Corporate culture makes or breaks the brand

When I went to Taiwan last week upon the invitation of the Dutch truck manufacturer DAF, the first order of the day was a visit to the Formosa Plastics Group Museum. Formosa is one of the biggest (and most respected) corporations in Taiwan — think Ayala — with diverse interests in various industries. It is the manufacturing partner of DAF in the Republic of China, but it was hard to see why else our group had to learn its history and that of its beloved founders, the brothers Wang Yung-ching and Wang Yung-tsai.

During this museum tour, I honestly came to admire Formosa. I was in awe of its humble beginnings, its best practices and its proud accomplishments. What I had expected to be a boring activity turned out to be an almost spiritual experience: I felt a genuine desire to think, work and conquer like the great people of Formosa.

We were brought to the manufacturing facility of DAF on the second day. I can now tell you that whoever planned the itinerary was brilliant. By introducing us first to the local company behind DAF, we had a better appreciation of the truck brand when we went to its assembly plant. It put DAF in a positive light, at least in my mind.

Because I already knew that the organization representing DAF was capable and trustworthy, it was easier for me to believe in a brand I had not been familiar with prior to the trip. It assured me that DAF was in good hands — that these folks wouldn’t cut corners or compromise quality or screw their customers. The products themselves may be excellent, but it’s their association with a professional, ethical and successful team that ultimately earned my respect.

Of all the things we did on this trip, this stood out to me the most. Mainly because the automotive industry that I cover is made up of international brands represented in the Philippines by local importers and distributors, and their performance in our market is largely dictated by the corporate culture that dominates their affairs.

For instance, brands managed by reputable companies tend to enjoy smooth sailing in our market. They may receive bad press every now and then, but even the way they face adversity is nothing short of impeccable. On the other hand, brands backed by questionable characters often run afoul of the law, usually for offenses that are clearly not due to mere oversight but to an inherent ethical flaw.

The thing is, most brands that get into scandals in certain markets are owned by parent companies that have a morally sound corporate culture — they just happened to unwittingly partner with the wrong people. And when they realize the mistake they’ve done, it’s usually already too late. Read the full story by scanning the QR code with your smartphone or by typing the link https://goo.gl/P6Hfyz