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Business / Economy

Chinese firms face trust deficit

By ZHENG YANGPENG (China Daily) Updated: 2014-02-18 08:56

A previous report by Edelman concluded that in developed markets, the most common perception of China-based corporations is they lack transparency and openness. Developed market respondents also think Chinese companies have failed to produce high-quality products and haven't acted responsibly in a crisis.

"Although respondents in different markets identify similar criteria as components for building trust, there are nuances. For example, in emerging markets, high-quality products are identified as the most important base for building trust.

"Meanwhile, treating employees well is not regarded as that important, but their counterparts in developed markets think it is," said Cao Gang, chief executive officer of Edelman (China) Group.

This means Chinese enterprises should pay attention to these nuances when they are operating in overseas markets, he added.

To build trust, Edelman's report also suggested chief executive officers should be "active engagers" in building their company's trust. CEOs should be able to "communicate clearly and transparently", "be front and center during challenging times" and "engage employees regularly to discuss the state of the business".

Fan Hong, a professor of corporate communication studies at Tsinghua University, said CEOs from many Chinese companies still shy away from communicating directly with the public.

"In private conversations, they are excellent talkers, but when we asked them to give an interview to the media, they flatly refused. In fact, CEOs' public communications are vital to a company's image," she said.

 

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