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Independent Monitor Releases Audit Report of Four Mattel Manufacturing Plants

    NEW YORK, Jan. 18 /PRNewswire-FirstCall/ -- The International Center
for Corporate Accountability (ICCA) today released results of the audit
completed in 2007 for four Mattel manufacturing facilities. The reports,
which have been publicly issued since 1999, are commissioned by Mattel as
part of Mattel's commitment to upholding its Global Manufacturing
Principles (GMP) code of conduct by providing an unbiased, third-party
analysis of working conditions in Mattel's manufacturing facilities.

    Dr. S. Prakash Sethi, president of ICCA and University Distinguished
Professor, Zicklin School of Business, Baruch College, said, "These audits
reveal that, overall, worker treatment is excellent and many areas of
Mattel's GMP are being met, including fair treatment of workers, training
and protection from harassment. There are, however, still some areas that
require improvement, particularly working hours, maintenance and
environmental, health and safety requirements."

    "Mattel is the first and only global consumer products company to apply
a required standards system to its manufacturing facilities and those of
its major vendors, independently monitor and publicly disclose the
results," Sethi said. "We believe that workers everywhere would benefit
from other companies adopting and upholding such standards in their
manufacturing facilities worldwide."


Summary of Report Findings Achievements: -- All facilities maintained a fair and harassment-free environment, with freedom of association and the right to join a lawful organization available to all employees. -- Employee access to and communication with management was generally good, with various opportunities for communication, including line supervisors, Human Resources staff, suggestion boxes and meetings with management. -- All of the facilities provided safe and clean dormitories with good food service available to employees. -- Although not required by Mattel's GMP, all four facilities provide recreation and non-job-related training opportunities for employees, such as English-language classes and computer courses. -- All plants were found to be in compliance for payment of legally mandated minimum wages, social insurance and related benefits. Improvement Challenges: -- ICCA identified instances where working hours exceeded Mattel's GMP standards. -- Some issues were found in the granting of annual leave to workers, specifically about when annual leave can be taken. -- Two plants had particular issues related to record-keeping for hours worked and compensation for additional hours worked, as well as for appropriate payment of sick leave benefits. -- Audits showed inadequacies pertaining to environmental issues, including disposal of wastewater, noise levels, temperature, storage of hazardous materials, air emissions and ventilation. -- Improvements are also needed with regard to facility maintenance, employee safety training and proper use of personal protective equipment. One area of concern, related to employee fees for pre-employment medical exams, is already being addressed and compliance will be confirmed by June 30, 2008. Mattel has already begun implementing action plans that correct deficiencies. "As always, these audits have performed an important function by helping us to identify areas where Mattel could make more improvement," said Geoff Massingberd, senior vice president of Corporate Responsibility at Mattel. "We are committed to making continuous improvements in our facilities. In this way we uphold our commitment to GMP and responsible corporate conduct." "Mattel's newly created Corporate Responsibility organization is working closely with the Worldwide Operations team to ensure clear direction and consistency in implementing GMP," Massingberd said. "The Corporate Responsibility Audit and Policy Department will monitor progress of the corrective action plans to ensure continuous improvement." The full text of the ICCA report can be viewed on ICCA's website at http://www.ICCA-corporateaccountability.org and on the Mattel corporate website located at http://www.mattel.com/CSR. For more information about how Mattel is addressing the challenges outlined in this round of audits, please see Mattel's response located at the company's corporate website. Mattel's Global Manufacturing Principles (GMP), launched in November 1997, form the cornerstone of the company's ongoing commitment to responsible manufacturing practices around the world. Adherence to GMP seeks to ensure that wages, working and living conditions and employee access to management are just and fair, as well as to assure protection of the environment. As part of Mattel's GMP, the company's primary suppliers are also subject to compliance with the standards set in the GMP. Mattel contracted with ICCA to perform regular audits of its owned manufacturing facilities and those of its major suppliers. ICCA's responsibility is to evaluate and publish findings on these manufacturing facilities' compliance with GMP. ICCA's audit protocols are designed to verify supplier compliance with Mattel's GMP standards in a manner that is comprehensive, objectively measured, interpreted in a meaningful manner and independent of any other consideration except the compliance standards specified in the GMP. About ICCA Directed by Dr. S. Prakash Sethi, the International Center for Corporate Accountability (ICCA) is a not-for-profit, independently incorporated organization comprised of a council of experts in labor issues worldwide. ICCA encourages and assists multinational corporations in creating, implementing and arranging independent monitoring of codes of conduct. As an academically- affiliated organization, associated with the Zicklin School of Business of Baruch College -The City University of New York, ICCA also undertakes independent field research on aspects of corporate governance and accountability that normally fall outside the purview of corporate boards of directors, and engages in dialogue with a wide range of stakeholders. About Mattel Mattel, Inc., (NYSE: MAT) is the worldwide leader in the design, manufacture and marketing of toys and family products. The Mattel family is comprised of such best-selling brands as Barbie(R), the most popular fashion doll ever introduced, Hot Wheels(R), Matchbox(R), American Girl(R), Radica(R) and Tyco(R) R/C, as well as Fisher-Price(R) brands, including Little People(R), Power Wheels(R) and a wide array of entertainment-inspired toy lines. Mattel is recognized as one of the 100 Most Trustworthy U.S. Companies by Forbes Magazine and ranked among the 100 Best Corporate Citizens by CRO Magazine in 2007. Committed to ethical manufacturing practices, Mattel marked a 10-year milestone in 2007 for its ever-evolving Global Manufacturing Principles and focus on sustainable business practices. With global headquarters in El Segundo, Calif., Mattel employs more than 30,000 people in 43 countries and territories and sells products in more than 150 nations. Mattel's vision is to be the world's premier toy brands -- today and tomorrow.
SOURCE Mattel, Inc.




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CONTACT:
Dr. S. Prakash Sethi of International Center
for Corporate Accountability, +1-646-312-2230; or Jules Andres of
Mattel, Inc., +1-310-252-3529