Liu Yonghao: Does An Entrepreneur Become A Bandit Or A Gentleman?

To be a bandit or a gentleman?

Chinese entrepreneurs are more and more difficult to evade this problem. In 2005, Liu Yonghao must remember that his new hope group has undergone two natural and man-made disasters.

These two shocks let Liu Yonghao begin to examine the dialectical relationship between corporate social responsibility and sustainable development of enterprises.

"After experiencing two stages of development, such as catching opportunities and doing scale, Chinese enterprises should also make up the lesson of social responsibility."

Liu Yonghao said frankly to the first financial daily.

Is he a bandit or a gentleman?

Chinese entrepreneurs are more and more difficult to evade this problem.

In 80s of last century, it became rich overnight and extraordinary expansion in 90s.

Today, faced with the constraints of resources and environment, and faced with the ethical torture of "do not suffer from inequality", Chinese entrepreneurs began to ponder the deep but realistic problem of corporate social responsibility.

In June 2005, swine streptococcus disease came out in Ziyang, Neijiang and other places in Sichuan province. A total of 38 people died, and consumers talked about pork color change.

Some experts point out that the outbreak of swine streptococcus disease is likely to be related to pig feed added with synthetic additives such as antibiotics and hormones.

This is a serious torture for a new feed enterprise with a branch in Ziyang.

At that time, many websites and media began to carry out the "guilty logic reasoning" of "Hope" feed. At that time, the new hope group appeared to be at a loss as to face the censure from the public and the public opinion.

In August 21st, the Ministry of health and the Ministry of agriculture jointly released the evaluation report of swine streptococcus disease in Sichuan province. The pig carrying rate was as high as 30%~75%, but not necessarily. The stress factors such as high temperature, high humidity, climate change and poor hygienic condition of the enclosure were the main factors inducing swine streptococcus disease.

This only allowed the new hope group to get out of the "trap of injustice".

Liu Yonghao told the first financial daily, the Streptococcus suis storm gave a good lesson to the new hope group. There is a close interaction between the development of the enterprise and the external living environment. Enterprises should set up a full-time department to seriously study the social responsibility related to the development of enterprises.

According to Professor He Zhiyi, director of the center for management case studies of Peking University, Germany Volkswagen has a social responsibility department of nine people.

The wave of Streptococcus suis * Liu Yonghao has realized that enterprises will face some unexpected emergencies in the course of development. These events are likely to be destructive.

Instead of passively accepting the impact of emergencies, it is better to establish an early warning and prevention mechanism actively, so that enterprises can actively establish a good interactive relationship with the society and the ecological environment so as to turn disaster into opportunity.

For this reason, the new hope group has set up the development strategy committee, focusing on the interactive development relationship between enterprises and society.

It belongs to the strategic research department of the group. It mainly studies how to deal with emergencies and how to establish good relations with the public and the environment.

The Committee gradually absorbed the core strength of the group according to the needs of business development, but most of the committee members were part-time.

The decision-making mechanism based on research and centralization and decentralization should be adopted.

In the face of major emergencies, the Commission will play a key role in decision-making, organize and guide relevant departments to complete emergency tasks.

Through the Streptococcus suis epidemic situation, the development strategy committee proposed that the new hope group should vigorously publicize and promote the scale breeding of poultry and animal husbandry in China.

The survey showed that all the cases of swine streptococcus disease occurred in the rural areas and located in remote and economically poor areas. Most of the epidemic sites were scattered households with poor hygienic conditions, poor ventilation and dark damp.

However, there were no reports of large scale farms and large scale farms.

After a long absence of bird flu, the bird flu struck a new impact on the new hope group. This time, Liu Yonghao appears relatively calm.

It was revealed that before the outbreak of avian flu, New Hope Group signed a poultry purchase agreement with a large number of farmers, and the sales volume and sales price of poultry processing products decreased significantly as a result of the outbreak.

Owing to the natural and man-made calamities of avian influenza, according to the contract law, the new hope group can enjoy the right of exemption from breach of contract, but if it breaks the contract, it will bring great economic losses to the farmers.

So Liu Yonghao decided to execute all the purchase agreements, which would cost about 50 million yuan alone.

In addition, the new hope group will sell 1/3 of the feed to the farmers who are raising chickens, help them reduce the cost of farming, and send more than 5000 agricultural technicians who have received university education to help farmers to prevent and cure diseases and popularize the knowledge of bird flu prevention.

The three fees add up to nearly $100 million.

The experience of the last Streptococcus suis accumulation indicates that we must advocate the scale culture of poultry industry, which is conducive to scientific prevention of avian influenza.

It has been proved that most of the bird flu epidemic occurs in scattered poultry farms.

The strategic committee of new hope group has begun to act.

"In the short term, it will bring some economic losses, but in the long run, enterprises have also gained the trust of the society, cultivated their feelings with customers, deepened their loyalty to the enterprises, and promoted their sustained competitiveness."

Liu Yonghao told the first financial daily.

Are they "bandits" or "gentlemen"?

Some people said that Liu Yonghao had to show that he had to pay one hundred million of the bird flu.

If it were not for the financial difficulties of the new hope group, the enterprise would have to terminate the contract with the farmers to protect themselves.

There are two questions in this regard: first, whether Liu Yonghao's one hundred million pay is rational, is it really for show?

Second, will they do the same in a small business?

Is social responsibility only a matter of big business?

In the early management theory, corporate social responsibility is to increase corporate profits.

According to the theory of free market economy, as long as there is a fair, reasonable and legal competitive environment, companies can pursue profits on the one hand and rationally distribute social resources on the other hand.

If we use Adam Smith's words, "entrepreneurs in the pursuit of their own profits, unconsciously bear social responsibility."

In the reality of China, the competition of enterprises is not entirely based on fair and lawful means. At the same time, many enterprises' behaviors have produced more and more negative externalities, such as environmental pollution.

Social responsibility is no longer the external effect of entrepreneurs' simple pursuit of corporate profits, but rather the behavior of entrepreneurs who must face up to and even pay for costs.

At the 2005 Peking University Business Review held in Shenzhen, Li Xinchun, Dean of the school of management at Zhongshan University, said that "banditry" and "gentry behavior" are two different choices for Chinese enterprises to face social responsibilities.

In the past more than 20 years, some Chinese enterprises are similar to "bandits", which are predatory and aggressive.

"Banditry" is not only manifested in the malicious extension of labor hours, arbitrary drilling loopholes, irregularities, but also a major component of the general neglect of resources and environmental problems.

"Gentleman behavior" is a kind of business ethics that is compatible with nature and society.

"Gentlemen" also love money, but they do well.

Enterprises with "gentlemen's behavior" pursue social profits while pursuing profits.

At present, many Chinese enterprises are facing the pformation from "banditry" to "gentlemen's behavior".

Liu Yonghao said frankly, Chinese enterprises are not doing well in undertaking social responsibilities, but enterprises must have certain strength before they can really take on social responsibilities.

Wang Pu, general manager of Beijing University of vertical and horizontal management consulting, believes that corporate social responsibility can be divided into two levels, one is the basic responsibility, that is, entrepreneurs should abide by the law and abide by the law and fulfills their commitments to employees. This is the social responsibility of every small business. The other is lofty responsibility. Entrepreneurs should have a dedication to the society without fame or gain. This is a sublimation of the ideological realm.

Li Xinchun admitted that the choice of enterprises' behavior is closely related to their living environment. At present, China's imperfect market economy and legal system environment make it difficult for domestic enterprises to be noble.

It is very difficult to jump out of this environment, and we need to find path dependence.

We must learn from Japan, Europe and the United States of resource saving, people-oriented and technological innovation development mode.

Qin Shuo, editor in chief of the first financial daily, pointed out that the banditry in the early days of Chinese enterprises is a distortion in the period of social pformation. In such a special living environment, "banditry" has helped the survival of enterprises.

But in the long run, only those more gentrification, more human culture and more modern enterprises have stronger follow-up competitiveness. The sooner they think and undertake social responsibilities, the more likely they will become the winners of long distance competition.