This summer has been tough for several organisations embroiled in public trust crises on the mainland. First, the powerful Ministry of Railways faced severe criticism after the Wenzhou train disaster and the disappointing debut of the Beijing-Shanghai high-speed service.
Then there is high-end furniture retail chain Da Vinci, which has been accused of misrepresenting the origin of its products by sending items to duty-free industrial parks. In this way, they acquired a seal on the invoice to make it look like the furniture had been imported, and thus could be sold to customers at vastly inflated prices.
Meanwhile, the popular Japanese-style noodle franchise Ajisen Ramen has been accused of misleading the public about how its noodle soup is prepared. More recently, the American fast-food chains KFC and Diary Queen have been accused of similar misleading advertising behaviour.
Even if some of the claims turn out to be inaccurate, the damage has already been done and customers have voted with their feet. Passenger numbers on the Beijing-Shanghai route dropped significantly after the crash. Ajisen's sales dived, and so did its shares on the Hong Kong stock exchange. Public criticism of KFC and Diary Queen has included the usual nationalistic voices against foreign multinational companies.
What has been disappointing is the companies' responses. The rail ministry first appeared elusive regarding the cause of the accident, trying to blame the weather; the rescue effort was criticised, as was its miserly offer of compensation to families of the victims. Da Vinci denied all wrongdoing and made no offer of compensation to customers. Ajisen Ramen buried its head in the sand, clearly hoping this unpleasant chapter would just fade away.
