Question

In 2006, two Chinese journalists reported that the working conditions at Hongfujin Precision Industries, which is owned by Taiwanese conglomerate Foxconn, where Apple’s iPODs are produced were substandard. According to the report, not only were workers at the plant poorly paid, but they were also forced to work overtime. Apple immediately responded to the allegations and audited the factory in question. However, managers at the factory filed a defamation lawsuit against the two journalists. Despite the fact that Apple’s audit did indeed show substandard working conditions at the factory, Hongfujin did not withdraw the lawsuit. Eventually the Reporters Without Borders group took up the case for the two reporters and the lawsuit was dropped.

1. Should Apple be responsible for ensuring that its suppliers are safeguarding the basic rights and dignity of their employees? How can Apple be sure that its suppliers do not employ sweatshop labor?

2. Do multinational corporations have a moral obligation to behave in a socially responsible manner although it has adverse effects on profits?

When you answer these questions, also consider exploring Apple’s recent troubles with allegations of sweatshop conditions in supplier factories that have prompted worker suicide.

Go to https://www.theguardian.com/technology/2017/jun/18/foxconn-life-death-forbidden-city-longhua-suicide-apple-iphone-brian-merchant-one-device-extract

Answer 1

Answer 1:

Yes, Apple should be responsible for ensuring that its suppliers safeguard the basic rights and dignity of their employees. This is because Apple has outsourced the work to these industries and thus has the moral responsibility to check whether the rights of the labor are properly adhered to by the firms.Aplple can ensure that its suppliers do not employ sweatshop labor by conducting surprise audits and checks in these firms on regular basis or they can even employ a person in these firms whose main job is to check whether human resource of the organization is working properly or not.

Answer 2:

Yes, it is the moral obligation of the multinational corporations to behave in a socially responsible manner although it has adverse effects on profits. This might lower profits initially but in the long run it will improve productivity of workers and reduce drop out ratio of the employees and thus will ultimately help in increasing profits of the firm.