The impacts of the brand on the consumers from the case scenario are shocking. In most circumstances, consumers of a particular product always accept that the products and services will always turn out as expected. They purchase a specific product in good faith, hoping it will benefit them in the long run. In the case of cell phones, for example, the one in the scenario, consumers do not envisage such an outcome. It is not reasonably foreseeable to have a mobile phone exploding and harming the consumers during its regular use. Therefore, it was alarming and shocking for the purchasers and customers of the Samsung Galaxy Note 7 to have their gadgets exploding. The issue of business ethics and corporate social responsibility has been on the radar of late, following the allegation that slavery tainted the supply chain of products manufactured in China. In response to the claims, some companies cut ties with suppliers implicated in using forced labour. Others continued to trade despite the heartbreaking discovery. The response from the companies shows that the different organizations have different codes of conduct. They, therefore, approach their CSR differently. According to Byars and Stanberry(2018), in as much as ethics differs from organization to organization, every entity should have a moral minimum requirement to ensure it operates ethically.
From the scenario, two critical concepts in business management came up. They include ethicality in business management as well as the corporate social responsibility of an organization. According to Ferrell et al. (2019), the two concepts are more or less similar, and most people use them interchangeably. The former relates to the code of behaviour that an organization follows. It covers the values, norms, and principles that guide how a business should act in its operations, especially when relating with its customers. In addition, business ethics can also transcend to how the organization comes up with its products. Regarding the latter, it covers how an organization relates to its customers, mainly where the product is in question. A corporation’s social responsibility is more concerned with the consumer’s welfare. Under CSR, the organization endeavors to ensure its product is in line with the safety and health of the customers. In Byars and Stanberry (2018), an organization has to guarantee optimal concern to all its primary stakeholders. In addition to shareholders, consumers are critical stakeholders who, too, require prioritization.
Additionally, the two concepts mentioned above are essential in shaping the consumers’ attitude about the product in question. Looking at the present scenario, it is right to conclude that Samsung had acted in an unethical manner. Production of a product, primarily electronic, demands optimal care and integrity. Cutting corners in production to maintain the competition against Apple’s iPhone 7 was an ethical approach. Samsung was willing to any anything that would make it outshine its Competitors. The Unethical pro-organizational Behavior approach was pertinent in this scenario. Similarly, the failure of the defendant to immediately accept the responsibility is also contrary to business ethicality.
Furthermore, Ferrell et al. (2015) argue that CSR impacts consumer attitudes more than business ethics. In as much as the two are critical in shaping the customer brand’s perspective, CSR can play a more fundamental role in case of the business act unethically. Whenever a business acts contrary, it matters not its ethicality but its corporate social responsibility. Therefore, CSR works to develop a positive brand attitude by reinstating trust. The move by the defendant to stop further production of the model and replace it with another model depicts the organization’s social responsibility. It proved that the company had regard for its consumers’ welfare. Businesses can always go against their code of behaviour, but they cannot overlook their CSR.
In a situation like the one in hand, unethical behaviour in business can be detrimental to the company’s future success. It is not in all circumstances that CSR will remedy corrupt practices. Failure of the CSR to reinstate the positive brand attitude of the consumers can negatively affect the business. Therefore, companies should operate ethically to avoid eroding their customers’ trust. Loyal customers, too, can abandon the enterprise. Lastly, it is essential to note that organizations should take responsibility and remedy any negative impact their product has on its consumers.
References
Byars, S. M., & Stanberry, K. (2018). Business ethics.
Ferrell, O. C., Harrison, D. E., Ferrell, L., & Hair, J. F. (2019). An exploratory study of business ethics, corporate social responsibility, and brand attitudes. Journal of Business Research, 95, 491-501.е
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