Apple Company : The World 's Largest Contract Manufacturer Essay

Apple Company : The World 's Largest Contract Manufacturer Essay

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Apple Company was formed by Steven Paul Jobs and Stephen Gary Wozniak in 1977 in California, the United States. It mainly deals with consumer electronics, computer software and commercial services, such as iPhone, iPod and Macintosh computers. In present, Apple already became a leader in the consumer electronic industry and also it is one of the biggest technology company in the world with over $60 billion revenue per year. As an international American company, Apple Inc. has a great number of cooperative partners (Figure. 1) in different countries, such as China, Japan, the United States and South Korea. Compared to other counties, Chinese Original Equipment Manufacturers (OEM) is the most unethical manufacturer in terms of values and non-rigorous of policies. One of the well-known OEM in China is Foxconn, which is created by Terry Guo in Taiwan in 1974, and nowadays, it becomes the world’s largest contract manufacturer. This poster will use Foxconn as a case study to show that different values and non-rigorous of policies, which are the two main reasons that cause the unethical problem in China. At the end, three solutions will be offered specifically to Apple Inc. when it cooperates with Chinese OEM.

The first factor is the difference in Western and Chinese values. This difference causes Foxconn, the worldwide largest contract suppliers, to become the most unethical manufactures among all the cooperative partners that the Apple has. Terry Guo, who is the CEO of Foxconn, his values is influenced by John Stuart Mill’s ideas “HomoEconomcus” which refers to self-interest is the only motivation for humanity to work. Thus, he forces his employee to work overtime like machines to maximize productivity and increase profits. On the co...


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...mployers. In general, Non-rigorous of Chinese policies is the second factor that causes Chinese OEM to become most unethical manufactures.

As the problems with Chinese OEM have became serious, two solutions are offered to handle this situation.
<1> The first solution is that Apple should investigate their OEM before signing contracts. A good OEM should take good care of their employees, provide them with health insurance and never force them to overwork.
<2> The second solution is that Apple should send independent inspectors into its Chinese OEM regularly to get the actual responses form the employees who work in these factories.
<3> The third solution is that Apple can ask the Fair Labor Association (FLA) to assess the performance of their largest suppliers. This can be done by interviewing their working and living condition and give the real feedback to Apple.

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