Big Question - June 08

In terms of PR, what can Samsung do to quell the negativity surrounding Chairman / CEO, Lee Kun Hee's resignation amidst tax fraud allegations?

Although share prices have been bearish since the resignation - reflecting a loss of shareholder confidence - this crisis presents Samsung with an opportunity to come out in a stronger position, overturn its public image as a corrupt enterprise and address the negative sentiment surrounding its corporate governance. 

Hence the main initiative of the PR action plan needs to communicate how Samsung is progressing positively, by portraying Lee Kun Hee's resignation as a herald of change and a sign of the company accepting responsibility and moving forward. 

Subsequent PR will have to present Lee's successor as the figurehead for this movement and acknowledge the misdeeds of the past administration. The campaign needs to communicate how new policies and staff changes are being implemented to improve the corporation's transparency and governance, as well as updates over time to show how these changes have resulted in real benefits. 

If the PR drive is successful, positive sentiment among the general public and shareholders could even overtake pre-crisis levels. 

Melvin Tang
Associate
20Twenty Public Relations

It is PR101 to counsel your client never to utter those two words that proclaim total guilt: 'no comment'. And yet this response has been recorded in some of the 568 articles to date that include 'Samsung' and 'corruption' in the keyword search. With a reputation at stake the size of Samsung, total transparency is crucial to protecting the company's reputation and minimizing damage in the months and years to come. It takes guts to counsel then guide your client to confront the storm head-on.   

What is needed now is an about-turn in the company's external communications, and one that flies in the face of the criticisms of 'opaque' management. Media briefings, roundtables, an open-door policy is what is needed to restore faith in Samsung and all stakeholders that indeed things have changed for the better, with old attitudes and approaches left where they belong, in the past. But convincing a client to fundamentally change the way they conduct their communications can be a challenge that needs total trust and faith in their PR consultancy.

Michael Drury
Associate director
Corporate and healthcare practice
Eastwest Public Relations