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Mattel Toys and the Hazards of Lead Paint Essay

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Mattel Corporation, known as the largest toy company in the world, is a publicly traded organization with a market capitalization of over $6.5 billion. Employing approximately 36,000 people worldwide in 43 countries, their products are well-known and sold in over 150 nations (Mattel.com). With such winning odds as mentioned, it is hard to imagine that a company readily known to children and adults across the globe would become even better known for the company that produced toys made with lead-based products. This assignment will discuss whether or not Mattel acted in an ethical and socially responsible manner in their decision to recall defective toys, what they perhaps could have done differently to avoid this issue, and the best way …show more content…

Toys were pulled from the shelves of retailers, and a media frenzy ensued as public pressure was mounting. By the time the dust had settled from the recall, Mattel had recalled over 2.2 million toys that were manufactured in China because of unacceptable levels of lead paint. Their stock prices suffered drastically as they were responsible for a $40 million charge relating to the recalls of their products. Customers were threatening to boycott Mattel and all toys that were made in China. It was eminent that Mattel had to determine what next steps they would take to recover from such a crisis and move quickly in order to protect their brand.
The lead paint laced toys came from one of Mattel’s contracted factories in China called Lee Der. This company manufactures toys using products from subcontractors; one of these contractors was Hun Li Da, responsible for violating Mattel’s lead paint standards by using an uncertified paint supply. With Mattel recalling an ominous amount of toys shed light on the fact that many U.S. name brands that have manufacturing facilities overseas use contractors that provide materials that sometimes are not what they are supposed to be. While Mattel took the blame and relieved the contractors of any blame, Zhang Shuhong, the owner of Lee Der committed suicide just days after the Mattel recalls took place. Lee Der Industrial was in fact responsible for the toys that were coated in toxic lead

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