Case Study: Mattel and Toy Safety
Mattel is the largest toy company in the world, a publicly traded organization with a market capitalization of over $5.6 billion. They employ 30,000 in 43 countries, and sell products in more then 150 nations. In August of 2007, Mattel suffered a huge product recall incident. The first recall resulted in China (who makes 65 percent of Mattel’s toys) using paint with lead. Two week later Mattel had recalled another 500,000 toys, the second major recall included almost 20 million toys worldwide. These products contained lead paint that had failed the products’ specification.