Summary in Plain Language
Xingyu Co., Ltd., a leading domestic company in automotive lighting, recently made a foolish mistake that sparked widespread criticism online: right after hiring 107 fresh graduates, they forced them to make a difficult choice—either resign for a meager compensation or be assigned to remote locations with a reduced salary. The real intention was to cut recruitment costs, even avoiding paying the legally required compensation. Initially, their official apology went unnoticed, and later, the company’s chairman’s personal apology at a performance meeting also failed to convince anyone. This article exposes the truth: Xingyu didn’t just have a poor public relations response; they fundamentally failed to recognize the seriousness of mistreating fresh graduates, lacking even basic business principles such as employer reputation and social responsibility. The author not only criticizes Xingyu’s past mistakes but also proposes a comprehensive plan for improvement, warning other companies with similar intentions to beware. Mistreating low-level employees can cost a company years of built-up brand value.
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Detailed Analysis
1. Two failed apologies show a complete avoidance of the core issue
Many people are puzzled by the persistent backlash despite the company’s apologies. The issue isn’t just about Xingyu’s mistake; it’s about their refusal to address the fundamental problem. Previous apologies either blamed HR or claimed there were management oversights, without offering any solution to restore the affected graduates to their original positions. For a company like Xingyu, accustomed to manufacturing and dealing with major automotive clients, they lacked understanding of online public opinion, thinking that issuing a statement was enough to resolve the issue. This evasive attitude only made them seem more deceitful.
2. Trying to silence critics with money only escalates the situation
The article lists four mistakes that many companies have made, each resulting from painful lessons. Public sentiment is already focused on the fact that large companies are mistreating fresh graduates. If Xingyu tries to buy off media with positive articles, it will only turn the situation into a bigger scandal, with the focus shifting from “Xingyu’s wrongdoing” to “Xingyu using money to suppress criticism.” Trying to delete posts or sue whistleblowers will confirm the reputation of a “corporate power that silences the public.” Such actions are counterproductive.
3. Inviting foreign clients for supervision is much more effective than self-inspection
Xingyu relies on supplying to major foreign automakers like Mercedes and BMW. These companies have strict rules for suppliers: if a supplier engages in unfair labor practices, they can easily cancel orders. By inviting these clients to inspect compliance, Xingyu is acknowledging the seriousness of the issue. This approach is much more credible than mere promises.
4. The key to improvement is a change in management’s mindset
Many manufacturing bosses view employees as costs to cut. However, Xingyu’s case shows that cutting costs can backfire significantly. The current public backlash could lead to long-term negative effects, such as increased recruitment costs and damaged brand reputation. To truly improve, bosses need to rethink their approach, treating fresh graduates as future pillars of the company, not as disposable resources.
5. Treating employees well is a vital business principle
Previously, many companies dismissed employer reputation and social responsibility as unnecessary for investors. But Xingyu’s case demonstrates that these are essential. In today’s digital world, any mistreatment of employees can quickly become a major scandal, damaging both customers and investors. It’s much cheaper to treat employees well from the start.
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In summary, Xingyu’s mistake highlights the critical importance of treating employees with respect and complying with legal and ethical standards. Failing to do so can lead to significant financial and reputational losses. For all companies, this is a reminder that treating employees well is not just a moral obligation but a fundamental business necessity.