Unable to rely solely on its own factories, toy company PlayGo contracts with foreign-owned manufacturers. Despite its requirement that factories use materials provided by certified suppliers, a foreign manufacturer uses lead paint and PlayGo issues a recall. What are the two most effective strategies to limit PlayGo’s reputational damage and reduce the likelihood of future product defects? I. Participating in a highly publicized initiative by the Toy Industry Association and Consumer Product Safety Commission to introduce new regulations requiring more stringent safety checks. II. Issuing a statement that the toys were made in factories in a foreign country, and that PlayGo had met its risk management responsibilities by issuing the requirement that contractors use the material provided by certified suppliers. III. Reducing the number of toys it makes through contract factories. IV. Refining further its memoranda of understanding with contractors and partners to include stricter monitoring and tougher penalties for noncompliance.
Unable to rely solely on its own factories, toy company PlayGo contracts with foreign-owned manufacturers. Despite its requirement that factories use materials provided by certified suppliers, a foreign manufacturer uses lead paint and PlayGo issues a recall. What are the two most effective strategies to limit PlayGo’s reputational damage and reduce the likelihood of future product defects?
I. Participating in a highly publicized initiative by the Toy Industry Association and Consumer Product Safety Commission to introduce new regulations requiring more stringent safety checks.
II. Issuing a statement that the toys were made in factories in a foreign country, and that PlayGo had met its risk management responsibilities by issuing the requirement that contractors use the material provided by certified suppliers.
III. Reducing the number of toys it makes through contract factories.
IV. Refining further its memoranda of understanding with contractors and partners to include stricter monitoring and tougher penalties for noncompliance.
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