DJI fraud update: ‘We put corporate growth over internal processes in the past’

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DJI has vowed to “take a leading role” in developing clear policies, procedures and expectations to address corner-cutting and employee theft as an investigation into a fraud scandal that has cost the business £115m continues.

In its latest statement on the situation, posted at the end of last week, the Chinese drone maker acknowledged that it “has in the past emphasised corporate growth over new internal processes”.

But it insisted it is now taking greater control over internal processes in a bid to ensure the business can innovate and grow.

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A number of company employees were dismissed last month for inflating the cost of parts and materials for certain products for personal financial gain.

Addressing the issue, DJI said: “Since our founding 13 years ago, DJI has been a company that emphasises 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 and outright 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.”

The company said it understands that strong management is the key to setting honourable expectations for employees.

“While mature companies have established the training, controls and management protocols to limit these issues, DJI has in the past emphasised 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.”

DJI added that it does not publicly discuss details of its employee discipline process and urged the media to pay close attention to the facts it has 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.”

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Andrew Seymour

The author Andrew Seymour

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