Why is Alibaba fiercely ‘beheading’ because of an affair scandal?

Due to adultery scandal, Jiang Fan – Chairman of Taobao and Tmall has been demoted by Alibaba, stripped 1 year of financial benefits and was excluded from the group of 38 most influential people in the company’s board of directors after signing ended an investigation into accusing him of “misconduct”.

Tuong Pham is considered a rising star of Alibaba, but the group’s recent disciplinary decision has conveyed a message that no matter how high the status, no one cannot be punished for the behavior. mine.

Some experts say Jiang’s case is a clear example of how big companies in China have put in place stronger mechanisms to improve corporate governance and succession planning in the past few years. here.

Joseph Fan, professor of business administration at Hong Kong University, said: “The challenge for big companies like Alibaba, Huawei or Lenovo is how to allocate power and centralized responsibilities of founder of the next generation of management and governance while maintaining overall productivity and balance. ”

Shortly before the scandal, Jiang Fan (b. 1985) was promoted after serving as chairman of Taobao in December 2017 and taking on a similar role at Tmall in March last year.

Tuong Pham is one of the youngest and most promising senior executives at Alibaba. He was once expected to be the successor to Daniel Zhang, the current CEO of Alibaba.

It is known that Alibaba has formed a group of 38 important people since 2010 to serve the succession plan including Jack Ma, Daniel Zhang and Joe Tsai. The remaining ones are executives who have worked for at least five years at corporations or affiliates such as Ant Financial. Each one has a record proving that they have a major contribution to Alibaba’s business success.

Jiang Fan was once considered a promising “star” at Alibaba before the affair scandal broke out.

Although the investigation results show that there was no benefit exchange between Chiang and her lover or her company, the incident affected Alibaba’s reputation.

According to a person close to the source, Alibaba took a bold action to punish Chiang Fan for example. A notable detail is that previously, Chiang Pham was famous for his image of a serious manager and often urged Jack Ma to spend more time on management and ethical issues at Alibaba.

According to an industry expert, although Chiang Pham’s demotion will cause certain difficulties, this is considered a positive sign for Alibaba’s stakeholders, that their governance system is starting to start. Fix mistakes early. This of course is conducive to the selection of the group’s future leadership.

A well-designed and implemented management system will serve effectively in hiring, selecting qualified candidates for performance and behavior as well as motivating them with income and promotion. Jiang Fan’s case shows that big companies in China are gradually improving governance and discipline.

Personal problems have caused problems with many senior executives at other technology companies in China. In 2018, Intel Corp.’s CEO, Brian Krzanich, resigned after an investigation showed he had an off-line relationship with his subordinates, which violated the company’s policies. Or as Liu Cuong Dong, founder and billionaire CEO of e-commerce platform JD.com was arrested in the US in 2018 for allegedly raping a girl. Luu Cuong Dong was later cleared of the allegations because of insufficient evidence but since then, he has withdrawn from a number of roles at JD.com’s subsidiary.

According to SCMP