Examining the Chinese approach to crisis management: Cover-ups, saving face, and taking the “Upper Level Line”

• Main Authors: YE, Lan, PANG, Augustine
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: China; Corporate social responsibility; Crisis management; Melamine-contaminated milk crisis; Sanlu Group; Asian Studies; Business and Corporate Communications; Business Law, Public Responsibility, and Ethics; Organizational Behavior and Theory
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/6030; https://ink.library.smu.edu.sg/context/lkcsb_research/article/7029/viewcontent/Chinese_Crisis_Mgt_2011_av.pdf
• Institution: Singapore Management University

In 2008, the Sanlu Group, a former giant in the Chinese dairy industry and a quintessential Chinese organization, was confronted with the melamine-contaminated milk crisis. Its products were blamed for causing at least six babies' deaths and damaging the kidneys of about 294,000 babies. Sanlu was criticized for its crisis handling, which resulted in its collapse several months later. Using the contingency theory of strategic conflict management and Coombs' typology of crisis communication strategies, this study explored Sanlu's crisis management as a mirror to understanding the Chinese approach to crisis management. Findings showed that influenced by political, social, and cultural factors, Sanlu adopted an accommodative stance toward its local government while maintaining an advocacy stance toward the media and consumers. Government relationships, cover-up, and denial were used. Findings also suggested that the Chinese approach to crisis management remains mired in values that differ from best practices of effective crisis management.