CEOs and business leaders on COMPAS’ business panel were asked for their views about the employee practices of Foxconn, China’s giant electronic device manufacturer. Maker of products for companies such as Apple Inc, Motorola, and Sony, Foxconn has been criticized for abusing workers and for a high suicide rate among its workforce.

The main findings from consulting the business panel are as follows:

• Apple may suffer some reputation damage from using Foxconn but is unlikely to experience an impact on its share price, according to panelists;
• Foxconn's 30% payhike was probably an appropriate response to the company’s mistreatment of workers;
• By a large margin, panelists perceive Foxconn’s payhike as a forerunner of high wage inflation in the country;
• By a larger margin, panelists consider inappropriate Foxconn's cutting benefits to the families of suicides as an effort to cut suicide rates; while
• Panelists are divided about whether North American companies should insist on North American management standards among their suppliers in China and elsewhere

These are the key findings from this past week’s Internet survey of CEOs and business leaders on the COMPAS panel. The weekly business survey is undertaken for Canadian Business magazine under sponsorship of BDO Dunwoody LLP.

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