A Lesson in Business for Mr. Daisey


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Written from the perspective of Terry Gou, Foxconn chairman:

And I get to the main gates, and I get out of the taxi with my translator, and the first thing 
I see at the gates are the guards. 
And the guards look pissed. They look really pissed. 
And they are carrying guns. 
And I look back at the taxi which is now pulling away…and I’m involuntarily reminded 
of this Google News alert that popped into my inbox a few weeks earlier about an Reuters 
photographer who was taking pictures not at the Foxconn plant but near the Foxconn plant and 
Foxconn security went out, scooped him up, and beat him before releasing him. 
I hope they’re in a better mood today

Mr. Daisey im going to stop you right here. During your visit to my factory did you get the chance to notice which way these guards are facing? You act like Foxconn is a prison where workers are forced to stay. If a worker wants to quit, we can replace them instantaniously from an almost unlimited supply of labor. Foxconn workers are happy to be improving their lives, and if they get tired of factory work, they can leave at any time. The truth that you must have passed over in your over zealous tirade against my company is that our security guards are keeping people out, not in.

Let me explain this to you, as it is apparent that you didn’t learn much business strategy in theater school. When Foxconn enters a business arrangement with Dell, Samsung, Toshiba, Motorola, Nintendo, IBM, or even Apple, we sign contracts with confidentially clauses. Believe it or not, the companies that contract with us want to protect their products and ideas in a country that has a counterfeiting problem that costs billions per year. If somehow devices or information is leaked from our factories, we get fined and could loose our contract. Apple is so concerned with secrecy that they send auditors to make sure our factories are secure. Believe it or not Mr. Daisey, we take this very seriously. Apple is roughly 40% of our revenue, and losing our contract with them would put us out of business.

And did you seriously accuse our guards of carrying guns? For someone with such an interest in China, you aren’t very observant. You seem to have forgotten that China has one of the strictest gun policies in the world. The police in China rarely carry guns, and personal possession is highly illegal. Take a look back on your visit. Do you remember even seeing a single gun? So before you start blindly spewing accusations, do a bit of background research to make sure your lies aren’t so easily disproven.

Please continue with your monologue, although the way things are progressing, I think you’ll be hearing from me again before the night is over.

http://www.reuters.com/article/2010/02/17/us-apple-asia-secrecy-idUSTRE61G3XA20100217

http://www.cbsnews.com/8301-18563_162-57433030/counterfeit-goods-from-china-a-continuing-problem-that-costs-billions-a-year/

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2 thoughts on “A Lesson in Business for Mr. Daisey

  1. I really liked the tone that your interruption has. The speaker doesn’t sound condescending or rude, he is simply stating the facts and presenting points that contradict Mr. Daisey. I wonder what kind of reaction a true Foxconn chairman would have and if they are angry about all the criticism Daisey has created, true or not.

  2. I think it would be very interesting to approach this problem of business ethics from a Chinese business school perspective. It would be interesting what Chinese business students are learning about ethics. It is possible that there is a cultural gap much larger than we understand.

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