Mattel Toy Recall 2007: Evaluating Business Ethics & Responsibility

This case study provides a comprehensive analysis of Mattel's 2007 toy recall, examining the company's ethical and socially responsible actions in response to the discovery of lead paint and other safety issues in its toys. It delves into what Mattel could have done differently, identifies the parties responsible for the safety breaches, and explores the perspectives of various stakeholders, including government regulators, consumer advocates, and the toy industry, on ensuring children's toy safety. The study further discusses the best approach for society to protect children from harmful toys, highlighting the roles of parents, manufacturers, and regulatory bodies. Ultimately, it concludes that Mattel acted ethically in recalling the toys to protect consumers, emphasizing the importance of maintaining customer safety and brand reputation.

4/16/2018
Student Name
Final Case Analysis: Mattel Toy Recall of 2007

Mattel Recall
Contents
Introduction................................................................................................................................1
Did Mattel act in a socially responsible and ethical manner with regard to the safety of its
toys.............................................................................................................................................1
Describe what Mattel should or could have done differently....................................................2
Describe who or what was responsible for the fact that children were exposed to potentially
dangerous toys............................................................................................................................2
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............................................................................3
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.......................................4
Conclusion..................................................................................................................................4
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Mattel Recall
Introduction
The past decade has experienced a huge increase in the number of businesses set up across
each economy. This has resulted in intensifying businesses operations across each of the
economies which have placed immense pressure on current business operations. With more
brands to choose from, customers are growing more chooser making it important for the
businesses to deliver the very best working conditions to retain customer confidence. As the
number of businesses being set up increasing, the consumer has been identified as being the
main beneficiary as they are able to select from a wide verity of businesses and services
providers (Davies, 2016). This has made it important for businesses to adopt modern
business approaches and address ethical business management approaches so as to retain their
reputation among customers. The report shall analyse Mattel’s’ decision to recall toys from
customers and distributed to stores for different reasons and determine the implementations
of the decision both positive and negative. In today’s business world business have been
forced to adopt unconventional approaches in businesses with the intention of retail customer
confidence and the brand's image among the public (Arslan & Zaman, 2015).
Did Mattel act in a socially responsible and ethical manner with regard to the safety of
its toys
Safety remains as the primary and most important aspect any business to provide to each of
its stakeholders. It is ethically right for businesses to immediately sound the alert if a health
and safety risk has been identified so as to safeguard all people coming in to contact with the
product or service. The corporate and industrial sector also has a well-defined health and
safety code and policy which must be followed by the business so as to be legally recognized
by the health and safety department. In many countries, a business’s license can only be
approved after the health and safety inspection and formalities have been performed and
approved (Griseri & Seppala, 2010). The health and safety inspection is also classified as
being the most important license for every business as it ensures the produces and services
produced by the businesses are safe for use and consumption.
In addition to safe product and service delivery, the businesses must also provide a healthy
working environment for its employees, customer and all stakeholders visiting the business
premises. All safety equipment and warning must be clearly displayed and a clear emergency
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evacuation plan and routs in place. For businesses like Mattel which depends on importing
than distributing products from international markets, it’s the businesses responsibility to
ensure customer and staff safety. The products must be properly tested and their safety
ascertained before distribution (Pine, 2012). While Mattel and other companies may perform
initial tests to determine product or toy safety, many suppliers from developing nations will
gradually begin using substandard products which do not meet the set safety guidelines
This makes it the responsibility of the Mattel to conduct spot checks related to product safety
so as to ensure the suppliers are maintaining the set levels of product quality and safety.
Mattel does conduct this spot check on random product supplies and due to this have been
able to determine serious breaches with regard to product safety levels (Pilot, 2014). On
discovering the health and safety code breaches Mattel immediately announced a recall of all
toys which can be defined as the ethical and right decision. While the decision may attract
criticism towards the businesses performance and safety regulations, it does demonstrate the
businesses acted in favour of its customer’s interest and safety.
Describe what Mattel should or could have done differently.
Mattel immediately announced a recall of the toys imported from China to help prevent any
further casualties which were the right decision. This may result in many parents pointing a
finger at Mattel for failing to monitor safety standards, but it’s important to understand the
business cannot monitor every product imported. Many suppliers also know this thus begin
defaulting on products safety guidelines with the intention of reducing production costs and
increasing profits (Jackall & Hirota, 2003).
In any situation, suppliers plan and organized the safety breaches by mixing small quantities
of up to 25% low quality not safe products into their supplies which also reduces the chances
of the products being identified. Due to the severity of the safety breach, Mattel has taken the
right decision by requesting for the recall of all products which are likely to be destroyed and
no payment made to the supplier. The suppliers are also likely to lose his supply license but
these are only reactions which have been taken after the safety breach.
Mattel could have reduced the risk of safety breaches by placing a health safety office in
charge of presently testing the different products randomly (Tittle, 2000). These safety testing
should not be limited to only the importation time but should continue the process which the
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health and safety officer performs continually to ensure each imported produce batch meets
the set safety guidelines.
Describe who or what was responsible for the fact that children were exposed to
potentially dangerous toys.
Mattel made the right decision by announcing the danger children were exposed to which is
classified as being a highly ethical move but at the same time, it’s important to keep in mind
that the business must hold someone responsible for the health and safety breach. With health
and safety guidelines already set by Mattel is obvious the business was aware regarding the
risks involved with children handling the toys. It is also likely the Mattel does have a health
and safety officer reasonable for verifying each product meets the set safety standards
(Marotz, 2014).
This makes it important for Mattel to highlight and follow up on this concern so as to
demonstrate the business's commitment towards addressing this health and safety breach.
With the business already having suffered serious customer confidence loss due to the breach
in safety standards, it’s essential for the business to continue one to highlight and take legal
action against the people who have failed to meet their obligations and placed Mattel’s’
customers are a risk.
The businesses have demonstrated a clear stance related to action taken against the
companies and suppliers of the products falling below quality standards but it has not
highlighted any names of officers within the company who have failed to meet the business
quality guidelines and placed children at danger. It is essential for the businesses to highlight
these individuals and officers and take strict action against them to prevent the health and
safety breach or negligence occurring in the future.
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.
Quality, health and safety standards can only be maintained if businesses and its staff follow
high ethical standards. Ethics is a rare trait which business employees must possess thus also
making it the primary requirement for any business to secure so as to maintain health, safety,
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and quality standards. Sadly the majority of businesses and their staff are easily influenced by
profits and cost-cutting which results in many failing to maintain high standards over long-
term periods (McClary, 2004).
Quality, safety and health regulations and standards cannot be satisfied by finances since the
individual is likely to regain their greed to acquire more money which will result in the
individual gradually be in influenced and opting for substandard quality so as to save money
and maximize profits. The United States is a developed economy whereas China is
developing an economy where businesses are struggling to establish themselves and secure
the highest possible profit. The businesses in China turn to US brand suppliers to sell their
products and will commit to delivering the highest quality even surpassing US standards
before order confirmation. This is a standard order acquisition strategy all chines businesses
adopt but once the orders have been confirmed and supplies being made the quality gradually
begin reducing.
Certain suppliers have also been known to influence the gradual quality reduction by
instructing the manufacturer to reduce quality as the number of customers stabilizes.
Customers are also being noted to be negligent and do not monitor quality for each product
trusting the businesses to maintain the quality resulting in the businesses and suppliers taking
advantage of this trust which gradually leads to serious health and safety standard breaches
(Bartlette & Lawson, 2008). Why health and safety may be of utmost priority for businesses
in the USA, it is not a major concern for manufacturers in from China as they are getting very
low-profit margins thus pushing many of the companies to adopt unethical business
approaches which disregard health, safety and quality guidelines.
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.
Health and safety is a concern every business must uphold but it’s important to keep in mind
businesses can only identic the risk but parents must also focus on monitoring safety. Today
many people are avoiding taking the responsibility and only looking for ways they can
transfer the responsibility and blame to other teams. This is resulting, in the end, user failing
to maintain their own health and safety code with the intention of blaming the manufacturer
without considering the losses this can have on the individual. Children are usually exposed
to serious dangers but while toddlers they tend to eat higher risk since they tend to put
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anything they find in their mouth. This can easily result in choking or poisoning which could
lead to death (Singer & Baer, 2008).
With the risk extremely high for the toddlers and children, parents are gradually forgetting
their own health and safety contribution towards the children and community as a whole as
many turn a blind eye towards the risks and how the risks can be avoided. Adhering to health
and safety is the responsibility of every citizen and you must not wait until the last moment or
after an accident has occurred (Congress, 2008). The public’s reaction to the Mattel product
recalls can also be classified as unethical from the public’s point of view since the public and
customers did not consider Mattel’s decision and rather than consider the risks the businesses
have identifying and acted against in favour of public safety the customers and public has
simply turned on and blamed the Mattel for malpractice.
Conclusion
The decision taken by Mattel was ethically right since the business only acted in the best
interest and safety of its customers. It is Mattel obligation to highlight the health and safety
concerns identified on any product immediately on indentation and confirmation to ensure
customer safety is maintained. Faithful and committed customers who value the businesses
decision will remain faithful towards the brand and businesses and likely to see them return
to dealing with the business in future. A similar situation was experienced by a major food
product brands Maggi by Nestle which has sighted to have breached food safety standard
resulting in national wide ban in India in the year 2017 which resulted in many people
considering the brand would not be revived in the Indian market in future but the product
rebounded in the Indian market and continues to register huge success among customers in
the region despite the scandal. Mattel is also likely to register the same rebound from
customers who will gradually understand the businesses objective by highlighting the
concern which was aimed at protecting the customer and not Mattel.
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References:
Arslan, M., & Zaman, R. (2015). Impact of Brand Image and Service Quality on Consumer
Purchase Intentions. A Study of Retail Stores in Pakistan. GRIN Verlag.
Bartlette, L. A., & Lawson, I. F. (2008). Health Care Policies. New York: Nova Publishers.
Congress. (2008). rotecting Children from Lead-tainted Imports: Hearings Before the
Subcommittee on Commerce, Trade, and Consumer Protection of the Committee on
Energy and Commerce. U.S. Government Printing Office.
Davies, P. W. (2016). Current Issues in Business Ethics. Oxon: Routledge.
Griseri, P., & Seppala, N. (2010). Business Ethics and Corporate Social Responsibility.
South-Western Cengage Learning.
Jackall, R., & Hirota, J. M. (2003). Image Makers: Advertising, Public Relations, and the
Ethos of Advocacy. University of Chicago Press,.
Marotz, L. R. (2014). Health, Safety, and Nutrition for the Young Child. Stamford: Cengage
Learning.
McClary, A. (2004). Good Toys, Bad Toys: How Safety, Society, Politics and Fashion Have
Reshaped Children’s Playthings. London: McFarland.
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Pine, T. A. (2012). Product Safety Excellence: The Seven Elements Essential for Product
Liability Prevention. Milwaukee: ASQ Quality Press.
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Tittle, P. (2000). Ethical Issues in Business: Inquiries, Cases, and Readings. Broadview
Press.
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