Marketing in Action Case Real Choices at Mattel In 1945, Mattel's founders, Ruth and Elliot Handler, were manufacturing picture frames out of a garage workshop. The couple also ran a side business making dollhouse furniture from the frame scraps; this became so successful that they turned to making toys. Ten years later, Mattel began advertising its toys through the Midkey Mouse Club TV show and thus revolutionized the way toys were sold. In 1959, Ruth Handler, noting her own daughter Barbara's love for cutout paper dolls, created the idea of a three-dimensional paper doll. Barbie was born and very quickly propelled Mattel to the forefront of the toy CHAPTER 2 GLOBAL, ETHICAL, AND SUSTAINABLE MARKETING 93 industry. The 1960 s saw Mattel grow with such new products as Barbies boyfriend Ken, See-and-Say toys, and Hot Wheels toy cars. Mattel became a global company in the 19805 with the purchase of Hong Kong-based ARCO industries; Correlle, SA, a maker of collector-quality dolls based in France; a British company, Corgi Toys Ltd, and a joint venture with Japan's largest toy company, Bandai. The company's responsibility mission states, "Mattel's Corporate Responsibility mission is to positively impact our people, our products and our planet by playing responsibly. This commitment resonates in our actions and through our company values each and every day." In 2013. Mattel was ranked number two among Corporate Responsibility magazines "100 Best Corporate Citizens." Mattel and the Mattel Children's foundation made a total cash donation of $750,000 for multiyear disaster support to Save the Children and the American Red Cross. In addition, over 10,000 Mattel employees have engaged in social impact activities to make a meaningful difference in the lives of children globally. Nevertheless, despite Mattel's actions to support children and the resulting recognition, there are some problerss with Mattel's corporate responsibility record. In 2007, Mattel commissioned Chinese companies to produce its products. By August, Mattel was forced to recall 1.5 million of its FisherPrice toys, including such favorites as Elmo and Big Bird, because they were suspected of containing hazardous levels of lead paint. Later in August, Mattel recalled over 19 million more Chinese-made toys because they contained magnets that could be swallowed by children or because they were made with dangerous lead paint. In 2010, Mattel recalled over 10 million of its Fisher-Price products, induding about 7million Fisher-Price Trikes and Tough Trikes. The tricycles have a plastic ignition key near the seat that kids can sit or fall on, potentially leading to injuries. This also included recalls of its little People Wheelies Stand 'n Play Rampway due to a possible choking hazard. In 2011, Mattel's Fisher-Price recalled for repair its little People Builders' Load 'n Go Wagons due to a possible laceration hazard. Both the play rampway and the wagons were manufactured in Mexico and sold in mass-merchandise retail stores nationwide. In 2013, Mattel voluntarily announced a recall to inspect its Fisher-Price Newborn Rock ' n Play Sleeper. It was discovered that "mold can develop between the removable seat cushion and the hard plastic frame of the sleeper when it remains wet/moist or is infrequently cleaned." Such product recalls can damage a firms reputation and its bottom line. Mattel must continue to work hard to recover from these incidents. Are apologies and claims for new safety regulations enough? Because some but not all of the recalls were due to production in other countries, should the company stop producing its toys in China and other developing countries where costs are low? Or should Mattel return to its roots and produce the millions of Polly Pockets, "Sarge" toy cars, and Barbie play sets in the U.S., where costs are substantially higher but standards are tougher? How should Mattel protect its social responsibility reputation into the future? You Make the Call 2-34. What is the decision facing Mattel? 2-35. What factors are important in understanding this decision situation? 2-36. What are the alternatives? 2-37. What decision(s) do you recommend? 2-38. What are some ways to implement your recommendation