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Corporate Governance: Special Obligations Of Manufacturers Of Products For Children Case Study

The answer to the question as to whether manufacturers of products for children have special obligations to consumers and society is fairly obvious (“Of course they do!”), but it remains less clear what specific responsibilities are involved. After all, children are not “little adults” and their worlds are still full of magic and mystery, and anything and everything can be a toy. Consequently, major toy manufacturers have a fundamental responsibility to consumers and society alike to ensure that their products are not only safe for rigorous, extended play, but that these products also conform to social standards and values that are reflecting of the larger societies in which they compete.

This means that because social standards and values change from time to time and over time, children’s product manufacturers also have a responsibility to avoid the use of stereotypical characterizations that perpetuate unfounded gender and racially based beliefs about others. Likewise, major toy manufacturers that compete in the global market also have an obligation to ensure that their supply chain partners employ ethical business practices and engaging in timely corporate responsibility initiatives.

One major toy manufacturer, Mattel, takes these obligations seriously. For example, according to Ferrell, Fraedrich and Ferrell (2020), “Through the Mattel Children’s Foundation, established in 1978, the company promotes philanthropy and community involvement among its employees and makes charitable investments to better the lives of children in need” (para. 4). To the company’s credit, Mattel has truly given back to the communities in which it competes by building numerous medical centers and educational facilities over the past half century. In sum, all manufacturers of products for children have special obligations to consumers and society which vary according to product and venue but which must remain at the top of the list of these companies’ priorities today and in the future.

References

Ferrell, O. C., Fraedrich, J. & Ferrell, L. (2009). Mattel responds to ethical challenges. In Business Ethics: Ethical Decision Making and Cases. Mason, OH: South-Western. Retrieved from Corporate_Governance_ Case_ study__4_Mattel_Responds_to_Ethica.html.

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