Alibaba Scandal
On February 21st in 2011, Alibaba admitted that it had granted “gold” status (a mark of supposed integrity) to 2,236 dealers who it says subsequently defrauded buyers. The firm share dropped as much as 15% right after the announcement. Yan Limin, General Manager of Alibaba.com then, was kicked out of the company back in March for what Alibaba described as "misconduct", the firm said in a statement, adding that its internal investigation had revealed a further 28 employees had been involved in dodgy dealings. There was serious reputation damage for Alibaba for being a B2B website where the element of trust is important as it is the place where two parties who do not know each other first come to do business.
Read more about this topic: Alibaba Group
Famous quotes containing the word scandal:
“There is no scandal like rags, nor any crime so shameful as poverty.”
—George Farquhar (1678–1707)