Case Analysis: Mattel and Toy Safety
Case Analysis: Mattel and Toy Safety
Introduction
Mattel Corporation is the largest toy company in the world, a publicly traded organization with a market capitalization of over $6.5 billion, employing approximately 36,000 people worldwide in 42 countries. Their products are sold in 150 nations (mattel.com).
In the summer of 2007, Mattel suffered a major product recall incident. The first recall was the result of vendor failure in China where traces of lead paint were discovered on 83 different products. This led to a recall of 1.5 million items worldwide. The products contained levels of lead paint that failed the products’ specification.
Mattel even announced that a significant portion of the toys were recalled because of a design flaw and not substandard manufacturing. During this crisis, Mattel contacted their chief suppliers and asked them to pull the recalled products from the shelf.
One of Mattel’s contract manufacturers in China bankrupted because of the recall issue, and the plant owner committed suicide. In contrast, Mattel restricted the damage to its reputation to a bare minimum with effective public relations methods. Mattel also established a new corporate responsibility organization, and its crisis management methods gave the company maximum protection from the crisis.
Question 1
Do you believe that Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys? Why or why not? What should or could Mattel have done differently, if anything?
I believe that Mattel acted in a socially responsible and ethical manner regarding the safety issue in 2007. According to the case study and given factors, Mattel has always held a reputation of being a good corporate citizen. By that, we should understand that Mattel has always been recognized as a corporation with strong social, cultural and environmental responsibilities to the community. In fact, Mattel has proved to be concerned
Introduction
Mattel Corporation is the largest toy company in the world, a publicly traded organization with a market capitalization of over $6.5 billion, employing approximately 36,000 people worldwide in 42 countries. Their products are sold in 150 nations (mattel.com).
In the summer of 2007, Mattel suffered a major product recall incident. The first recall was the result of vendor failure in China where traces of lead paint were discovered on 83 different products. This led to a recall of 1.5 million items worldwide. The products contained levels of lead paint that failed the products’ specification.
Mattel even announced that a significant portion of the toys were recalled because of a design flaw and not substandard manufacturing. During this crisis, Mattel contacted their chief suppliers and asked them to pull the recalled products from the shelf.
One of Mattel’s contract manufacturers in China bankrupted because of the recall issue, and the plant owner committed suicide. In contrast, Mattel restricted the damage to its reputation to a bare minimum with effective public relations methods. Mattel also established a new corporate responsibility organization, and its crisis management methods gave the company maximum protection from the crisis.
Question 1
Do you believe that Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys? Why or why not? What should or could Mattel have done differently, if anything?
I believe that Mattel acted in a socially responsible and ethical manner regarding the safety issue in 2007. According to the case study and given factors, Mattel has always held a reputation of being a good corporate citizen. By that, we should understand that Mattel has always been recognized as a corporation with strong social, cultural and environmental responsibilities to the community. In fact, Mattel has proved to be concerned