How severe is the negative effect on a company by the CEO’s scandal in China?

The rape allegations against Richard Liu has brought the sexual scandal surrounding the e-commerce behemoth back into the spotlight again. Amid public criticism, the company is also suffering a desperate situation, in which JD.com reported massive layoffs, steep pay cuts and plunging share market price. JD is a leader in China with regard to supply chain and logistics optimization, and its in-house delivery service outperformed the main competitor, Alibaba, which is heavily dependent on the third-party couriers. However, whether JD will be able to survive this storm is largely determined by the next step in the company’s strategic plan. For a comprehensive perspective of the whole thing, you might follow the link.