Foxconn being probed over bribe claims

Foxconn being probed over bribe claims

Summary: The manufacturer is reviewing its operations amid ongoing investigations of employees soliciting bribes from suppliers.

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TOPICS: Hardware, Legal, China
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Foxconn Technology Group is cooperating with Chinese authorities to investigate claims of employees accepting bribes from supply chain partners.

In a statement to ZDNet, the manufacturer said law enforcement officials had been brought in to work with its internal audit team as part of the probe into the illegal practices.

"We are also carrying out a full review of our policies and practices to identify steps we can take to strengthen such measures to further mitigate against such actions," said a spokesperson.

The comments come after a report by Taiwan's Next Magazine claimed a Foxconn manager was arrested for seeking bribes from local suppliers.

While Foxconn did not identify any companies, Next reported as part of the probe, the company spoke with agents working with Samsung Electronics, Sony and Panasonic.

The investigation is the latest problem to hit Foxconn, after news last October it was using underaged labor at a China factory and a riot in Taiwan in September over a personal despite.

Topics: Hardware, Legal, China

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Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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4 comments
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  • Non-issue

    You know even this case is being found out to be true, statistically speaking the bribe rate in Foxconn is lower than the general Chinese population as well as all 50 states in the United States.
    Samic
    • You have stats?

      If not, then don't make sweeping claims.

      Personally, I have no confidence in the Chinese judicial system, but it's not my country.
      John L. Ries
      • Don't need stats

        Either they did bribe, which is the first time I've heard, or they didn't. If they did it would be 1: 1.23 millions employees...

        Surely it's already better than the so-called low-low "Foxconn suicide rate vs national suicide rate", yes?

        P.S. I really should add an "/s" but hey zdnet doesn't have edit so there's nothing I can do now.
        Samic
      • Dealing with China daily

        I know this is not an uncommon practice. While we don't condone any behaviour such as this, I know for fact that it goes on at all levels. You want something doing quicker, cash makes it happen. It's a fact of life and nothing new.
        Little Old Man