Tag Archives: foxconn

The New York Times’ Ode to Foxconn and Anti-Employee Control Fraud

By William K. Black

I wrote recently about Apple’s release ofinformation from its “audits” of its major suppliers.  Apple constructed the release to deny thepublic information on the identity of the suppliers that defrauded andendangered the lives and health of their workers.  I explained that criminologists classifythese as “anti-employee control frauds.” Control frauds occur when the persons who control a seemingly legitimateentity use it as a “weapon” to defraud. Anti-employee control frauds defraud the workers.  Apple’s audit, and I explained why it was farfrom vigorous, showed endemic anti-employee control fraud by itssuppliers.  Apple overwhelminglypurchases components from Asian suppliers that are criminal enterprises.  The control frauds operate in fraud-friendlynations with non-Western managers selected for their willingness to cheat theworkers.