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JD.Com: Responding to a CEO Crisis
In August 2018, the founder and chief executive officer of JD.com, one of China’s largest e-commerce sites, was accused of sexual assault and was arrested. He denied wrongdoing and was released less than a day later. One week after his return to China, JD.com’s share value hit a 19-month low. In November 2018, the company announced that its customer base had shrunk for the first time since 2014. The impact from the investigation into the alleged assault was unclear. However, the incident took place against the backdrop of the Me Too movement, a time when both traditional and social media were used to publicly launch accusations of sexual harassment and abuse, often against powerful celebrities. The sexual assault accusation complicated the almost singular level of power the founder had over his organization. According to JD.com’s corporate bylaws, no board meetings could take place without his presence. What options did the company have to regain market confidence? What strategies could JD.com adopt to minimize impact from the incident? With the founder at the centre of an international scandal, who was responsible to oversee crisis management at JD.com? -
Rocky Mountain Soap Company: The Move Toward Sustainable Packaging
In late 2017, the co-owners of Rocky Mountain Soap Company in Canmore, Alberta, faced an important challenge. Their company produced and retailed toxin-free, 100 per cent natural bath and body products, and they wanted the product packaging to reflect their company’s commitment to sustainability. To meet the challenge of identifying and implementing sustainable packaging solutions, the co-owners needed to address intensifying competition, make good use of their limited ability to conduct research and development, and manage their customers’ expectations. How could the co-owners develop a packaging solution that aligned with the company’s brand focus of “100 per cent natural”? How could they find the support they needed to move the company forward?