What can stop Huawei

Although the oath method was adopted in 2005 to require all cadres to eliminate corruption, the Board of Directors held a self-regulatory declaration oath in early 2013. However, Huawei, China's largest electronics company, still encountered difficult anti-corruption issues. Following the publication of the anti-corruption letter to employees by Huawei Consumer BG (Business Group) CEO and Chairman of the terminal company Yu Chengdong in July this year, Huawei's corporate business held its dealer anti-corruption conference for the first time in early September. This highlights Huawei's rapid development and standardization in emerging businesses. Problems between management.

Hundreds of millions of bribery cases or fuses

A veteran of the communications industry revealed that there are some corruption problems in large companies, and there have certainly been some major cases that have sounded alarm bells for Huawei's senior management. One of Huawei’s internal reports, but not officially confirmed by Huawei, is that Huawei’s terminal business discovered hundreds of millions of bribery cases this year.

At present, Huawei mainly has three major business segments, including communications network equipment (operators), corporate networks, and consumer electronics. Among them, the consumer electronics business has developed rapidly and Huawei’s mobile phone sales have jumped to the third place in the world, behind only Apple and Samsung.

“Huawei’s mobile phone business is developing rapidly. The upstream purchase volume is huge. Sometimes it does not exactly depend on prices. It also depends on quality. Therefore, there is a certain degree of flexibility in the procurement.” Wang Yanhui, secretary general of the Mobile China Alliance, believes that in the mobile phone industry circle, especially in some historical contexts, For a long time in the company, it is very common for suppliers to give gifts to purchasers. Maybe there are some management loopholes before Huawei.

It is understood that Huawei's terminal business last year had a phenomenon of giving gifts to suppliers and distributors. Wang Yanhui believes that from the perspective of the entire industry, “Some cases of Huawei are not the worst,” because Huawei’s employees have high incomes, and if they are just a little money, they are not worth doing. Of course, suppliers and distributors did not dare to offend Huawei’s procurement staff.

However, Huawei has zero tolerance for corruption. Huawei’s president, Ren Zhengfei, emphasized that nothing can stop Huawei’s progress. The only thing that can stop is internal corruption.

In July of this year, Yu Chengdong said in an e-mail to employees that in recent years, Huawei’s consumer business continued to suffer from some employees’ fall due to corruption issues. Among them were some famous college graduates. Being in prison and losing his reputation." He advises employees who have taken the wrong step to put aside their burdens and take the initiative to declare their own problems. "This is the only way to self-salvation."

In 2013, Huawei achieved a sales revenue of 239 billion yuan, a year-on-year increase of 8.5%. Revenue from terminal sales reached 57 billion yuan, a year-on-year increase of 17.8%, making Huawei the fastest-growing business segment. Huawei's terminal services cover solutions services such as mobile phones, tablet computers, mobile broadband, home terminals, home media terminal products and module products, and smart companies.

116 employees involved in corruption

Like terminal services, corporate services are also Huawei's rapidly developing new business in recent years. It is also a hard-hit area for corruption.

At the beginning of September, Huawei held its dealer anti-corruption conference for corporate business for the first time, notifying the recent anti-corruption situation and jointly discussing with the dealers the anti-corruption system. As of August 16, it has been verified that there are 116 employees suspected of corruption involving 69 dealers, 4 of whom have been transferred to the judicial authorities.

Huawei's anti-corruption campaign involves a wide range of unprecedented levels. In Huawei's words, it is "there must be a check, check must be thorough." Huawei’s insiders describe the severe situation of Huawei’s anti-corruption situation as “many, multiple, multiple, and gangs”.

Independent telecommunications analyst Fu Liang believes that Huawei has always attached importance to anti-corruption, and 150,000 large enterprises need to continuously improve management. Terminal services and enterprise services, as Huawei's emerging services, have developed rapidly. Many new problems have also emerged. “How to manage them well and have flexibility is a challenge for Huawei.”

As early as 2005, Huawei executives adopted the "Declaration of Self-discipline" and adopted an institutionalized oath to require all cadres to eliminate internal corruption. In January 2013, Huawei held a high-profile “suffrage conference of the self-regulatory declaration of the board of directors”.

Ren Zhengfei said that he feels deeply at the center of all kinds of interest collisions and temptations, and only completely abandons all private concerns. Only selflessness can unite the team; we can only dare to correct our own shortcomings; we can achieve a far-reaching horizon and embrace everything we need to accommodate.

An insider familiar with Huawei pointed out that Huawei did not develop its business in 2011. The business of the company is rather special. Instead of directly facing customers, it is necessary to sell routers, switches and software through distributors. Because there is a hardware-plus-software solution and there is no standard pricing, there is room for operation. In the industry, there are generally rebates and rebates. Cisco had previously removed a group of staff suspected of corruption in China.

Last year, Huawei's corporate business developed particularly fast, but some people in the industry believe that it is not fast enough. "If Huawei tolerates corruption, it will grow faster," said the industry insider who is familiar with Huawei. In fact, in 2013, Huawei’s corporate business realized sales revenue of RMB 15.2 billion, an increase of 32.4% year-on-year. The compound growth rate reached 35% over the past three years.

"Huawei has been doing business as an operator for a long time and is very familiar with how it operates." The above-mentioned industry insiders believe that Huawei, however, in the rapid development of new business such as corporate services, terminal services, Huawei still lacks management experience, "how to make the emerging business not only maintain The rapid growth momentum and the development of standardized development are the current difficulties of Huawei."