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
In 2007, Mattel a California based toy company shockingly recalled 19 million toys that had been manufactured in China. Mattel was founded in 1944, and has produced iconic toys such as Barbie and Hot Wheels. The company had a long established trust with their consumers that had been forged from decades of reliability. However, when the company recalled 19 million toys due to health and safety violations, consumer confusion and outrage soared. The public wanted to know how such an established company’s safety regulations could fail, how Mattel was addressing the issue, and whether consumers could trust Mattel to produce reliable toys in the future.
The problem surrounding Mattel Inc. is their mismanagement of international subcontractors and vendors and the production of certain toys (the manufacturing process), as well as their inability to adapt their marketing strategy or product to the constantly changing “demographic and socioeconomic trends.” This is supported by Mattel’s legal battle with Carter Bryant and MGA, their forced recall of certain toys that were manufactured overseas, and the increasing rate at which traditional toys are becoming less appealing to today’s young audience. Essentially, Mattel’s mismanagement and oversight lead to violations in terms of ethical and social responsibilities and safety standards.
The biggest environment force affected Mattel recently has been legal and regulatory with the high levels of lead paint found in their die-cast toys in 2007. This issue created a voluntary recall from Mattel for over 2 million toys and created doubt in customers to the quality of their Mattel toys. Mattel responded by immediately implementing a check system to accept paint only from certified suppliers, tightened controls throughout the production process and testing every production run to ensure compliance. Mattel said that it is working in cooperation with the U.S. Consumer Product Safety Commission and other regulatory agencies worldwide. Mattel is also working with retailers worldwide to identify and remove affected products from retail shelves.
In this day and age consumers always want more and they want it at the lowest price possible, but are they willing to risk the danger that could derive from it? Hundreds of thousands of toys are imported daily from overseas countries, such as China, into the United States, some toys are inspected for irregularities, but most are not. This may not seem like such a problem but the truth of the matter is that it is one of the larger problems in the nation right now. Children’s toys imported from China are found to be contaminated with high levels of lead and infecting American children with lead poisoning. Some people may say that this is an unnecessary argument, that China isn’t doing anything harmful, maybe it was just a few faulty toys,
We have a large shipment of our elementary toy collection scheduled ship at the end of this week but have encountered a problem with the production. One of the products in this collection has failed the quality control testing exceeding the legal limits of lead set by the federal government. This shipment will be delivered to South American schools. As of August 14, 2011 the total legal lead content must not exceed 100 parts per million for a product (CPSC 2013). Our levels tested above these limits and require us to take action. To reproduce this product it will cost the company
Unfortunately, it has proven to be deadly for humans, especially for children. Lead production shifted into high gear in the 1920’s. Chemists figured out lead could be marketed in gasoline which is called tetraethyl-lead (TEL). The creation of this product led to the birth of the Ethyl Lead Corporation (ELC). ELC formed in 1923 by General Motors and Standard Oil Company of New Jersey. It was purchased by Albermarle Paper Manufacturing Company in Richmond, Virginia in 1962. General Motors sold the company due to the growing concerns of the product. Researchers discovered that TEL contributed to the soil, air, and water lead pollution and toxic to humans. Lead made the gasoline more efficient, however; its lead pollution levels increased over 625 times over the previous levels. The Lead levels were a huge concern for General Motors. They did not want to be liable for anything. During the 70's and 80's, car manufacturers moved towards unleaded gasoline, but the damage was
Lead poisoning in children was first discovered in 1890 in Queensland, Australia. The lead source was not identified until 1904, when a researcher traced it to the paint used on railings and verandahs. The first discovery of lead poisoning in the United States (with a traceable source) was in 1914; the child had chewed the paint off of his crib. At this time they linked lead poisoning as a cause of convulsions in children. As research progressed and more children were found with high lead levels, symptoms caused by lead were expanded to include lead meningitis, acute encephalopathy, intellectual dullness, reduced consciousness, seizures, comas, and death (Chisholm, 1982).
Recently, the company commissioned Chinese companies to produce some of its toys. These Chinese-made toys were suspected of containing harmful aspects for children such as magnets which could be swallowed by children, hazardous lead paint, and plastic ignition key that kids can sit on or fall.
4. As I mentioned above Mattel needs to determine if they want to have their products produced by producers in China or producers in the United States. They need to investigate into this problem and see which producer has the lowest recall rate and which producers seem to produce the highest quality products. They should re-evaluate the design of their product to see if there are any flaws involved with the overall design that are causing products to be harmful to children. Mattel should also do some research about international countries’ economies, unemployment rates, and how high the demand for toys is before selling their products internationally.
Through my experience in the toy department of Wal-Mart I have learned that no toy is manufactured unintentionally but that each has a purpose and a targeted audience. This conclusion was made through my critical analysis of marketing, colour choices, layout, and cost in regards to the toys. As I strolled through the three aisles, sections of toys began to blend together as it was organized in an orderly manner; separated by colour choices and characteristics. As a result, it was made evidently clear which toys were being targeted to which specific sex. Moreover, from the flyer to the bright, over-the-top graphics, the marketing methods were very persuasive and convincing to children and parents alike. In addition, Wal-Mart used sale methods to draw customers to their products. These sales worked to promote the product to parents as well as reach families of different socio-economic backgrounds. However, despite their effort, the products within Wal-Mart do not achieve the reduction of the economic gap due to the separation of one product set, which increases overall cost of that whole product. In conclusion, Wal-Mart’s Toy Department worked to convince children and parents alike to need and want their product in addition to instilling societal gender stereotypes and sustaining economic inequalities.
To achieve this about 65 percent of its toy manufacturing was moved to Asia where its products could be produced cheaper. In doing so Mattel now has to work within the culture of its manufacturing facilities to ensure healthy and safe operations to its employees. This means that wage, possible child labor, and other ethical issues could arise, thus as stated before the Global Manufacturing Principles were created and implemented.
In the past four years, Mattel has had to recall nearly 30 million of toys due to safety concerns such as lead level in paint, magnets and dangerous toy parts or design.
Mattel was the world’s largest toy manufacturer with revenue over $5 billion. It had been doing business in China for 25 years. China was Mattel’s most important manufacturing country. 65% of Mattel’s toys were manufactured in China. It owned 5 factories in China and had a network of contract manufacturers for the remainder of production. In August and September, 2007, Mattel recalled for three times globally 21 million problematic toys that were made in China for the reason of containing excess level of lead. The toys recall issue in addition to the publicity of media drew public attention to the global toys inspection system and the products quality of ‘Made in China’, resulting in a trust
Others felt that they should consider Indonesia as a way to take advantage of low labor costs and very attractive exchange rates. Mattel currently operated a plant in Indonesia that produced Barbie® dolls. Montalto had to decide whether Mattel should go forward with the new China plant, build a plant in Malaysia or Indonesia, expand one of the existing facilities, or outsource the surplus die-cast volume through VOA. Company Background Based in California, Mattel, Inc designed, manufactured, and marketed a broad variety of toy products. The company’s core product lines included Barbie fashion dolls, Hot Wheels die- cast toy vehicles, Cabbage Patch Kids, Fisher-Price preschool toys, and Disney toys. Most of these toys were made overseas, primarily in southeast Asia. Mattel had wholly owned manufacturing facilities in China, Malaysia, Indonesia, Mexico, and Italy. Mattel was founded in 1944 by Elliot and Ruth Handler. Neither Elliot nor Ruth had much business experience or capital, but they both had dreams. The post World War II demographics of a huge baby boom plus a virtually toyless marketplace provided a unique opportunity to gain a place in a growing toy market. Mattel’s first products, simple picture frames and doll house furniture, met with mixed success. The first really big hit was a music box. By partnering with another toy inventor, they developed a music box that could be
To please the public the industry also said they would conduct research about the effects of lead, but the research was funded by the lead industry so they skewed the presentation of the results to the public. Soon there were also cases reported of lead poisoning in children from their habit of biting lead-painted toys. This time the lead industry tried to distract the public by increasing their advertisements highlighting the benefits of lead using the mascot of the Dutch Boy Painter and slogans, such as “ethyl is to gasoline what vitamins are to food.” However, by the 1970’s with the introduction of safer elements and the decrease in public support, the lead industry lost its importance in the world.