Purpose: PL (product liability) response system is an enterprise-wide system that prevents company’s financial loss due to PL-related accidents. This study aims at developing an evaluation system for objectively assessing the extent to which companies carry out systematic and organized activities for product liability, including product safety activities, preventive actions, and protective measures.
Methodology/Approach: We used the Delphi and analytical hierarchy process methods to develop an evaluation system with product liability experts to present the relative importance of response strategy based on selected evaluation criteria. And then, we carried out systematic and organized PL activities of each industry, scale, and growth stage of the Korean manufacturing companies through PLI.
Findings: In terms of the scale of the manufacturer, Large-sized firms has the highest PLI of 92.32. Also, middle- to large sized firms and middle-sized firms have the highest PLI of 90.63 and 77.35, respectively. And then In terms of the importance of all manufacturers, Awareness was identified as the most important component influencing corporate management activities, with the highest PLI of 78.59.
Research Limitation/implication: This study is limited due to the small sample size and the number of examples.Originality/Value of paper: Our paper will enable consumers to determine a manufacturer’s response to product liability, and the subsequent positive effects, such as the increase of quality in consumption life.
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