Mattel's Commitment to Ethics
Expectations of Mattel's Business Partners
Beyond concerns about marketing to children, Mattel, Inc. is making a serious commitment to business ethics. In late 1997, the company completed its first full ethics audit of each of its manufacturing sites and those facilities of primary contractors. The audit indicated the company was not using any child labor or forced labor, a problem that has plagued other overseas consumer products’ manufacturers (e.g. Nike). However, several contractors were found in violation of Mattel’s standards and have been forced to change their operations or lose Mattel’s significant business. In an effort to continue its strong record on human rights and related ethical standards, Mattel instituted a code of conduct called
"Global Manufacturing Principles." These principles require all Mattel-owned and contacted manufacturing facilities to, among other things, favor business partners who are committed to ethical standards that are comparable with Mattel’s. Other principles relate to safety, wages, and adherence to local laws.
Mattel’s auditing effort and subsequent code of conduct are not designed as a punitive force. Rather, the international company is dedicated to creating and encouraging responsible business practices. As one company consultant has noted, "Mattel is committed to improving the skill level of workers… (so), in turn (they) will experience increased opportunities and productivity." This statement reflects Mattel’s concern for relationships with employees and business partners that extend beyond pure profit considerations. While the company will surely benefit from its code’s principles, Mattel has formally acknowledged its willingness to consider multiple stakeholders’ interests and benefits in its business philosophy. The company’s code is a signal to potential partners, customers, and other stakeholders that Mattel is making a serious commitment to ethical values and is willing to base business decisions on them.