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In reply to the discussion: Apple gears up to challenge Tesla in electric cars [View all]alfredo
(60,309 posts)nationwide. The plant in question made computers for many other brands, not just Apple. It was Apple that did something about it and forever will get grief for doing something about it. The other computer companies using Foxconn: HP, Dell, Motorola, Nokia, Sony, and Nintendo got no bad press. 400,000 people worked at that plant. China's suicide rate is 22.23 per 100,000. Foxconn reported 14 suicides.
Being wary of any business is good, but so is being informed about what has changed since 2010. Apple was stung by the criticism, and has made positive changes. This watchful eye should also be watching other US companies using Chinese labor. Every time a US company has to spend money and make a positive effort in China, the less attractive it is to do business in China.
Tim Cook has expanded the Supplier Employee Education and Development (SEED) program and is compensating any employee that has had their rights trampled. Management and workers are educated on workers rights, and sanctions are brought against any supplier that treats workers badly.
Jobs and Cook understand that workers, if mistreated, will engage in acts of theft and sabotage. Unhappy workers will not pay as close attention to detail, and quality suffers. Things aren't always rosy, but Apple and other companies are trying to change the work environment in the businesses that supply parts, raw materials, and labor to Apple. Apple has changed suppliers due to problems with working conditions and environmental practices. Plant owners don't want to lose that gravy train.
It isn't just out of the kindness of their hearts. Apple has the money and clout to set higher standards. This attracts quality workers to them, and forces competitors to spend money and effort to change working conditions and environmental standards in their supply chain. (If you are polluting, you are wasting something of value) This is not out of line with their, innovate and force others to play catch up tactics.
Apple has dramatically expanded R&D, so don't look for them to take the pressure off competitors. Refer to our cold war tactics to get a clue. The USSR was forced into economic collapse trying to keep up with the US militarily. Is the SEED program another innovation that puts competitors at a disadvantage?
https://www.afsp.org/understanding-suicide/facts-and-figures
The suicide rate in China was driven by the large number of rural women killing themselves. That number has dropped over the years, partially due to women leaving rural areas for jobs in the cities. How many of those rural women now work at Foxconn or other businesses that are forced to treat their workers with some respect?
Even though I am a former stockholder, I still expect Apple to reach for a higher standard. Hopefully their efforts will bring positive change throughout China. I don't expect to see a dramatic change in my lifetime, but it is important that American businesses in China show a better way.