IPad city: Oxfam answers

by Christian Benna

Oxfam took a serious blow after it surfaced that a technology company it had given top marks to in a report on Corporate Social Responsibility (CSR) may be in part responsible for the deaths of ten of its workers.

It was reported that ten Foxconn factory workers from the Longhua, Taiwan, have committed suicide and it is being speculated that poor working conditions might have been a factor in this tragic event.

In a report on CSR practices Oxfam ranked the firm as one of China’s top ten socially responsible companies despite never having actually visited its factories.

“We are urging Foxconn to look into these tragic events (ten people have died and a total of 13 people have at least attempted suicide) and to take the necessary steps to improve working conditions and to insure that this kind of thing does not happen again,” says a spokes person for Oxfam China, Hong Kong. Oxfam chose to respond to Vita magazine’s questions via email.

Foxconn is yet again in a sea of trouble. For years it has been Apple’s top supplier and a key Chinese producers of consumer electronics. However, it has also come to light that working conditions in the companies factories poor. Why did Oxfam rank the company as having one of the top three CSR practices in China in 2009?      

Foxconn is one of the corporations which chose to take part in our 2009 questionnaire of companies quoted on the Hang Sheng Stock Index of Hong Kong. The scope of the research was to understand what strategies companies were adopting to develop their CSR practices. The study did not look at best practices already in place or their impact. Furthermore it did not focus on companies environmental impact or on their labour practices.

So it was a poll on companies future good intentions. Today union leaders are not allowed inside the company and reporters are kept at arm’s length. What were Foxconn’s strength that won it sixth place ranking for CSR practices?

Foxconn received a 69 per cent ranking on our CSR index. Looking at quality of labour practices the company never scored higher than 18 out of 32. Obviously this Taiwanese company has a long way to go in improving labour conditions. We are continuing to urge them to change their labour practices to avoid future tragedies.

Has anyone from Oxfam every stepped foot in a factory in Longhua?

No, never. Neither Oxfam or its consultant group Asia CSR have ever visited the Foxconn factory. An internal control was not part of the survey.

How much does Oxfam make from its CSR consulting services? How many clients does it have? Is Foxconn one of them?

No comment

Is Apple responsible (on even a moral level) for what happened inside the factory walls in Longhua? Steve Jobs, CEO of Apple, pointed out that the suicide rate at the factory was lower than the national rate in America.  Oxfam has always taken a strong position on issues like human rights and labour practices. In 2004 it called for a boycott of Israeli products in protest to the occupation of Palestinian territories. Will Oxfam call for a boycott on Apple products?

No we will not call for any sort of boycott on Apple products. We will limit ourselves to a campaign urging multinationals and their suppliers to adopt CSR practises.