Case Synopsis: In 2007, Mattel issued a series of recalls of children’s toys manufactured in China. Some of the toys were coated with dangerous lead paint, and others contained small but powerful magnets that could cause intestinal blockage or perforation if swallowed. The recalls alarmed parents and consumer activists, as well as the toy industry, retailers who marketed their products, and product safety regulators in both China and the United States. The case describes the toy recalls and presents excerpts from testimony given by a range of concerned stakeholders at a U.S. Senate hearing in September, 2007. It challenges students to consider how business and society can best assure the safety of children’s toys.

1. Do you believe that Mattel acted in a socially responsible and ethical manner with regard to the safety of its toys? Why or why not? What should or could Mattel have done differently, if anything?

2. Who or what do you believe was responsible for the fact that children were exposed to potentially dangerous toys? Why do you think so?

3. What do you think is the best way for society to protect children from harmful toys? Specifically, what are the appropriate roles for various stakeholders in this process?