Former Foxconn Employees Charged with Accepting Bribes from Supply Chain Partners

Several former Foxconn employees have been charged in Taiwan for allegedly accepting kickbacks from partner companies in Foxconn's supply chain, reports The Wall Street Journal. According to the report, a former general manager is being held on bribery charges and three former employees are released on bail. However, Apple and other Foxconn clients are not being investigated as authorities do not believe those companies were involved in the kickback scheme.

foxconn-iphone_production
The bribery allegations were made public last year when an internal Foxconn audit revealed several employees were accepting kickbacks from supply chain companies. Foxconn then acknowledged the criminal activity and turned the employee(s) over to the Chinese police for investigation.

"We can also confirm that our internal investigation found these violations to be limited to the procurement of consumables and accessory equipment related to a small part of our business," Foxconn said in a statement. "The employees in question are no longer with our company."

The charges come as Foxconn has been under fire multiple times in recent years for labor violations. The company has also been working with Apple to improve conditions for employees in its city-like factories, but it has been a slow process. After agreeing in 2012 to examine worker pay and limit working hours, a recent Fair Labor Association report shows the company now is meeting the FLA's 60-hour work week, but still exceeds China's legal limit for weekly working hours and overtime.

Top Rated Comments

AngerDanger Avatar
115 months ago
After reading the article, I still have no idea what the workers were bribed to do.
Score: 7 Votes (Like | Disagree)
gnasher729 Avatar
115 months ago
Welcome to China. This is a very common practice and isn't viewed as unethical by a lot of business people there. I wonder if this is being done for the optics.
I think companies will see it as unethical if their employees steal from them.

After reading the article, I still have no idea what the workers were bribed to do.
Management, not workers. "Accepting kickbacks from partner companies in the supply chain". Couldn't be clearer than that. Foxconn needs a million dollar worth of parts. Some person at Foxconn gets the task of finding the best supplier and get the parts. But the contract doesn't go to the best supplier, but to the supplier who pays the largest amount of cash to that person. Which means Foxconn doesn't get the best supplier, and pays more (because the kickback will obviously be added to the price of the order). That's stealing from your employer, which gets you fired and prosecuted when you get found out.
Score: 6 Votes (Like | Disagree)
Consultant Avatar
115 months ago
You're viewing this from a Western ethical lens. Accepting remuneration in exchange for directing contracts in a certain direction is extremely common in China. Yes, the Chinese government is being increasingly pressured to crack down on this practice, and Western companies doing business there are having a lot of influence on that, but it kind if is what it is.

Don't get me wrong, I'm all for the crackdown. I've done business in China and been personally burned by this practice.

Yup. It's part of certain cultures.

In the U.S, it's done a different way. For example, it's part of the culture in Washington D.C., where lobbyists (often retired govt. staff) get paid big bucks to talk to friends / former colleagues.
Score: 3 Votes (Like | Disagree)
gnasher729 Avatar
115 months ago
I'm sure it's much more then just a couple of people involved in this.

Of course you are sure. You have not the slightest clue what is happening, but you are sure. These guys were stealing from their employer (Foxconn). If they received $10,000 from a supplier, then Foxconn could have got the same supplies for $10,000 less. Probably for $20,000 less. What you are doing is the same as hearing that two people were injured in a car accident, and saying you are sure there must be a lot more injured.
Score: 3 Votes (Like | Disagree)
chimes Avatar
115 months ago
Business as usual

Welcome to China. This is a very common practice and isn't viewed as unethical by a lot of business people there. I wonder if this is being done for the optics.
Score: 3 Votes (Like | Disagree)
TWSS37 Avatar
115 months ago
They put the con in Foxconn
Score: 3 Votes (Like | Disagree)

Popular Stories

iphone 14 pro hands snowflakes 1

Best Black Friday iPhone Deals Still Available

Wednesday November 23, 2022 1:55 pm PST by
Cellular carriers have always offered big savings on the newest iPhone models during the holidays, and Black Friday 2022 is no different. Right now we're tracking notable offers on the iPhone 14 and iPhone 14 Pro devices from AT&T, Verizon, and T-Mobile. For even more savings, keep an eye on older models like the iPhone 13. Note: MacRumors is an affiliate partner with some of these vendors....
apple watch gold ornaments

Best Black Friday Apple Watch Deals Still Available

Wednesday November 23, 2022 9:31 am PST by
We're tracking all of the best Apple product discounts for Black Friday this week, and the Apple Watch always makes a great gift around the holiday season, so you're guaranteed to find solid discounts right now. In this article, you'll discover the best Black Friday sales on Apple Watch Series 8, Apple Watch SE, and Apple Watch Ultra. Note: MacRumors is an affiliate partner with some of these...
new airpods lineup black friday

Best Black Friday AirPods Deals Still Available

Tuesday November 22, 2022 10:01 am PST by
Although we've been tracking Black Friday deals for a few weeks now, the shopping holiday is officially kicking off this week and we're highlighting the best sales for each of Apple's product lines. In this article, you'll find the best Black Friday sales on AirPods 2, AirPods 3, AirPods Pro, AirPods Pro 2, and AirPods Max. Note: MacRumors is an affiliate partner with some of these vendors....
ipad holiday bulbs

Best Black Friday iPad Deals Still Available

Thursday November 24, 2022 12:25 pm PST by
Black Friday deals have been in full swing for the better part of a month, and now that the shopping holiday is officially here we're seeing even more solid discounts on Apple devices. We're highlighting the best sales for all of Apple's product lines, and in this article you'll find the best Black Friday sales on iPad, iPad Pro, iPad Air, and iPad mini. Note: MacRumors is an affiliate partner ...
mac imac snowflakes

Best Black Friday iMac and MacBook Deals Still Available

Thursday November 24, 2022 1:07 pm PST by
Our Black Friday coverage continues today with the best deals you can find on MacBook Pro, MacBook Air, and iMac. As with all Black Friday deals, we aren't sure how long any of these will last, and prices are always fluctuating, so if you see something you want, be sure to buy it soon. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a...
General Black Friday Deals 2022 Green

All the Apple Black Friday Deals You Can Still Get

Friday November 25, 2022 4:40 am PST by
Black Friday is winding down for 2022, but many Apple products are still seeing major discounts. In this article, you'll find every Apple device with a notable Black Friday sale. We'll be updating as prices change and new deals arrive, so be sure to keep an eye out if you don't see the sale you're looking for yet. Note: MacRumors is an affiliate partner with some of these vendors. When you...
General Black Friday Deals 2022 Blue

All the Apple Black Friday Deals You Can Get Right Now: AirPods, Apple TV, Mac, iPad, and More

Saturday November 19, 2022 8:00 am PST by
Last week was jam-packed with early Black Friday deals, and now that the shopping holiday is right around the corner, we're going back through all of the best sales you might have missed over the past week and updating as prices change and new deals arrive. As with all holiday shopping, there's no guarantee that better prices won't come around later in the season, but if you want to shop early,...
Best Buy November Deals Hero

Best Buy Reveals Black Friday Plans With Sitewide Sales Available Now

Tuesday November 22, 2022 3:49 pm PST by
Following in the footsteps of Target and Walmart, Best Buy this week detailed its plans for the Black Friday shopping holiday and its schedule looks a lot like other retailers. In terms of sales, Best Buy has the expected list of TVs, appliances, video games, computers, streaming devices, and more. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a...