Cpsc, Product-Harm Crisis, and Product Recalls: an Exploratory Study

Abstract

The purpose of this study is to investigate and analyze product-harm crisis and product recalls in the US toy industry. Toys are one of the most widely available and oldest consumer products in the world. The global toy industry is a $50 billion market and has transformed itself from a small-scale industry into a well established network of technologically efficient supply chains. Product-harm crisis and product recalls are common occurrences in marketing as well as public policy and corporate social responsibility (CSR) areas. By using longitudinal data from the US Consumer Product Safety Commission (CPSC), the work applies content analysis to compare and contrast toy recalls, hazards, and country of origin issues in various categories of the industry. The agency monitors over 15,000 types of consumer products sold in the US market. The toy industry is no exception and the CPSC has recalled millions of toys in various sub-categories. The study investigates 721 toy recalls in the US market between 1974 and 2008 that constitute over 270 million recalled toys. Major findings of this work reveal that most of the recalled toys were manufactured in China although a wide variety of toy brands were designed in the US. Five major hazards of toy recalls include choking, lead poisoning, aspiration, fire/burn and other injuries. The paper also provides meaningful implications and future research directions of this debate that at present is in dire need of additional research and investigations. The topic is equally important in the areas of public policy and marketing ethics. The findings of this study validate that manufacturers as well as companies designing toys are responsible for defective products. Toy manufacturers, suppliers, and retailers need to pay attention to the toy industry that at present is complex because of large-scale outsourcing, questionable quality standards, and diverse supply chains.