Crisis Management: Dealing with a Product Crisis |
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Caselet 3: Mattel's Voluntary Safety Recall"During our recent product recalls, we have taken a variety of prompt, corrective actions. We've strengthened our organization to maintain the place we have long held at the forefront of responsible corporate citizenship... Our recent challenges have presented an opportunity to again be an industry leader."25 - Robert A. Eckert, Chairman and Chief Executive Officer, Mattel Inc., in August 2007. "Mattel takes full responsibility for those recalls and I would like to apologise personally to you, the Chinese people and all of the customers who received toys that have been manufactured."26 - Thomas Debrowski, Executive Vice President of worldwide operations, Mattel Inc., in September 2007.
These included popular toys such as Barbie, Polly Pocket Dolls, Tanner play sets, Doggie Day Care, Batman and a few action figures. Mattel also recalled 4,36,000 die-cast 'Sarge' toy cars from different parts of the world, of which 49,000 toy cars were recalled from the UK and Ireland, 2,53,000 from the US and remaining toys were from rest of the world. After a fortnight, on September 4, 2007, the company announced a third recall of its toys stating withdrawal of more than 800,000 toys across the globe. It included the 675,000 accessories of the iconic 'Barbie' brand, 25,000 locomotive and 'Bongo Band' toys and three toy models of Fisher-Price... ExhibitExhibit VI: Mattel INC's Financials
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25] "Mattel Creates Corporate Responsibility
Group," www.webwire.com, August 12, 2007. |
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