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Essay / Ethical Issues at Foxconn - 1273
Further investigations revealed that Foxconn was guilty of unsafe and unfair work environments long before the incidents, including employment of extended working hours, discrimination and military management techniques (Xu & Li, 2013 ). Because Foxconn was focused solely on maintaining business relationships by meeting Apple's demand for technical products, employee mistreatment was exacerbated and resulted in 80 to 100 hours of forced overtime per week (Xu and Li, 2013). However, in an attempt to combat the negative publicity, each company denied responsibility for the incidents, ultimately fueling the media fire (Xu and Li, 2013). Since then, each company has adopted stricter regulations intended to maintain efficiency while recognizing limitations on work hours and increased spending on compliance audits (Chandler & Werther, 2014). Yet while Foxconn continues to maintain its global leadership and Apple's profits remain unchanged, the downsides associated with the incidents at Foxconn have not transcended the consequences. From a profit perspective, increased expenses and subsequent changes in working methods pose the biggest downside to every company's bottom line. However, after both companies attempted to deny blame, subsequent developments indicate that taking responsibility was the best way to address reputational issues and focus on long-term growth. Therefore, the biggest benefit for both companies was their increased reputation resulting from increased transparency and employing business models focused on the welfare of the entire supply chain.