Professor said: Samsung "explosive door" incident failed
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On September 21, Kemberly A. Whitler, marketing assistant professor at Darden School of Business, said in an e-mail interview with a reporter from the International Finance News that many companies always try to emphasize the minimization of legal liability when the crisis occurs. Rather than focusing on minimizing the negative impact of crisis events on brands, this paradox may lead companies to miss out on best time to deal with crisis public relations and to deviate from the best crisis management practices.
Kimberly A. Whitler pointed out that BP's leaks, the Toyota recall, the E. coli outbreak of the fast food chain Chipotle, and the recent battery explosion of the Samsung Galaxy Note 7 all revealed the same problem, how should the company face? Crisis event?
“Businesses' responses to crises can influence consumers' perceptions of the company, consumer behavior, the speed at which brands and companies recover from the crisis, and ultimately the ultimate problem – the company's economic benefits. Although in the past few years, it has often been well-known Brands are in crisis, and corporate leaders seem to seldom plan corporate management after a crisis, until the crisis really comes,†Kimberly A. Whitler pointed out.
According to Kimberly A. Whitler, when a crisis occurs, many CEOs are embarrassed to point out how small the losses are. The way the crisis public relations deal with better CEOs is to take responsibility quickly, admit mistakes, and minimize losses in an open and transparent manner. Kimberly A. Whitler emphasizes, “When companies try to defend their actions, blame others or evade responsibility, they not only make things worse, but they also bring negative publicity.â€
Kimberly A. Whitler cited the example of the Johnson & Johnson Tylenol poisoning incident in the 1980s, which was quickly and properly handled, and all products were immediately recalled. In contrast, Toyota lacked transparency and a slow response to public scepticism in the recall. "The reason why many companies do not deal with the crisis well is another reason, that is, there is no pre-prepared crisis management plan, so that when the crisis comes, it can minimize the losses."
On the other hand, Kimberly A. Whitler believes that the involvement of lawyers, although it can help companies minimize legal liability, will create new contradictions. “Best brand management practices tell us that in the Samsung battery explosion practice, Samsung should immediately apologize, take responsibility and recall the product in question. But the problem is that the lawyer will propose the opposite: talk as little as possible, no matter what Don't take responsibility for the place and blame the third party."
Kimberly A. Whitler believes that this contradiction may lead the company to deviate from the ideal crisis management practices.