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. A
crisis 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.
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