Foxconn Suicides & Human Values
財務分析師Assistant Director of Finance, Corporate Financial Planning & Analysis　黃佳慧
In May 2010 Foxconn made international headlines when there were 10 confirmed suicides at its Shenzhen plant. There were many rumors and conspiracy theories behind the suicidal motives. It, however, undeniably unveiled the manufacturing labor woes in China. China has been the world's super exporter over the last 30 years. Companies choose to expand their manufacturing operations in China for a few good reasons: plenty of land at low cost, extensive cheap and hardworking labor, enormous market and opportunities. There were numerous reports before which highlighted the hardship the manufacturing workers face in China. Yet little has been done to change the situation until the Foxconn suicidal drama burst out. Why so?

Contract manufacturing is a high cost, low margin industry. Profit margins for EMS companies like Hon Hai Precision, Flextronics, Sanmina-SCI and Jabil are all less than 10%. How do these companies maximize EPS for their shareholders when the global economic recession is not over? From a business perspective, cost reduction is inevitable. From a management perspective, the key is to optimize efficiencies. From an employer's standpoint, what does it mean? Do I simply cut my workers' salaries and benefits without considering their needs and well being? Do I make them work 10 to 15 hours a day without giving them any time off and overtime premium? There are millions of workers in the country and every human right deserves to be respected. A company succeeds when the employer and employees make leaps and sacrifices together. Different kinds of incentive programs can be implemented, such as bonus payouts, promotions, awards and training programs, counseling programs, etc. Motivated employee is always one major asset for every company.

General public education is also very important to promote proper business culture and practice in a society. Instead of scrambling around for any aftermath remedies, it is important to educate people that life is precious. It does not matter who we are and where we are. Monetary loss should not be comparable with human loss. More focus should be put into education, in which "education" means promoting ethical and moral values, not shortcuts to self-focused greedy dirty successes.