Shanghai — In the West, companies want to put on a good face for customers, even if it means having to admit mistakes. Righting wrongs is a big part of a good public image, and a good internal image as well. In the East, particularly at traditional companies, saving face is important. Saving face means that you don't admit your own mistakes and you don't publicly humiliate co-workers by exposing their mistakes. This can create management challenges for companies doing business in China. Foreign companies are particularly vulnerable, since a Chinese employee who admits to making a mistake not only shames himself, but also brings shame to his country in front of foreign visitors. As a result, simple problems left undiscovered can easily grow into full-blown crises.
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