Preview

Ethical: Ethics and Starbucks

Good Essays
Open Document
Open Document
2352 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Ethical: Ethics and Starbucks
Introduction
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

You May Also Find These Documents Helpful

  • Good Essays

    Why to Invest in Mattel

    • 1820 Words
    • 8 Pages

    Technological innovation has forced tech companies to be on their toes and keep changing with new advancements. Even toy companies are going through the same challenges, trying to adjust to the dynamic nature of the toy market while customer needs and preferences are constantly changing. Toy companies have to smarten up and use technology to attract the customers especially when consumer spending has been slowing down. Mattel has outperformed in this area compared to its competitor, Hasbro, who in the recent quarter seemed to put up a good fight, but didn’t come close in comparison, having to cut numerous jobs and falling into debt. With the announcement of partnering with numerous entertainment partners such as Disney, Nickelodeon and Warner Brothers, Mattel gained the right to produce film based toys which will continue to build their strong brand recognition that they work for.…

    • 1820 Words
    • 8 Pages
    Good Essays
  • Better Essays

    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 vehicles, Fisher-Price preschool toys along with Disney toys and games like Scrabble (Johnson, 2010). Summer of 2007, Mattel, a global leader in toy manufacturing was faced with a tough challenge of restoring their consumer confidence following several recalls of their toys made in China. Mattel known for possessing the gold standard of testing and safety of its products came under scrutiny for several infractions with their toys. One of which had unacceptable lead levels in the paint and another contained a magnet that could un-attach and potentially harm a child. Mattel had strict requirement for its contract suppliers, which were subject to inspection by independent auditors (Baron, 2013). These issues clearly feel through the cracks or where random isolated incidents. Nonetheless, in order to achieve their normally high standards, Mattel needs to establish a direct relationship with vendors who manufacture the raw materials for their toys and set safety guidelines. Mattel has had to assess whether its current policies and procedures were sufficient to ensure safety. In addition to procedures such as factory audits and inspections, technology could be used to mitigate certain risks (Baron, 2013). Clearly Mattel does not have a sufficiently tight quality control procedure to compensate for the risks of outsourcing to Chinese subcontractors. Design flaws are also a major issue. Although the company responded to the crisis quickly Mattel still faces a number of problems, including significant costs associated with the recalls and new monitoring systems, potential lawsuits and a hit to its reputation.…

    • 1438 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Mattel Case

    • 645 Words
    • 3 Pages

    3. An alternative to Mattel’s recall issues is to create a couple of new products that they think will be a big hit that will make up for lost sales from recalled products. They need to develop a whole new strategy for marketing their products that emphasizes on the safety and reliably of their products. Mattel should possibly think about discontinuing certain…

    • 645 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Mattel and Toy Safety

    • 968 Words
    • 4 Pages

    Mattel, the world’s largest toys company, had been faced with some rough challenges due to some safety scandals revolving toy design and manufacturing in China. During August 2007 Mattel was forced to extremely recall toys due to loose magnets and excess lead found in some of the Mattel toys that posed immediate danger to the children that played with them. “Mattel voluntarily recalled 1.5 million Chinese made, Fisher-Price product, after the company learned that they contained too much lead.” A second recall of Mattel’s most popular items such as Barbie, Batman, Polly Pocket and Doggie Daycare play sets. The items contained small magnets that could fall out of the toy and be swallowed by young children.…

    • 968 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Student

    • 767 Words
    • 4 Pages

    Lead compounds are toxic. If you get any of the solution or solid on your hands, wash your hands immediately. Clean…

    • 767 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Safety considerations: Lead nitrate (Pb(NO3)2) is very hazardous in case of ingestion, skin contact, eye contact or inhalation. Therefore, to ensure safety during the experiment, latex gloves, goggles, and mask were worn.…

    • 1196 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Mattel Code Of Conduct

    • 1169 Words
    • 5 Pages

    Furthermore, it is important that an organization, such as Mattel, establishes core values, and base their decisions on what is morally right and fair for their consumers and employees. Success usually comes from consistently doing what is right and ethical and in adherence with the organizations corporate core values. Even though some companies who forgo a value and ethical based approach when making…

    • 1169 Words
    • 5 Pages
    Better Essays
  • Good Essays

    I have never seen The Matrix. It never really appealed to me. I’ve heard about it, but when my friends tried to explain the movie to me, I became really confused. In chapter three of Henry Jenkins’s book, Convergence Culture, Jenkins uses The Matrix movie to define transmedia storytelling and calculate its rise in America media culture. Immediately Jenkins classifies The Matrix as a cult file, which plays an important role in making The Matrix a transmedia film.…

    • 619 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Lead Poisoning

    • 429 Words
    • 2 Pages

    Over the many years since we have known about the hazards of lead, tens of millions of children have suffered its health effects. Even today there are still at minimum more than four hundred thousand children under the age of six who have too much lead in their blood. Over the past few months, concerns about lead paint in children’s toys made by companies such as Mattel, Fischer-Price, and Hasbro have come up and stores have initiated several recalls of various toys.…

    • 429 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Lead Paint Research Paper

    • 344 Words
    • 2 Pages

    Web MD warns that lead is toxic, and although anyone can absorb it if lead dust is in the air, very young children may have greater exposure because they may put contaminated objects in their mouth. Not only are they at higher risk, they also may suffer more damage because…

    • 344 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Pediatric Lead Poisoning

    • 1142 Words
    • 5 Pages

    "Lead Home | Lead in Paint, Dust, and Soil | US EPA." US Environmental Protection Agency. Web. 20 Sept. 2011. .…

    • 1142 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Children in the country are being poisoned from lead painting used on homes, schools and other products. Lead is a toxic substance that is harmful to people for any age, especially young children. When the lead is absorbed into the body, it can affect their health systems and cause damage to the brain, vital organs such as nerves, kidneys and blood. Lead exposure may also cause behavioral problems, like learning disabilities and delayed people’s development. Lead in painting also used to create toys, it ends up into young children’s mouths and absorb lead in their bodies. According to the Department of Housing and Urban Development (HUD), “around 25% of the housing in the United States may contain lead paint in hazardous levels, every…

    • 1351 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Toy Industry Gender Roles

    • 1391 Words
    • 6 Pages

    The toy industry has enforced the belief that children should play with toys that correspond to their genders, while never feeling guilty as they value business greater than the children. At early ages children begin to develop preferences and playing styles that are brought to life through the toy industry that offers countless varieties of action figures, dolls, blocks, bikes, books, and other toys that stimulate a child’s mind. The problem with the toy industry is that they value business greater than the children’s needs, following societies and parents demands for what is proper for children to play with based on their genders. The toy industry affects children because they…

    • 1391 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    JOT CASE STUDY

    • 697 Words
    • 3 Pages

    a) Quality Issues in Spaceship toy- As a good corporate citizen and to avoid tarnishing of brand image, we recommend complete voluntary recall of product at all chains. Design protocols should be reiterated to avoid such incidents in future.…

    • 697 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Did you know that many homes built before 1978 have lead-based paint? Lead from paint, chips, and dust can pose serious health hazards. Read this entire brochure to learn: • • • • How lead gets into the body About health effects of lead What you can do to protect your family Where to go for more information…

    • 3817 Words
    • 16 Pages
    Good Essays

Related Topics