The Formation And Spanning Of Evergrande Trust Crisis

Since 2020,under the influence of the Black Swan Incident and COVID-19 Epidemic on Chinese enterprises for three years,China’s economy as a whole has been in a downturn.Under the influence of this big environment,the development of enterprises is in a difficult period,and the crisis is inevitable in the process of enterprise development.This requires the decision-making level of enterprises to have a sense of crisis prevention.Enterprises are entities with organizational level and dynamic development,and the event system theory conforms to the characteristics of its dynamic research.Moreover,the research on the integration of enterprise trust crisis and event system theory is still few and inconclusive.In this paper,the typical and representative Evergrande enterprises are taken as the longitudinal research object of a single case,case analysis and content analysis are used as research methods,and the collected second-hand data of Evergrande is qualitatively analyzed by using Nvivo12 software,and the key events that triggered the crisis of Evergrande from 2015 to January 2022 are identified,and three key event chains,namely Evergrande Real Estate,Sanshu Commercial Ticket Payment and Evergrande Wealth Management Products,are extracted.Based on the event system theory,it studies and sketches the development venation diagram of the event chain,and deeply explores the evolution of trust relationship between Evergrande and stakeholders.The analysis shows that Evergrande’s organizational level did not pay attention to its emerging crisis,actively took measures,and even implemented the development strategy that was not suitable for the big environment,which led to the superposition of its trust crisis,thus spreading it to the environmental level.According to the results of the previous case analysis,it is pointed out that Evergrande needs to be sincere,open and transparent,update its product delivery information and improve the company’s supervision system,while Evergrande’s trust crisis understanding type needs enterprises to convey its positive trust culture and create community connection with stakeholders.Therefore,the author constructs Evergrande’s trust spanning model.Based on the research of Evergrande’s trust crisis,this paper draws a conclusion that enterprises should pay attention to and actively develop the trust relationship with stakeholders,avoid the behaviors that destroy the trust relationship as much as possible,standardize their own behaviors,establish correct values and take the initiative to take social responsibility,so as to provide enlightenment and reference for other similar enterprises to avoid falling into trust crisis and how to get out of the predicament and turn crisis into opportunity.