Foxconn

From SourceWatch
Revision as of 03:34, 11 September 2008 by CMD bot (Talk | contribs)

(diff) ←Older revision | Latest revision (diff) | Newer revision→ (diff)
Jump to: navigation, search

This article is part of the Center for Media & Democracy's spotlight on global corporations.

Foxconn Technology Group
Type publicly-traded
Founded 1974
Founder(s) Terry Gou
Headquarters Taipei, Taiwan
Area served the Americas, Asia, Europe
Industry electronics
Products cables, cords, connectors, sockets, antennas, hinges, shielding, filters, transformers, inductors[1]
Parent Hon Hai
Website http://www.foxconn.com

Founded in 1974, is a multinational manufacturing services provider serving the computer, communications, and consumer electronics industries based in Taiwan. It helps companies design and manufacture their products. Its emphases are in nanotechnology, heat transfer, wireless connectivity, material sciences, and green manufacturing process.

Company History

Terry Gou founded Hon Hai Precision Industry Company Ltd. in Taipei in 1974 with start-up capital of $7,500 USD. This company became the center of the Foxconn Technology Group. In 2001, Foxconn was the largest non-government affiliated company in Taiwan.[2] By 2005 the company held over 15,000 patents.

Historical Financial Information

Historical Stock Prices

Business Strategy

According to its website[3]:

"Since 1974, Foxconn had always been guided by three Foxconnian visions;

  • Through the most efficient "Total Cost Advantages" to make comfort of electronic products usage an attainable reality for all mankind;
  • Through the proprietary one-stop shopping vertical integrated eCMMS model to revolutionize the conventional inefficient electronics outsourcing model;
  • Through the devotion to greater social harmony and higher ethical standards to achieve a win-win model for all stakeholders including shareholders, employees, community and management.


Foxconnian Business Model:

Foxconn's Product:
Speed, Quality, Engineering Services, Flexibility and Monetary Cost Saving.

Foxconn's eCMMS:
eCMMS stands for e-enabled Components, Modules, Moves and Services. eCMMS is the vertical integrated one stop shopping business model by integrating mechanical, electrical and optical capabilities altogether. It covers solutions ranging from moulding, tooling, mechanical parts, components, modules, system assembly, design, manufacturing, maintenence, logistics ... etc. Through the eCMMS model, Foxconn's Southern China campus is not only the world's largest 3C manufacturing base, but also the shortest supply chain at the same time.

Political and Public Influence

Political Contributions

Lobbying

Corporate Accountability

Labor

Longhua town in Baoan district, Shenzhen province, China, is dominated by the Foxconn factory and its dormitories. This facility produces iPods for Apple. It has over 240,000 employees, with plans for 300,000 in the near future. Although workers receive free housing and food, have medical benefits (the company pays 80% of expenses), and have 3 months of maternity leave, workers at the factory live in dormitories so crowded and noisy they cannot sleep properly, are forbidden from cooking or having visitors, are isolated because of the barren world outside the factory gates, and are not paid for all of their wages.[4]

Foxconn is one of the major purchasers of electronics produced at the Lite-On Computer Technology production facility in Shijie Town, Dongguan Province, China (founded 1997).[5] By early 2008, the facility employed about 5000 people who enter the company by paying agencies based in Shijie town, Dongguan, 500-600 yuan (for men) or 200 yuan (for women). [6] While Lite-On production schedules follow a normal 8-hour workday, breaks consist of only 10 minutes twice a day and are unpaid – further, overtime work in the evenings, on weekends, and especially during busy seasons, is mandatory and can reach up to 100 hours a month, in violation of both Chinese Labor Law and the EICC standard. [7] Basic wages at Lite-On complied with Chinese minimum wage laws (690 yuan/month in 2007), but until mid-to-late 2007 when overtime began being paid at twice the standard weekend rate (8.24 yuan/hour) the company violated overtime wage laws by paying over 2 yuan less per hour. [8] A fire in the factory in February of 2008 has caused workers to be extremely concerned about their safety, and as of May 2008 production had not yet fully resumed at full capacity due to the damage the fire had caused. [9] Workers are charged up to one quarter of their wages on food, electricity, and water for eating and living in the factory dormitories, which house up to 16 people per room. [10] Research conducted by [SACOM] and [Bread for All] in early 2008 concluded that workers at Lite-On were unaware of their rights under either [EICC] standards or any of the codes of conduct of Lite-On’s customers, including Foxconn.[11]

Lite-On Xuji Electronics Co., Ltd. Is a keyboard manufacturer based in Dongguan, China. The factory was founded in 1995, and while Dell is its major buyer, Lite-On Xuji sells keyboards to Acer, Apple, Foxconn, Gateway, HP, IBM, Lenovo, Logitech, Microsoft, NEC, Sony, and Toshiba.[12] According to a 2008 report conducted by SACOM and Bread for All, the factory employed 3000 workers who work between 10 and 12 hours a day.[12] The factory began paying workers legal wages and overtime wages in 2008, while they had been paying illegally low wages in 2006 and 2007.[13] However, workers continue to work more than 100 overtime hours per month, well about the legal limit of 36 overtime hours monthly.[13] Due to long hours standing, repetitive tasks, and high work speed, workers suffer from swollen legs, back pain, and other repetitive motion injuries, as well as irritation from paint and paint thinner fumes name="high tech 31-2"> Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 31-2.</ref>. Despite these problems, Xuji factory has no program in place to “identify, evaluate, and control the hazards that arise from physically demanding work.”[13] Management threatens workers who make mistakes with the possibility of the withdrawal of factory client orders. name="high tech 31"> Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 31.</ref> Worker dormitories are very crowded and noisy, housing 16 workers per room, who must share all facilities in common and often have trouble sleeping due to noise. name="high tech 32"> Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 32.</ref> While workers were not aware of their labor rights under the EICC, they still “expressed the urgent need” for safety training as well as shortened standing work hours or at least longer breaks and rest periods. name="high tech 32"> Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 32.</ref>

Human Rights

Environment

Consumer Protection and Product Safety

Anti-Trust and Tax Practices

Social Responsibility Initiatives

Business Scope

As of 2008, Foxconn was building over 80,000 iPhones for Apple a week.


Customers[14] Suppliers Creditors Competitors[15]
Apple Lite-On Electronics Creditor 1 Flextronics
Cisco Lite-On Computer Technology Creditor 2 Sanmina SCI
Dell Lite-On Xuji Creditor 3 Solectron
Nokia Tyco Electronics Creditor 4 Celestica
Intel Creditor 4 Competitor 4
HP/Compaq Creditor 4 Competitor 4
Sony Creditor 4 Competitor 4


Financial Information

Ticker Symbol: 2354.TW
Main Exchanges: Taiwan
Investor Website:

Shareholder % Total Shares held
Shareholder 1 % Held 1
Shareholder 2 % Held 2
Shareholder 3 % Held 3
Shareholder 4 % Held 4

Largest Shareholders

Foxconn has operations in the Americas, Europe, and Asia.

Foxconnmap.jpg[16]

Country Revenue Profits Assets Employees
Country 1 Revenue 1 Profit 1 Assets 1 Employees 1
Country 2 Revenue 2 Profit 2 Assets 2 Employees 2
Country 3 Revenue 3 Profit 3 Assets 3 Employees 3
Country 4 Revenue 4 Profit 4 Assets 4 Employees 4

Governance

Executives Board members/affiliations Executive director/compensation Date and venue of next AGM


Contact Information

Hon Hai Precision Industry Co., Ltd.
2 Zihyou Street, Tucheng City
Taipei County, 236
Taiwan
E-mail:WebAdmin@foxconn.com

Articles and Resources

Books on the Company

Related SourceWatch Articles

Sources

  1. "Foxconn Products accessed August 2008
  2. "Milestones" accessed August 2008
  3. Foxconn Philsophy accessed August 2008
  4. Robert Weil. June 2008. "City of Youth" Monthly Review,
  5. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 10.
  6. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 27.
  7. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  8. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  9. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  10. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  11. Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 28.
  12. 12.0 12.1 Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 30.
  13. 13.0 13.1 13.2 Jenny Chan, the Research Team of SACOM, and Bread for All. May 2008. “High Tech – No Rights? A One Year Follow-up Report on Working Conditions in China’s Electronic Hardware Sector.” P. 31.
  14. Overclockers Club: Foxconn accessed August 2008
  15. Staff. May 29 2006. "Foxconn Pounds Third Party Manufacturers" accessed August 2008
  16. Foxconn "Global Footprint" accessed August 2008

External Resources

External Articles