To All Our Valuable Stakeholders,
We are aware that recent reports by well-regarded research institutions have connected Hon Hai Technology Group (Foxconn) to forced labor issues. I want to resolutely express that Foxconn is fully in compliance with our Group’s Code of Conduct. All workers at Foxconn are recruited openly and compensated fairly and in compliance with all relevant laws and regulations.
As you are aware, Foxconn’s Sustainability Committee, which is chaired by myself, integrates on a strategic level and in a coordinated manner the Group’s efforts in Environmental, Social and Governance (ESG) initiatives and remedies. Therefore, please allow me to address some of the recent developments in this important area:
In contrast, Morningstar Sustainalytics determined Hon Hai’s rating is maintained at Low Risk 10.4 and our Labour controversial issue risk was assessed to moderate, from significant in November 2022. And Foxconn’s key customer conducts and reviews regularly any possible forced labor practices in its supply chain. In its 2022 Progress Report, the customer stated, “we found no instances where anyone was forced to work in our supply chain.” [p42]
As for the other ongoing Controversies issues raised by MSCI, including temporary and dispatch worker’s working condition and wages disputes, we have made our response to such Controversies in our 2021 ESG Insight. The remedies were made to the extent that the Hengyang site where the temporary and dispatch worker’s dispute arose from was subsequently awarded RBA – “Factory of Choice” (FOC) Program One-Star Level, which demonstrated a high-level commitment to the RBA Code of Conduct. [p12]
Foxconn welcomes stakeholders and concerned parties to discuss with us, at any time, on any important issues. We believe that direct exchanges can contribute to transparency and accuracy on issues that are critical for the global community. We hope that going forward Foxconn will be provided the opportunity to respond to critical issues ahead of a report's release to allow for fair representation in the final assessment.
My utmost thanks to you, Our Valued Stakeholders, for your continuing support of the Group.
Hon Hai Technology Group (Foxconn)