Mattel had a major product recall after lead paint was found on one of their toys. An investigation revealed that while Mattel had supplied safe paint to their Chinese contractors, the contractors had outsourced production to subcontractors who used lead paint instead. Both the US and Chinese governments responded by passing new legislation to increase regulation of toy manufacturing in China to prevent future issues. The recall response was deemed appropriate as Mattel took all necessary steps to inform the public about the safety issue and protect consumers, indicating their priority was safety over reputation or profits. Increased government oversight of manufacturers may help avoid similar problems going forward.
Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
Haier: Taking a chinese company global in 2011Ilaria Fiore
Corporate strategy for HAIER business case. This presentation is based exclusively on informations and data provided in Harvard Business School's case study "Haier: Taking a chinese company global in 2011" and Wikipedia.
The presentation provides information about Haier, evaluates the situation, problems and opportunities of the company; then it describes the possible options avaiable to Haier and selects the best, according to the group's ideas.
It's about marketing strategy opted by Procter & Gamble for becoming more globalized, enhancing sales, improving their global leadership potential, connecting with customers to understand their needs and to market & develop their products accordingly.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
Marketing Management of P&G India by AKSHAY GAUTAMAkshay Gautam
I have made this ppt for my marketing management project. Do share it only for reference. Show some hard work and make one(better than this) on your own. Good Luck!!!
corporate strategy
Newell started as Curtain rod manufacturer in 1902
1917 – Supplier to Woolworth stores
1921 – Leonard Ferguson at Newell, Owner in 1937
1950 – Dan Ferguson (son of Leonard and Stanford MBA) as CEO. Revenue 10 mln
1967 – First Strategy for Newell – Focus as market for hardware and do-it-yourself products to volume merchandisers
1969 – First non-drapery hardware acquisition
1972 - Public Company – Funding for new products by acquisition
Two-Pronged Strategy
Manufacture low-technology, nonseasonal, noncyclical, nonfaschionable products for volume retailers by acquisition and then streamlining, focussing and making the division profitable, increasing operating margins > 15%
Strategy for consolidation and centralization to achieve effectivess
Changed strategy for individual divisions responsible for manufacturing and marketing but was centrally controlled by admin, legal and treasury systems
1997 – Revenues of 3.23 billion. Clients like Walmart which gave 15% of business, top 10 clients accounting for 40% business
Through 1997, 10 year average return to investors 31% (Vs S&P 500 only 18%)
Final Case Analysis PaperFocus of the Final Case Analysis Pa.docxmydrynan
Final Case Analysis Paper
Focus of the Final Case Analysis Paper:
The Final Case Analysis Paper should focus on real life and real time application of topics covered in this course; the uses you have seen and the uses you can envision.
Read Case Eight, Mattel and Toy Safety (PROVIDED AT THE BOTTOM OF THIS PAGE). This case describes the 2007 Mattel toy recalls, which were in response to findings that several children’s toys were coated in lead-based paint.
Write an eight- to ten-page paper (not including the title and reference pages), that addresses the following:
1. Explain if Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys.
2. Describe what Mattel should or could have done differently.
3. Describe who or what was responsible for the fact that children were exposed to potentially dangerous toys.
4. Explain the best way to ensure the safety of children’s toys and consider how the following groups would respond: government regulators (in the United States and China); consumer advocates, the toy industry, children’s product retailers, and standard-setting organizations. Explain the differences in their point of view.
5. Describe what you think is the best way for society to protect children from harmful toys and discuss the appropriate roles for various stakeholders in this process.
Writing the Final Case Analysis Paper
The Final Case Analysis Paper:
1. Must be eight- to ten- pages in length (excluding the title page, references page, exhibits, etc.) and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a cover page:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3. Must include an introductory paragraph with a clearly stated thesis or topic.
4. Must address the topic of the paper with critical thought. That is, state your response to the content, either positive or negative, and then defend your position. If multiple options/alternatives/positions are present and are being rejected, you must also defend the reasons for rejecting an option.
5. Must conclude with a restatement of the thesis or topic and a closing paragraph that summarizes the main point or points of your paper.
6. Must use at least four scholarly sources in addition to the textbook.
7. Must include, on the final page, a reference list that is completed according to APA style
Mattel and Toy Safety
On September 12, 2007, members of Congress, their staff, reporters, prospective wit- nesses, and curious members of the public gathered in a U.S. Senate hearing room to consider the issue of toy safety. In the weeks leading up to the hearing, Mattel, Inc., one of the world’s leading toy makers, had ordered a series of recalls of children’s playthings that had been found to be coated with lead paint. Lead—a heavy metal sometimes added to paint to intensify color, speed drying, and increase durability—was a potent neuro- toxin and ...
Mattel and Toy SafetyOn September 12, 2007, members of Congres.docxandreecapon
Mattel and Toy Safety
On September 12, 2007, members of Congress, their staff, reporters, prospective wit- nesses, and curious members of the public gathered in a U.S. Senate hearing room to consider the issue of toy safety. In the weeks leading up to the hearing, Mattel, Inc., one of the world’s leading toy makers, had ordered a series of recalls of children’s playthings that had been found to be coated with lead paint. Lead—a heavy metal sometimes added to paint to intensify color, speed drying, and increase durability—was a potent neuro- toxin and potentially dangerous to children who might ingest bits of paint. The toy recalls had alarmed parents and consumer activists, as well as the toy industry, retailers who marketed their products, and product safety regulators. Now, as the holiday shopping sea- son approached, everyone wanted to make sure that toys—80 percent of which were made in China—were safe. “It’s scary,” said Whitney Settle, a mother from Petroleum, West Virginia. “I have a 2-year-old boy who chews on everything. I doubt I am going to buy [Mattel toys] anymore—or it’s going to make me look twice.”1
Headquartered in El Segundo, California, Mattel, Inc., was the global leader in the design, manufacture, and marketing of toys and family products. Mattel toy lines included such best-selling brands as Barbie (the most popular fashion doll ever introduced), Hot Wheels, Matchbox, American Girl, Radica, and Tyco, as well as Fisher-Price brands, including Lit- tle People, Power Wheels, and a wide range of entertainment-inspired toys. Mattel had long enjoyed a reputation as a responsible company. Forbes magazine had recognized Mat- tel as one of the 100 most trustworthy U.S. companies, and CRO magazine had ranked the company as one of the 100 Best Corporate Citizens. Mattel employed more than 30,000 people in 43 countries and territories and sold products in more than 150 nations. In 2006, the company earned $592 million on sales of $5.6 billion.
In 2007, Mattel manufactured about 65 percent of its toys in China. When the com- pany first began shifting production to Asia in the 1980s, it used outside contractors. Mat- tel soon became concerned, however, that outsourcing put the company’s intellectual prop- erty at risk, as outsiders could learn to make imitation Barbie dolls and other trademarkedproducts. Believing it could handle manufacturing more securely by operating its own fac- tories, in the 1990s Mattel built or acquired production facilities in China, Hong Kong, Indonesia, Malaysia, the Philippines, and Singapore. In 2007, nearly 50 percent of the company’s toy revenue came from core products made in these company-run plants, which included five factories in China. Mattel also contracted production to between 30 and 50 Chinese firms, many of which had relationships with other subcontractors. In 2007, pro- duction throughout the toy industry was shifting toward China, in part because the weak- ening Chinese currency made goods ...
It's about marketing strategy opted by Procter & Gamble for becoming more globalized, enhancing sales, improving their global leadership potential, connecting with customers to understand their needs and to market & develop their products accordingly.
This presentation contains the following for Eileen Fisher, Retail Fashion Brand:
Problem Statement
Decisions to be Made
Company Introduction
POP and POD
Competitive Advantage
Brand Elements
Re-positioning Strategy
Keller Model
Marketing Management of P&G India by AKSHAY GAUTAMAkshay Gautam
I have made this ppt for my marketing management project. Do share it only for reference. Show some hard work and make one(better than this) on your own. Good Luck!!!
corporate strategy
Newell started as Curtain rod manufacturer in 1902
1917 – Supplier to Woolworth stores
1921 – Leonard Ferguson at Newell, Owner in 1937
1950 – Dan Ferguson (son of Leonard and Stanford MBA) as CEO. Revenue 10 mln
1967 – First Strategy for Newell – Focus as market for hardware and do-it-yourself products to volume merchandisers
1969 – First non-drapery hardware acquisition
1972 - Public Company – Funding for new products by acquisition
Two-Pronged Strategy
Manufacture low-technology, nonseasonal, noncyclical, nonfaschionable products for volume retailers by acquisition and then streamlining, focussing and making the division profitable, increasing operating margins > 15%
Strategy for consolidation and centralization to achieve effectivess
Changed strategy for individual divisions responsible for manufacturing and marketing but was centrally controlled by admin, legal and treasury systems
1997 – Revenues of 3.23 billion. Clients like Walmart which gave 15% of business, top 10 clients accounting for 40% business
Through 1997, 10 year average return to investors 31% (Vs S&P 500 only 18%)
Final Case Analysis PaperFocus of the Final Case Analysis Pa.docxmydrynan
Final Case Analysis Paper
Focus of the Final Case Analysis Paper:
The Final Case Analysis Paper should focus on real life and real time application of topics covered in this course; the uses you have seen and the uses you can envision.
Read Case Eight, Mattel and Toy Safety (PROVIDED AT THE BOTTOM OF THIS PAGE). This case describes the 2007 Mattel toy recalls, which were in response to findings that several children’s toys were coated in lead-based paint.
Write an eight- to ten-page paper (not including the title and reference pages), that addresses the following:
1. Explain if Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys.
2. Describe what Mattel should or could have done differently.
3. Describe who or what was responsible for the fact that children were exposed to potentially dangerous toys.
4. Explain the best way to ensure the safety of children’s toys and consider how the following groups would respond: government regulators (in the United States and China); consumer advocates, the toy industry, children’s product retailers, and standard-setting organizations. Explain the differences in their point of view.
5. Describe what you think is the best way for society to protect children from harmful toys and discuss the appropriate roles for various stakeholders in this process.
Writing the Final Case Analysis Paper
The Final Case Analysis Paper:
1. Must be eight- to ten- pages in length (excluding the title page, references page, exhibits, etc.) and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a cover page:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3. Must include an introductory paragraph with a clearly stated thesis or topic.
4. Must address the topic of the paper with critical thought. That is, state your response to the content, either positive or negative, and then defend your position. If multiple options/alternatives/positions are present and are being rejected, you must also defend the reasons for rejecting an option.
5. Must conclude with a restatement of the thesis or topic and a closing paragraph that summarizes the main point or points of your paper.
6. Must use at least four scholarly sources in addition to the textbook.
7. Must include, on the final page, a reference list that is completed according to APA style
Mattel and Toy Safety
On September 12, 2007, members of Congress, their staff, reporters, prospective wit- nesses, and curious members of the public gathered in a U.S. Senate hearing room to consider the issue of toy safety. In the weeks leading up to the hearing, Mattel, Inc., one of the world’s leading toy makers, had ordered a series of recalls of children’s playthings that had been found to be coated with lead paint. Lead—a heavy metal sometimes added to paint to intensify color, speed drying, and increase durability—was a potent neuro- toxin and ...
Mattel and Toy SafetyOn September 12, 2007, members of Congres.docxandreecapon
Mattel and Toy Safety
On September 12, 2007, members of Congress, their staff, reporters, prospective wit- nesses, and curious members of the public gathered in a U.S. Senate hearing room to consider the issue of toy safety. In the weeks leading up to the hearing, Mattel, Inc., one of the world’s leading toy makers, had ordered a series of recalls of children’s playthings that had been found to be coated with lead paint. Lead—a heavy metal sometimes added to paint to intensify color, speed drying, and increase durability—was a potent neuro- toxin and potentially dangerous to children who might ingest bits of paint. The toy recalls had alarmed parents and consumer activists, as well as the toy industry, retailers who marketed their products, and product safety regulators. Now, as the holiday shopping sea- son approached, everyone wanted to make sure that toys—80 percent of which were made in China—were safe. “It’s scary,” said Whitney Settle, a mother from Petroleum, West Virginia. “I have a 2-year-old boy who chews on everything. I doubt I am going to buy [Mattel toys] anymore—or it’s going to make me look twice.”1
Headquartered in El Segundo, California, Mattel, Inc., was the global leader in the design, manufacture, and marketing of toys and family products. Mattel toy lines included such best-selling brands as Barbie (the most popular fashion doll ever introduced), Hot Wheels, Matchbox, American Girl, Radica, and Tyco, as well as Fisher-Price brands, including Lit- tle People, Power Wheels, and a wide range of entertainment-inspired toys. Mattel had long enjoyed a reputation as a responsible company. Forbes magazine had recognized Mat- tel as one of the 100 most trustworthy U.S. companies, and CRO magazine had ranked the company as one of the 100 Best Corporate Citizens. Mattel employed more than 30,000 people in 43 countries and territories and sold products in more than 150 nations. In 2006, the company earned $592 million on sales of $5.6 billion.
In 2007, Mattel manufactured about 65 percent of its toys in China. When the com- pany first began shifting production to Asia in the 1980s, it used outside contractors. Mat- tel soon became concerned, however, that outsourcing put the company’s intellectual prop- erty at risk, as outsiders could learn to make imitation Barbie dolls and other trademarkedproducts. Believing it could handle manufacturing more securely by operating its own fac- tories, in the 1990s Mattel built or acquired production facilities in China, Hong Kong, Indonesia, Malaysia, the Philippines, and Singapore. In 2007, nearly 50 percent of the company’s toy revenue came from core products made in these company-run plants, which included five factories in China. Mattel also contracted production to between 30 and 50 Chinese firms, many of which had relationships with other subcontractors. In 2007, pro- duction throughout the toy industry was shifting toward China, in part because the weak- ening Chinese currency made goods ...
Global Perspective and Issues Relating to Product RecallIOSR Journals
The paper aims to analyze the various issues related to a product recall in the globalized world where the market has become a single trading place. A recall acts like an alarm that makes the company realize that it is the time to take corrective action by reviewing and making changes in the required areas. It is very important to understand the various issues related to the product recall like the factors related to costing, legal framework, recall planning, and management’s perspective and so on. The paper aims to discuss the issues identified with recall with the examples of global companies that have faced a recall. Further the paper also focuses on the recall framework with respect to India. The paper has a practical implication both for the academicians and for the readers in terms of their concern with the aspect issues regarding product recall.
24Managing Public Issues and Stakeholder Relationships.docxtamicawaysmith
24
Managing Public Issues
and Stakeholder
Relationships
Businesses today operate in an ever-changing external environment, where effective management
requires anticipating emerging public issues and engaging positively with a wide range of stakehold-
ers. Whether the issue is growing concerns about climate change, water scarcity, child labor, animal
cruelty, or consumer safety, managers must respond to the opportunities and risks it presents. To do
so effectively often requires building relationships across organizational boundaries, learning from
external stakeholders, and altering practices in response. Effective management of public issues and
stakeholder relationships builds value for the firm.
This Chapter Focuses on These Key Learning Objectives:
• Evaluating public issues and their significance to the modern corporation.
• Applying available tools or techniques to scan an organization’s multiple environments.
• Describing the steps in the issue management process and determining how to make the
process most effective.
• Identifying who is responsible for managing public issues and the skills required to do so
effectively.
• Understanding how businesses can build collaborative relationships with stakeholders through
engagement, dialogue, and network building.
• Identifying the benefits of stakeholder engagement to the business firm.
C H A P T E R T W O
Law29473_ch02_024-044.indd Page 24 29/11/12 9:13 PM user-TRVT-065Law29473_ch02_024-044.indd Page 24 29/11/12 9:13 PM user-TRVT-065 /Volumes/201/MH01821/Law29473_disk1of1/0078029473/Law29473_pagefiles/Volumes/201/MH01821/Law29473_disk1of1/0078029473/Law29473_pagefiles
Chapter 2 Managing Public Issues and Stakeholder Relationships 25
IKEA is the Scandinavian home furnishings retailer known for its distinctive yellow and
blue big-box stores and stylish, inexpensive, and environmentally sound products. The
firm’s mission is “to create a better everyday life for the many people.” In the late 1990s,
the company’s managers were startled by a documentary, broadcast on European televi-
sion, showing young children in South Asia working under deplorable conditions making
hand-woven rugs. The program named IKEA as one of several rug importers from that re-
gion. Shortly afterward, activists held protests outside several IKEA stores, demanding that
it halt child labor in its supply chain. As the company’s area manager for carpets later com-
mented, “The use of child labor was not a high-profile public issue at the time. . . . We were
caught completely unaware.”
Rather than ignore the issue, IKEA responded by sending a legal team to Geneva to
consult with the International Labour Organization. It promptly adopted a clause in all sup-
ply contracts stating that any supplier employing children under legal working age would
be immediately terminated. The company also reached out to UNICEF (the United Nations
Children’s Fund) and Save the Children ...
Breaking bad news strategies (A case study on Mattel recall)Hoang Minh Chau
Breaking bad news strategies: A case study on Mattel recall.
Done by Hoang Minh Chau, Mike Mirucki, Shahazeen Shaheer, Flavio Gomez & Mohammed Shieraz.
University of Bradford @ MDIS, Singapore.
October 2008.
25law43665_ch02_025-046.indd 25 111618 1108 AMC H .docxstandfordabbot
25
law43665_ch02_025-046.indd 25 11/16/18 11:08 AM
C H A P T E R T W O
Managing Public
Issues and Stakeholder
Relationships
Businesses today operate in an ever-changing external environment, where effective management
requires anticipating emerging public issues and engaging positively with a wide range of stake-
holders. Whether the issue is growing concerns about climate change, health care, safety at work
or in our schools, social equality, or consumer safety, managers must respond to the opportunities
and risks it presents. To do so effectively often requires building relationships across organizational
boundaries, learning from external stakeholders, and altering practices in response. Effective man-
agement of public issues and stakeholder relationships builds value for the firm.
This Chapter Focuses on These Key Learning Objectives:
LO 2-1 Identifying public issues and analyzing gaps between corporate performance and stakeholder
expectations.
LO 2-2 Applying available tools or techniques to scan an organization’s multiple environments and assess-
ing stakeholder materiality.
LO 2-3 Describing the steps in the issue management process and determining how to make the process
most effective.
LO 2-4 Identifying the managerial skills required to respond to emerging issues effectively.
LO 2-5 Understanding the various stages through which businesses can engage with stakeholders, what
drives this engagement, and the role social media can play.
LO 2-6 Recognizing the value of creating stakeholder dialogue and networks.
Final PDF to printer
26 Part One Business in Society
law43665_ch02_025-046.indd 26 11/16/18 11:08 AM
A 2016 study from the Public Affairs Council found that many major corporations are
feeling increased pressure to speak out on social issues, ranging from discrimination and
human rights to environmental sustainability and quality education. Among companies
with more than $15 billion in annual revenue, more than three in four said expectations for
engagement had risen. Most of the pressure to engage in social issues, said the companies,
has come from their own employees.1
Legislative battles in North Carolina, Tennessee, Mississippi, and Georgia prompted
business leaders to take a stand favoring rights for transgender individuals. Dow Chemical,
Alcoa, and Northrup Grumman lobbied elected officials and publicly condemned measures
seen as discriminatory. Monsanto lead the fight in Missouri against a bill that would allow
businesses to deny certain services to same-sex couples as a matter of religious freedom. In
response to North Carolina’s state legislature passing a law that blocked antidiscriminatory
protections at the local level, Deutsche Bank, the German financial institution with signifi-
cant business in the United States, said it would freeze its plans to add jobs in North Caro-
lina. PayPal announced it would halt its plans to open a new global operations center there.
While .
Comparative analysis of creative process mathodologies for product developmen...Paulo Patullo
onografia de Aluno do PECE resulta em publicação em periódico do IDGP
A monografia do aluno Lucas Felipe Haeser do curso de MBA de Gestão e Engenharia de Produtos e Serviços, do PECE, resultou em publicação no periódico "Product Management and Development" do Instituto de Gestão de Desenvolvimento de Produto IDGP. O tema ilustra um fenômeno bem brasileiro.
The speed the market demands for new products development and launching not only creates challenges
amongst the technical, productive and operational aspects, but also in product conception. This article explores a
case in which the conception becomes even more critical: the development of promotional toys – such as the ones
commonly sold inside Easter eggs – those seasonality, large scale, safety criteria and visual appeal, mentioning
just a few characteristics, make the creative process a crucial role in the cycle of product development. Therefore,
the following creativity tools are analyzed: design thinking, brainstorming, brainwriting, post-up and individual
creation. In addition, a comparative practical study is performed using similar evaluation criteria in order to identify
the best techniques for each type of need.
2. Topic Index
A. Introduction:
- The Company
- The Issues
B. Who Was Affected: Stakeholder Analysis
C.How the Issue Was Handled
D.Was the Response Appropriate
E. Could This Issue Have Been Avoided
3. History: The Company
Mattel, Inc., is one of the largest toy
manufacturers in the world. They produce a
large product list that includes the Barbie,
Hotwheels, and some FisherPrice brands. The
company has a rigorous labor policy that
ensures that their employees are of age, paid
well, safe, and healthy.
4. History: The Issue
Lead paint was found on one of Mattel’s
products. This lead to an investigation that
prompted three major recalls. Most of these
recalls were for containing lead paint, but
another recall was issued to take toys
containing magnets that could be dislodged off
the market and out of homes.
5. History: The Source
The investigation found several Chinese
companies that they had hired to produce some
of their products were in turn outsourcing the
painting labor. Though the contractor supplied
safe paint the subcontractor used lead paint
instead. Several other similar cases were
reported underlining the need for increased
regulation in Chinese manufacturing.
6. Who Was Affected: Stakeholder Analysis
● Mattel
● Mattel’s consumers
● The United States government
● The Chinese government
● Regulation Committees and Groups
o Including: Consumer Product Safety Commision, International
Center for Corporate Accountability, Consumers Union,
American National Standards Institute, Toy Industry
Association
● Toys “R” Us and related distributors
7. How the Issue Was Handled
Upon notice of the situation an investigation
was made and when the extent of the damage
was identified a recall was issued.
Both governments followed up with new
legislations so that the problem can be
addressed at both ends and prevented in the
future.
8. Was the Response Appropriate
Yes, the response was appropriate. The
company took every step necessary to keep
people safe including informing the public about
the problem.
Their interest was geared towards the safety
of their consumers and less about saving face
or saving money.
9. Could This Issue Have Been
Avoided
It is hard to determine if this issue could have been
avoided. I think the legislation and increased
regulation will undoubtedly help the situation. Mattel
did already have a policy in place to prevent this
issue and even provided safe paint, but the company
still decided to break policy and use the wrong paint.
I think increased government regulation of
manufacturers will help this issue significantly.
10. References:
Lawrence, Anne; Weber, James (2013-01-01). Business and Society: Stakeholders, Ethics, Public
Policy, 14th edition (Page iii). Business And Economics. Kindle Edition.
Editor's Notes
Mattel, Inc., is one of the largest producers of toy lines with processes including designing, manufacturing, and marketing. Among the products that are produced by the company are Barbies, Hotwheels, Tyco, and even some Fisher-Price brands. The company has been known for their trustworthiness and has been ranked as one of the Best Corporate Citizens, by CRO magazine. Today, Mattel employs 30,000 people all over the world and sells products in more than 150 countries.
Toy manufacturing over the years has become more advanced and an increasingly globalized process. In the 1980’s, Mattel began outsourcing some of its work in Asia. To control property rights and their standard of production the company has since acquired their own manufacturing facilities in Asia. Nearly 50 percent of their toy revenue is sourced from one of these plants. To help facilitate production, Mattel also contracts work to nearly 50 Chinese companies.
Mattel issued a recall of 1.5 million toys made in China on August 1st of 2007. In July of that year, a European Retailer found that a Mattel product contained lead paint. The company responded by launching an investigation into the source of this problem. The Investigation continued and a second recall was made for an additional 18.2 million toys. These toys did not contain any lead paint, but did contain some strong magnets that when dislodged from the toy could potentially be swallowed by a child. If the child had swallowed more than one of these magnets, the magnets could draw together and possibly perforate their intestines. In September the company issued a third recall of 11 different products.
There were two major issues to address that were uncovered in this investigation. These were the presence of lead paint in their products and the magnets that could potentially be swallowed. The problem with the magnets was mostly a design issue. They redesigned the products so that they could no longer be dislodged. The problem with the lead paint was an entirely different issue.
Mattel already had policies in place to ensure that their facilities and the companies that they contracted work to. The investigation found that subcontractors of the companies they had contracted work to were cutting corners to save time and money. These subcontractors used lead paint because it dries more quickly and is considerably cheaper. In the case of their Cars toy-line, the company Mattel hired to produce the toys hired a third company to paint them. This third company was supplied with the appropriate and safety tested paint, but still used lead paint instead. The investigation also found another company that failed to test the paint that they had acquired from another firm. After the investigation was complete the company found a total of seven contractors that had produced products containing lead paint.
Many people were affected by this issue and in a number of ways. Mattel and their customers were likely affected the most by this situation. In response to the increased attention to the issue, several organizations were also invested in the outcome of the recalls and investigations. Some of these groups were mentioned earlier, like the Consumer Product Safety Commision which helps regulate and assess the safety of consumer goods in the United States. International Center for Corporate Accountability was also discussed and is a regulatory group that audits companies and seeks to ensure that they are practicing safe and sustainable business operations internationally.
In China, government regulators were also affected. The Chinese policy for quantity of lead paint in household or consumer products is set to be no greater than 90 parts per million. In contrast, the policy in the United States is 600 parts per million. The problem did not occur because of a lack of legislations, but instead a lack of enforcement. Companies in China are relatively unregulated as they did not have the infrastructure to constantly monitor all of the incoming and outgoing products. When this issue came to light the Chinese government took steps to remedy this issue including suspending the business operations of two manufacturers, establishing a new recall system for food and toys, and prohibiting the export of lead paint on toys exported to the United States. These measures combined with increased inspections of exports have gone a long way to fix the issue.
Monitoring by the CPSC has since increased for products coming from China. The United States Senate hearing to discuss the issues had several stakeholders testify. These included the Consumers Union, the American National Standards Institute, the Toy Industry Association, and Toys ”R” Us.The first three of these are private advocacy groups involved in regulating and ensuring the standard of products and, in this case specifically, toys. Each call for increased inspection, standardized safety measures, and the implementation of new legislation to enforce these standards.
The company, Toys “R” Us, and others like it are incredibly invested in this issue and some have employed independent third-party testing of their toys to ensure that the products are safe for children. Toys “R” Us also suggested at the Senate meeting that the CPSC might need more funding. As it was, the CPSC was incredibly underfunded for the job that they have been given to do. Monitoring millions of products with less than 400 people on staff is no easy feat. The Company also suggested that the recall process should be reformed. They suggested legislation that would shorten the time between identification of a problem and the issuance of a recall. They also thought that it would be a good idea to include a stamped production code on products would help facilitate the process of identifying products or particular batches of products that were compromised.
When the European Retailer brought the lead paint problem to the attention of Mattel, they responded by launching an investigation into the source of the problem and in to what extent that the problem extends. Over the course of the investigation Mattel found the source of the problems and identified several other problems with parts of their supply chain. They issued three major recall on millions of toys. They took steps to inform the public of the situation and sought actively to fix the problem. The government in the United States and China responded in investigating the matter and working on legislation and procedures to remedy the issue. Organizations outside the governments have also sought to solve the problem by proposing legislation and procedures. Some of these organizations also pursued the independent testing of these products.
I believe the responses made by both Mattel and the regulating bodies of the government were very appropriate. This is not an easy situation for any company and even more so when addressing a problem that affects children. The company did not take the easy way out of this issue. Instead they investigated the issue and issued recalls, likely costing the company millions of dollars. They made every effort to inform the public of the problem and took the necessary steps to prevent the problem in the future. The company acted in the best interest of its customers, even though the cost was high.
This issue could have been avoided if the measures that have been made since the incident were already in place. If there were a stronger regulatory presence in China this might not have become an issue. I do not know for sure if the measures that were made in the wake of the incident would have prevented it in the first place, but it is likely. I think that it is a very good step and an important one for social responsibility of businesses. I hope other companies saw the outcome of issue as a good thing instead of just a PR nightmare.