What did the New York Times story on January26,2012,uncover about the Apple subcontractor Foxconn? Please read/skim the attached NYT article . 2. What role did culture play in this case?

Foxconn: sub-contracter of Apple with locations in China and Taiwan where much manufacturing of Apple products take place. Problems at Foxconn revealed through audits and investigative journalism: The use of poisonous chemicals to clean iPhone screens injured137workers at an Apple supplier factory; the chemical, n-hexane, can cause nerve damage and paralysis. It was used because the chemical evaporatedmuch quicker than rubbing alcohol, thus allowing more screens to be cleaned per minute. An explosionoccurred at one factory that polished iPod cases, caused by a build-up of aluminum dust; four died and18were injured. Seven months later,anotherfactory explosion from aluminum dust injured59workers. Proper ventilation would have prevented the dust build-up.

Worker stress levels and other conditions contributed to many employee suicides and more suicide attempts; hotlines to report abusive conditions, seek mental counseling, or discuss workplace problems were not available. The average factory workers were young, between the ages of18and25,and from rural villages, hundreds of miles fromhome. During a two-day protest, about150workers threatened mass suicide atop a Foxconn factory that assembled Microsoft's Xbox, protesting working conditions that were described as"military" fashion. Minimum wages required overtime work in order to live in an urban center and still be able to save. Apple: Apple's rapid product innovation kept consumers coming back for new product models and the latesttechnology developments, includingupdates of iPods, iPads, and iPhones and new Macs. While this fast-paced innovation led to demand for more product, it also caused stresses for the supplier, which was pressured to have workers work continuous shifts and extended overtime, while living in crowded conditions, as factories rushed to fill orders. Culture of Secrecy A veilof secrecy has surrounded Apple's product development and production. Keeping new products under tight wraps created industry buzz and endless speculationbyindustrywatchers andreporters.Thesecrecyalsohelpedbuildproductanticipationfromitslegionsoffans. SteveJobs,Apple'sleaderandsupremeinnovator,whodiedin2011,perfectedtheproductlaunch to attract as much media attention as possible by unveiling the newest product to great fanfare at a major computer conference. Thesecrecyalsohadanotherimportantfunction:itprotectedApple'sintellectualpropertyfrom corporatespiesintentonindustrialespionage. Apple&TimCook'sResponsetoNYTArticle: Cook then detailed the many actions that Apple had taken to improve worker conditions, including Apple factory inspections, FLA(Fair Labor Association)audits, and employee education on their rights. Cook said,"We know of no one in our industry who is doing as much as we are, in as many places, touching as many people."

Apple'sResponsetoBeingExposedforHarshWorkerConditions: Apple'sMonitoringEfforts-auditseveryyear. AppleSupplierResponsibilityProgressReports-stillnotenoughdetail. AppleSupplierCodesofConduct-madeafterSteveJobs'death. TransparencyconcernscontinueddespiteApple'seffortstorespondtobadPR NPR'sThisAmericanLifeairsepisodesaboutFoxconnandworkerconditions Foxconn'sCEOTerryGoubraggedaboutnotneedingtohireaPRcompany ContextofPRProblemsforApple

Weconducted393auditsatalllevelsofoursupplychaina72percent increaseover2011coveringfacilitieswheremorethan1.5million workersmakeAppleproducts.Thistotalincludes55focused environmentalauditsand40specializedprocesssafetyassessmentsto evaluatesuppliers'operationsandbusinesspractices.Inaddition,we conducted27targetedbondedlaborauditstoprotectworkersfrom excessiverecruitmentfees. Takingontheindustrywideproblemofexcessiveworkhours,we achievedanaverageof92percentcompliancewithamaximum60-hour workweek.Wearenowtrackingmorethan1millionworkersweeklyand publishingtheresultsmonthlyonourwebsite. In2012,ApplebecamethefirsttechnologycompanytojointheFair LaborAssociation(FLA).Atourrequest,theFLAconductedthelargest- scaleindependentauditinitshistory,coveringanestimated178,000 workersatourlargestfinalassemblysupplier,Foxconn.TheFLA's independentfindingsandprogressreportshavebeenpublishedonits website. Apple'sResponsetoHumanRightsComplaintsandNegativePress

Apple'sResponsetoHumanRightsComplaintsandNegativePress Weextendedourworkerempowermenttrainingprogramstomoreworkersandmore managers.In2012,1.3millionworkersandmanagersreceivedApple-designedtrainingabout locallaws,theirrightsasworkers,occupationalhealthandsafety,andApple'sSupplierCodeof Conduct.That'snearlydoublethenumberofworkerstrainedbythisprogramsince2008. WeincreasedourinvestmentinourSupplierEmployeeEducationandDevelopmentprogram whichoffersworkerstheopportunitytostudybusiness,computerskills,languages,andother subjectsatnochargeexpandingfromfourfacilitiestonine.Morethan200,000workershave nowparticipatedintheprogram. Continuingoureffortstoprotecttherightsofworkerswhomovefromtheirhomecountryto workinoursuppliers'factories,werequiredsupplierstoreimburseUS$6.4millioninexcess foreigncontractworkerfeesin2012.ThatbringsthetotalrepaidtoworkerstoUS$13.1million since2008.Apple'sResponsetoHumanRightsComplaintsandNegativePress Weextendedourworkerempowermenttrainingprogramstomoreworkersandmore managers.In2012,1.3millionworkersandmanagersreceivedApple-designedtrainingabout locallaws,theirrightsasworkers,occupationalhealthandsafety,andApple'sSupplierCodeof Conduct.That'snearlydoublethenumberofworkerstrainedbythisprogramsince2008. WeincreasedourinvestmentinourSupplierEmployeeEducationandDevelopmentprogram whichoffersworkerstheopportunitytostudybusiness,computerskills,languages,andother subjectsatnochargeexpandingfromfourfacilitiestonine.Morethan200,000workershave nowparticipatedintheprogram. Continuingoureffortstoprotecttherightsofworkerswhomovefromtheirhomecountryto workinoursuppliers'factories,werequiredsupplierstoreimburseUS$6.4millioninexcess foreigncontractworkerfeesin2012.ThatbringsthetotalrepaidtoworkerstoUS$13.1million