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As more multinationals bite into the ever-expanding China pie, they are also feeling the pinch of a vigilant media.

 

The ruling on Sunday over the illegal employment of interns by international fast food chains in Guangzhou is just the latest of the corporate crises making nationwide headlines in the last few years.

 

From Nestle's excessive iodine in milk powder, Nike's commercial that was deemed humiliating to the Chinese, to SK-II products being assessed as substandard and a widely distributed e-mail from an arrogant EMC secretary to her boss, multinationals are struggling to cope with crises in a way they have never experienced before.

 

More multinationals have beefed up their public relations teams in China to prevent and handle such crises. They are also holding more sessions to train executives in crisis management.

 

Before the Consumers' Day on March 15, many corporate PR officers had been working hard on China Central Television, or CCTV, trying to protect their companies from the annual expos of shoddy products and services.

 

It was not known why Nokia, which was accused in the evening party of the poor quality of its 5500 cellphones, and several fashion brands such as Armani Jeans, Zara and Boss were targeted that night.

 

It should be no surprise that problems concerning multinationals make good headlines because, as top companies in the world, they are supposed to represent good quality and customer satisfaction. Their omnipresence means that their problems have stronger impact on consumers than smaller firms, and therefore, deserve more scrutiny.

 

For journalists, it is a social responsibility to watch and expose the wrongdoings of the corporate world, whose prime motivation is to maximize profits. And, of course, in the tough media market, corporate crises make for sensational headlines, driving up circulation figures and ratings.

 

As for multinationals, instead of complaining for being targeted by customers and the news media, they should ensure they operate ethically and without double standards. Trying to cover up errors and resist public supervision would only lead to bigger crises, and undermine their strategies in China.

 

(China Daily April 4, 2007)