What do you do when disaster strikes? The first instinct we have as human beings is to seek cover and hunker down. But when a crisis hits a business, it is crucial for its leaders to remain visible. This may sound simple, but as CEO of the world’s largest toymaker, I can tell you it’s not always easy.

// BY ROBERT A. ECKERT

Around the world, our people are committed to making safe toys for children to enjoy. Our long record of safety has made us a name that parents trust. We have some of the most rigorous safety systems in the toy industry. But we’ve never claimed to be perfect. Product recalls across the food, consumer goods and toy industries in 2007 captured worldwide headlines and worried consumers. While many companies recalled products last year, Mattel’s announcements garnered a fair share of the attention. Perhaps it is because the Mattel brand has been synonymous with safety and quality, trusted by generations of parents.

In business, we may not always be able to choose the challenges we face, the problems we must solve, the obstacles we must overcome and the opportunities we may embrace, but we do have a choice in how we make these decisions.

When the tough times hit at Mattel, consumers wanted to hear directly from me how the company was addressing the issues. In order to maintain consumer trust in the company through those difficult weeks, I had to be visible. Taking responsibility was simply the right thing to do. I had to communicate widely and talk about the problems we were facing as both a company and an industry, and I had to tell people how we were fixing things. That communication effort was very personal to me because it consisted of some of the most grueling days I’ve experienced in my professional career—from extremely tough media interviews to conversations with our business partners, and from testimony at congressional hearings to direct communications with consumers through videos on our website and other means.

Employee communications were especially important during this time, and I sent numerous company-wide emails as we made our way through the crisis to keep employees informed about what was happening, so that they didn’t first read about it in the morning newspaper.

In business, we may not always be able to choose the challenges we face, the problems we must solve, the obstacles we must overcome and the opportunities we may embrace, but we do have a choice in how we make these decisions.

I believe that in order to solve these challenges, unwavering integrity is one of the most important characteristics a leader can possess. With that in mind, here is my top five list for effective and ethical crisis management:

01 // Be visible, set the ethical tone:

Show up at meetings. During Mattel’s recalls, we had a crisis team that met daily in person or by phone and I made it a point to participate. People, no matter how senior or how experienced, need leadership during challenging times. As the CEO, I knew it was my responsibility to set the tone for how the company responded by making the tough calls in full view of the team.

02 // Empower decision-making, do not place blame:

Placing blame is not only divisive, but also wastes valuable time when people should be working together toward solutions. Leaders need to empower people and teams to make decisions and set an ethical tone through example.

03 // Be prepared, move quickly:

For many years, Mattel has had a thorough crisis plan in place, preparing key executives and employees to address issues quickly if they arise. Having a plan ensures that people know what they need to do without losing valuable time creating processes on the fly. And the most important two pages of our 100-plus page plan show the frequently updated phone tree: “Who do you call when …”

04 // Communicate, communicate, communicate:

A company must communicate transparently so that employees, consumers, business partners, board members, investors, governments and the many other important stakeholders can evaluate actions for themselves. During a crisis, you must be able to clearly communicate the specific actions you are taking and explain how those actions will result in solutions.

05 // Play Fair:

Mattel’s response to the 2007 recalls came from the core of who we are as a company. The way we face challenges in the day-to-day execution of our business is driven by our values, and our values reflect the very DNA of Mattel and align with our unique role in the market—play. We play with passion, we play together, we play to grow and, most importantly, we play fair. Playing fair strikes a particular chord because it means that we conduct our business with the utmost integrity. We have a responsibility to lay the foundation for how we—and those who follow us— will conduct ourselves and our business at Mattel.

To expand on that last point, we play fair by acting with integrity, treating others with dignity and respect, adhering to honesty and fairness in our business dealings and consistently working to do what’s right. This is the very foundation of our Code of Conduct, which contains the standards of ethical business conduct that apply to all Mattel employees. The Code contains the guiding principles and steers employees toward company resources that give specific guidance and help resolve questions and concerns about ethical issues.

Good reputation, trust and long-term profitability are a handful of the many rewards of doing business ethically. Since Mattel’s founding more than 60 years ago, the company’s greatest concern has rested with the safety of the children who play with our toys. This common purpose drives the product decisions we make. While my job may be that of a CEO, I am first and foremost a parent, as are many of the thousands of men and women who work at Mattel. We care about children because we are a company for children.

As an organization, I believe that Mattel has embraced a difficult test of our company and found the opportunity to become better. As an organization, we have been open about the issues we face and how we are acting to fix those issues. And we are committed to facing future challenges in the same way: with integrity—out of the shadows, and on the ethical course.

Robert A. Eckert is the Chairman and CEO of Mattel, Inc.