Exploding handsets: how to repair company reputational damage

25th October 2016

As Samsung’s reputation burns as quickly as its Galaxy Note 7, what can be done to salvage it from the ashes?

Trustworthy, reliable, enduring – these are all coveted traits which it has spent years cultivating. However, a crisis such as the recent product recall can obliterate this hard-earned reputation in one fell swoop.

At a time of crisis, a company needs to be on the front foot in admitting its mistakes and communicating a swift plan of action. It is important not to be seen as a faceless organisation, the CEO should take responsibility and reassure the public.

If action is fast and decisive, a company’s all-important brand equity may not be damaged beyond repair. Given the scale and logistical complexity of the consequences, Samsung certainly deserve credit for acting decisively in abandoning the product altogether. Whether this will prove sufficient remains to be seen.

Don’t ‘try to hide behind lawyers’ is the advice of Alton Towers’ corporate affairs director, James Crampton, following a roller-coaster crash that seriously injured four people and resulted in a £5million fine, not to mention extensive reputational damage.

With the right steps and a dose of integrity, Samsung could rise like a phoenix from the ashes.