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Foxconn Hires Top Spinners To Defend Its Image

An anonymous reader writes "Foxconn is insisting that it has done no wrong. But it has hired Burson-Marsteller to deal with the press failout from recent child labour allegations. Burson-Masteller is a PR heavy hitter called in when outfits have big image problems. It handled Tylenol poisonings, and, according to Corporate Watch, the Bhopal disaster, and Three Mile Island. It represented the private military group Blackwater after Baghdad allegations. Its clients have included the Argentinian military junta led by General Jorge Videla and Romanian dictator Nicolae Ceaucescu and Saudi Arabia after it was pointed out that most of the September 11 attackers were from that country."

51 of 162 comments (clear)

  1. If you need PR firms, you've failed. by sethstorm · · Score: 5, Insightful

    Foxconn has done plenty of wrong - consulting with this(or any) PR agency only affirms it. There's only one option that should be on the table - confess the truth no matter how bad it is, correct the wrongdoings of slave labor and mistreatment of their workers, and then make sure it never happens again.

    It's kind of hard to justify your actions when people catch you doing not-so-good-stuff (to say it lightly) and then catch your lies as well. That, and it's even harder to do it when people keep on catching you do it.

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    1. Re:If you need PR firms, you've failed. by philip.paradis · · Score: 3, Insightful

      Foxconn doesn't care about justifying their actions, or about being honest. Far from it, that's the entire point of hiring major league PR firms. There will be confessing of any truths, but there will be plenty of shiny happy propaganda spewed around the globe.

      --
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    2. Re:If you need PR firms, you've failed. by SuricouRaven · · Score: 2

      Not always. Sometimes you can confess but in such a way as to minimise the damage, and thus prevent a worse response should the information become public later on. An easy way is to make the confession during a major news event, thus ensuring next to no media coverage as more important things dominate the headlines. There's a biggie coming up in November, but I think that is too far away for Foxxcon to use, so they'd have to find something sooner.

    3. Re:If you need PR firms, you've failed. by migla · · Score: 4, Insightful

      Slave labor implies these people are held against their will. That is not the case, they can quit any time. It's not Foxconn's fault those people are uneducated and can't find another job...

      Not their fault, but very convenient for them.

      It is wondrous system, funneling money upwards to the owners of the world by means of voluntary association of the poor in China and everyone in between.

      And you can make it too. With a dream, some hard work and sticktoitiveness, you too can be a multinational megacorporation and bazillionaire.

      The playingfield is not level, though, so in general, the richer you allready are, the more likely you are to make even more money in the babylon system.

      If you have the nerve to be ruthless, not hesitating to trample down your fellow earthicans in the climb up, up, up the ziggurat, you'll have an edge.

      Good Luck!

      --
      Some of my favourite people are from th US; Vonnegut, Chomsky, Bill Hicks.
    4. Re:If you need PR firms, you've failed. by erroneus · · Score: 4, Insightful

      ...and then close your business. You forgot that part.

      Labor markets are a tricky thing. The only way to do away with such practices is to make them all stop unilaterally. Someone here on slashdot related a story about a town in the south where slavery was made illegal while all surrounding areas still permitted it. It wasn't long before competition was able to have its affect on the town and they had to permit slavery after all. Those WalMart prices are simply too irresistible.

      But this is the norm all across the planet. Occupy protesters on iPhones and on and on. Even the protesters support this kind of human exploitation. Business, left unchecked, can and will ruin humanity. Regulations on the markets and exchanges have proven to be necessary for decades and even centuries. Regulations on utilities have shown to be necessary. Any time or place where there is an unlimited demand (power, fuel, food, air, water, etc) or an artificial control on an unlimited or otherwise natural supply (copyright, creativity, knowledge, information, seeds, etc) you will find business [run and directed by humans] trying to leverage those things to their most potential even and including at the cost of human lives... 10s, 100s, 1000s, 1000000s of lives... they don't care. Apple doesn't care. Consumers don't care. The few who care have to make the difference and it has to be someone's job to care so that others don't have to. That's what government is supposed to be there for.

      Granted, that's not the way things are.

    5. Re:If you need PR firms, you've failed. by DaveGod · · Score: 5, Insightful

      Foxconn has done plenty of wrong - consulting with this(or any) PR agency only affirms it.

      No it doesn't. All it indicates is that Foxconn perceives advantages from improving it's public relations. Anything else you wish to take from it is merely reaching from your personal subjectivity and preconceptions.

      Maybe Foxconn has done wrong and seeks to spin the story to it's advantage. Maybe.

      Or maybe it's done wrong and seeks to do right - PR firms don't only offer consulting for public communications, they can help guide genuine change within a company. Often "bad guy" companies have such a corporate culture because the board have a lack of expertise and influence on how and why to be a "good guy" company, a PR firm can fill in that gap. Any year one, nay, week one marketing student

      Or, maybe the media have got it wrong and Foxconn seek to get the truth out there. Perhaps Foxconn are good guys and these reports are all lies. Well OK, probably not, but it's entirely plausable Foxconn's failings and their lack of response have at least been exaggerated in the media. When was the last time you read an article or watched a news report on something you have a very high level of knowledge about, and shook your head about how completely they'd got it wrong? Maybe I should re-phrase that: can you recall the last time they got it right?

      I'm not trying to argue any of the above is the case, merely outline a few of the possibilities. Slashdot generally has a healthy respect for science on issues that clearly fit within the realm of science, but it would be easy to read the submissions and comments and conclude it's readership is totally incapable of applying any of it's lessons for any other topic.

    6. Re:If you need PR firms, you've failed. by UnknowingFool · · Score: 2

      My take is company that does not have $SPECIALIZED_SKILLS hires outside company that is good at $SPECIALIZED_SKILLS. News at 11.

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    7. Re:If you need PR firms, you've failed. by PopeRatzo · · Score: 4, Insightful

      Sometimes you can confess but in such a way as to minimise the damage, and thus prevent a worse response should the information become public later on.

      And sometimes you hire a major public relations firm and spend the money on spin instead of addressing the problem.

      --
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    8. Re:If you need PR firms, you've failed. by wisty · · Score: 3, Insightful

      A boring, brief admissions is what PR firms usually advise, right? It ends the news cycle, because there's nothing more to dig up. Then you drip feed out some good stuff.

      Good PR firms don't spin when things are bad. They take control of the news cycle, but in a really boring way.

      Foxconn doesn't want PR. They don't care what you think of them, as long as you stop talking about them. And the best way to do that is to release dry boring facts.

      Rebuilding their reputation will take years. Remember Nike? They ran sweatshops. It's taken them over a decade to lose that stain, despite being good employers. Foxconn doesn't need good PR now. They need to shut down the speculation-driven media cycle, but putting out boring but informative releases. They need a good PR firm when they have something positive to work with, and when people don't hate them so much, in a year or so.

    9. Re:If you need PR firms, you've failed. by El+Torico · · Score: 4, Informative

      You hit the nail squarely on its head. The only company that I can think of offhand that handled a debacle well was Johnson & Johnson during the Tylenol poisonings. They pulled the product quickly and developed tamper evident bottles immediately afterward.

      --
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    10. Re:If you need PR firms, you've failed. by ozmanjusri · · Score: 5, Informative

      You can replace the name "FoxConn" with any corporations name and still be as correct.

      Sort of.

      Burson-Marsteller should be familiar to all Slashdot denizens - they've been long-term astroturfers here for both Microsoft and Facebook. Both companies have been caught using them for smear campaigns against Google.

      Now it looks like Apple/FoxConn have joined the pack, I'd say the Axis is complete again.

      --
      "I've got more toys than Teruhisa Kitahara."
    11. Re:If you need PR firms, you've failed. by stabiesoft · · Score: 2

      letting your currency float helps too. China forces a low exchange which helps keep the exports up. It abuses their own citizens but I don't think that factors in to their pinky and the brain world domination plan.

    12. Re:If you need PR firms, you've failed. by JonySuede · · Score: 4, Interesting

      Johnson & Johnson is one of the few remaining industrial capitalistic corporation.
      Industrial capitalism is great is it see further than a quarter.
      Financial capitalism is to be frown upon as it value short term gains and loss externalization.

      Thank you Regan for starting the move from the industrial capitalism that made all of us relatively prosper,
      to financial capitalism that have made the selected few ridiculously rich and put the many in a perpetual state of precariousness.

       

      --
      Jehovah be praised, Oracle was not selected
    13. Re:If you need PR firms, you've failed. by ozmanjusri · · Score: 3, Insightful
      Apple has been deeply involved from the start. When the complaints of children working in poor conditions at FoxConn were raised, Students & Scholars Against Corporate Misbehaviour (SACOM) complained that Apple tipped off Foxconn that the inspectors were coming and executives assigned child workers elsewhere.

      And while Apple now use Reverb for their astroturfing, they're no strangers to Burson-Marsteller either. These business relationships run deep and muddy.

      --
      "I've got more toys than Teruhisa Kitahara."
    14. Re:If you need PR firms, you've failed. by rsborg · · Score: 3, Informative

      Burson-Marsteller should be familiar to all Slashdot denizens - they've been long-term astroturfers here for both Microsoft and Facebook. Both companies have been caught using them for smear campaigns against Google.

      The current CEO of Burson-Marsteller is Mark Penn, who is also famous for heading Hillary Clinton's election campaign [1] for the Democratic presidential candidacy in 2008. Many folks blamed Penn for his mis-handling of the primary, which was seen as Clinton's to lose.

      [1] http://en.wikipedia.org/wiki/Mark_Penn#Presidential_campaign_-_2008

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    15. Re:If you need PR firms, you've failed. by dj245 · · Score: 2

      Another one is SC Johnson (which is not the same company). One visit to their headquarters (free tours of the Frank Loyd Wright building) was all I needed to know that they are a long-term company that treats their employees very well. They are the Google of cleaning products. Unfortunately, you can't buy their stock because they are aren't listed and are family owned.

      Maybe we should go back to the era of family-owned corporations, if that is possible. Companies like Standard Oil and US Steel might have been ruthlessly monopolistic (some would say evil), but they didn't trade tomorrow's profits for a profit today.

      --
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  2. Do they cost 35 cents/hour? by Anonymous Coward · · Score: 4, Interesting

    And does this PR agency charge 35 cents per hour and work 12 hour shifts 6 days a week?

  3. Re:Track Record by Vlad_the_Inhaler · · Score: 2, Insightful

    Doonesbury ran a series of storylines on a firm like that a year or so ago.

    Blaming the Saudis directly for 911 is stretching things slightly: Saudi Arabia is run by religous conservatives mired in the middle ages, the people who carried out the 911 attacks considered the Saudi rulers to be hypocritical liberals. They were incandescent with rage at the Saudi rulers allowing armed infidels onto their sacred soil during the first Gulf War and its aftermath.

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  4. To rip Foxconn's claims apart... by sethstorm · · Score: 2

    Anyway, Foxconn is telling us that it has strict recruitment regulations to ensure full compliance with worker age regulations and laws.

    That presumes that the records are accurate and that nobody falsifies them - including the Chinese government.

    "We have sufficient access to workers who are of legal age and there is no incentive for us to break our own strict policies and Chinese law on the matter. Let us be very clear, Foxconn does not employ, in any capacity, any underage workers," the spokesperson said.

    When you have to make a lot of product in a short amount of time, there is huge incentive to break your policies. Never mind that Chinese law only gets enforced if you're from the wrong family or alignment of families.

    "It is a clear sign that SACOM is not interested in seeing actions that bring real benefit to workers in China. As such, they do a disservice to those companies who do provide competitive wages and benefits," Foxconn said.

    SACOM is interested in bringing benefit to workers in China, just that they would rather see workers have some freedom - especially if it means openly speaking out against the multinationals and government officials that only want a pliant workforce.

    In a sideways swipe to SACOM, Foxconn is working with "credible outside organisations such as the Fair Labor Association" to "ensure that our over a million employees in China have a safe and positive working environment and compensation and benefits that are competitive to everyone else."

    Foxconn's definition of credible is "as long as they say things we like".

    Foxconn top brass Terry Gou has been quoted as saying: "Hungry people have especially clear minds".

    If his definition means willing to comply just for the meager rations given, even if one sees unspeakable acts.

    Terry Gou also allegedly said, speaking at a zoo in Taipei: "I have a headache how to manage one million animals."

    He sure has a very low opinion of the people that work for Foxconn if that's so good of a place.

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  5. Calling Burston Marsteller a PR firm is a joke by sethstorm · · Score: 2

    There can't be many PR companies which have had clients like the Argentinian military junta led by General Jorge Videla who helped 35,000 people to disappear. Burson-Marsteller looked after the image of Romanian dictator Nicolae Ceaucescu and Saudi Arabia after it was pointed out that most of the September 11 attackers were from that country.

    With clients like these, Burson Marsteller might as well be a propaganda firm given how many despotic countries outside the US are on the list.

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    1. Re:Calling Burston Marsteller a PR firm is a joke by jalefkowit · · Score: 3, Insightful

      Countries that treat their citizens with respect and dignity generally don't need help improving their image.

    2. Re:Calling Burston Marsteller a PR firm is a joke by jpapon · · Score: 4, Insightful

      I didn't know there was a difference between a PR firm and a "propaganda" firm.

      --
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  6. Re:All I have to say is 'suicide nets' by Vaphell · · Score: 2

    What if they built them because of westerners whining about exploited people who have suicide as the only way out, not because there was a problem per se?
    Does anybody know what was the reason people commited suicide there? There are hundreds of thousands of people working there in factories, were the suicides all work related or maybe some/most were a result of broken heart or bullying in their out-of-work social circles or any other thing people commit suicides because of?
    Besides, can't people simply walk away instead of killing themselves?

  7. Re:Track Record by Anonymous Coward · · Score: 5, Insightful

    Saudi Arabia is run by religous conservatives

    No, Saudi Arabia is run by clever, worldly people whose preferred tool for oppression is religious conservatism. If you believe that the Saudi Arabia is ruled by the religious, the USA by bastions of freedom and USSR was controlled selfless communists then the PR has worked on you too.

    Religion is a symptom, not a cause.

  8. Failed? Define failed? by coder111 · · Score: 5, Insightful

    If you screwed your employees or raped the environment or society and walked away with millions or billions in profits, in what way have you failed?

    Remember, corporations have no morals. They cannot have morals by definition. Their only goal and measure of success is profit. If did some bad things and hired a PR company afterwards and still profits are up, you haven't failed.

    --Coder

    1. Re:Failed? Define failed? by sethstorm · · Score: 2

      They lied, got caught lying, got caught trying to use a shill organization like the "Fair Labor Association", and stand to lose money trying to defend their own lies. Their own country's propaganda department is so incompetent that they could not contain it or explain it. Those billions are going to be spent on figuring out how to not fail any worse.

      Unfortunately for you, I (along with many other reasonable people) don't have the idea that profitability should come at the cost of morality.

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    2. Re:Failed? Define failed? by Macthorpe · · Score: 3, Insightful

      He's not saying he doesn't have any morals. He's saying that they haven't failed at all, seeing as the only thing that they've done wrong is betray morals that they literally cannot have.

      --
      "It does not do to leave a live dragon out of your calculations, if you live near him." - Tolkien
    3. Re:Failed? Define failed? by McGiraf · · Score: 2

      If profits are up but you broke some laws, then you have to spend more on lobbying.

  9. Re:Business as usual by sethstorm · · Score: 4, Interesting

    The problem is that Foxconn had to bring in a PR firm known for whitewashing despots.

    Their regular PR agency, known as the PRC's propaganda arm, just wasn't cutting it.

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  10. Re:Track Record by chrb · · Score: 3, Informative

    The situation is a bit more complex than that. Saudi Arabia is run by the House of Saud, a monarchistic dictatorship, who have backed the dictators in the Arab Spring including the sending of troops and tanks to Bahrain to brutally suppress protests there. They are also accused of assassinating the leaders of their own protests. And some of the upper parts of the monarchy, and parts of Saudi Intelligence, are accused of backing terrorism, see The Kingdom and the Towers:

    In support of his claim that Saudi Arabia supported terrorism, Khilewi spoke of an episode relevant to the first, 1993, attempt to bring down the World Trade Center’s Twin Towers. “A Saudi citizen carrying a Saudi diplomatic passport,” he said, “gave money to Ramzi Yousef, the mastermind behind the World Trade Center bombing,” when the al-Qaeda terrorist was in the Philippines. The Saudi relationship with Yousef, the defector claimed, “is secret and goes through Saudi intelligence.”

    When Khalifa returned to Saudi Arabia, in 1995—following detention in the United States and subsequent acquittal on terrorism charges in Jordan—he was, according to C.I.A. bin Laden chief Michael Scheuer, met by a limousine and a welcome home from “a high-ranking official.” A Philippine newspaper would suggest that the official had been Prince Sultan, then a deputy prime minister and minister of defense and aviation, today the heir to the Saudi throne.

    In sworn statements after 9/11, former Taliban intelligence chief Mohammed Khaksar said that in 1998 Prince Turki, chief of Saudi Arabia’s General Intelligence Department (G.I.D.), sealed a deal under which bin Laden agreed not to attack Saudi targets. In return, Saudi Arabia would provide funds and material assistance to the Taliban, not demand bin Laden’s extradition, and not bring pressure to close down al-Qaeda training camps. Saudi businesses, meanwhile, would ensure that money also flowed directly to bin Laden.

  11. Quitting: Technically possible, not feasible. by sethstorm · · Score: 3, Insightful

    Quitting presumes that alternatives exist and that the government wouldn't find some charge to hold them up on if they quit at the wrong time.

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    1. Re:Quitting: Technically possible, not feasible. by sethstorm · · Score: 3, Interesting

      What China practices is not capitalism. It is simply a more multinational-friendly version of despotism.

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    2. Re:Quitting: Technically possible, not feasible. by UnknowingFool · · Score: 5, Insightful

      Do you actually live in China because you seem to profess much about a situation you have no clue? These people can quit. No one will hunt them down. The problem is that a competitor is likely only to have the same or worse conditions.

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    3. Re:Quitting: Technically possible, not feasible. by Luckyo · · Score: 3, Insightful

      You do realise that in true capitalism, there is absolutely no caring about who controls the capital. The importance is that capital controls everything but its owner.

      In this regard, China is far more capitalist then the West, where there are a lot of regulations to address the biggest flaws of capitalism.

    4. Re:Quitting: Technically possible, not feasible. by Johann+Lau · · Score: 3, Insightful

      Capitalism IS despotism. The hierarchy in a corporation is usually very fucking clear, and perfectly totalitarian.

  12. Re:They could give $100 per worker instead by Shajenko42 · · Score: 2

    Because then they wouldn't have control over the workers.

  13. Why PR? by pertinax18 · · Score: 2

    Why do you need an expensive PR firm when you already have David Pogue working for you?

  14. Why is this an Apple story? by kthreadd · · Score: 2

    It's not about them.

  15. you act like it was some kind of fluke by decora · · Score: 2

    mistreatment of workers is the entire purpose of outsourcing manufacturing to China in the first place. if you make Foxconn stop abusing people, you essentially put it out of business, because now the playing field is leveled so that other countries that are not brutal dictatorships will have a chance to enter manufacturing again.

    the destruction of unions and the lowering of wages and the destruction of environmmental regulations was the very purposes of existence of companies like Foxconn, and their American enablers. you seem to think these people are just going to say 'oh woops sorry' and somehow reverse the last 30 years of history, including the huge profits they made for private equity firms, investment banks like Goldman Sachs, and hedge funds.

  16. Don't Blame Foxconn by sl4shd0rk · · Score: 2

    I'll get modded flamebait for this but it's true. Everyone I know does not give a single f-ck about upgrading for the sake of having the newest, latest, greatest whatever gadget is coming out. Apples 'record sales' are largely symptomatic of a several much bigger problems. Greed, envy, waste, and more. 37 million iphones? with sales up 128% from last year. 15.4 million ipads - also doubled from last year. Apple isnt the only offender but they are tge biggest.

    * http://allthingsd.com/20120124/apples-record-iphone-and-ipad-sales-beat-expectations/

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  17. Re:Track Record by Anonymous Coward · · Score: 2, Insightful

    Money and petty power struggles mired in deeply seeded inertia-laden cultural institutions that have a surprising influence on the first two and can at best only be manipulated and guided rather than completely deconstructed.

  18. Good for Foxconn, a large successsful business by retroworks · · Score: 4, Insightful

    How is this an eyebrow raising story? Is Tylenol somehow like Bohpol? Tylenol was a corporation which was a victim of an attack on its brand and business practice, and hired a PR firm and made changes to bottle caps which are taught as the textbook business response to a press emergency. Having been to Foxconn / Han Hai and worked with people from there, and having read the hysterical descriptions of their operations in the USA press, I think they deserve credit for A) having already identified a scaleability problem (plan to put in robot labor), B) having raised the salaries significantly within weeks of the bad press, and now C) hiring a professional western PR firm to help them in a dilemma in western PR.

    I'm not excusing everything that has happened in the course of Han Hoi Precision's growth curve, but they seem to be handling the industrial revolution reform at a pace in years rather than decades. Sure some of it is reaction to criticism, but rapid response is not the same as "cover up"! Some commenters seem to have no default setting between fanboy/troll, and any story with Foxconn in a headline becomes 5-Mod v. 0-Mod debate, more like American politics than indication that anyone is in any way concerned about China's development, pollution, or unemployment balance.

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    1. Re:Good for Foxconn, a large successsful business by UnknowingFool · · Score: 4, Insightful

      Most here only seem to see the sensationalism of certain aspects and ignore details that make the story less interesting.

      Workers sometimes work 30 hours straight during a rush period for which they were paid for every hour. I've worked 36 hour shifts myself during plant startup/shutdown but since I was salaried I didn't get any extra pay.
      These workers live in company dormitories because the surrounding areas have no housing for them. If the company didn't built dorms, they could not attract any workers.
      Workers don't have hot running water in their dorms much like the surrounding area.
      Workers don't even know their roommates which is not unlike large, densely populated cities where neighbors don't know each other especially if they don't share the same work shift.
      Workers work for little pay according to US wages. For China their wages are better than normal.
      There have been 20 suicides in the last two years for a work population of nearly 1 million which is well below the national average.

      I don't pretend that work conditions are the best in the world. It's a minimum wage factory job and some people don't like those jobs whether they are in China or on an assembly line in the US. For the most part, Foxconn doesn't really care about their workers any more than a company should. They don't go out of their way to harm workers which some people seem to think.

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    2. Re:Good for Foxconn, a large successsful business by retroworks · · Score: 2

      A voluntary non-slave workforce with choices of places to work is the cure for most workplace ills. For better or worse, Foxconn is a place that people can quit from, and many people do, it's high turnover. For now, Foxconn is better than the textile mills in the area, so it's not a management emergency yet. But they appear to be responding to these complaints, and responding to them professionally to constructive criticism. http://bit.ly/x5VT83 Personally I like the melting-pot story... when Cantonese and Mandarin and Hong Kong and Taiwanese people find themselves not defined by their language or culture but by the positions (management, labor, services, etc.), creating wealth and resolving problems, it's been a good thing.

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  19. Re:Business as usual by drinkypoo · · Score: 2

    Their regular PR agency, known as the PRC's propaganda arm, just wasn't cutting it.

    Let's face it, the PRC is shitty at propaganda. Nobody believes anything they say. They're pretty good at strong-arming, which is why people believe anything they want them to believe, but it's not on the strength of their words, but on the strength of their strength.

    --
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  20. Re:Maybe by madprof · · Score: 2

    What I find most irritating is the sancitmonious attitude of some Apple users who think their choice of table/phone is superior in more than technology.

  21. Re:Maybe by Anonymous Coward · · Score: 2, Funny

    What I find most irritating is the attitude of Apple users who think their hardware is superior in anything other than number printed on the price tag.

  22. Ok by MemoryDragon · · Score: 2

    If you hire a guy like this one, then you have more than a little bit of shit up your sleeves.

  23. Re:Maybe by Dahamma · · Score: 4, Interesting

    Quote from the Foxconn CEO: “Hon Hai has a workforce of over one million worldwide and as human beings are also animals, to manage one million animals gives me a headache.”

    So - my first thought was, "it couldn't have been that bad, I'm sure there was some confusion in the translations".

    And then he LITERALLY invited the director to the Taipei Zoo to "share his experience with the audience on how to manage different animals according to their individual temperaments."

    So yes, Foxconn may really be as bad as they seem.

  24. Re:Track Record by superwiz · · Score: 2

    inertia-laden cultural institutions

    Why do you insist on using a euphemism (which barely euphemises, btw) instead of just saying "religion?"

    --
    Any guest worker system is indistinguishable from indentured servitude.
  25. Re:All I have to say is 'suicide nets' by toriver · · Score: 2

    Suicide rate at Foxconn: 1.8 per million workers, suicide rate in the United States (IIRC) 3+ per million workers, maybe Americans should try and get Foxconn jobs instead... :)