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Corporate Fraud

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  • March 2013
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Corporate Fraud
Foxconn Technology Group
Background
Foxconn Technology Group, subsidiary of Hon Hai Precision Industry Co., Ltd., which is the manufacturer targeting on electronic products like PC components, is founded by Terry Gou. First founded in Taiwan, Foxconn started to establish factory in Mainland China in 1988 and then expands its business very quickly. As the world’s largest manufacturer targeting on contract electronics, its clients are all over the world, including American, European and Japanese electronics. The most well-known products that the company manufactured are IPhone, IPad, IPod, PlayStation 3 and Kindle. The business philosophy of the company is “Speed, Quality, Engineering Services, Flexibility and Monetary Cost Saving.” Nature of Crime

There are over 10 suicidal cases from 2009 to 2012 in the factories of Foxconn Technology Group. The average age of people committing suicide is around eighteen to twenty-five years old. Some people presume that the reason of commintting suicide is stress. The continuous high stress causes the applicants or employees of Foxconn much more depressed. Owing to Foxconn’s philosophy, almost all of its employees are working over-time. One reporter addressed an article about the applicants’ life in Foxconn. A paragraph she mentioned in her article said, “Their boss seriously restricts their conversations in more than a dozen hours work time a day. Even several sentences would make them yelled or noted a demerit in their record(2010).” The China Government legislate that their limitation for work time is 49 hours a week. However, the work time in Foxconn is far away from this. Their wage before people committing suicide is about $150 per month. More than half of their wage comes from overtime working. How the case played out

After a series of suicide, Foxconn were received attention all over the world. Fair Labor Association (FLA) started a invetigation about Foxconn plants and released the result showing...

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