Can business adapt to rising scrutiny of safety?
Recalls of potentially dangerous or defective products are on the rise, in the United States and around the world. The drivers of this trend include increasingly aggressive government regulators with enhanced authority to pursue recalls, technology that makes it easier for consumers to complain about unsatisfactory products and an ever more complex and far-flung global supply chain that is harder for manufacturers to control. As recalls rise, the stakes for businesses involved also grow, in both monetary exposure and damage to reputation; companies can rise or fall depending on how they navigate this tricky terrain. In response, manufacturers are stepping up their in-house testing programs and complying more diligently with government rules for self-reporting when they find health and safety threats. Among the questions being debated: Are companies doing enough to prevent defective goods from reaching the public? Are manufacturers doing enough to notify the public about recalls? Can a brand survive a recall?
Bapuji, Hari, “Not Just China: The Rise of Recalls in the Age of Global Business,” Palgrave Macmillan, 2011. A business professor from the University of Manitoba in Canada explodes the myth that product recalls are a “China problem.”
Flynn, Barbara B., and Xiande Zhao, “Global Supply Chain Quality Management: Product Recalls and Their Impact,” Taylor & Francis Group, 2014. An American and a Chinese business professor use six case studies to explore how product hazards in the supply chain affect supply chain quality.
Hunter, Richard J., and John H. Shannon, “Products Liability: A Managerial Perspective,” Hunter|Shannon|Amoroso, 2012. Two Seton Hall University law professors delve into modern product liability law and theory in an advanced textbook for business students.
Candelaria, Christopher, and Galina Hale, “Did Large Recalls of Chinese Consumer Goods Lower U.S. Imports from China?” FRBSF Economic Letter, June 13, 2008, http://tinyurl.com/
Marton, Andrew, “Sid Bass: Why the Fort Worth Billionaire saved Blue Bell,” Star-Telegram, Oct. 31, 2015, http://tinyurl.com/
Vanden Bos, Peter, “How to Survive a Product Recall,” Inc., June 2010, http://tinyurl.com/
Reports and Studies
“FDA’s Food Advisory and Recall Process Needs Strengthening,” Government Accountability Office, July 2012, http://tinyurl.com/
“Recall: The Food Industry’s Biggest Threat to Profitability,” Tyco Integrated Security, 2012, http://tinyurl.com/
“Recall Handbook,” U.S. Consumer Product Safety Commission, 2012, http://tinyurl.com/
Burke, David, Ian Bailey and Andrew Kyle, “Product Recall: The Developing Story,” Caitlin Group, 2012, http://tinyurl.com/
Durrett, Jordan, “After the Recall: Dangerous Products Remain in Homes,” KID (Kids in Danger), 2014, http://tinyurl.com/
Pozo, Veronica F., and Ted C. Schroeder, “Costs of Meat and Poultry Recalls to Food Firms,” Finance and Economics, February 2015, http://tinyurl.com/
Shin, Heechang, Robert Richardson and Oredola Soluade, “Assessing Sales Loss from Automobile Recalls Through Event Study: A Toyota Case Study,” Communications of the IIMA, 2012, http://tinyurl.com/
Steinkamp, Neil, and Jake Reed, “2015 Automotive Warranty & Recall Report: A Road Map for a New Era:,” Stout Risius Ross, 2015, http://tinyurl.com/
Steves, Bernie, “2014 Emerging Trends and Key Issues Report: Product Recall and Contamination Risk Management,” Aon Risk Solutions, 2014, http://tinyurl.com/
The Next Step
Fleisher, Chris, “Series of recalls could hurt Giant Eagle’s reputation,” Pittsburgh Tribune-Review, March 25, 2016, http://tinyurl.com/
Ramsey, Mike, “Quality Woes a Challenge for Tesla’s High-Volume Car,” The Wall Street Journal, April 20, 2016, http://tinyurl.com/
Young, Angelo, “Volkswagen Recall: Repairing The Carmaker’s Reputation Will Take Years And Won’t Be Fixed By Firing The CEO,” International Business Times, Sept. 21, 2015, http://tinyurl.com/
Bonar, Samantha, “Organic Pastures raw milk is recalled – again,” Los Angeles Times, Oct. 19, 2015, http://tinyurl.com/
Passary, Anu, “UL Reveals How It Tests Safety Of Hoverboards While Swagway Does U-Turn,” Tech Times, Feb. 24, 2016, http://tinyurl.com/
Smith, Casey, “Blue Bell distributes update on production facilities procedures,” Tulsa World, Jan. 8, 2016, http://tinyurl.com/
Bomey, Nathan, “BMW hit with $40M fine for recall violations,” USA Today, Dec. 21, 2015, http://tinyurl.com/
Laing, Keith, “NHTSA chief grilled by Congress on latest air-bag death,” The Detroit News, April 14, 2016, http://tinyurl.com/
Shepardson, David, “Automakers urge insurance companies to remind U.S. drivers of recalls,” Reuters, April 12, 2016, http://tinyurl.com/
Jensen, Christopher, “A Record Year of Recalls: Nearly 64 Million Vehicles,” The New York Times, Feb. 12, 2016, http://tinyurl.com/
Limbach, James, “Feds complete work on rule on tracking foodborne illnesses,” Consumer Affairs, Dec. 15, 2015, http://tinyurl.com/
Migoya, David, and Ricardo Baca, “State issues massive recall of pesticide-tainted marijuana,” The Denver Post, March 17, 2016, http://tinyurl.com/
Center for Science in the Public Interest
1220 L St., N.W., Suite 300, Washington, D.C. 20005
Advocates for nutrition, food safety and health and other issues; aims to counter the influence of industry on public opinion and public policies.
Food Policy Institute
New Jersey Agricultural Experiment Station, Rutgers, The State University of New Jersey, 55 Dudley Road, New Brunswick, NJ 08901-8520
Academic research unit of Rutgers that focuses on challenges facing the U.S. food system, especially in the mid-Atlantic region.
Food Safety and Inspection Service
U.S. Department of Agriculture, 1400 Independence Ave., S.W., Washington, DC 20250-3700
Public health agency in the Department of Agriculture responsible for ensuring that the nation’s commercial supply of meat, poultry and egg products is safe, wholesome and correctly labeled and packaged.
Kids In Danger
116 W. Illinois St., Suite 4E, Chicago, IL 60654
Nonprofit group advocating for the safety of juvenile products in the U.S.
National Highway Traffic Safety Administration
U.S. Department of Transportation, 1200 New Jersey Ave., S.E., Washington, DC 20590
Federal regulator of motor vehicle and highway safety.
U.S. Consumer Product Safety Commission
4330 East West Highway, Bethesda, MD 20814
Independent federal agency charged with protecting the public from unreasonable risks of injury or death associated with the use of consumer products.
U.S. Food and Drug Administration
10903 New Hampshire Ave., Silver Spring, MD 20993
Federal agency responsible for protecting the public health by ensuring the safety, efficacy and security of human and veterinary drugs, biological products, medical devices, food supply, cosmetics and products that emit radiation.