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[CARD NEWS] Samsung’s Recall and the Global Conglomerate’s Responsibility

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Sept 09,2016
Samsung’s Recall and the Global Conglomerate’s Responsibility



1)
“You can’t get the Note7 at this moment. Even customers who preordered haven’t received the products yet.”
The Samsung Galaxy Note7, which has gained strong reviews for its iris scanner and waterproofing features, was sold out only 4 days after its launch.

2)
But last month, a photo of a Note7 that caught on fire and exploded appeared on social media.
Samsung considered the case “not a big deal.”

3)
But it was a big deal.
Reports of Note7 explosions poured in from all over the world.

4)
As a result, Samsung issued a major recall for the 2.5 million Note7s sold just nine days after the first incident was reported.
Koh Dong-jin, president of Samsung Electronics, apologized and offered replacement phones to buyers. The company has been praised for its quick and honest response to the issue.

5)
The cost Samsung is paying for this case will be around 2.5 trillion won ($2.29 billion), when calculated from the Note7’s factory price — a huge financial burden.

6)
Back in 1982, a similar major recall was issued by Johnson & Johnson.
Eight people died after Tylenol pills were found be poisoned with potassium cyanide. Johnson & Johnson recalled every Tylenol product, enduring major setbacks.
Thanks to their effective response, consumers remained confident in Johnson & Johnson and the company recovered its market share in 1983.

7)
In the meantime, tire company Firestone kept silent even after it became obvious that their tires were dangerous.
It was too late when the company recalled the faulty products after 46 people died in car crashes. The company eventually went bankrupt and was sold to a Japanese corporation.

8)
Remember Toyota, Volkswagen, and Oxy’s recent scandals?
Their laid-back attitudes only aggravated their problems.
The cost Toyota paid was over 1 trillion won. Volkswagen is facing a major crisis and a boycott movement has been spreading against Oxy.

9)
Considering the situation, Samsung’s decision to recall every Galaxy Note7 was normal, regardless of the fact that only 0.0024 percent of products failed.

10)
The more conglomerates globalize, the more their risks are globalized. Minor defectives can lead to astronomical losses.
Global conglomerates should take as much responsibility as they can. When it comes to safety, the obligation they bear is even heavier.

11)
Tough phrases that are commonly heard at military boot camp resonate in today’s global business climate.
“Tiredness kills you.”
“Carelessness knocks you down.”



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