“According to other Research by Chan, “Foxconn’s operating margins have declined steadily over the past six years, from 3.7 percent in the first quarter of 2007 to a mere 1.5 percent in the third quarter of 2012, even as total revenues rose in the same period with the expansion of orders.”          

From: http://www.cbsnews.com/news/what-happened-after-the-foxconn-suicides/

Foxconn should definitely start recognising the importance of taking better care of its employees and rehabilitating the working environments. It is vital for them to focus less on the company’s production capacity, revenue and shareholders, and, instead, start focusing more on its stakeholders, in this case, its employees.

The suicides a few years ago is a sign reflecting how the employees are not in much of the same interest with its employer. Ironically, what the managers at Foxconn has done was to set up nets to prevent its employees from “successfully” committing a suicide, other than trying to resolve the issue from its origin — interests of stakeholders not being met.

According to the stakeholder theory, since the interests of the stakeholders are not being met and the firm does not pay enough attention to them, the business is likely to be in decline. And according to the quote above, it is.