The success of any business
is a result of many factors, such as the investments in a certain project, the company’s business plan
, the management of the company
, the market request for the company’s products or services
and many others. At times, small or large corporations
may face the risk of crisis
, as a result of internal or external factors
. The way in which these crises
are handled is crucial for the life of the company
and, as such, it is important that the management of the company
be prepared to face such challenges; our law firm in China
can provide you with consultancy services necessary to overcome crises that may appear in a company throughout time.
Crises in a Chinese company
A company in China
may face a variety of crisis
, which will deal with the financial aspects of the business.
may appear as a consequence of faulty manufacturing (if the company
provides various goods or products on the market) or bad public relations. If the employees (at the management
or executive levels) are not satisfied with the working conditions, they may put pressure on the company
to improve their salaries or receive new benefits.
Throughout the life of a company, crises
may appear due to external factors
, such as new regulations imposed by the local legislation or socio-economic context of the country in which the company
has set its main office
. Our team of lawyers in China
can offer you assistance and consultancy services if your company
is experiencing a crisis
Dealing with a crisis in China
Regardless of the crisis experienced by a company
, the management
and the consultancy service team must gather information on the event
and estimate possible results and solutions to the crisis
It is necessary to understand the origin of the event, the claims brought to the company (by employees, local authorities, mass-media). The company should take action on this problem in respect to the local legislation.
It is important to take immediate measures to which all the parties implied must settle to and to have a rapid action and response to the situation. It is recommended that, when a company is dealing with a crisis, to acknowledge this fact in order to demonstrate transparency, which is vital for the clients and partners of the company.
A study from 2013 revealed that in the cases of companies involved in a crisis, the company’s management will issue an official response within 21 hours after the event became public.