As a leader in the toy industry, Mattel failed to fulfill its corporate social responsibility and meet the legitimate concerns of society. In the business world, corporations should be responsible for all of stakeholders, including the shareholders, customers, and the society. Thus, the best social responsibility is to create shared value for society and the business (Hitt, Black, and Porter 51).
Product safety is imperative when it comes to toys for kids. Mattel failed to provide effective regulations on safety and quality causing the toy recall. Even though the recall was due to the Chinese contractor made toys being contaminated with lead in the paint, the fault initially was that the toy company neglected …show more content…
Quality is a key to every company, especially a company making toys for kids. Total Quality Management (TQM) involves a commitment from all levels of employees to strive continually to make improvements and satisfy customers (Hitt, Black, and Porter 363). The core of TQM is to keep quality at the source, meaning that quality inspection should be taken at each stage of …show more content…
The recall is due to its carelessness of inspecting products process. Thus, in order to ensure the quality and safety, Mattel has to apply stricter and complicated quality control on its suppliers at all stages of production.
Effective Supply-chain Management
The supply chain consists of various organizations involved in transferring a product from raw materials and into a finished product delivered to the customers (Hitt, Black, and Porter 377). Managing supply chain is critical for a company.
Mattel’s complex supply chain involved in making a toy makes it different to manage the whole process of production. Its supply chains involve suppliers (raw materials), contractors (manufacturers), subcontractors, and retailers. In order to prevent negligence of safety standard on its suppliers and contractors, Mattel should effectively integrate and manage its whole supply chain.
Control
Control refers to a regulation of activities and behaviors within organizations (Hitt, Black, and Porter 388). It means that each behavior and activity should be regulated and adjusted to ensure he/she meets organizational