GAC012 AE3 BUSINESS REPORT Resolving a Business Dispute Final

GAC012 Assessment Event 3: Project- Written Report

Resolving a Business Dispute: Foxconn suicide

Student’s Name: Anna Chen

Student ID: HMSG20135

Teacher: Matthew Gibson

Due Date: 13/06/2013

Word Count: 1071

GAC012AE3 Anna Chen HMSG20135

Table of content

Executive Summary……………………………………………………………………………Page 3

1.0 Introduction…………………………………………………………………………….Page 4

2.0 Method…………………………………………………………………………………..Page 4

3.0 Findings

3.1Similar dispute ………………………………………………………………………Page 5 3.2Decision making models and solutions………………………………….Page 5 3.3Summary of interview findings…………………………..………………….Page 5

4.0 Discussion…………………………………………………………........................Page6

5.0 Conclusion and Recommendations………………………………………….Page 6

Reference…………………………………………………………………………………………..Page 7

Appendix……………………………………………………………………………………………Page 8

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GAC012AE3 Anna Chen HMSG20135

Executive summary

The famous Foxconn suicide happened in 2012, this internal dispute draw many people’s attention. Up to now, there are still employees’ committed suicides. This workers' compensation issue, has many controversies from people in different level, is focused on two aspects; one is the management of the top of the company; the other is the psychology of employees. With those two aspects, I have summed up one solution for each one. In my interview, business people pay more attention on the way to govern workers.Profit is not the most important result in doing a business, and also success doesnot just depend on how much money you earn.

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GAC012AE3 Anna Chen HMSG20135

1.0 Introduction

The purpose of this research is to introduce an internal business dispute of Foxconnto those who are interested in the relationship between workers and employers. Furthermore, it is conducted to identify a similar dispute and the proposed solution.

Foxconn, a Taiwanese multinational electronics contract manufacturing company, is the world's largest electronics contract manufacturer. Long working hours, discrimination of mainland Chinese workers by their Taiwanese coworkers, and a lack of working relationships have been the main reason of the famous event-Foxconn suicide.It started in Jan 2010 when eighteenFoxconn employees attempted suicide with fourteen deaths which draw the attention of society.Because this dispute belongas to the workers' compensation, and it’s relative to our life, thus I think we should gain some knowledge about that before we get in society.

The seven stages of decision making, obviously, is the model that provides clear steps that can be applied to any decision. In the Foxconndispute, identifying alternatives, considering the probable results for each solution and selecting an alternative and decide when to act is the key to defuse the dispute.

This report exposes the unreasonable phenomenon that happen in workplace; it may include employees strike or protest for a better work condition, and even thought committing suicide to escape the high pressure. Everything would have its own method to solve, the demand and safeguard of workers is the key to resolve business internal dispute.

2.0 Method

Both primary and secondary research was conducted in order to obtain the result. For the primary research, two interviews of two business managers were conducted to know how they look on this dispute; for the secondary research, with the purpose of acquiring some basic information about the Foxconndispute, I read some article and news on the Internet and collected some data about the number of people who committed suicide.

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GAC012AE3 Anna Chen HMSG20135

3.0 Findings

3.1 Similar dispute

The research indicates that a similar business dispute is France Telecom suicide event. France Telecom, the third-biggest telecoms operator in Europe, has over Two hundred and twenty thousand workers in its company. There were thirty-five employees who were all executives commit suicide during 2007 and 2009. The main reason of this big issue was that the company proposed that they would lay off approximate 2.2 thousands of workers in three years. Those who departed suffered high pressure and felt stalled in their career chose to jump from building. In 2009,the wave of suicides led former Deputy CEO Louis-Pierre Wenes to resign under trade union pressure.

3.2 Decision making models and solutions

In this dispute, we should identity the alternatives and make sure the act would be efficient. I have summed up two possible solutions that can prevent the incident happen again. The first one is that the company should have sympathy for the deceased and do counseling psychology termly to decrease the suicide rate. And in second method, senior management should choose a humanistic way to manage, not always focus on profits but employees.

3.3 Summary of interview findings

According to the results of the interview of two managers,Foxconnsuicide is an incident which the company should take up 50 to 60 percent of the duty, workers also have 40 to 50 percent of responsibility.Also, it could be blame to the security system. According to the interview from internet, a worker said the security used to fight with the workers. Those made the workers lose their sense of safety working in this factory.

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GAC012AE3 Anna Chen HMSG20135

4.0 Discussion

Foxconnsuicide and France Telecom suicide are similar, workers in this two workplace suffered high pressure every time, some even sustained discrimination. In myspeculation, these two companies are the epitomes of those businesses are blind by gain, the top of the management only concerned with the benefit they get; if employees work 10 hours per day could bring economic achievements, they would give order without hesitation.The workers expended a lot and got so little. Although there are 300 thousand workers in Foxconn but everyone were just like a stranger. All in all, the company system hasn’t been complete yet,employees don’t have a sense of belonging of the company. During the research, I have found some factors which may have influenced the findings;there were some opinions that were too subjective. For example I read a passage from a website that wrote about the Foxconn suicide, the writer believed it had to blame on the whole world, they shouldn’t had any grade differential like employees and workers, because every was equal. If every was equal, the suicide of Foxconn could be solved.I have to say it was a kind of funny. The people who wrote these kinds of articles were very angry in my opinion, so their words sometimes might lose fairness. If I used their opinion and put in my findings, it might make my report looked very unprofessional.

5.0 Conclusion and Recommendations

In conclusion, the Foxconn suicide case should have some solutions to avoid it happen again. The Foxconn should let the workers have more rest. The employees should care about their worker more instead of only looking at money. Young workers always have some psychological problems and they need more psychological guides and doctors. They need to make the workers feeling more like at home but not at prison.

These solutions are called EEP. Not only Foxconn, but also many other companies are also facing the same problem as Foxconn does. It’s easy to imagine the workers are just like the bricks of a building. They are the basic of any business. Therefor a big company should pay more attention to their workers, which could lead the company to make progress faster and more stable.

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References

Eliot VanBuskirk (2010), Foxconn Rallies Workers, Leaves Suicide Nets in Place, Wired

[online].Available at:http://www.wired.com/business/2010/08/foxconn-rallies-workers-installs-suicide-nets/ [Accessed 6 June 2013]

Liu Jiayi(2013), Foxconn relaxes harsh labor rules after suicide specter resurfaces, Zdnet

[online]. Available at:

http://www.zdnet.com/cn/foxconn-relaxes-harsh-labor-rules-after-suicide-specter-resurfaces-7000014748/ [Accessed 6June 2013]

Hugh Carnegy (2012), France Telecom faces staff suicides probe, Financial Times[online].

Available at: http://www.ft.com/cms/s/0/5bc72bd2-c77a-11e1-a850-00144feab49a.html#axzz2V2ggt36h [Accessed 6 June 2013]

Adeline Sire (2012), Top Executives Under Investigation After France Telecom Suicides,

The world [online]. Available at:

http://www.theworld.org/2012/07/executives-france-telecom/ [Accessed 6 June 2013]

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Appendix

Interview questionnaire

1. What do you know about Foxconn suicide?

2. In your opinion, what factor that is the key caused this incident? 3. Who should assumethe duty of Foxconn suicide? Why?

4. If you were the top of management, to subside this internal dispute, what would you do? Why?

5. Do you know some other dispute that is similar to Foxconn suicide?

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