OPINION EDITORIAL

TO WHAT EXTENT XIAOMI REFLECTS THE MODERN & GLOBAL

STANDARDS OF CORPORATE SOCIAL RESPONSIBILITY AND HOW
DOES XIAOMI RESPONDS TO MODERN AND GLOBAL ISSUES
THAT AFFECTS AREAS OUTSIDE OF THE COMPANY?
Alexander Kokhov MYP 5

https://www.google.com/search?q=xiaomi+&tbm=isch&ved=2ahUKEwjArdGS9Z31AhXLweAKHUGOAzMQ2-cCegQIABAA&oq=xiaomi+&gs_lcp=CgNpbWcQAzIECAAQQzIFCAAQgAQyBQgAEIAEMgUIABCABDIECAAQQzIFCAAQgAQyBQgAEIAEMgUIABCA
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INTRODUCTION
According to Xiaomi’s first sustainability report since the company’s founding in 2010
published in June of 2021 focusing on primarily the sustainability of Xiomi and How did
COVID-19 pandemic affect the company, Xiaomi describes their mission and their brand
identity and as:

“At Xiaomi, our mission is to relentlessly build amazing products with honest prices to let
everyone in the world enjoy a better life through innovative technology. We are a global
technology leader, headquartered in China, offering smartphones, Internet of Things (IoT),
smart TVs and other consumer electronic products and services. We have more than 23,000
employees around the world including France, Finland, India, Mexico and Germany.” - Lei Jun
July 2021, CEO and Chairman, Xiaomi.

The statement implies that Xiaomi takes a lot of Corporate Social Responsibility and risks
that come with it, for example the number of employees and the fact that the company has
offices worldwide which is mentioned in the statement, which can add responsibility in
spheres such as glocalisation, ethics, cultural and regional responsibility to the company to
satisfy the employees with working conditions in order to keep the staff and achieve better
results with the products and “innovative technology” as mentioned by the official
statement.

https://wpguynews.com/top-smartphone-brands-by-global-sales/

Xiaomi is a very young company of only 11 years old since its launch in 2010. The company
has managed to achieve 10.8% smartphone market share as of 2020, and one of highest
ratings in customer loyalty in the same market sphere which ”is an essential part of
Marketing in Business Management no matter what product or service the company is
focusing on '' - Emilia Johnes 06 January 2022.
HOW DOES XIAOMI REFLECT AND PUSH THE STANDARDS IN
CORPORATE SOCIAL RESPONSIBILITY
As mentioned earlier, Xiomi has 10.8% of smartphone market share, and with such a
significant percentage of market share, Xiami has a lot of Corporate Social Responsibility
(CSR) to manage and expand upon globally in spheres such as philanthropy, environment
conservation, diversity and labor practices, and volunteerism which all take part of CSR and
essential in modern day standards. The current biggest achievement in CSR of Xiaomi was
joining United Nations Global Impact in 2020 which works with 2 worldwide businesses of
different sizes to improve and adopt sustainability or/and socially responsible policies
present within the companies they work with.

For instance Xiaomi is well known for having unusual business statistics that do not reflect
their size of the company and the market they are working in. According to the statistics of
2020, Xiomi has 23,000 full time employees globally, while their biggest competitor
Samsung has 287,000 and Apple with 147,000 full time employees globally. According to
Xiomi, it is solved by “not wasting time” on long meetings or other time consuming issues
that Xiaomi’s competitors do. It could suggest or give evidence of several reports linked to
employees and the stress issues within the company, which can affect variables and factors
such as mental health, tiredness, physical health, etc that can have an impact on the quality
of products of the company.

HOW XIAOMI REFLECTS GLOBAL IMPACTS/ISSUES AND MAKES

THEM INTO THEIR CORPORATE RESPONSIBILITY
Xiaomi is well known in pushing the standards in social corporate responsibility, to be exact
the way they treat their customers as friends or fans in order to increase their low statistics
in brand awareness worldwide, but also to increase brand loyalty which in business is a way
of convincing and keeping customers into buying a specific company’s products in that
sphere.

Xiaomi used this opportunity in their business plan to host “fan” events worldwide before
the COVID-19 pandemic and online events during the confinements worldwide. Their
biggest event was done online called the MI Festival for the Chinese customers with 98
million people involved at the same time and in the same country. The reasons the hosted
events are very important is due to the activities done within them, like garbage collection
on the beaches or helping Thailand after a natural disaster of flooding using their
customers.

WHAT DOES GOVERNANCE AND GLOBAL ISSUES DOES XIAOMI

FACE AND WHAT DOES XIOMI DO IMPROVE UPON THEM.
-cant go in certain countries because some of the products have knock off design of other
competitors like Apple and issues with country’s law on copyrights like US
-China’s politics aren't great, Xiaomi might fall in sanctions or blacklists like with Donald
Trump.

CONCLUSION
In conclusion, Xiaomi has a huge contrast between how far they have pushed CSR and
some of the design and political issues that they have. From my Point of View, political
issues are always almost impossible to be solved, but I also believe that Xiaomi has a huge
potential in negotiating directly with government in order to remove their brand of blacklists
and use their Social CSR and their fan/customers events in order to help them, for example
with environmental issues that they have in that specific country.

The second mentioned issue can be solved by not selling the products that have stolen
design in countries with stricter copyright laws in order to increase brand identity, economy,
loyalty from the customers, etc without any legal issues present.

BIBLIOGRAPHY

Xiaomi. (n.d.). Xiaomi Corporation - I01.appmifile.com. Xiaomi Corporation. Retrieved

December 20, 2021, from
https://i01.appmifile.com/webfile/globalimg/0320/TO-B/pdf-file/Xiaomi_Sustainabilit
y_2020.pdf
Xiaomi. (n.d.). About Xiaomi: Xiaomi global official site - mi global home. About
Xiaomi | Xiaomi Global Official Site - Mi Global Home. Retrieved December 13, 2021,
from https://www.mi.com/global/about/

Ang, C. (2021, April 21). Top smartphone brands, by global sales. WP Guy News.
Retrieved December 29, 2021, from
https://wpguynews.com/top-smartphone-brands-by-global-sale