Reference no: EM133438733
ASSIGNMENT:
Imagine your group works in the public relations division of the Happy-Go-Lucky Toy Company.
A recent investigative report airing on "60 Minutes" revealed that your premier product line, Dilly the Diesel toy trains, contains extremely high levels of lead. The product, which was once made in Youngstown, Ohio, moved production to China in 1999. Due to extreme competition among manufacturers and the lack of environmental and consumer regulations there, one of the three factories producing Dilly the Diesel toys began using white lead to reduce costs. The lead helps cheaper paints stick to the bodies of the wooden trains and train accessories.
This is the second time that lead has been found in a Happy-Go-Lucky toy. (Last year lead was found in the potmetal parts of the Señor Sausagehead Activity Playpack). Testing revealed that only 1 in 12 Dilly the Diesel trains contain lead, and the remainder of the company's toys are safe.
The CEO of Happy-Go-Lucky Toys, Jamie Skeffington, has approached your PR group to write a letter to the registered owners of Dilly the Diesel toys. The letter should inform the owners that they should stop using the products immediately and that any toys returned to local Dilly the Diesel retailers will be replaced at no cost. Ms. Skeffington has also decided that affected owners will be eligible for some sort of compensation, at a cost to the company of up to $10 per customer. The letter will be signed by Ms. Skeffington.
One last complication: as pointed out in the "60 Minutes" report, Ms. Skeffington received an $2.1 million performance bonus last month as part of her executive compensation.
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