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    Terry Gou Could Not Decide His Own Direction.

    2010/5/28 10:26:00 43

    Terry Gou

    On the 26 day, in the Longhua factory district of Shenzhen, Terry Gou, chairman of Foxconn group, apologized to the staff members and the society for a series of staff jumping incidents.


    Perhaps, in his view, this is already an easy step and a big step.


    So, in the face of multimedia, explaining Foxconn's "respect for every employee" concept, he said, "how much do 450 thousand people lose 11?" "Our system is effective for 449989 people."


    The subtext here is that 11 people account for 450 thousand of the proportion is very small, Foxconn is not bad. He also said that there was no problem in the management of the company's factory, but it was related to the employee's inherent personality and emotional management.


    Mr. Terry Gou, please do not give us any "450 thousand minus 11" math problems, nor do we have any tongue twisters with "no problem in management, emotional management problems".


    Because, just the night before last, Foxconn had already had twelfth staff crash deaths. Shenzhen Municipal Public Security Bureau announced that it was initially identified as suicide.


    For those capitalists who staked workers on capital than those of hphstas' clew to nail Prometheus on the rocks, Marx's oath to Engels may be the best warning. "I hope that the bourgeoisie will remember the thorns I pointed out before dying."


    At the moment, those 12 jumping off the upstairs life, those 10 floating souls, is pointing to Terry Gou's thorn. {page_break}


    Is Foxconn's system really effective for 449989 workers? Even if "as long as employees do not jump buildings, if they live even if they are effective" as the business ethics of workers, then, because of the twelfth jump, the system has also failed.


    Every society needs to rely on the role of capital in the process of economic development and rely on entrepreneurship and innovation spirit of entrepreneurs. In this regard, Foxconn and Terry Gou have made considerable contributions and should not be obliterated. However, no society can allow capital led enterprises to become independent kingdoms with no needle to plug in, water to pour into nowhere and to be exclusive. "The original money holder is a capitalist and heads up and goes ahead; the labor possessor follows his post as his worker. A smiling face, ambitious, a trembling and shrinking, like selling the skin in the market, there is only one prospect - let people tanning. This is Marx's observation over 100 years ago. It always reminds us that workers need not only the income of their families, but also their inner balance and need to be respected.


    There is a hidden contract between the society and the enterprise, but it works quietly. Enterprises and business owners must realize that only in a stable society can they create wealth and prosperity through the combination of land, capital, labor and management. Since capital needs a broad social support system to achieve its benefits, we must give some feedback to society. This feedback is manifested not only as a statutory obligation, but also as a gratitude for workers, communities, environment, customers and other stakeholders. Gratitude, humility, smile, warmth and communication are more important than simply raising wages and overtime pay.


    In the research on the "social contract basis of enterprises", McKinsey Co pointed out that contracts between enterprises and society not only include direct stakeholders, but also gradually include a wider range of stakeholders. In some laws and regulations, some contracts are semi formal: enterprises ignore the implicit requirements of stakeholders, which may prompt them to take prompt action. More challenging is the fact that a formal or informal contract has not yet been entered, but the future may become a "frontier issue" of social expectations. The study suggests that the sources of long-term value of a company, such as brand, talent and relationship reserve, are increasingly being influenced by stakeholders' expectations of the increasing role of corporate social roles. When measuring whether or not it can develop healthfully in long term, companies need to consider not only profits but also social and political problems. If a CEO ignores the hot issues of social politics, it may put enterprises in danger.


    The global business community survey conducted by McKinsey shows that some social hot issues have become a hot topic for CEO. They even believe that these social problems will affect shareholder value. 84% of CEO believe that the company's high return to investors and contribution to the public interest go hand in hand, only 16% of respondents believe that companies should only pay attention to the interests of investors.
    Based on the above understanding of the relationship between enterprises and society, we believe that Terry Gou's introspection and repentance for Foxconn employees' continuous jumping off buildings is far from enough, otherwise he will not say "450 thousand how much to lose 11". This real expression in the unconscious situation is even more frightening.


    Reputation is the strategic asset of every enterprise and entrepreneur, and it does not come from the bad life. No matter how much wealth you have, the numbers themselves will not be respected. When he was missing the holy master of Taiwan, Terry Gou said, "Chinese people often say a word:" don't add flowers to the sky, it's easier said than done. " This is the case of the holy master. When people are in trouble, they take the initiative to care for him. He will stand in front of himself and take his disciples to take care of those who are in need and those who need help, whether they are poor or humble. Everyone's words are mirrors. Now it's time for Terry Gou to shine on the mirror.


    A few years ago, another entrepreneur from Taiwan, Li Kunyao, once profoundly reflected the social cost of the OEM mode in Taiwan. He pointed out that the electronics industry in Taiwan is generally active in the X theory, economies of scale, and the pursuit of cost reduction operation mode, taking the spirit of Sparta and the wolf to play the role of undertaking large quantities of OEM orders in the global supply chain. But in the course of the development of civilization, wolves will only be a transitional role rather than a viable species. The same is true of Spartan. This kind of organization with a single objective, repression of human nature and military management will eventually return to the civilized system in the flood of history before it can be preserved.


    Li pointed out that the mainstream value of Taiwan's industry has been seriously distorted, and we can see that it is a story after success, to praise and even follow these wolf wolf and nomadic business models. But what you do not know or deliberately ignore is how much social resources may be used behind these success stories, and the means that are unreasonable, not necessarily legal and not reasonable. If such a success is praised or praised, it is unfair to the society if we do not give the whole picture behind us and discuss the pros and cons of this mode of operation.


    He also pointed out that the spirit of the wolf is not necessarily beneficial to Taiwan. Business management should return to the origin of human beings and seek the greatest balance of interests among enterprises, shareholders, employers and employees. Most of Taiwan's electronics industry lacks customer thinking because the end users are insulated from them. Therefore, many of the mainstream values that the society praises is probably just a bubble. It is a kind of bubble generated by stages.


    Li criticized that "the current Taiwan's wolf style nomadic mode of operation has a greater impact on the overall value of society than destruction." it does not help much in promoting the progress of the entire civilized society, but merely delays the pace of evolution. "If we do not think, reflect and adjust further, and continue to follow the mainstream values that have been seriously distorted, Taiwan's future will be in a predicament." {page_break}


    In our view, the mainland, which is at the critical moment of changing the mode of economic development, should have the courage to reflect on the wolf like and nomadic mode of operation. As Li said, the wolf will eventually disappear in the end of history, because the grasslands are always eaten up one day. What will be the last thing to survive? "I can almost say that there are no wolves, only those who know the civilization of life."


    Apple products are beautiful. Labor produces beauty. The bottom line is that we can't "turn workers into deformities" (Marx).


    Foxconn is strong. The bottom line is that factories can't become prisons, iron cages or steel covers. "Desperate iron cage", Max Webb used this analogy to describe the materialized structure of capitalist economy, that is, some kind of steel prison, hard, cold and merciless.


    The tragedy of "12 consecutive jumps" may not end, but the end of the Foxconn like model and the Foxconn like era may begin. Terry Gou can not decide his own direction, because civilized society and harmonious society are the general direction that every enterprise must follow.

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