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Whirlpool’s Maytag, Samsung Recall Washing Machines for Fire Hazard March 21, 2007

Posted by silviamocanu07 in Business-Society Issues, Consumers, Stakeholder management.
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I found this article in the Wall Street Journal (Link: http://online.wsj.com/article/SB117448544919944057.html?mod=us_business_whats_news) about the recall of 270,000 washing machines sold in the US, as they are thought to be a fire hazard. Maytag and Samsung also guarantee free repairs for these machines.

Despite the fact that Samsung only received one customer complaint, while Maytag received five, with no actual injuries reported, the companies took a proactive approach and decided to recall the appliances. This shows a responsible approach of dealing with the problem by admitting that the machines had a manufacturing flaw and addressing the problem, instead of shying away from it.

This issue I believe relates perfectly to one of our previous class discussions on corporate responsibility and the impact of the external environment on organizational operations and internal decision-making in times of a potential crisis. The case illustrated by the article shows a positive reaction from the companies involved. It is a case that also shows that corporations are greatly influenced by consumer demands, as well as by the potential threats posed by their products to the consumers, be it because of ethical reasons or because of negative legal implications.

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Comments»

1. Stacey Swift - March 21, 2007

I commend these companies for taking a proactive approach. It is great that they addressed the problem before anyone was hurt. However, since no one was directly hurt, it is very important to make sure they truly are the cause of the fire hazards. It could cost the company a lot of money if they jumped to conclusions.

2. MM - March 27, 2007

You’re nuts. Five or six fires and this is somehow responsible. Moreover, they are not replacing the machines. Instead they are offering a circuit breaker of some type as a solution (unproven solution). Forget it.

3. Rene Bogdanow - July 25, 2007

You are crazy, I had my dishwasher ‘fixed’ and it caught on fire! Now they won’t give me a stupid 75 dollar rebate! I am so furious that i will never buy maytag, whirlpool, jennair, kitchenaid again and any other appliance company whirlpool buys!
Their customer service sucks, and there were 135 fires and some people were hurt. Research your stories first.

4. Jordi - July 26, 2007

Can you provide any documentation of 135 fires and injuries?

Was your machine covered by the recall? How did that work? They recalled it and then gave it back to you? And then it caught fire?


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