Foxconn Technology Group (A)

In 2010, Foxconn Technology Group, the largest and fastest growing multinational company in the Electronic Manufacturing Services (EMS) industry, came under public scrutiny after a string of employee suicides reached the international press. Although the company was Taiwanese, it operated primarily in mainland China, becoming one of China’s biggest exporters. It had 800,000 employees, over 400,000 of whom lived at Longhua Science and Technology Park in the Special Economic Zone of Shenzhen. It was this Science and Technology Park – essentially a company town – which brought Foxconn under international scrutiny in 2010 after 14 employees committed suicide there and three others attempted to do so. The (A) case describes the challenges that Foxconn faced after the suicides took place at its plants. Institutional features of the labor market structure of China are presented. The response of Foxconn's management is described and the associated implications for Foxconn's stock price are discussed.