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
135 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
135 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
135 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
135 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
135 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
135 months ago
They put the con in Foxconn
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 17

iOS 17.5 Bug May Also Resurface Deleted Photos on Wiped, Sold Devices

Friday May 17, 2024 12:24 pm PDT by
A bug in iOS 17.5 is apparently causing photos that have been deleted to reappear, and the issue seems to impact even iPhones and iPads that have been erased and sold off to other people. A Reddit user wiped an iPad following Apple's guidelines in September of 2023 before selling it off to a friend. That friend updated the iPad to iPadOS 17.5 this week, and began seeing the Reddit user's old ...
iphone se 4 modified flag edges

When to Expect the Next iPhone SE to Launch

Friday May 17, 2024 2:03 pm PDT by
It has been over two years since Apple released the third-generation iPhone SE, and rumors continue to surface about a new model. The latest word comes from The Information, which today reported that Apple plans to release a new iPhone SE with a design similar to the standard iPhone 14 in the spring of 2025. If this rumor is accurate, the iPhone SE would finally gain Face ID and a notch...
oled m4 ipad pro grainy display reports

OLED iPad Pro Users Report 'Grainy' Displays, But It May Not Be a Defect

Friday May 17, 2024 5:57 am PDT by
Some new M4 iPad Pro models are exhibiting a visible static grain pattern across the OLED display, according to several user reports on Reddit (1, 2, 3) and the MacRumors Forums. Image credit: MacRumors user bk215 Users who see the grain generally report that it is most noticeable in dark environments with the display set at a low to medium brightness while viewing content with gray or muted...
iOS 17

Troubling iOS 17.5 Bug Reportedly Resurfacing Old Deleted Photos

Wednesday May 15, 2024 5:29 am PDT by
There are concerning reports on Reddit that Apple's latest iOS 17.5 update has introduced a bug that causes old photos that were deleted – in some cases years ago – to reappear in users' photo libraries. After updating their iPhone, one user said they were shocked to find old NSFW photos that they deleted in 2021 suddenly showing up in photos marked as recently uploaded to iCloud. Other...
Delta Hands On Feature

iPhone Emulators on the App Store: Game Boy, N64, PS1, PSP, and More

Thursday May 16, 2024 12:45 pm PDT by
In April, Apple updated its guidelines to allow retro game emulators on the App Store, and several popular emulators have already been released. The emulators released so far allow iPhone users to play games released for older consoles from Nintendo, Sony, SEGA, Atari, and others. A list of some popular emulators available on the App Store so far follows. Released Delta Delta is...
iphone 15 pro max vs iphone 16 pro max

iPhone 16 Pro Max Looks This Much Bigger Beside iPhone 15 Pro Max

Thursday May 16, 2024 4:51 am PDT by
This year's upcoming iPhone 16 Pro Max is expected to get a boost in overall size from 6.7-inches to 6.9-inches, and a new image gives us a good idea of how the current iPhone 15 Pro Max compares to what could be Apple's largest ever iPhone. The image above, posted on X by ZONEofTECH, shows a dummy model representing the ‌iPhone 16 Pro‌ Max alongside an actual iPhone 15 Pro Max. Dummy...