50. Corporate culture takes a hit

Since September, the two Chinese Internet giants have triggered a public outcry similar to the dispute between the two milk giants, China Mengniu Dairy Co and Yili Industrial Group Co. Representatives of Tencent, China's largest Internet company, said on Nov 3 that they would shut down the QQ instant-messaging service on computers installed with security software made by Qihoo 360 following a dispute between the companies. Before that, Qihoo 360 accused QQ of invading the privacy of its users through scanning, monitoring and loading information. Though government officials have calmed the dispute, the companies’ actions, especially the move to unilaterally shut down the instant-messaging service, have harmed the interests of their users.

50. Corporate culture takes a hit

Just before the fight between the two Internet giants, there was, and still is, a campaign of dirty tricks between the dairy marketers. Two years ago, a now-defunct dairy sold toxic baby milk powder across the country, and Chinese are sensitive about the safety of dairy products. Thus the competition between Mengniu and Yili has turned to online reputation-bashing and messages of attack. This has aggravated general public and caused distrust toward dairy products.

The disputes above reflect the loss of the value of the enterprises, which is totally neglected in the construction of the corporate culture. Companies only aim at the quick development of the sales in the competition. The social responsibility is not clear to the enterprises. They pay much attention to the image project and neglect the major social responsibility of an enterprise to protect and respect the right of the consumers. The intense competition is challenging the moral system of fair marketing.

 

 
Experts
Ji Tao
Raymond Zhou
Renée Haines
Jules Quartly