Marketing ethics refers to the moral principles concerning acceptable and unacceptable behavior related to the operation of marketing by business people (Barron’s Educational Series,
2007). In order to obtain higher profit, some of the companies may violate business ethical values. Background
Mattel founded in 1945 is one of the largest toy companies in the world (Fortune, 2008).
Although Mattel is a major toy company, there are many unethical issues found. Firstly, Mattel`s products contained lead paint and tiny magnets that could be swallowed (Mauro, 2007).
Secondly, Mattel recalled toys frequently as there were five recalls in less than a year
(Mattel.com, 2010). Thirdly, the packaging of Mattel`s product contributed to rainforest destruction (Jakarta, 2011). According to the American Marketing Association (AMA), these activities are unethical and violate 3 ethical values including responsibility, honesty and citizenship. Responsibility
For responsibility, Mattel failed to accept the consequences of our marketing decision and strategies. Mattel did not recognize their special commitments to vulnerable market segments such as children who may be disadvantaged. First of all, on August 14 2007, Mattel`s product, the ‘Sarge’ cars, was discovered with lead paint and tiny magnets which are harmful and dangerous to children. Although the product was recalled, some of the products which are claimed passed still contain lead paint. However, Mattel minimized the impact of the use of lead paint. In fact, lead is toxic if ingested by children and there is no safe level of lead in them according to Dr. John Rosen, a lead poisoning specialist (Consumer news, 2007). Although the dangers of lead poisoning are hidden and unobservable, Mattel should take the responsibility instead of doing nothing to prevent the dangers .This violates the ethical value of responsibility because Mattel failed to recognize their special commitments to their