In May 1998, Mattel Inc. tockholders rejected a resolution that sought to link executive pay with fair labor practices at production sites. The Nashville-based United Paperworkers International union, a Mattel shareholder, submitted the proposal urging the El Segundo-based toy maker to reward executives for enforcing company standards requiring the company and its suppliers to comply with wage laws, workplace-safety requirements and child-labor prohibitions. http://articles. latimes. com/keyword/toy-industry-labor-relations But, what happens when a crisis or scandal hits an organization and its reputation for trustworthiness comes under sustained threat?
This question is a rhetorical analysis of the response strategies employed by Mattel during the recall crisis. In summer of 2007, that decision would come back to haunt the toy manufacturer. On August 14, 2007, headline declared that Mattels reputation was under fire. Also in October of 2007, it was apparently across the globe that the long time toy industry giant (Mattel) was facing a major crisis. By announcing three major sets of toy recalls between August 2 and September 4, and another minor recall on October 25.
Mattel was continuously under fire from the press and its stakeholders, regarding their direct and/or indirect stake in the company and its performance. Who were demanding an adequate response from the company? On June 8, 2007, Mattel was first alerted to the possibility of lead paint contamination that was reported as the problem. On June 10, 2007, the Consumer Product Safety Commission (CPSC) deadline had passed and Mattel fails to act and on July 26 Mattel files for a full recall report with CPSC. Afterwards, on August 14 Mattel voluntarily recalls 17. 4 million products with loose magnets.
Again, on September 4 Mattel voluntarily recalls 850,000 toys with lead paint. On October 25 Mattel voluntarily recalls Go Diego Go! Rescue boats in paint containing hazardous levels of lead. On November 6, Mattel voluntarily recalls 155,000 toys manufactured in Mexico because of the choking hazard. American toy manufacturer Mattel, an occasion to remember few months before the most important sales season for the toy industry Mattel had to face the reaction of both the general public and the media after announcing massive recalls of potentially harmful toys for childrens.
Whether the toys were faulty designed and therefore prone to loose small magnets which if swallowed could harm children, or they were toys tainted with lead paint by unscrupulous Chinese manufactures did not make a difference. They were dangerous toys that could not be left on store shelves. Because of the lead paint violation in 1998, 36 recalls, due to lost sales damaged reputation, diversion of resources, increased customer support, threat and expense of litigation. These recalls have created concern over toy safety and product safety quality control when outsourcing to China and toy safety inspection processes.
Key regulation companies must report a defect recall within 24 hours of discovery, stipulates legal lead toxicity levels. Mattel reputation for trustworthiness, forged by its ground breaking and widely admired code of conduct for overseas production and business ethics, it brought the company time and space to respond in their own way without significant external interference, independent analysts and even watchdog groups say Mattel may be the best role model for how to operate prudently in China it is not just lip services. The Recovery of Trust; Case studies of Institute of Business Ethics www. ibe. org In my opinion, lead poisoning was responsible for the danger of the children toys. August 14, 2007 Mattel manufacturer continue to announced that 1. 5 million toys needed to be recall, because the toys was contain with the level of lead paint. Also toys were being pulled from the shelves, because of health and threats to infants well as childrens. The company also stated that it may be recalling more of these Chinese made toys.
If found that any additional item(s) also contain lead paint or any tiny magnets that if swallowed can be harmful to children, would also be recalled. According to government officials, at least nineteen children have required surgery, and one child died after swallowing a magnet that was used in a Polly Pocket Doll. Lead Poisoning Attorney Comments on Mattels Massive Worldwide. www. lpklaw. com One of the top dangerous toys for children, under the age three and up to six years old is potentially choking on small part included in toys.
A small part is anything that does not fit through a choking tube. Another dangerous toy would be balloons, which also create a choking airway. To avoid lead hazards, dont buy metal jewelry for kids. Dont let kids chew on brightly colored plastic or wooden toys. And pay attention to the age labels on toys, they are not only just recommendations, but safety implications to those labels. Also, I believe that China was responsible for the danger of toys toward children, because of their regulations, code of violations, poor consumer protection laws.
Whereas Mattel believe making corporate responsibility an independent function will ensure greater accountability and over sight of their product quality, social compliance and environmental commitments. Toy safety has been and will continue to be the highest priority at Mattel over the years; they have earned a reputation as an industry leader, which made the voluntary recalls in 2007. It was disappointing, because of the incident, but yet Mattel was proud in the way they responded by taking immediate actions to communicate globally.
The best way to ensure the safety and well-being of the children are; to follow labels that give ages a recommendation to choose toys with care, and also read the toy labels before purchasing. As a company, we take pride in supporting organizations that share in our mission to keep kids safe. The Toys R Us, Inc. made a $25,000 donation to keeping babies safe to assist the organization in educating parents and caregivers about how to create and maintain a safe sleep environment for babies and promotes the development of safer childrens products.
The best way to ensure the safety and well-being of these childrens, would be to never leave a child unsupervised, read each label for the ability by checking the toy package for age grading, but choose toys that correspond with childs learning level rather than matching a toy with his or her actual age, because toys can be misused or inappropriate for a particular childs abilities can pose a risk of injuries. Survey the playing area, by designated area of the home.
Also avoid trigger toys for childrens, which are prone to seizures its best to avoid spinning or flashing toys. Opt for toys that have volume control for children who are adversely affected by loud noises. And make sure children have the postural stability to utilize ride-on vehicles and wagons. We look into government regulations, and the industry of childrens toys and product retailers; and standards settings between the U. S. and China. China is a major source of U. S. imports of consumer products such as toys and an increasingly important supplier of various food products.
Reports of unsafe seafood, pet food, toys, tires, and other products imported from China over the past year or so have raised concern in the United States over the health, safety, and quality of imported Chinese products. This report provides an overview of this issue and implications for U. S. and China trade relations and will be updated as events warrant. Chinas poor regulatory system, have a rather weak health and safety regime for manufactured goods and particular products.
Problems include weak consumer protection laws and poorly enforced regulations, lack of inspections and ineffective penalties for code violators, under founded and understaffed regulatory agencies and poor interagency cooperation, the existence of numerous unlicensed producers, falsified export documents, extensive pollution. Also, China has relative absence of poor consumer protection advocacy, and groups failure by Chinese companies to effectively monitor the quality of their suppliers products, restrictions on the media.
The extensive government corruption and lack of accountability cause the most problems at the local government level. The Chinese government had announced that it would, by the end of 2007; complete regulations for setting up a national food system would ban the sale of toys that failed to pass a National Compulsory Safety Certification. The government reportedly closed 180 food factories found to be producing unsafe products and making fake commodities.
On December 5, 2007, the government stated that during the first 10 months of the year they had shut down 47,800 food factors without operating licenses. On January 15, 2008, China announced it had inspected over 3,000 export oriented toy manufacturers and had revoke licenses for 600 firms that failed to meet quality standards. The United States and China reach a number of agreements in 2007, to address health and safety concerns. China pledged to implement a comprehensive plan to intensify efforts to prevent exports of unsafe products to the United States, especially in regard to lead paint and toys.
Many members of congress have called for tighter and strict rules to increase inspections, certification requirements and mandatory standards for toys. The increased funding for the United States Products Safety Agencies concerns over the health and safety and quality of Chinese products, could have a number of important economic implications. Both the United States and China have accused each other of using health and safety concerns, as an excuse to impose protectionist measures and some observers contend that this issue could lead to growing trade friction between the two sides.
To ensure that its exports comply with the health and safety standards of the United States and other trading partners. Additionally, a sharp decrease in purchases by U. S. consumers of Chinese products could negatively impact U. S. firms that impact and sell such products and may raise prices of some commodities as firms attempt to rectify various safety problems. The best way to protect harmful toys from children is to buy only the safe recommended toys. These are toys that have been found to contain a safe amount of chemical paints and lead or any other metallic components.
A list of safe baby toys can be found through your region or country safety regulators. Also, you need to select the appropriate toy for your childs age. Make sure that you get toys bigger than your childs mouth and check the labels to see if you are buying the right toy for your child. Also, look for quality construction toys that are free from sharp edges. Make sure you avoid toys with long strings; such toys can strangulate and choke your child. Lastly, watch out for marbles, balls and particles also can and will choke your child. The role of stakeholders is good corporate governance helps to ensure that corporations take into account the interests of a wide range of constituencies, as well as of the communities within which they operate and that their boards are accountable to the company and the shareholders. This in turn, helps to assure that corporations operate for the benefit of society as a whole. The OECD is the principles of corporate government.
The Role of Stakeholders Organization of Economics Co. www. oecd. rg The first step in stakeholders analysis is to identify who is your stakeholders are, then have a meeting with the stakeholders to estimate their influence and interest in the project and over all goals, well as their objectives to the project. Thirdly, is understand the perspectives of the stakeholders, by asking question about certain projects, such as is the project going to be successful, or what could go wrong with the project from succeeding and how can we correct it.
The most powerful stakeholders can be identified early and their input can then be used to shape the architect, this ensures their support and improves he quality of the models produced. Also, stakeholders will help win more resources, by making the vision of the architect engagement more likely to succeed. For example: Just as a building architect will create wiring diagrams, floor plan, and elevations to describe different facets of a building to its different stakeholder such as; Electricians, owners, planning, and officials so an enterprise architect must create different views of the business information system, and technology architecture for the stakeholders who have concerns that is relate to these aspect.
In Conclusion: To resolve future problems, Mattel Toy Company will make sure that manufactures only use paint from certified suppliers and they will test every single batch of paint from all vendors. Mattel is increasing control on every level of the production process and conducting random inspections at all vendor facilities. Lastly, Mattel pledges to test all finished toys vigorously before they reach the consumer. The toys must meet a series of strict safety standards before they are put on the market.