Samsung Note 7 Recall in China

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Samsung Note 7 Recall in China

Last year, Samsung initiated a global recall for its Samsung Note 7 due to the battery design defect, which lead to overheat and explosion (Vincent, 2016). Numerous Chinese users reported battery problem. However, Samsung China accused the users of causing the explosion with the intention to seek monetary compensation (Russon, 2016). The scandal was then exposed by the state television and subsequent negative comments about the company prevailed the social network (Jiang, 2016).

Samsung’s image and integrity were at stake in this scandal. The discussion of its unethical deed revolves around how the company chose profit over concern for user’s safety. At first, the company was negligent and failed to look into the cause of design defect regardless of an abnormal number of complaints, and professed that no safety hazard was identified (Associated Press, 2016), so people were exposed to danger which could have been prevented. As the situation escalated with more proof circulated online, Samsung also demonstrated its aloofness and contempt by questioning the authenticity of customer complaints. The reluctance to incur financial and reputation loss was the underlying reason for such irresponsible response.

Throughout the scandal, the company failed to communicate information in a swift, transparent and responsive manner. The attempt to avoid extra replacement expenses also backfired eventually. The Internet has been an active part in the external investigation that finally led to a governmental mandate. Nowadays, companies are invested in their public relation, but efforts are easily undermined if they are carried them out reactively. People who feel the insincerity and irresponsibility from the company response spread negative word of mouth, which has never been so detrimental to brand image. Under this 360°scrutiny, the best crisis management strategy is simple—be always aboveboard about the mistakes and demonstrate a willingness to remedy and compensate in order to restore trust from the consumers and respect from the potential ones.

References:

Associated Press. (2016). Samsung says exploded Note 7 phone in China had no battery problem. Retrieved from http://www.latimes.com/business/technology/la-fi-tn-samsung-note-7-20160919-snap-story.html

Jiang, S. (2016). Samsung slammed by Chinese state TV over Note 7 recall 'discrimination'. Retrieved from http://www.reuters.com/article/us-samsung-china-idUSKCN1200LD

Russon, M. (2016). Note 7: Chinese man 'refuses Samsung bribe' and quits job to investigate exploding phones. Retrieved from http://www.ibtimes.co.uk/note-7-chinese-man-refuses-samsung-bribe-quits-job-investigate-exploding-phones-1587390