Mattel and Toy Safety

An elementary toy that is due to be shipped at the end of the week has failed quality control testing. A metal whistle has been shown to exceed the federal regulation guidelines for lead. The testing process showed the lead level for this particular toy tested at 103 parts per million. The federal guidelines dictate that toys cannot contain lead with more than 100 parts per million (OSHA, 2013). The projected cost to conform to federal guidelines and replace the whistle are

As early as the 1970s Mattel was manufacturing products in China in order to take advantage of lower costs and enable corporate resources to focus on establishing the brand. By 2007, nearly 65% of Mattel products were produced in China. Mattel used a combination of company-run plants and a network of contract manufacturers. Exhibit C displays a simplified example of Mattel’s supply chain after moving production to China. Global production obviously had major benefits for Mattel, the country factors of China gave it a comparative cost advantage over producing in the U.S., and outsourcing enabled Mattel to remain profitable in an increasingly competitive toy industry. However, outsourcing does have disadvantages, a global supply chain increases the challenges to regulate and enforce quality.

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.

(Campbell, 2016). Two giants in childhood lead poisoning research and advocacy, Dr. Philip Landrigan and Dr. David Bellinger, summarize the adverse effects of lead very completely, yet succinctly: “Lead is a devastating poison. It damages children’s brains, erodes intelligence, diminishes creativity and the ability to weigh consequences and make good decisions, impairs language skills, shortens attention span, and predisposes to hyperactive and aggressive behavior. Lead exposure in early childhood is linked to later increased risk for dyslexia and school failure.”(p. 3).

Mattel is starting to take a step in the right direction, according to Renae Merle from The Washington Post, “Mattel said it was strengthening its process for preventing the use of lead based paint, it will only permit paint from certified suppliers and require every batch to be tested, company officials said” (Merle 1). 80% of toys in the United States are imported from China, according to Renae Merle, and 65% of those toys are created by Mattel. Although that is a step in the right direction, that still leaves 15% of the toys in the United States at a higher risk of having high traces of lead on them, going undetected. Stores like Toys ‘R’ Us that sell toys sold by companies other than Mattel, should be required to post the percentage of how much lead is in each toy directly next to or near the toy so that parents can be aware of this problem. If parents are not made aware of this problem, it is going to cause more concerns health wise. Michelle Albert, a stay at home mom of two children states that “I feel our country should be more careful about the things we import” (Albert 1). She fears that her children may have been exposed to these toys and has no way of knowing until it may be too late.

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

Lead is poisonous because once it enters your body it can form into other atoms like zinc and iron fooling the body into thinking they are there and not carrying out the vital functions they need. Lead atoms can also block neurotransmitters. In the 1920s there was essentially a lead "boom" and marketers began putting lead in everything including shoes, lightbulbs, and leaded gasoline, advertising that it was safe and even kid friendly (in some items) when it wasn't. The lead levels in the factories became so bad that the workers were becoming sick, hallucinating, going mad, and dying from being poisoned by lead. Scientist Robert Kehoe was hired by GM to "cover up" the lead threats saying the amount of lead was a naturally occurring. No one cared about the use of leaded gasoline and other leaded materials until Clair Patterson began to dig deeper into the research of lead in the

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).

1. The decision facing Mattel is whether to continue to produce their products internationally where cost are low, or produce them in the United States where costs are significantly higher but quality is better. Mattel might want to even reconsider going global if there sales are decreasing more internationally than in the United States. Mattel needs to determine how many of the products produced internationally were recalled versus the amount of products produced in the United States that were recalled. Mattel also needs to decide how they are going to advertise their products in a way that will convince consumers in the external environment to buy their products, without having any

Lead, a naturally occurring metal and can be used in almost everything. It can cause serious health issues if it is exposed for a long time, particularly in children as they are more susceptible to absorbing and retaining lead in their bodies. Each year, in the United States 310,000 of 1- to 5-year age group are found to have unsafe levels of lead in their blood, which can cause a wide range of symptoms. (1)

* Lead. Lead is hazardous to health as it accumulates in the body and affects the central nervous system. Children and pregnant women are most at risk.

If you look through the federal rules concerning lead paint, you will see that the lion's share of defining standards are all about buildings inhabited by children. Aside from the obvious need to protect our children, this is because children are more susceptible to the effects of lead poisoning. For example, a child’s cerebral membrane is still largely permeable until the age of

As we can see Mattel does a pretty good job of of managing risk within its own business. However, it is some of these large multi national companies that often overlook managing corporate integrity risk in there supply networks. Companies have inserted clauses into their standard contracts with suppliers requiring them to comply with the rules and regulations applicable and materials used must exactly that which has been stated in the contract.

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.