Wenzhou Shoe Manufacturers Trust &Nbsp; Crisis Plight

From three years ago, Sanlu "toxic milk powder" incident to the exposure of cancer products in 2010, from the bubbling network of "25 yuan gate" to Taobao's "kill gate" from the two years ago, the media has shaken out 9 kinds of food and beverage drinks from the farmer's mountain spring, the sulfur dioxide exceeded the standard to the Kang Shi Fu bottled water and the tap water as the source of water. The bad news has been reported. Last year, Wuliangye (34.09,0.60,1.79%) was punished by the SFC for listing in China's A share market on suspicion of tax evasion and inflated profits.

One story after another, which is grim and sad, is pointing to an old and often new proposition -- China.

From Adam Simy to John Maynard Cairns, from Hayek to Samuel Xun, economists from

The people of Wenzhou will never forget the huge cost they paid for the lack of credit.

20 years ago, Wenzhou counterfeit poor quality shoes flooded the market, resulting in Shanghai, Hangzhou and other dozen cities burned.

Yifu Lin, vice president of the world bank and famous economist, commented that the credit gap is one of the main reasons for the lack of domestic demand and consumption. If people buy things, they are always worried about buying fake cigarettes, fake rice and poisonous rice. When they are afraid of meeting the incidents of "Zheng Baiwen" and "silver Guangxia", they will not be able to get out of the woods if they are traveling. How can people feel secure? How can they spend money with pain?

Zhao Haikuan, head of the Financial Research Institute of the people's Bank of China and financial expert, said that because of the poor credit relationship, enterprises dare not invest boldly, and the banks could not lend money normally.

For example, according to the survey, nearly 50% of the small and medium enterprises which did not receive loans were due to the poor credit level of these enterprises, the failure to pay bank interest and record of evading debts, or no one was willing to guarantee for them, so that banks had to "grudging loans".

Coincidentally, according to the Chinese enterprise credit investigation report published by the State Council's development and Research Center, China enterprise system survey, at present, enterprises are very uneasy to purchase raw materials and production equipment. Enterprises are worried about buying raw materials and production equipment, and are afraid to buy fake and shoddy products, accounting for 77.9% of the respondents.

62% of enterprises believe that in business activities, we must be careful not to be cheated.

It is only because of the low credit and even dishonesty of some enterprises in China that the direct and indirect economic losses are about 600 billion yuan.

Opening to the outside world is irreversible, but the crisis of integrity is ravaging and worsening our internal and external business environment.

According to a survey conducted by China Association of foreign enterprises, one of the biggest risks that foreign businessmen consider investing in China is credit.

For example, some foreign businesses have been forced to divest or invest no longer because their brands have been repeatedly infringed; many foreign businessmen in China feel that the most troublesome thing in China is not how to make money, but how to beat them.

It is reported that dozens of multinational companies in the foreign brands' Protection Committee of high quality brands have reached 50% to 60% of counterfeit products in China, and the cost of counterfeiting companies has been as high as 500 thousand to 2 million dollars a year.

In fact, compared with foreign capital in China, because of the lack of credibility and unfair competition of local enterprises, the Chinese enterprises suffer more pain outside their own credit.

It is reported that, as a large number of Chinese enterprises are suspected of financial fraud, the SFC is considering raising the listing threshold of Chinese enterprises. It will be even more difficult for Chinese enterprises to enter NASDAQ in the future. The scary thing is that American regulators are likely to investigate and drive out the storm to Chinese listed companies. If so, 20% of Chinese listed companies will be faced with a disaster.

If the market is like cloth and there are always gaps, we will find out the deficiencies and defects of the market by observing the development of the Chinese market with the oral business experience of businessmen.

In economics, whether it is production or consumption, whether investment or exchange, the occurrence of all kinds of trading behavior must be based on the participants' full understanding of information. Otherwise, a party with abundant information resources may make use of the information superiority of himself relative to the other party to construct a trading situation under asymmetric information, so as to achieve the goal of maximizing his own economic interests.

It is precisely this point that the performance of the Chinese market seems particularly nudity.

Product quality information asymmetry, accounting information asymmetry and labor force efficiency information asymmetry make the originally disadvantaged consumers and investors cheated and slaughtered in "ignorance", and the long cycle and high cost of searching information make the information of a single entity less able to obtain information.

On the one hand, the buyer's market urgently needs relevant information, on the other hand, the market information resources are insufficient, so the stock market's "black mouth" faction has come into operation, and the market "counterfeit" has ascended the hall.

The magic Emily Dickinson wrote in his poem: "the door outside the door is neither wide nor narrow. It is the ocean that lies between you and me."

The narrow channel of information resources can only make consumers and investors share the long-range state of their products in the fog.

Wu Jinglian, a famous economist, points out that credit is the life of modern market economy and a necessary factor for enterprises to engage in production and business activities. It has the economic value of real gold and silver.

Honesty and credit is an important intangible asset. The information pmitted from the corporate culture to the customers on the basis of integrity is not only the product image and value concept, but also makes the customer experience the pleasure of being respected, and at the same time, the enterprise is favored and respected by the customers, so as to enhance the competitive advantage of the enterprise.

Therefore, taking honesty and credit as the cultural concept of an enterprise as a goal pursued by all employees should become a required course for Chinese enterprises.

"The Analects of Confucius" cloud: "gentlemen believe and then work their people"; gentlemen first have to trust, and then to manage the people.

Therefore, it is better for entrepreneurs to break their promises than to discredit them.

We often judge the ability of an entrepreneur by the amount of wealth. "Earning power" seems to be the whole capability that an entrepreneur should have.

We often pour out some theories of "making money", and all kinds of books about "intelligence" and "tactics" have become the bestsellers of the charts. Our entrepreneurs are almost "conspirators".

But we have overlooked one of the most important things, that is, the individual character of entrepreneurs, the most important of which is "integrity".

"Intellectual standards" can never replace the "standard of being a man". Entrepreneurs have an exemplary role in the public or just in front of their employees. Their professional ethics and personhood should be emphasized.

The formation of corporate integrity should start with the boss of an enterprise. Our entrepreneurs can not just talk about it, but let alone do one thing.

Of course, for business operators, in addition to establishing their own strong credit, it is more important to establish a reputation mechanism within the enterprise, so that the credibility of enterprises can take root in the enterprise.

For this reason, business managers need to know clearly what contributes to the establishment of corporate reputation from the strategic level, which should be encouraged, which is contrary to the establishment of corporate reputation, and need to be adjusted or stopped. A clear understanding and extensive communication is needed to enable employees to have a common understanding of the establishment of corporate reputation and form the values of corporate reputation. It is necessary to establish an incentive and punishment mechanism to ensure the long-term operation of the corporate reputation mechanism; to implement the corporate reputation mechanism in the daily operation, and to make the reputation mechanism of the company become the core gene of a company's long-term sustainability.

However, we need to stress that honesty is a social systematic project.

As a government, we should strive to maintain market order, establish a fair competition environment, ensure the unity of the national market policy and the smooth flow of elements, and obstruct the loopholes that enterprises may gain from huge profits in the short term, and guide enterprises to maintain their credit self-discipline. At the same time, we need to deepen the reform of the system, cut short the short-term actions of enterprises, truly realize the separation of government from enterprises, clear property rights, and effective protection of public and private property rights.

In addition, the lack of credibility is closely related to the low cost of breach of faith. Therefore, it is particularly important to establish a punishment mechanism for breaking faith.