for society also will treat their staff well. A good reputation company can attract more customers and foreign investor to invest in the country and indirectly can stable their business. Country will not collapse when a lot of foreigner to do investment because it can help to increase the government income. When government income increase, it can help to reduce the poverty and worker can increase their income and the standard of the living.
When all the company is making money for the company, at the same time also needs to do CSR, it can benefit to the people. In CSR it is not only take care of people also need to take care of our earth. This is because before a company can run a business the basic thing is to have a good place for businessman or investor. A good place is meaning that the place no air, water and sound pollution. Locations that have pollution will affect health of the worker and also for that company. It can benefit to our future generation if all of the company and people can take care of our earth. We have to make sure that our earth are not polluted and always go 'green'. This go 'green' can be done by all the citizen to plant more trees, do not waste water, cannot destroy all of the forest in the world and etc. If the people really want to cut down the tree, make sure that they will plant back the tree in some other places. The sickness of people can decrease when citizen staying in a healthy place. All these can beneficial to the people who staying in that country.
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The solution for chemical-related problem was, to stop using the product, fix the factory's ventilation systems, and "implement improvements to their management systems for Environmental Health and Safety". (Enzer, 2011) Foxconn will come out the health and safety guideline for the worker when they are working in the factory. This safety guard is very important for those worker who working in the factory. In the factory has a lot of the dangerous thing that can harm the worker. By implement this guideline, Foxconn has to make sure all of the worker should follow it and those who not follow will get punishment from the company. For example when the workers need to use the chemical for some of the processing work, they must wear glove or do some safety guard during the particular time. This can protect worker get injury during the working hour.
The other issue is about recruit underage worker in the factory. The solutions for Apple is make sure that the supplier implements a program call "Child Labor Remediation". In this program, Apple will send back underage workers to school and the children will entitled for free education and they have choice to study in which school. When the children is growing up and working with Apple, they will receive their income at the same level. In addition, Apple also works with their parents or guardians in order to meet each of the child's needs by design specific educational programs. Besides that, "to strengthen supplier hiring systems and safeguard them against future underage hiring, Apple will issued a new standard on Prevention of Underage Labor". (Apple.com, 2012) By implement this new standard, Apple needs to give training to staff at 200 suppliers. This is to make sure all of the staff aware of this new standard and not hire any underage worker in the supplier factory.
According to Dusuki and Dar (1991), the dimension for CSR can be sum it to four areas are "the environmental dimension which is undertake initiatives to promote environmental responsibility, the human resource dimension which is treating employees fairly in terms of salary, working hours etc, the philanthropic dimension which is help to solve the social problem like poverty, and the human rights dimension which is promoting human rights in the workplace". All of these four dimensions are the guideline for Foxconn to do the CSR. Foxconn need to ensured that the product do not harm the environment and may be can implement the good waste and recycle policy. This can save our environment by doing the recycle policy. For example, the old newspaper can recycle it to become paper, and the paper company will not cut down lot of the tree to do paper. The all glasses tin can melt it to do a new glass for sell in the market.
Government needs to implement of law and regulation to prevent bribery for all the company and factory. (Anderson & Gray,2006) Bribery is one of the actions that are immoral to all the people in the country. The person who is bribe has to go in to the jail also need to fine them triple of the sum money that the person was received. The country will corruption if all the people are bribery. This is because people will not doing their job well and always thinking if bribery can do lesser job. It also can make more money. Bribery is one of the actions that not only can influence the reputation of company also of the country. Reputation is one of the intangible assets that can add wealth to the country and company. In addition, reputation is one of the assets that difficult to build it, when it is spoilt will difficult to get back. Foreign company will not invest in the country that always bribery because a person who bribe will not care about the safety of people and also the environment of the country.
In this Foxconn case, they not care about the human rights. This is a wrong action for Foxconn because human are the most important tool not only for a company also for the country. Without human in country there cannot develop become advance. Although Apple implement a solution for underage worker problem, but the factory might not follow it. This is because factory will think that Apple wills not a year or every day do spot-check whether any underage workers are working in the factory. According to the employment law, all the company cannot recruit a person who is under age of 16. It already breaks the law if a company recruit underage workers. The corporation from parents and company can solve the underage worker by parents not allow underage worker to work and company will not recruit those worker.
In the CSR problem, although company implement the solution but not all the people will followed. Some company bosses are selfish, they do not care about other people and they just care about how much profit they can earn from the customer. All this is the wrong action for those companies. By implement the successful of CSR, customer needs to support those company is doing CSR. This is because the customers can boycott those companies that not helping people and earn a lot of money. The company can go for bankruptcies if all of the customers do not buy their product because company do not have profits for them run the business.