Differences of Crisis Management Attitudes Between Chinese and American Corporation

Abstract：In recent years， unexpected crisis happened a lot. The success or failure of a crisis management in a company may affect the development of companies. This paper is to compare two cases of crisis management of Chinese and American enterprises， trying to find out differences of measures and attitudes taken by two enterprises and trying to find the causes of the differences from the perspective of intercultural differences.

Keywords： Crisis Management; Intercultural Differences

1.Introduction

What is crisis management？ It is defined that enterprises study， develop and implement a series of management measures and emergency measures to avoid or mitigate the crisis， at the same time， grasp opportunity and find favorable factors in crisis and ease contradictory situation. How to manage crisis， to reverse the unfavorable situation are very important. Although， corporate crisis management topic is popular in recent years， its new and difficult. This paper aims to find attitudes Chinese and American enterprises adopted.

2. Case Analysis

When Sudan Ⅰ was founded in KFC in February，2005，KFC immediately launched crisis team. On 16th March， KFC admitted that its ingredients containing Sudan Ⅰ and stopped selling tainted products. On 28th， KFC tested ingredients that may contain Sudan Ⅰ. In Sanlu case， in March 2008， babies who drank Sanlu milk were diagnosed kidney stone. At the same time， kidney stone samples were submitted for censorship. Sanlu group didnt make reaction towards this. On 16th July， more infant kidney stone cases were reported. On 24th July， milk powder testing results show that it contains chemical melamine. On 13th August，Sanlu leaders made a decision that the company wouldnt tell truth and continued to sell tainted products.

In Hofstedes culture dimension theory， China belongs to collectivism culture， high on power distance， strong in uncertainty avoidance. In Sanlus case， when complaints were received， the reaction of the company was hiding truth. In collectivism culture， face is important. In Chinese society， saving face influences decision-making. Sanlu people chose to shut mouth. Its the loyalty towards company. In collectivist culture， people are loyal to their group. Guanxi is also important Chinese society. Sanlu used guanxi to ask help from Shijiazhuang government. China is high on power distance，even employees knew about it， they were obedient to high-level managers decisions. On the opposite side， America belongs to individualism， low on power distance and weak in uncertainty avoidance.In KFC Sudan I case， the attitude the company adopted was to tell truth and take responsibility. In individualist culture， people are direct and candid，goals are set with minimal consideration given to groups. Because low in power distance， employees all have right to express their opinion regardless of their status.

3. Conclusion

The norms or attitudes of crisis management for Chinese company is avoidance or trying to cover the truth while American company tries to find out the truth and take responsibility. Because of the different cultures two countries are from， their behaviors are influenced by values. The author is not saying that American culture or values are superior than Chinas， but people do behave in accordance with their cultures.

References：

[1] Cai， K. （2009， Feb 13）. Milk scandal firm Sanlu declared bankrupt. China Daily.

[2] Xin， H. （2005， March 17）. Banned dye Sudan I found in KFC sauce. China Daily.

[3] 張宁蕾. 肯德基与三鹿的危机公关管理比较. 中国经贸

作者简介：许娟（1996.01-今），女，汉族，四川成都，硕士研究生，研究方向：商务英语研究