Beyond Cops and Robbers: The Contextual Challenge Driving the Multinational Corporation Public Crisis in China and Russia Harvard Case Solution & Analysis

Entering the new century, foreign Fortune 500 businesses operating in Russia and China have encountered an increasing number of public catastrophes concerning various social and environmental issues. The general public crisis refers to an unexpected, non-routine, and media-exposed event in which affected stakeholders (e.g., community members, workers, customers) bill that a business has undermined their interests. Besides, there are some contextual hurdles rooted in the social, political and the market environments of China along with Russia that drive the event of the public catastrophe regardless of MNC misdeeds.

In addition numerous of these catastrophes involved the wrongdoings of international corporations (MNCs), the description is ahead of infectious baddies. As a substitute, there are relative confrontations rooted in the societal, political, and market environment of China and Russia that force the occurrence of the public crisis despite of MNC offense.

Considering stakeholder growth and the institutional change in these types of states, it is gradually more important for MNCs to understand and effectively deal with these challenges. This informative article provides insights to researchers and MNCs in three ways. First, the post present the variation between both countries and shows the routines of MNC catastrophes in both countries from 2000 to 2011. The article identifies four forms of contextual challenges, including the global-national challenge, the societal-trust challenge, the institutional- the normalized, and also voids challenge -misdeed challenge. Ultimately, the article advocates tackling strategies and discusses the managerial consequences of these challenges.

PUBLICATION DATE: July 15, 2013 PRODUCT #: BH547-HCB-ENG

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