Corporate culture needs integrity and honesty

The Toyota recall reflects the necessity of bringing crisis management into corporate culture, and the experience is a warning for Chinese enterprises diligently trying to break into the international market. What we need to think about is how to prevent crisis from its root, how to rapidly and effectively resolve crisis, and how to walk steadily on the road of internationalization management.

"Crisis management" means "responsible for consumers"

Zhu Jianghong, Chairman of Gree Electric Appliances, Inc., Wang Jingdong Vice chairman of Gree Electric Appliances, Inc., said: The Toyota automobile has held the laurel crown of "cost-saving model" for a long time, and its cost basically cannot fall any more. Of course Toyota uses "fine management" to improve its efficiency and drop the cost on per-unit products, which has strong competitive power for the enterprise managers. However, when cost management affects the product quality, "saving" turns to its opposite side. Excessive expansion and more attention to cost-cutting resulted in quality problems and ultimately a large-scale recall of Toyota cars.

Risk control is the DNA of corporate culture

Zhang Zhiyong, CEO of Li Ning Co., Ltd. said: The Toyota recall fermented continuously. It appears to be a problem of quality and public relations in a time of crisis, but the essence lies in the flaw of the corporate culture.

Block up the source of crisis

Zhou Houjian, Chairman of Hisense group, said: The essence of Toyota recall is a major quality event. As an automobile company, Toyota enjoys global fame due to its good quality and high technology, but now its problem makes everybody think deeply.

Walk steadily on the road of international management

The establishment of crisis-response mechanism is a key issue for enterprises in terms of international operation and management. It should focus on the following four aspects:

First of all: speed. Immediately bringing the situation under control after the crisis and making sure it won't expand and spread is essential when coping with the crisis. The enterprises must make prompt decisions, respond quickly and operate decisively when the crisis occurs. They also need to communicate with media in order to control the situation. Otherwise, it will expand the scale of crisis, and even possibly lose control on overall situation.

Next is sincere communication. In times of crisis, enterprises' actions and movement will be under intense scrutiny. They should actively communicate with media, explain the truth and urge both sides to understand mutually so as to dispel the anxiety and restlessness.

Furthermore, companies should seek support from the authorities. When a crisis occurs, it is useless to praise oneself. Without the authority's approval, it can only be the laughingstock. It should learn "crooked line of national salvation" and ask the heavyweight third party to deliver a speech in order to regain consumer confidence.

The process of enterprise growth is the knowledge-gathering process, as well as the process to improve and gain capability. With the deepening of globalization, it will become an inevitable trend for Chinese enterprises to internationalize their management. The enterprises must form a kind of dynamic ability which suits the environmental variation if they want to achieve sustainable development. Only through continual study and innovation can they meet the challenges and remain advantageous in competition.

By People Daily Online