Flextronics
 | |
| Type | publicly-traded |
|---|---|
| Founded | 1969 |
| Founder(s) | Joe McKenzie |
| Headquarters | Singapore |
| Area served | worldwide |
| Products | electronics components |
| Services | electronics manufacturing and design services |
| Revenue | $33.6 billion USD (FY 2008[1] |
| Operating income | $167 million USD (FYE 2007)[2] |
| Net income | loss of $639 million USD[2] |
| Total assets | $1.7 billion USD (2007)[2] |
| Employees | 162,000 (full-time)[3] |
| Website | http://www.flextronics.com |
Flextronics is an electronics manufacturing services provider which designs and produces products for automotive, computing, consumer digital, industrial, infrastructure, medical, and mobile OEMs. In 2005, more than one-third of the mobile handset production outsourcing market was controlled by Flextronics.[4]
Contents
Company History
Flextronics was founded in 1969 by Joe McKenzie to produce printed circuit boards for Silicon Valley Companies.[5] Flextronics was sold to Bob Todd, Joe Sullivan, and Jack Watts in 1980.[5] In the 1980s the company began designing and manufacturing various electronics and components based on customer orders and expanded its operations overseas.[5] Financial difficulties led the company to sell its Asian plants, which formed a private company, Flextronics International, Ltd., and close its U.S. ones in 1990.[5] Flextronics Internationl was headquartered in Singapore and went public in 1994. In the late 1990s, the company made a series of acquisitions and set up its global manufacturing infrastructure.[5]
Historical Financial Information
Business Strategy
Political and Public Influence
Political Contributions
An individual or organization affiliated with Flextronics International gave $2,000 to North Carolina Representative Candadite Doug Haynes (R) in 2000.[6]
Lobbying
Corporate Accountability
Labor
At the Pondicherry factory in India, Flextronics workers were paid $48/month USD, but after transportation and other costs are taken into account, workers only took home $36/month in 2005.[7] Unlike many mobile phone manufacturers, Flextronics' factory in India pays a fix wage not dependent on production quotas.[8] However, over 70% of employees there are contract workers who are not given the same rights and benefits as permanent workers by Flextronics, e.g. they do not receive paid sick time.[9] Workers were also not given a formal contract, contributing to job uncertainty.[10] The classification of Flextronics' Chennai unit as a public utility effectively eliminates any right to strike for workers.[11]
Flextronics is a customer of Volex Cable Assembly Co., Ltd. "Volex is a global producer of electrical and optical fiber cable assemblies and
power cords (plugs, cables and connectors)" which "operates offshore
manufacturing facilities in Asia, Europe, and North and South America. In Asia, the Volex Group currently has three manufacturing facilities based in mainland China (in Zhongshan, Shenzhen, and Suzhou), and factories and/or offices in India, Indonesia, Singapore, Thailand, Japan, Korea, Malaysia, Vietnam, Taiwan, and Hong Kong. In total, the group manages over 30 production centers worldwide."[12] According to a May 2008 Report published by SACOM and Bread for All, the Volex factory in Zhongshan City, China, found that the factory employs 1500-2000 workers, and that while workers' overtime still exceeded the monthly legal limit by up to 84 hours a month, this figure was less than up to 140 hours of mandatory overtime per month employees worked in 2006.[13] In addition to work days that last a minimum of twelve hours (with two 45 minute breaks), workers are not given any days off during peak production times.[14] Occupational health and safety are problems at the Volex plant, where workers' hands often become swollen and blistered from handling cables and are not given any sort of protective gloves.[15] The past policy of deducting meal charges of 102 yuan per month from workers' wages whether or not they ate in the canteen is no longer in effect.[16] Volex management reported that the EICC has been presented to workers in 2007, but as of the beginning of 2008 workers did not claim any knowledge of either its contents or their implementation.[17]
Human Rights
Environment
Because of its Special Economic Zone (SEZ) status in India, Flextronics is exempt from making Environmental Impact Assessments.[18]
Consumer Protection and Product Safety
Anti-Trust and Tax Practices
Social Responsibility Initiatives
Flextronics is a founding member of the Electronics Industry Code of Conduct (EICC). Information for reporting violations of Flextronics Code of Conduct is listed on the company's corporate governance website. According to SOMO's report, The High Cost of Calling,
"The person responsible for CSR in the company (this person is based outside India) indicated that the company is currently developing their CSR initiative in Asia, the “Flex-pledge”, which has 4 pillars covering HR issues, environmental issues, business ethics and governance and philanthropic activities. A global steering committee has been established to address CSR issues in the company. The company was a founding member of the Electronics Industry Code of Conduct. They are ISO 9000 and ISO 14000 certified." (p.88)
Business Scope
According to a 2006 report published by SOMO: Centre for Research on Multinational Corporations, Flextronics had more than 250 subsidiaries worldwide, "providing sevices from design engineering, through manufacture and assembly, to distribution and warehousing.[19] In 2004, over a quarter of Flextronics' revenues were generated through mobile handset production.[19]
Market Segments[20]
- Autonomotive
- Computing
- Consumer Digital
- Industrial
- Infrastructure
- Medical
- Mobile
Business Units[20]
- Multek
- Components
- Global Services
- Mechanicals Technology Solutions
- Retail Technical Services
- Special Business Solutions
| Customers | Suppliers | Creditors | Competitors |
|---|---|---|---|
| Motorola | Supplier 1 | Creditor 1 | Solectron Corp |
| Siemens | Supplier 2 | Creditor 2 | Celestica Inc |
| Sony Ericsson | Supplier 3 | Creditor 3 | SCI Systems, Inc. |
| Customer 4 | Supplier 4 | Creditor 4 | Jabil Circuit, Inc. |
Financial Information
Ticker Symbol: FLEX (Flextronics International Ltd)
Main Exchanges: NASDAQ
Investor Website: http://www.flextronics.com/en/Investors/tabid/65/Default.aspx
| Shareholder | % Total Shares held |
|---|---|
| Capital Research Global Investors | 8.18% |
| Franklin Resources Inc. | 6.93% |
| Wellington Management Company LLP | 4.75$ |
| Lazard Asset Management LLC | 3.08% |
| TCW Group Inc. (THE) | 3.04% |
Largest Shareholders
Geographic scope paragraph
| Country | Revenue | Profits | Assets | Employees |
|---|---|---|---|---|
| Country 1 | Revenue 1 | Profit 1 | Assets 1 | Employees 1 |
| Country 2 | Revenue 2 | Profit 2 | Assets 2 | Employees 2 |
| Country 3 | Revenue 3 | Profit 3 | Assets 3 | Employees 3 |
| Country 4 | Revenue 4 | Profit 4 | Assets 4 | Employees 4 |
Governance
| Board Member | Member Since | Other Affiliations |
|---|---|---|
| H. Raymond Bingham | 2005 | Freescale Semiconductor, Inc.; KLA Tencor Corporation; Oracle Corporation |
| James A. Davidson | 2003 | Seagate Technology |
| Mike McNamara (CEO) | 2006 | None |
| Ambass. Rockwell A Schnabel | 2006 | Trident Capital (founder) |
| Ajay B Shah | 2005 | SMART; Samsung Semiconductor; Advanced Micro Devices; Moser Baer India |
Selected Board Members[21]; for full list of board of directors see http://www.flextronics.com/en/Default.aspx?tabid=68
Contact Information
Flextronics International Ltd.
One Marina Boulevard
Suite 28-00
Singapore, 018989
Phone: 65 6890 7188
Articles and Resources
Books on the Company
Related SourceWatch Articles
Sources
- ↑ "Flextronics: About Us"
- ↑ 2.0 2.1 2.2 "Yahoo! Finance: Annual" accessed July 2008
- ↑ "Yahoo! Finance: FLEX" accessed July 2008
- ↑ Joseph Wilde and Esther de Haan. he High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 54.
- ↑ 5.0 5.1 5.2 5.3 5.4 "Funding Universe: Flextronics International, Ltd. Company History accessed July 2008
- ↑ "Open Secrets: Top Contributors 2000" accessed July 2008
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 78.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 79.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 79-80.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 80.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 83.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 37.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 37-8.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 38.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 39.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 40.
- ↑ Jenny Chan, the Research Team of Students and Scholars Against Corporate Misbehavior (SACOM) and Chantal Peyer (Bread for All). “High Tech – No Rights? A One Year Follow Up Report on Working Conditions in China’s Electronic Hardware Sector.” May 2008. p. 40.
- ↑ Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p.100.
- ↑ 19.0 19.1 Joseph Wilde and Esther de Haan. The High Cost of Calling. SOMO: Centre for Research on Multinational Corporations, 2006. p. 55.
- ↑ 20.0 20.1 Flextronics accessed July 2008
- ↑ "Flextronics Board of Directors" accessed July 2008
External Resources
External Articles
| This article is a stub. You can help by expanding it. |
