Not Just China pp 131-145 | Cite as

Managing Recalls: Everybody’s Business

  • Hari Bapuji


Since products are typically recalled because they present harm to consumers, the recent increase in product recalls should be a matter of concern for everyone, especially because the injuries and deaths defective products cause are bound to result in untold societal costs. In addition to physical injury, product defects lead to property damage, which can cause severe financial and psychological distress to consumers. Also, administering recalls and managing recall consequences can be very costly to companies, both financially and in terms of reputation. Certainly, company managers play a major role in the crusade to decrease recalls and increase consumer product safety, but there are other stakeholders as well who should be expected to take part in increasing consumer product safety.


Product Safety Design Flaw Ground Beef Global Supply Chain Institutional Difference 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Beamish P, Bapuji H. 2008. “Toy Recalls and China: Emotion vs. Evidence.” Management and Organization Review 4, no. 2:197–209.Google Scholar
  2. 3.
    G. Jarrell and S. Peltzman, “The Impact of Product Recalls on the Wealth ofSellers,” Journal of Political Economy 93 (1985): 512–536.A.A. Marcus, P. Bromiley, and R. Goodman, “Preventing Corporate Crises: Stock Market Losses as a Deterrent to the Production of Hazardous Products,” Columbia Journal of World Business 22, no. 1 (1987): 33.CrossRefGoogle Scholar
  3. A.A. Marcus, P. Bromiley, and R. Goodman, “Preventing Corporate Crises: Stock Market Losses as a Deterrent to the Production of Hazardous Products,” Columbia Journal of World Business 22, no. 1 (1987): 33.Google Scholar
  4. D. Dranove and C. Olsen, “The Economic Side Effects of Dangerous Drug Announcements,” Journal of Law and Economics. 37 (1994): 323–348. B.M. Barber and M.N. Darrough, “Product Reliability & Firm value. The Experience of American & Japanese Automakers, 1972–1992,” Journal of Political Economy 104 no. 5 (1996).CrossRefGoogle Scholar
  5. 5.
    E.T. Cheah, W.L. Chan, and C. Chieng, “The Corporate Social Responsibility of Pharmaceutical Product Recalls: An Empirical Examination of US and UK Markets,” Journal of Business Ethics 76, no. 4 (2007): 427–449.CrossRefGoogle Scholar
  6. T.H. Chu, C.C. Lin, and L.J. Prather, “An Extension of Security Price Reactions Around Product Recall Announcements,” Quarterly Journal of Business and Economics 44 (Fall 2005): 33–49.Google Scholar
  7. S.W. Pruitt and D.R. Peterson, “Security Price Reactions Around Product Recall Announcements,” Journal of Financial Research 9, no. 2 (1986): 113–122.CrossRefGoogle Scholar
  8. M.R. Thomsen and A.M. McKenzie, “Market Incentives for Safe Foods: An Examination of Shareholder Losses from Meat and Poultry Recalls,” American Journal of Agricultural Economics 83, no. 3 (2001): 526–538.CrossRefGoogle Scholar
  9. 6.
    M.R. Thomsen, R. Shiptsova, and S.J. Hamm, “Sales Responses to Recalls for Listeria Monocytogenes: Evidence from Branded Ready-to-Eat Meats,” Review of Agricultural Economics 28, no. 4 (2006): 482–493.CrossRefGoogle Scholar
  10. R.J. Reilly and G.E. Hoffer, “Will Retarding the Information Flow on Automobile Recalls Affect Consumer Demand?” Economic Inquiry 21, no. 3 (1983): 444–447.CrossRefGoogle Scholar
  11. C.F. Keown, “Consumer Reactions to Food and Drug Product Recalls: A Case Study of Hawaiian Consumers,” Journal of Consumer Policy 11, no. 2 (1988): 209.CrossRefGoogle Scholar
  12. 7.
    P. Bromiley and A. Marcus, “The Deterrent to Dubious Corporate Behaviour: Profitability, Probability and Safety Recalls,” Strategic Management Journal 10 (1989): 233–250.CrossRefGoogle Scholar
  13. 8.
    J. Klein and N. Dawar, “Corporate Social Responsibility and Consumers’ Attributions and Brand Evaluations in a Product-Harm Crisis,” International Journal of Research in Marketing 21, no. 3 (2004): 203–217CrossRefGoogle Scholar
  14. J.C. Mowen, “Further Information on Consumer Perceptions on Product Recalls,” Advances in Consumer Research 7, no. 1 (1980): 519–523; F. Dardis and M.M. Haigh, “Prescribing Versus Describing: Testing Image Restoration Strategies in a Crisis Situation,” Corporate Communications 14, no. 1 (): 101–118Google Scholar
  15. N. Dawar, “Product Harm Crisis and Signaling Ability of Brands,” International Studies of Management & Organization 28, no. 3 (1998): 109–119.Google Scholar
  16. 9.
    Reuters, “Topps Meat Goes Out of Business After Recall,” October 6, 2007, Scholar
  17. 10.
    P.R. Haunschild and M. Rhee, “The Role of Volition in Organizational Learning: The Case of Automotive Product Recalls,” Management Science 50, no. 11 (2004): 1545–1560.CrossRefGoogle Scholar
  18. 12.
    G. Rider, “CPSC Testing Rule Should Include Design Analysis,” Product Safety Letter, April 16, 2010, Scholar
  19. 14.
    Carvalho S, Muralidharan E, Bapuji H. 2010. Consumers’ Attribution of Blame in Product-Harm Crises Involving Hybrid Products. German-French-Austrian Conference on Marketing: Vienna, Austria.Google Scholar

Copyright information

© Hari Bapuji 2011

Authors and Affiliations

  • Hari Bapuji

There are no affiliations available

Personalised recommendations