Well, the reality is that people buying the product care about privacy, and it is easy for those same people to ignore Foxconn's existence, because it is far away. Businesses, doing what they do, follow that reality.
This doesn't reflect well on anyone involved, but it is pretty much the way things are.
Apple does, in fact, do better than most of the rest on (for want of a better term) progressive issues like this. They were leaders on environmental issues and is willing to fight with shareholders over them[1] (ditto accessibility, presumably as an example of other efforts not directly-ROI impacting).
Manufacturing is tough to change. Even with Apple-style money, creating the sort of hub of interlocking businesses that are needed to fuel large-scale manufacturing businesses takes decades and some secret-sauce we don't understand - Shenzhen wasn't built overnight. And if Apple did somehow build a shiny new manufacturing hub somewhere in Kansas, the products it built would be likely be substantially more expensive.
That said, Apple is building a US factory. See what happens. It might not change anything. Perhaps you believe they should put more money in to the effort. But assuming they aren't doing anything is incorrect.
[1] http://www.businessinsider.com/tim-cook-versus-a-conservativ...