Last month DJI released a statement that acknowledging internal corruption and employee fraud. According to the statement, “DJI itself found some employees inflated the cost of parts and materials for certain products for personal financial gain, which DJI estimates could have cost the company up to RMB 1 billion. However, DJI did not incur a full year loss in 2018.”
While the company took swift action, blame was placed on “inefficient and ineffective management processes”. The investigation uncovered instances of cost inefficiency, purchasing manipulations and outright theft.
Since then the company has cracked down. In a new statement, the company announced it will take a stating that “a leading role in developing clear policies, procedures, and expectations to address corner-cutting and employee theft.”
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The full statement:
Since our founding 13 years ago, DJI has been a company that emphasizes honesty and integrity in our operations. We strongly believe that upholding these values is a critical element in DJI’s long-term development.
We have been disappointed to learn that not all employees have upheld these goals. As DJI embarked on a management reform effort last year, we discovered problems that had evolved during our period of high growth.
Uncovering inefficient and ineffective management processes is extremely important for DJI to continue pursuing its success. This is an imperative for our company, and indeed for any company.
Unfortunately, DJI has discovered instances of cost inefficiency, purchasing manipulations
andoutright theft. We cannot ignore these issues. Indeed, for the sake of the vast majority of our employees who work hard and honestly, we need to uncover and eliminate these problems.
We also understand that strong management is the key to setting honorable expectations for our employees. While mature companies have established the training, controls and management protocols to limit these issues, DJI has in the past emphasized corporate growth over new internal processes.
In fact, taking greater control over internal processes is key to ensuring companies can continue to innovate and grow. Eliminating factors that artificially raise costs may be painful at first, but doing so clears the path for a company to operate at maximum efficiency and reach its full potential while upholding high ethical standards.
DJI will now take a leading role in developing clear policies, procedures and expectations to address corner-cutting and employee theft. We call on more companies to take similar steps.
As DJI has taken action to address these issues, we have seen rumors, speculation and incorrect information reported publicly. While we thank the media for treating this issue with the respect it deserves, we do not publicly discuss details of our employee discipline process.
We urge the media to pay close attention to the facts we have presented. DJI and its hardworking, honest employees are focused on growing our business by creating products that improve the world, and our efforts to eliminate inefficiencies and losses will help all of us continue to achieve this goal.
Learn more at www.dji.com