Case Study Of Mattel's Toy Industry

As a company in the ever competitive toy industry, the main objective should be to produce safe products that parents will buy and children will enjoy playing with. As one of the top leading companies in this industry, Mattel prides itself on this idea. Given Mattel’s purpose “when we design and engineer our toys, we strive to make them safe for children. We look to reduce their environmental impact and build them in facilities that adhere to high standards. We are committed to strong ethical and environmental performance both within our company and in our communities” (Mattel Citizenship, 2018). Following this purpose, their mission also states “to act with integrity in ala that we do, positively impacting our people, our products, and our planet by playing responsible” (Mattel Citizenship, 2018). Given these statements and adhering to those things within all aspects of their company, they have gained a strong and reputable brand name. Knowing the reputation Mattel has gained within the toy industry, great controversy was sparked in

Whether those issues include fear of lawsuits, increased cost and loss of profit, reputation suffrage, or even ensuring that the products leave the customers hands and are returned, can be detrimental to a company and its major stakeholders (Bapuji & Beamish, 2008). Not only can recalls have tremendous effects on a company, the decisions and course of action in which the company takes to handle the situation they have faced can ultimately have the greatest effect. As stated earlier, many people within a company are affected by a product recall whether it is of a small or large quantity. Within a company, there are six major stakeholders. These stakeholders include stockholders, managers, employees, suppliers or distributors, customers, and the community or society at large. Each of these stakeholders are affected differently when a problem occurs within a