As consumers gear up for Black Friday, companies across retail, electronics, and consumer goods are preparing for one of the busiest sales periods of the year. Amid the excitement and revenue pressure, the stakes for product safety are higher than ever, because when defects, recalls, or safety lapses occur, the consequences hit fast and hard.

On the Board Agenda

Recent data shows that boards are increasingly acknowledging product safety as part of governance oversight. A recent Board Practices Survey and Report found that 34% of public company boards now list product quality, safety, or consumer trust as a recurring agenda item. This is nearly double the rate from five years ago. In highly regulated sectors such as medical devices and pharmaceuticals, over 70% of boards maintain a dedicated Quality & Compliance Committee. Even among S&P 500 manufacturers, an increasing number of companies have committees explicitly chartered to oversee safety, risk, or technology with a product-safety component. This demonstrates that boards are beginning to treat product safety not as a peripheral operational concern but as a strategic governance responsibility.

The Consequences of Incidents

The importance of such oversight is underscored by recent high-profile incidents. In 2022, Abbott recalled certain lots of Similac infant formula due to potential cap-sealing issues, prompting a nationwide shortage and FDA investigations. The recall drew intense media scrutiny and regulatory attention, placing the company’s board under the spotlight for oversight of quality systems and corporate culture. Similarly, Peloton paid $19 million in 2023 in fines to the Consumer Product Safety Commission (CPSC) for failing to report treadmill defects that resulted in injuries, including a fatality. These cases illustrate how safety lapses can quickly escalate into regulatory penalties, reputational damage, and financial loss. Regulatory trends reinforce this: In fiscal year 2023, the U.S. CPSC assessed over $52 million in civil penalties.

Safety Oversight in Governance Practices

Given these stakes, effective boards move beyond passive reporting and actively integrate safety oversight into their governance practices. One key approach is ensuring unfiltered access to safety information. Boards should receive not only aggregate metrics but also root-cause analyses, near-miss reporting, customer complaint reports, and independent audit findings. The Abbott recall demonstrates the stakes: Plaintiffs in shareholder lawsuits argue that Abbott’s board lacked a committee responsible for product safety, even as regulators questioned the company’s safety culture.

Another best practice is embedding product safety into committee structures and board culture. High-performing boards treat safety as a recurring topic, often through dedicated Quality & Compliance or Risk committees. Rotating members with relevant technical expertise helps maintain focus and reinforces the board’s authority to challenge management assumptions, probe operational weaknesses, and evaluate whether organizational culture prioritizes safety.

Stress-Testing Governance

Boards also benefit from scenario planning and crisis simulations. Running through hypothetical recalls or regulatory interventions allows directors to identify gaps in mitigation, communication, and decision-making. These exercises make product-safety governance tangible and prepare boards to act decisively when high-consequence incidents occur.

Finally, fostering a culture of constructive challenge is essential. Product-safety failures often originate in operational silos or from misaligned incentives. Directors must feel empowered to ask hard questions, request independent expert reviews, and surface dissenting perspectives without fear of friction. The Abbott and Peloton cases show that when boards fail to assert this challenge, the consequences can be financial, reputational, and regulatory.

From Oversight to Trust

Consumer trust can be won or lost in moments. By integrating unfiltered information flows, dedicated oversight structures, scenario planning, and a culture of challenge, boards protect consumers, shareholders, and the company itself. For directors across industries, active engagement with product safety and consumer trust supports effective governance and long-term performance.

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