【Top 10 International Events】No.06 Samsung Galaxy Note 7 explosions triggers trust crisis

  
Since 2006, China WTO Tribune has set up an annual column of the top 10 domestic and international CSR events in the past year. In order to ensure comprehensive samples with more precise event description, and open and transparent selection process, we made daily collection and classification, and a consultation of a selected numbers of CSR experts from government, enterprises, universities and research institutions was conducted to further ensure the professionalism and authority of this list.

No.06 Samsung Galaxy Note 7 explosions triggers trust crisis
 

In August, Samsung fell in to a trust crisis after battery explosion accidents were reported on Samsung Galaxy Note 7 after its debut. Samsung suspended sales of Galaxy Note 7 under public pressure on October 11, and suggested consumers to power it off and stop using the device. The crisis damaged Samsung’s brand image, and cost the company as much as $17 billion and hit the Korean stock market.  
 
Reason for listing:
 
Technological races driven by business profit often lead to risky product innovation. Profit-oriented business always neglects consumers’ benefits. Samsung’s neglect of product safety in product designing ultimately caused severe quality problems. Its evasive and avoidant attitude harmed consumers’ interest and affected its brand reputation in a long run. All innovation-driven enterprises should find solutions and keep a balance between multiple demands from consumers and their pursuit for profits.