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2 pages/β‰ˆ550 words
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Business & Marketing
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English (U.S.)
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Safety and Crisis Management in the Explosion of Samsung Note 7 Case of 2016

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In the fall of 2016, Samsung Electronics experienced a massive public relations disaster when its Galaxy Note 7 smartphones started exploding due to faulty batteries and casings. Initially, the company denied there were any technical problems. Then, when it became obvious the exploding phones posed a safety and health threat when they were banned from airplanes, Samsung accused its suppliers of creating the problem. In reality, the rush to beat Apple’s iPhone 7 release date was the most likely reason corners were cut in production. Samsung finally owned up to the problem, recalled more than two million phones worldwide, and replaced them with new, improved Galaxy Note 7s. The company’s response and its replacement of the phones went a long way toward defusing the disaster and even boosting the company’s share price. Whether management knew it, its response was Kantian. Samsung focused on the end (i.e., customer safety and satisfaction) with the motive of doing the ethically responsible thing.
Source: Byars and Stanberry (2018), page 54 CC BY
This assignment is the last of four SLPs where you will be building a bank of takeaways pertaining to ethical and/or unethical behaviors.
After reviewing this SLP scenario:
Express your reactions
Apply your own background/experiences
State important takeaways
Add other comments you would like to make
Your SLP submission should be 2 to 3 pages of text, well organized, well written, and 100% error free. You may use first-or third-person voice. Write in full sentences. Demonstrate your critical-thinking skills. Be creative (for example, add color and/or small graphics).
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The Exploding Note 7 Case
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The Exploding Note 7 Case
Business ethics often demand that organizations should be willing to make the biggest sacrifice for the sake of abiding by the basic laws and regulations or attaining the greater good. Samsung's case of exploding Note 7 was certain to be a question of business ethics as much as it might be interpreted as an economic issue due to the massive losses to the shareholders, reportedly leading to a drop of $14.3 billion in market value (Swartz & Graham, 2016). The customers' safety was put in jeopardy due to failure to adhere to the basic principles of business ethics, safety, and health (Byars & Stanberry, 2018). Samsung nearly committed a public relations tragedy by failing to decide on the crisis management response strategy, shifting from denial as the initial response and later owning up to the problem.
The explosion incidences from Samsung Note 7 were quite rampant, bearing in mind that over 35 cases of explosions reached the mainstream media (Swartz & Graham, 2016). Experts analysis indicated that an effort by Samsung to make a phone with long battery life yet small and portable to beat its rival Apple that was about to release iPhone 7, led to the safety issue (Weblog post, 2017). Images and videos from reputable sources indicate that the explosion claims were true, and due to the swift response by Samsung to recall the phones, not many incidences were witnessed after that, but the media had captured convincing incidences that triggered the company to admit the flaw. From Samsung's internal team tasked with evaluating the cause of the fires, design flaws with the battering and welding defects were the major cause of explosions to the mobile device.
From an ethical perspective, Samsung was in a hurry to release a defective product into the market to beat the competitor, Apple iPhone. Despite all phone manufacturers being required to pass all the safe...
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