1、2023 ChinaChronicled and calibrated CrisisE D E L M A N C H I N AE D E L M A N C H I N AJ A N U A R Y 2 0 2 4*“China”in this document refers to Chinese Mainland.2023 China Chronicled and calibrated CrisisTable of ContentsPrefaceKey Findings and Path Forward032Top 100 Corporate Crisis Events04Top 10

2、Corporate Crisis Events15Appendix2123”“The NEW YearEvery year is a new year.But as we bid farewell to the year of 2023,its“newness”stands out.Its a year China moves on from the extensive COVID-19 pandemic and lockdown,yet still undergoing its aftermaths.Its a year China reconnects with the world,yet

3、 discovering widening gaps and cracks that have made it a different world.Its a year China resumes normal economic activities,but finding it challenging to hit the goal.In a word,we are starting a NEW chapter.Against that backdrop,this report explores the crisis landscape in this phase of transition

4、 and uncertainties.It chronicles and calibrates the 100 most exposed and discussed corporate reputational crises 100 most exposed and discussed corporate reputational crises in the contexts of Chinese mainlandChinese mainland media and social media in 2023.By tracking who(which companies)are entangl

5、ed in what types of issues at what point of time through which channels and how were things handled,we observe macro trends and patterns,while extracting specific takeaways for corporate leadership and communication professionals.As unpredictable and disruptive as crisis usually appear,the findings

6、from past can be leveraged to navigate another NEW year,the year of 2024:biggest election year in history with half of the worlds population expected to vote,and misinformation&disinformation rising to become the biggest short-term risks,as predicted by the World Economic Forum.32023 China Chronicle

7、d and calibrated Crisis4One crisis eventTwo or more crisis events happening on the same dayWHENWHEN|WHAT|WHO|WHERE|HOW*The colored blocks mark the outbreak dates of the top 100 corporate crisis events occurred in China during 2023(ranked and selected by overall media buzz statistics).JanuaryFebruary

8、MarchAprilSuMoTuWeThFrSaSuMoTuWeThFrSaSuMoTuWeThFrSaSuMoTuWeThFrSa532425262728425425272826272829303282930MayJuneJulyAugustSuMoTuWeThFrS

9、aSuMoTuWeThFrSaSuMoTuWeThFrSaSuMoTuWeThFrSa2345789789896258526273242425262829303302324252627282927282930313031SeptemberOctoberNovemberDecemberSuMoTuWeThFrSaS

10、uMoTuWeThFrSaSuMoTuWeThFrSaSuMoTuWeThFrSa34678959202392022526272842522324252627282930293032425262728293031CORPORATE REPUTATION TESTED all year round2023 Chin

11、a Chronicled and calibrated CrisisCRISES ARE Often MULTIFACETED and signs of operational malfunction5WHEN|WHATWHAT|WHO|WHERE|HOWWith growingly complex and dynamic market contexts,nature of a crisis event is increasingly blurred.Most corporate crises today span across more than one category meaning t

12、hat to effectively prevent or handle a risk/crisis issue,it is necessary to rally concerted efforts from multiple functions/units of an organization,stretching beyond purely communicational capacity.Operational crisis79%A reputational crisis or operational crisis?Reputational crisisOperational crisi

13、sTwo62%Three15%How many categories can one crisis fall under?OneTwoThreeOne23%Reputational crisis21%*A“reputational crisis”refers to a crisis that is caused by communicational factors and solvable by communicational means.2023 China Chronicled and calibrated Crisis6Managing crises today is not the s

14、ole domain of corporate communicators but requires concerted efforts in preparedness and alignment from across organizations.2023 China Chronicled and calibrated Crisis7WHEN|WHATWHAT|WHO|WHERE|HOW*The above issue categories are tagged according to overt perception of relevant crises and do not repre

15、sent any subjective positioning or judgmental conclusions.25%22%21%19%18%15%10%10%9%9%9%8%7%7%3%Issue Category RankingAs diverse as crisis categories may be,consumer/user activism and product/service failure together top the chart and account for nearly half of the most discussed issues.While rumors

16、(misinformation/disinformation),as fast and far as they travel,without solid grounds,hardly leave lasting or major impact.Crises most often emerge when companies fail at its most fundamental purposes(i.e.meeting consumer/user expectations and/or providing quality products and services).Real Crises e

17、merge from Solid&Fundamental Issues 2023 China Chronicled and calibrated Crisis8Domestic,71%MNC,23%1%5%Company TypesDomesticMNCJoint revenueInvolving multiple types4.35%8.70%8.70%13.04%13.04%21.74%21.74%21.74%26.09%30.43%39.13%Leadership NegativityCollateral IncidentSafety HazardRegulatory PenaltyPe

18、rsonnel MisconductBusiness ControversyControversial PromotionProduct/Service FailurePartner IssueGeopolitics/NationalismConsumer/User Activism2.82%4.23%4.23%7.04%8.45%8.45%9.86%11.27%12.68%12.68%15.49%19.72%19.72%19.72%23.94%Geopolitics/NationalismControversial PromotionRumorLabor IssueLeadership Ne

19、gativitySafety HazardCollateral IncidentKOL/Competitor AttackLegal DisputePartner IssuePersonnel MisconductBusiness ControversyConsumer/User ActivismProduct/Service FailureRegulatory Penalty%of multinational companies faced following issues%of Domestic companies faced following issuesWHEN|WHAT|WHOWH

20、O|WHERE|HOWDespite concerns of rising nationalistic sentiment,domestic and foreign companies are both tested,and none favored,under Chinas crisis contexts.That being said,multinational companies are more prone to scrutiny when failing to“do as the Romans do”.While domestic companies,growing fast and

21、 playing bold,most often face consequences from compliance issues.Geopolitics/NationalismGeopolitics/NationalismRegulatory PenaltyCrisis is a fair game,for local andforeign players2023 China Chronicled and calibrated Crisis9WHEN|WHAT|WHO|WHEREWHERE|HOW*“Government announcement”refers to statement/re

22、sponse from Securities Regulatory Commission,Market Supervisory Authority,Consumer Council,Cyberspace Affairs Commission,Police,Courts,etc.crisis are exposed on social media platforms Nearly 1 in 5 crises comes into public spotlight through government announcement 56%13%crisis become known because o

23、f traditional media coverages social media As the predominant news-breaker Government agencies increasingly vocal through owned channels2023 China Chronicled and calibrated Crisis10WHEN|WHAT|WHO|WHEREWHERE|HOW*Other social media platforms refer to Zhihu and 19lou.32%28%16%14%7%3%WeiboDouyinWeChatRED

24、OthersBilibiliSocial Media Platform Source DistributionSince the pandemic years,the public is increasingly gravitating towards and savvy at leveraging social media platforms to voice concerns and amplify opinions,transforming those platforms into crisis hotbeds,covering various issue categories and

25、going all directions.Most notablyWeibo remains the leading crisis source across categories,while RED is emerging as a new go-to platform for consumer/user activism.22%22%22%22%28%KOL/Competitor AttackLegal DisputePartner IssueProduct FailureConsumer/User ActivismConsumer/UserActivism63%Consumer/User

26、 ActivismSocial media:a diverseand dispersedcrisis arena2023 China Chronicled and calibrated Crisis11its important to Know Whatis your vulnerability,whowould pay attention to the type of issue,andwhereAre the key stakeholders Assemblingto better CalibrateYourrisk preparedness and crisis response.202

27、3 China Chronicled and calibrated Crisis12WHEN|WHAT|WHO|WHERE|HOWHOWHow did companies respond?One way or another,companies entangled in crises are obliged to respond,or let others control the narrative.Even for crisis that are proactively announced by companies,follow-up questions would further pres

28、sure for a second round of communication.How did the crisis come into public view?Passive exposure86%Proactive announcementPassive exposureProactive announcement14%Some form of official response,92%No commentSome form of official responseNo comment8%Silence is Silver,(The right)Speech is Golden2023

29、China Chronicled and calibrated Crisis13*The above illustrations apply only to cases where official responses are issued in some way.To effectively pivot/set issue narratives,most responding companies do so within 24 hours and through owned channels where companies tend to have more control.With con

30、sumer/user activism rising,customer service has increasingly become a lowkey“owned channel”,reactively or proactively,speaking for the company.Media quotes61%Owned Media Channel16%Customer Service23%Channels of Response50%Speed of ResponseWithin 24 hours36%24 to 48 hours14%Over 48 hoursWHEN|WHAT|WHO

31、|WHERE|HOWHOWThe Right Speech=Speedy Action+Controlled Messaging2023 China Chronicled and calibrated Crisis14Knowing how to best Communicate might not be the fundamental cure but can help avert lasting damage on corporate reputation and more.2023 China Chronicled and calibrated Crisis15JanuaryFebrua

32、ryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberSilicon Valley BanksCollapseXiaoguo CulturesInappropriate RemarksCathay Pacifics Discrimination ScandalGreat Wall MotorsAccusationagainst BYDAustin Li&FlorasisLivestreaming FalloutEvergrande GroupsDebt CrisisEast BuysInfighting DisputeBMW

33、Minis Ice Cream IncidentBVLGARIs Taiwan Listing BlunderDidi App sSystem MalfunctionWHENWHEN|WHATWHAT|WHO|WHERE|HOWHereafter refers to as“mega crises”:with highest overall buzz,widest public interest,and most representative of 2023s crisis trends in China.Zoom in:top 10 Crises of the year2023 China C

34、hronicled and calibrated Crisis16BVLGARIs Taiwan Listing BlunderCathay Pacific Crew Members Discrimination ScandalDidi App s System MalfunctionEvergrande Groups Debt CrisisGreat Wall Motors Accusation against BYDEast Buys Infighting DisputeSilicon Valley Banks CollapseXiaoguo Culture Comedians Inapp

35、ropriate RemarksAustin Li&Florasis Livestreaming FalloutBMW Minis Ice Cream IncidentVolume344,377307,382289,690282,145208,593208,419139,914113,647110,38661,493MNCDomestic Company*The above buzz data is collected from ,covering channels incl.Weibo,WeChat,RED,short video platforms,news website,forums,

36、etc.The data collected period is from January 1,2023,to December 11,2023.Except for the Silicon Valley Bank issue traveling from across the border,mega crises involving MNCs all emerged out of controversies related to“disrespecting local people/culture/ideology”.WHEN|WHATWHAT|WHOWHO|WHERE|HOWMultina

37、tionals“Achilles heel”:geopolitical issue2023 China Chronicled and calibrated Crisis17WHEN|WHAT WHAT|WHO|WHERE|HOWTopline ideological issues(e.g.geopolitics)and individual incidence(e.g.personal misconducts)trigger mega crises almost the same.While consumer/user activism alone triggers much fewer me

38、ga crises,which often involve a complexity of factors or are just more complicated in nature.Among Top 10040%10%40%Among Top 1040%40%20%20%20%20%20%20%10%10%10%15%7%18%22%19%25%21%10%9%9%9%8%7%3%Macro and Micro Issues weighed on the same scale2023 China Chronicled and calibrated Crisis18WHEN|WHAT|WH

39、O|WHEREWHERE|HOWHOWMultimedia content+social media=Mega Crisis MakerKOL video about booth staffs discrimination towards Chinese visitors posted by a car industry self-media on bilibili and Douyin passenger audio clipabout crew members mocking words posted by a passenger on REDwebsite screenshotabout

40、 official websites false Taiwan labelling posted by a netizen on WeiboDouyin commentin response to who the copyrighter is,pinned to top of comment section by East Buys official Douyin accountAustin Lis livestream session East Buys comment livestreamed speechon Taobao where the anchor,Austin Li,dismi

41、ssed comments from a viewerA significant portion of mega crises are triggered/elevated by provocative multimedia content gone viral thru social media channels such“facts”often seem undisputable with video/audio recordings or screenshots,and such transmission unstoppable with exponentially growing to

42、uchpoints.2023 China Chronicled and calibrated Crisis19WHEN|WHAT|WHO|WHERE|HOWHOW6 out of 10 crises last no more than 72 hoursAnd those linger longer due to:Regulatory crackdownXiaoguo Culture Comedians Inappropriate RemarksUnresolved operational issue Evergrande Groups Debt CrisisOverly outspoken a

43、ctorsAustin Li&Florasis Livestreaming FalloutEast Buys Infighting DisputeWithout intervention or mess-ups Even Mega Crises phase out within 72 hours 2023 China Chronicled and calibrated Crisis201234567BVLGARIs Taiwan Listing BlunderEvergrande Groups Debt CrisisGreat Wall Motors Accusation

44、 against BYDSilicon Valley Banks CollapseXiaoguo Culture Comedians Inappropriate RemarksBMW Minis Ice Cream IncidentDidi App s System MalfunctionAustin Li&Florasis Livestreaming FalloutEast Buys Infighting DisputeCathay Pacific Crew Members Discrimination ScandalTimes of Official Corporate Responses

45、 WHEN|WHAT|WHO|WHERE|HOWHOWSpeaking to the public is a Must in Mega CrisesThough effectiveness of such public communication in resolving a crises depends on a range of factors including messaging content,issue nature,and other stakeholders actions.2023 China Chronicled and calibrated Crisis21Crises

46、in post-pandemic China are facing fast-evolving geopolitics,intertwined stakeholder networks,and shifty public opinion more than ever.Domestic or multinational entities,systematic failures or individual misconducts all corporate behaviors are scrutinized by the public with almost the same rigidity.E

47、mpowered by expansive social media outlets and exercised throughout pandemic years,the public now speaks more actively and tactfully than before.In turn,companies in crises are also expected to communicate with more efficiency and clarity.Any lagging or ambiguity could be a“sign of guilt”.Key findin

48、gsGrowing Complexity Fair Scale for AllOutspoken PublicHigher Expectation2023 China Chronicled and calibrated Crisis123422Rally concerted efforts and supportsRemain vigilant despite who or what Enhance social media monitoringEquip employees with tools and skillsA new approach to crisis management is

49、 needed.The path forwardFacing crises with complex nature often stretching beyond communications reign,organizations need to activate cross-functional mechanism to effectively cope with todays issues.No matter who you are,because no one is immune.And no matter how seemingly insignificant the risk so

50、urce,because even a tiny match could kindle a wildfire wreaking havoc.To detect risks early and intervene in time,social media monitoring is increasingly important but also challenging,with diverse and diversifying platforms and formats.Though the best scenario for crisis communication is an authori

51、zed spokesperson speaking through controlled environment,more often today,frontline employees shoulder the initial queries.2023 China Chronicled and calibrated CrisisResearch Object Crisis events with relevancy to corporate reputation occurred in China during the year of 2023(social issues without o

52、vert connection to business entities are excluded for accuracy purposes).Methodology Raw data collectionRaw data collection:Across all major Chinese media and social media platforms that are directly accessible in Chinese Mainland.Ranking criteriaRanking criteria:Ranked by overall buzz,top 100 crisi

53、s events are selected for quantitative quantitative analysis analysis while top 10 ones are selected for qualitative analysisqualitative analysis.23Appendix:Methodology2023 China Chronicled and calibrated CrisisAppendix:list of the top 100 corporate crisis events in 2023 China2422MarchBaidus Ernie B

54、ot Suspected of being a Shell AI 23Tencents WeChat&QQ Malfunction 24AprilMultiple Bilibili Content Creators Halt Uploading New Videos25Multiple Brands including Anta and Toyota Cut Ties with Zhang Jike26China Electronics Technology Rumored to Have an Employee Oppose Overtime Work27Jay Chous Lawsuit

55、against NetEase for Rights Infringement28Dior Accused of Racism over Pulled Eye Advertisement29Shanghai Disney Resorts Smoking Incident30BMWs Ice Cream Incident31Haidilao Packed with People Staying Overnight,Leave No Seats for Meals 32MayCyberspace Administration of China Begin On-site Inspection of

56、 Douyu33Kaisheng Rongying Suspected of Assisting Overseas Intelligence Agencies34Meng Yutongs Resignation from Gree35Five Doctors Under Investigation for Inappropriate Advertising36Teslas Recall on More than 80,000 Cars Sold in China37Xiaoguo Culture Comedians Inappropriate Remarks38A Woman Film Ind

57、ecent Videos at Haidilao39Xiamen Airline Male Pilots Creepshot Incident40Cathay Pacific Crew Members Discrimination ScandalThe following corporate crisis events are listed in chronological order.1JanuarySony Chinas Weibo Account Banned2Tesla Slashing Prices of China-made EV3Pfizers Paxlovid Fail to

58、Be Included in Chinas Medical Insurance4iQiyis Restriction on Screen Monitoring5Blizzard Entertainments Suspension of Game Service in China6Venomous Blue-Ringed Octopus Found at Shenzhen Sams Club7Yuwell Group Fined for Price Gouging Amid COVID Resurgence8NIOs Test Drive Crash Cause One Death and On

59、e Serious Injury9FebruaryHerms Bag Burnt During SF Express Delivery10China Renaissances CEO Bao Fan Reported Missing11Rusty Blade Found in Toly Bread 12Auntea Jennys Qipao Image for Packaging Blasted for being Inappropriate13Banu Hotpots Over-priced Potato Slice14Haidilao Ban Customers from Bringing

60、 Their Own Food15Geely Accused of Plagiarism by Changan Auto16MarchFormer Intern Accuse NIO of Sexual Assault and Hiring Bias17Chery Automobile Ask Employees to Work on Saturday18Silicon Valley Banks Collapse19East Buy Accused of Selling Farmed Shrimp as Wild-caught2043 Cockroaches Found at Yoshinoy

61、a21Starbucks Drive Away a Woman Applying Makeup2023 China Chronicled and calibrated Crisis25Appendix:list of the top 100 corporate crisis events in 2023 ChinaThe following corporate crisis events are listed in chronological order.41MayAlibaba Rumored a 25%Lay-off42Great Wall Motors Accusation agains

62、t BYD43JuneCNPC Leader Dismissed over Controversial Extramarital Relationship with Colleague44KFCs Advertising Criticized for Chasing the Clout of Sichuan Creepshot Incident45WeChat Pay Service Fee Triggering Backlash and University Bans46JulyZhihu No Longer Allow Users to Post Anonymously47Ant Grou

63、p Fined 7.12 Billion Yuan by Chinese Regulators48Tencents Tenpay Fined 2.99 Billion Yuan for Rule Breaches49BVLGARIs Taiwan Listing Blunder50More Yogurt Suspected of Overprice and Non-dairy Creamer51GAC Mitsubishi Motors Production Halt and Layoff52Luckin Coffee Suspected of Too Much Ice in One Cup5

64、3BYD Sue Paid Trolls for 5 Million CNY in Damages54Miaoya Camera Allegedly Flout Consumer Rights55East Buys Operations Suspended on Douyin for Three Days56AugustZhang Liang Mala Tang Exposed to Lamb Meat Adulteration57New Orientals Hangzhou Branch Closed After being Reported58Visual Chinas Copyright

65、 Controversy59Ambrosial Face Boycott Due to Sponsorship with“The Voice of China”,Anchor Further Enraging Netizens60Multiple Brands Respond to Fukushima Water Release61AugustREDs“Traveling Companion”Allegedly Involve Pornographic Information62SeptemberPantene Cancel Live Broadcast Featuring Endorser

66、Accused of Tax Evasion63Banu Hotpots Subsidiary Accused of Lamb Meat Adulteration64CNKI Fined 500 Million Yuan by CAC65Air China flight(CA403)Fire Accident66East Buy Anchors Inappropriate Remarks on September 1867Austin Li&Florasis Livestreaming Fallout68Tencents QQ Fined 1 Million Yuan Over Illegal

67、 and Pornographic Information69Apple Criticized for Insulting China over Controversial Braided Customer-service Image70Evergrande Groups Debt Crisis71OctoberMidi Music Festival Tarnished by Thefts72FAW Toyotas Frontline Staff Accused of Insulting Customers73Apples App Store Exposed to Have Applicati

68、ons with Pornographic Information on Shelves74Country Gardens Debt Crisis75Haidilaos Controversy over Refusal to Celebrate Cotton Dolls Birthday76Tsingtao Brewery Worker Urinate into Tank77Chicecream Exposed of Backpay2023 China Chronicled and calibrated Crisis26Appendix:list of the top 100 corporat

69、e crisis events in 2023 ChinaThe following corporate crisis events are listed in chronological order.78OctoberHetian Jade Sold at Austin Lis Livestreaming Session Accused of being Counterfeit Goods79Austin Lis Alleged Monopoly Called Out by JD Procurement80Taier Removed from Dianping Amid Meituan an

70、d Douyins Battle81Douyin Anchors YSL Beauty Livestream Accused of being Vulgar82Happy Valley Shenzhens Roller Coaster Accident83NovemberLujiazui File 10 Billion Yuan Lawsuit over Poisoned Land84Douyu CEO Chen Shaojie Arrested by Chengdu Police85Este Lauder Facial Cream Sold at Austin Lis Livestreami

71、ng Session Found Empty After Shipping86NetEase Report Nestls Providing Second-Hand Coffee Machines87McDonalds 23 Yuan Milk Caused Controversy 88Alibaba Sites Hit by Glitches Amid Shopping Festival89OpenAIs Executive Dismissal90Huawei AITO M5s Car Accident91Gree Files Report as Senior Executives Face

72、 Insults and Defamation from Self-Media 92Haidilaos“Subject Three”Spark Debate93Meituan to Sue Four Influencers for Pretending to be Deliverymen94Tesla Car Crash into 11 Vehicles in Chengdu95Didi Apps System Malfunction96DecemberTencent Videos Network Malfunction97Heytea Take Down“Hey Buddha”Tea Lat

73、te after being Summoned by Regulatory98Juneyao Air Accused of Favoritism and Priority Towards Foreign Customers99Caner-Causing Substance Detected in Coffees of Luckin and Starbucks100East Buys Infighting Dispute2023 China Chronicled and calibrated Crisis27Appendix:issue Category Tag pool1Geopolitics

74、/Nationalism2Inappropriate Promotion ads,campaignsexternal comms contents3Consumer/User Activism4Business Controversy pricing adjustments,policy impacts,business strategy shifts,market speculation5Partner Issue partnership meltdown,partner misconducts(partners incl.supply chain up-/down-streams,bran

75、d ambassadors)6Regulatory Penalty incl.pending investigation7Safety Hazard causing threats to public safety/deaths,incl.food safety issues,traffic incidents8Collateral Incident incidents occurred upon misconducts of non-affiliated personnel9Leadership Negativity leadership(mid-/high-level personnel)

76、scandals/accidents/misconducts10Product/Service Failure failure of main offering(product/service depending on business nature)11KOL/Competitor Attack12Personnel Misconduct frontline/lower-level employee misconduct,incl.harassment,inappropriate languages etc.13Labor Issue incl.corporate culture(unfai

77、r treatment),layoff,employee discontent14Rumor incl.malicious spread of false InformationThe following categories are tagged according to overt perception of relevant crises and do not represent any subjective positioning or judgmental conclusions.2023 China Chronicled and calibrated Crisis28Edelman is uniquely prepared to help you navigate the connected crisis landscape.Contact usJessie XuDirector,Crisis&Risk Management,Edelman C2023 China Chronicled and calibrated Crisis