In recent years,
product recalls in the pharmaceutical industry have become rampant and have
increased dramatically (Dickinson, 2001). In the U.S.,
recalls of defective products are also carried out voluntarily by manufacturers
or distributors, some entirely on their own and others upon recommendation by
the U.S. Food and Drug Administration (FDA); the FDA only has powers to
prescribe recalls in limited situations where medical devices, human tissue
products or infant formula pose a risk to human health (FDA, 2002).

In tandem with the
increased sophistication of consumers and interest in socially responsible
investing, corporations have also begun to be aware of the importance of acting
beyond mere compliance with laws to embracing a more responsible attitude
towards society, and indeed adopting corporate social responsibility (CSR)
practices as a means of creating and maintaining greater competitive advantage
and resilience in business (Yaros, 1979)