Bài tập môn đạo đức kinh doanhcase 19 mattel responds toethicalchallenges

TRƯỜNG ĐẠI HỌC KINH TẾ QUỐC DÂN VIỆN ĐÀO TẠO TIÊN TIẾN , CHẤT LƯỢNG CAO VÀ POHE Bài tập Môn: đạo đức kinh doanh CASE 19: MATTEL RESPONDS TO ETHICALCHALLENGES Họ tên sinh viên: Nguyễn Gia Bảo Mã sinh viên: 11220798 Lớp chuyên ngành: 64A quản trị kinh doanh CLC Giáo viên hương dẫn: Nguyễn Bích Ngọc MỤC LỤC A.SUMMARY I INTRODUCTION II MATTEL’S CORE PRODUCTS III MATTERL’S COMMITEMENT TO ETHICS AND SOCIAL RESPONSIBILITY .5 IV OVERSEAS MANUFACTURING .8 V MATTEL VERSUS FORMER EMPLOYEE AND MGA VI CONCLUSION B QUESTIONS .10 This is a preview Do you want full access? Go Premium and unlock all 18 pages A.SUMMARY I INTRODUCTION Access to all documents Mattel, Inc is a global leader in designing and manufacturing toys and Get Unlimited Downloads family products Well-known for bands such as Barbie, Fisher- price, Disney, Hot Wheels, Matchbox, Cabbage Improve Patch Dolls, andgrades board games , the company boast your nearly 6.27 billion dollars in annual revenue This story began in a California garage workshop when Ruth and Elliot Handler and Matt Mat – son founded Mattle in 1945 The company started at Upload your documents to unlock making picture frames, before Share emphasizing to toys Mattel became a publicly owned company in 1960, with sales exceeding 100 million dollars by 1965 NEXT 14 years, Mattel became the world’s largest toy company From the mid to late 1990s, this company Free Trial lost millions Therefore, Jill Barad took over as Mattel’s CEO in the month 1997 During Barad managing Getfirst 30 days of of free Premium period, Barad was successful in building the Barbie brand to billion dollars by the end of 20th century and growth slowed in the early 21st Robert Eckert replace Barad asPremium? CEO He sold unprofitable units and cut Already Log in hundreds of jobs With several famous and successful projects, this company earned the Corporate Responsibility Award from UNICEF in 2003 and one of Fortune magazine’s “100 Best companies to Work for” for the fifth consecutive year In 2011, Eckert retired, replaced by COO Bryan Stockton II MATTEL’S CORE PRODUCTS BARBIE AND AMERICAN GIRL In 1959, Mattel introduced a product that changed its future forever : Barbie doll, which is top girls’s brands After noticing how her daughter loved playing with doll, Ruth Handler decided to create a doll base on an adult rather than a baby This product became famous for girls and helped company reach annual sales approximately billion dollars and one doll was sold every seconds Therefore, Mattel chose to develop Barbie by introducing many different versions of the iconic doll with at least 40 nationalities and 75 fashion designers to design Barbie’s outfits Barbie’s products are not only famous for children, but also adult in collecting specialedtion Barbie doll Besides, Barbie’s dolls were used for social benefits For instance, its limited- edition Tokidoki tattoo Barbie make tattoo become mainstream in society Or a Special bald Barbie doll was distributed to only hospital to help young girls cope with their difficulties of cancer and chemotherapy In 1998 Mattel announced it would pay 700 million to Pleasant Co, for its high-end American Girl collection This brand was developed with many kinds of products 2.HOT WHEEL Mattel also created toy for boys Co-founder Elliot Handler recognized the potential demand for die-cast cars among boys, which compete to British company Lesney’s Match toys Much like Barbie doll, Hot wheel also is hotter than ever and includes high-end collectibles, NASCAR (National Association for Stock Car Auto Racing) and Fomula One models for adults, high-performances cars ,track sets, and play sets for children of all ages There are many collectors of hot wheels Mattel created a Hot Wheel website for collectors With Hot Wheels , Barbie generate 45 percent of Mattel’s revenue 3.CABBAGE PATCH KIDS More than 90 million dolls have been sold globally since 1982, when Cabbage Patch Kids began to be mass-produced Snacktime Kids, a new product line that was anticipated to be extremely successful, failed due to reports of kids getting into trouble because of its novel feature Fortunately, Mattel handled the situation, which could have easily led to negative publicity or a crisis, in an efficient manner, and the company finally stopped making Cabbage Patch Kids in 2000 III MATTERL’S COMMITEMENT TO ETHICS AND SOCIAL RESPONSIBILITY Because main Mattel’s consumers is children, this products could make conflicts and social concerns about children’s rights After recognizing this risk, Mattel takes steps to strengthen its commitment to business ethics Besides, the company also purports to take a stand on social responsibility, encouraging its employees and consumers to the same PRIVACY AND MARKETING TECHNOLOGY Privacy and online technology is one issue Advances in technology can create special marketing, but also make it more complicate that the company must communicate with adults to operate marketing strategy for children Firstly, Mattel give information about company’s philosophy regarding marketing-tools based on internet to children and adults The privacy policy show that Mattel does not collect online information from children under 13 years old without parental consent and how users can opt out of some of the tracking features In 2013, Mattel updated its privacy policy on website to make the site more informative and answers for the most frequently asked internet privacy policy EXPECTATIONS OF MATTEL’S BUSINESS PARTNERS This is a preview Do you want full access? Go Premium and unlock all 18 pages Mattel make a serious commitment to business ethics in its dealing with other industries In 1997, the company compled first full ethics audit, which Access to all documents reveals that the company was not using any child labor or force labor However, several contractors was violate Mattel’s safetyDownloads and human rights standards and Get Unlimited must change their operations or loss business Therefore, the company now Improve your grades conducts an independent monitoring council audit in manufacturing facilities one times every years Not only that, Mattel instituted a code of conduct titles Global Upload Manufacturing Principles in 1997 One item is requirement about Mattel-owners Share your documents to unlock and contracted manufacturing facilities to favor business partners committed to ethical standards Other principles relate to safety, wages, and adherence to local laws Trial Mattel also claims to beFree committed to is workforce This improve Get 30 days of free Premium relationship between employees and business partners LEGAL AND ETHICAL BUSINESS PRACTICES Mattel respect customers veryPremium? much This can be in seen in Mattel ask partners Already Log must comply national laws and local laws where they operate at least They must be responsible for product safety and quality, protecting the environment, customs, evaluation and monitoring, and compliance Mattel’s 1997 Global Manufacturing Principles insists all manufacturing facilities provide the following: - Full access for on-site inspections by Mattel or parties designated by Mattel - Full access to those records that enable Mattel to determine compliance with its principles - an annual statement of compliance with Mattel’s Global Manufacturing Principles, signed by an officer of the manufacturers of manufacturing facility If certain aspects of Mattel’s manufacturing principles are not met, Mattel will try to work with them to fix their problems MATTEL CHILDREN’S FOUNDATION Funding priorities include maintaining the Mattel Family Learning Program, constructing a new Mattel Children's Hospital at UCLA, and encouraging charitable giving among Mattel employees The Mattel Family Learning Program uses computer learning labs as a way to advance children's fundamental skills and offers software and technology designed to help kids with special needs or limited English proficiency Mattel donated a multiyear, $ 25 million gift to the UCLA Children's Hospital in November 1998 INTERNATIONAL MANUFACTURING PRINCIPLES As a multinational corporation with headquarters in the United States that has facilities around the world and contracts with clients, the company's Global Manufacturing Principles demonstrate how much it values the cultural, philosophical, and ethical diversity of the nations where it operates These guidelines also provide common requirements for the business's manufacturers, which benefits both customers and staff The values of Mattel encompass topics including pay, working conditions, forced labor, child labor, discrimination, and freedom of association Neither Mattel nor any of its subsidiaries will cooperate with businesses that employ forced or jail labor No one under the age of 16 or the local age limit is allowed to work for Mattel facilities or any negative labors such as prisoned labor , … The business respects the rights and convictions of its workers and offers a safe working environment to all of them IV OVERSEAS MANUFACTURING UNETHICAL BEHAVIORS Despite Mattel’s best efforts, not all overseas manufacturers faithfully apply to its high standards Mattel conducted scrutiny over sales of unsafe products The first of all was the recalls of toys containing lead paint This was noticed bay European An estimated 10 million individual toys produced in China were affected This was blame to manufacturers’ desires to save money in the face of increasing prices Producer had to cut the corner of the prices because Lee Der could not control the mess from rising labor and raw material costs Later that month, Mattel detected powerful magnets in toys and recalled several toys that containing it Powerful magnets could have negative effect on children, such as magnets attract each other inside the children’s stomach, causing fatal complications Over 21 millions toys were recalled Responsible individuals Toys that containing lead paint could be blamed to Lee Der company Lee Der Industrial Co create the toys that containing lead paint that not clear source China suspend the company’s export license Main reasons is the relationship between Mingdai company and Lee Der company and save a part of price when labor and raw material cost increased On the other hand, the Mattel Inc could held responsible for mistake in monitoring operation and designing toys such as lead paint and loose magnets Therefore, Mattel Inc had to hold a portion of responsibility Due to their failure to adequately safeguard its population, the Chinese government is held accountable for their immoral actions It appears that her international trade minister was This is a preview Do you want full access? Go Premium and unlock all 18 pages involved in both the lead problem and the loose magnet issue with the toys in their attempt to enhance oversight of export products Access to all documents V MATTEL VERSUS FORMER EMPLOYEE AND MGA Get Unlimited Downloads Carter Bryant, an onagain/off-again Mattel employee,Upload designed the Bratz dolls and pitched them to MGA Free Trial while employed with Mattel Carter Bryant, an onagain/off-again Mattel employee, designed the Bratz dolls and Improve your grades Share your documents to unlock Get 30 days of free Premium Already Premium? Log in pitched them to MGA while employed with Mattel pitched them to MGA while employed with Mattel MGA Carter Bryant, an onagain/off-again Mattel employee, designed the Bratz dolls and 10 pitched them to MGA while employed with Mattel MGA Carter Bryant, an onagain/off-again Mattel employee, designed the Bratz dolls and pitched them to MGA while employed with Mattel MGA 11 This is a preview Do you want full access? Go Premium and unlock all 18 pages Carter Bryant, an onagain/off-again Mattel employee, designed the Bratz dolls and Upload pitched them to MGA while employed with Mattel Free Trial MGA Carter Bryant, an onagain/off-again Mattel employee, designed the Bratz dolls and Access to all documents Get Unlimited Downloads Improve your grades Share your documents to unlock Get 30 days of free Premium Already Premium? Log in 12 pitched them to MGA while employed with Mattel Carter Bryant, an on-again/off-again Mattel employee, designed the Bratz dolls and pitched them to MGA while employed with Mattel A few month after that, Bryant left to work for MGA and created Bratz which was similar to Barbie in Mattel Mattel responded by adding MGA and its CEO, Isaac Larian, to its own lawsuit Bryant reached a confidential settlement with Mattel four years after the first lawsuit was filed A jury found MGA and its CEO responsible in July 2008 for what it called "intentional interference" with Bryant's Mattel contract Another success for Mattel came in December 2008 when a California judge ruled that MGA could neither produce or market any more Bratz dolls In accordance with the terms of his contract with Mattel, a federal jury in California dismissed Mattel's claims to ownership of Bryant's concepts in April 2011 In another blow to Mattel, the jury ruled the company stole trade secrets from 13 MGA, that Mattel employees used fake business cards to get into MGA showrooms during toy fairs In another blow to Mattel, the jury ruled the company stole trade secrets from MGA, that Mattel employees used fake business cards to get into MGA showrooms during toy fairs Mattel totally pay 85 million dolars in liabilities and 225 million dolar in damage and legal fees The antitrust suit against Mattel was dismissed, in January 2013 the US Court of Appeals overturned MGA’s victory over Mattel concerning the theft of trade secret However, the court maintains Mattel is responsible for paying MGA’s legal fines totaling $ 137.2 million MGA CEO Isaac Larian is determined to contest this issue in court again in the near future VI CONCLUSION Like major company, Mattel have its storm, challenges and difficulty such as lawsuit with MGA During the period of the toy recalls, its reputation was battered beyond repair However, the company poorly handling mistake in the past, but it always try to fix and improve products and operation to prevent future mistakes as well With the economic future of the US, Mattel may grow lastingly Maybe it is hard at work restoring goodwill and faith in its brands, even Mattel 14 This is a preview Do you want full access? Go Premium and unlock all 18 pages continues to be plagued with residual distrust over the lead paint scandal and its alleged theft of trade secrets but Mattel appears to be steadfast in its commitment Access to all documents to restoring its reputation Get Unlimited Downloads Improve your grades Upload Share your documents to unlock Free Trial Get 30 days of free Premium B QUESTIONS Q1: Do manufacturersAlready of products for children Premium? Loghave in special obligations to consumers and society? If so, what are these responsibilities? After reading case 19 Mattel responds to ethical challenges, I think being seriously obligated to consumers and society is necessary By doing that, not only consumers and society are beneficial, but also this company Some of these obligations of producers : Consumers As people know about how vulnerable children are, products for them have to be produced carefully and suitable for its standards Children often are curious, and tend to create something news or anything to avoid feeling boring For example, a small car or figure with sharp dots could be dangerous for children’s health in situation that they could easily put its on their eyes or in their mouth for fun Or for 15 bad quality, after some times beating toys , these toys could be broken to be smaller, dangerous for children Or like case 19 said, some special material in toys could have negative effect on children Besides, manufacturers should have commitments to ensure consumer’s benefits Society Not only consumer, company have to be responsible to society Inside the company, manager should create safe and positive working environment to encourage employees work effectively and people apply to work at this company This could help government solve job problem Outside the company, producer have to ensure that their operation and production period affect the environment and society not affect negatively at society and environment Not only that their products could have benefits at society by other way such as support donating strategy to poor people and convey meaningful message to children Q2: How effective has Mattel been at encouraging ethical and legal conduct by its manufacturers? What changes and additions would you make to the company's Global Manufacturing Principles? By following sustainable value, Mattel had seriously followed ethical and legal operation These could be seen in different activities As above case 19, in privacy and marketing technology, by informing both adult and children about company’s philosophy regarding internet-based marketing and commiting company not collecting customer information when accessing internet, customers have been comfortable and assured Besides, answers when customers ask come more frequent and fast These updates make customers’expericence better The company completed its first full ethics audit of each of its manufacturing sites The audit reveals that the company not use any child labor or forced labor By doing that, the company ensures human rights and safe working environment Mattel also instituted a code of conduct titled Global Manufacturing Principle in 1997 Principle related to safety, wages, and adherence to local laws To be detailer, partners must comply with the local and national laws of the countries where they operate Mattel’1997 Global Manufacturing Priciples : + the work conditions and other practices in its contractor’s factoties should be comparable to what exists in its own factory Overtime work would be voluntary 16 + the contractor factories should have proper policies on hiring, promotion, rights of employees and appropriate disciplinary action that address discrimination + the contractor’s facility has to recognize the employee’s rights to engage in lawful union ctivity and collective bargaining through selected representatives + the work conditions and other practices in its contractor’s factoties should be comparable to what exists in its own factory Overtime work would be voluntary + the contractor factories should have proper policies on hiring, promotion, rights of employees and appropriate disciplinary action that address discrimination + the contractor’s facility has to recognize the employee’s rights to engage in lawful union ctivity and collective bargaining through selected representatives + The work conditions and other practices in its contractor’s factoties should be comparable to what exists in its own factory Overtime work would be voluntary + The contractor factories should have proper policies on hiring, promotion, rights of employees and appropriate disciplinary action that address discrimination + The contractor’s facility has to recognize the employee’s rights to engage in lawful union ctivity and collective bargaining through selected representative Despite of the rigor of principles, these principles should be changed to suitable for working environment, culture and other standard that change and develop every day Because of globalizing and modernizing in the world, society more and more develop This stimulate the changes and improvement in operating company Besides, culture and life style in each country and region are different To make principle more perfect, principle should be changed and developed based on each different region and country Q3 To what extent is Mattel responsible for issues related to its production of toys in China? How might Mattel have avoided these issues ? According to the Consumer Product Safety Commission, Mattel has recalled 13,970,000 toys from China due to a flaw in the items The bulk of the problems were mostly caused by lead paint and tiny loose magnets, which can provide a range of health dangers Small magnets that can be swallowed or inhaled, as well as lead paint, which is extremely poisonous and can result in a number of health problems when swallowed or inhaled in large amounts, are examples of toys When mention to Mattel responsible for issues related to its production of toys in China? We should thorough analysis First, the products that contain lead paint 17 This is a preview Do you want full access? Go Premium and unlock all 18 pages were produced by Chinese company that have been subcontracting with different business that Mattel not agree They want to increase prices to rise profit that they get Besides, checking the qualityto of all each products was necessary but they Access documents ignore This Chinese company shoulders this responsibility but they did not it And finally, Mattel designed Get bad toys which have bad consequences Unlimited Downloads But Mattel had their improvement to avoid these problems in the future There should be more monitoring and controlling in the manufacturing chain Improve yourneeded grades And because of difference between other countries and regions, there should be checker from main company, who can on behalf of main company collab with partner and supcontractors to get the most suitable idea On the other hand, these checkers could check the quality’s products based on general standards Upload Share your documents to unlock Free Trial Get 30 days of free Premium Already Premium? 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