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Sustainable Transformation for SMEs: The First Talk on the Successor Journey of Shiang Cheng Hang


Qiu, Meng-Han: Chairman of Shiang Cheng Hang
Qiu, Meng-Han: Chairman of Shiang Cheng Hang

From Family Legacy to Sustainable Transformation: The Challenges of the Second Generation at Xiang Cheng Hang


Shiang Cheng Hang, a Taiwanese oil distributor with over 60 years of history, is undergoing a profound transformation towards sustainability. Leading this change are the second-generation successors, current chairman Qiu Meng Han (Dio) and his younger brother Cheng Han Qiu.


As heirs of a family business, Dio admits that redefining the "corporate purpose" (as enterprise life) of their family business was no easy task. However, from his past experience working at TEDx Taipei, he learned how to connect people through storytelling, which helped him gain sharper insights into the values and challenges of SMEs upon returning to the family business.


At the beginning of the transition, Dio and his brother, who serves as the general manager, constantly asked themselves: “Who are we? Where are we? What can we do?” After a series of self-reflections, they decided to start with what they knew, centering the brand on “care” as their core value and integrating a new sustainable philosophy. This marked the beginning of their transformation journey.

After taking over; Qiu, Meng-Han (second from right) prioritized communication with senior employees to ensure a smooth transition.
After taking over; Qiu, Meng-Han (second from right) prioritized communication with senior employees to ensure a smooth transition.

“Sustainability is an evolution, not a revolution.” Dio understands that, as second-generation successors, they must adapt to modern sustainability values. However, more importantly, they must continuously communicate and reassure senior employees, ensuring that the transformation within the SME operates smoothly.


“Our era is different from the previous generation, but respect and dialogue make the succession process smoother,” he says. Dio believes that the lack of industry experience in successors isn't necessarily a disadvantage; rather, it allows them to approach innovation without preconceptions. Nevertheless, the key to successful transformation lies in building consensus, reducing friction during the generational handover, and ensuring a smooth transition, providing valuable insights for other SMEs.


 

Challenges SMEs Face in Sustainability

In the view of the Qiu brothers, convincing senior employees is only the first step. The key to embracing sustainability lies in creating a profitable business model that can sustain operations while incorporating sustainable actions. Compared to large public companies with abundant resources, SMEs often have limited resources, and their actions are typically focused on immediate needs. Additionally, the uncertainty of the effects of sustainable actions makes many business owners hesitate.


“Every step toward sustainability is an experiment—carbon emission calculations, regulatory compliance, etc. We’re all still figuring it out, and that makes taking the first step even more challenging.”

Furthermore, SMEs often have a passive role in the supply chain, influenced by the needs of both suppliers and customers. For Shiang Cheng Hang, being just a small part of CPC’s large state-owned supply chain makes sustainability even more challenging. When decision-makers don’t fully understand sustainability, they may lack the motivation to take action.


 

The Role of DOMI: Helping SMEs Find Their "Corporate Purpose"

“Finding the right partners can make all the difference.” When Dio felt lost, he met Corey and Tammy, the founders of DOMI, at a B Corporation forum. This meeting became a turning point for Shiang Cheng Hang’s sustainable transformation. Together with DOMI, they redefined the SME’s corporate purpose and began the process of brand renewal, gradually injecting new energy into the company.


Being in a traditional industry and positioned in the middle of the supply chain, employees at Shiang Cheng Hang often wondered: “We’re in the oil business—how can we pursue sustainability?” “We’re so small—can we really make a difference?” After DOMI engaged with them, it helped Shiang Cheng Hang reframe the brand image of "lubricants" into a broader brand spirit. The team now understands that their role in the supply chain is not just about supplying products but about being the key player in ensuring smooth operations.



Corey (right) of DOMI Green introduced to employees at the consensus camp organized by Qiu Menghan (left) and Yu Xiangcheng
Corey (right) of DOMI Green introduced to employees at the consensus camp organized by Qiu Menghan (left) and Yu Xiangcheng

Dio recalls that when Corey first visited Shiang Cheng Hang for a consensus-building workshop, the most memorable moment was seeing every employee’s eyes sparkle at the end of the session. Gradually, changes began to take place within the SME, such as employees who were responsible for compiling reports proactively suggesting partners to use email instead of paper-based invoices. Sustainability doesn’t have to be distant or huge—it starts with small steps.


Moreover, DOMI helped Shiang Cheng Hang inspire innovative measures, such as a Caring Points (CP Points) system to encourage employees to practice sustainable actions in their daily lives; Learning Days where external professionals share practical sustainability experiences; even Vegetarian Days and Walking Plans, to spread far-reaching impact through simple actions. The company also held business model workshops, inviting team members to brainstorm sustainable business models for SMEs.


Afterward, Dio emotionally shared, "My greatest takeaway was that this is no longer just my personal mission!" When everyone moves forward together, the motivation for the boss increases as well. These changes have helped Shiang Cheng Hang take a steady step toward sustainability transformation.

 

Reflections on Second-Generation Succession and SME Sustainability Transformation

“Sustainability is not exclusive to large companies, nor is it an unattainable goal. It is a step-by-step process.” Dio encapsulates the core mindset for SMEs pushing toward sustainability. With the joint efforts of the Qiu brothers and DOMI, Shiang Cheng Hang has gradually transformed from an old-line oil distributor into a modern enterprise that integrates sustainability into its core values.


Under the leadership of Dio Qiu and Cheng Han Qiu, Shiang Cheng Hang has realized that sustainability is not only an environmental responsibility, but also an opportunity to align with the future—transforming traditional SMEs into models that embrace the spirit of sustainability. With DOMI's full support, they have found their corporate purpose, now written into their employee handbook:


“We are like lubricants, ensuring smooth operations; like solvents, solving problems with solutions; like fuel, providing energy and warmth.”

For every SME owner, the road to sustainable transformation may be rocky, but with the right guidance and strategies, businesses can find their true corporate purpose and create a better future for the planet and the next generation.



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