Abstract
The Schindler case addresses the complex issue of crisis management for Western multinationals operating in Asian settings. In June 2006 a deadly accident killed a high school student in Minato Ward, Japan. As a result of a software flaw, the boy was slammed between the doors of a Schindler elevator. Besides the technical failure, the Japanese public opinion condemned the company’s reaction because it showed insensitivity toward the victim’s family. Schindler was blamed for focusing on its potential legal liability, rather than the moral issues. The late apology and the poor communication between the local branch and Schindler headquarters resulted in a PR disaster, which had serious repercussions for its business in Japan. Indeed, the ensuing sales drop and erosion of the firm’s reputation significantly halted its progress in developing Japan as a strategic market in the elevator industry.
“If you strive to understand the value of different cultures, you will find common points.” (Stephan Rothlin, Eighteen Rules for Becoming a Top Notch Player, 2004)
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Here are the two press releases, each one issued after the accident, first, in 2006, and second, in 2012. Note that the first press release came 3 days after the event in Minato Ward, while the second was issued immediately on the same day as the accident in Kanazawa. Note also the differences in tone and the focus of Schindler’s concerns.
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“08.06.2006: Schindler Press Release: Fatal Accident in Tokyo, Japan:
On Saturday night, June 3, 2006, a 16 year old boy died in a tragic accident involving an elevator manufactured by Schindler and maintained by a third party maintenance company in Tokyo, Japan. The boy was deadly injured when the elevator abruptly moved upwards with open doors while he was leaving the elevator. The Schindler Group deeply regrets this accident and offers its condolences to the family of the boy. Schindler fully supports the local Authorities and welcomes the investigation to establish the root-cause of the accident.
The tragic accident happened in a Tokyo government housing development equipped with six Schindler elevators installed in 1998. For more than a year the elevators are no longer serviced by Schindler, but by two different local third party maintenance companies.
Schindler has no design related user fatalities on record. Fatal accidents in the elevator industry are mainly due to inappropriate maintenance or dangerous user behavior in the context of entrapment. The elevator involved in the accident is a state-of-art product fully certified by various international Authorities and in use in many markets around the world.
Schindler is moving safely over 700 million people per day or the equivalent of the Japanese population every 4 h. The risk of having a fatal accident with an elevator is lower than with any other means of transportation. Safety is Schindler’s most important value” (Schindler 2006).
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“31.10.2012: Schindler Press Release: Fatal accident in Japan:
Today, shortly after midnight (local time), a fatal accident occurred in Kanazawa, Japan, involving a Schindler elevator. A 60-year-old woman, who was employed at the hotel where the accident occurred, died as a result. Schindler very much regrets this accident.
At the present time, the cause of the accident is not known and, therefore, we cannot provide further information concerning the course of events. Schindler is fully supporting the authorities in trying to establish the cause of the accident. The elevator in question was installed in 1998.
In Japan, the media have already reported on this tragic incident. In addition, Schindler has held a press conference to apologize to the family and to offer our sincere condolences” (Schindler 2012).
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Lafcadio Hearn attempted to convey these to the West in his pioneering work on Japanese culture, aptly titled Kokoro: Hints and Echoes of Japanese Inner Life, originally published in 1896 (New York: Cosimo Classics, 2005).
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Rothlin, S., McCann, D. (2016). The Social Environment: Business Etiquette and Cultural Sensitivity. In: International Business Ethics. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-47434-1_15
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