NEW YORK, Jan. 28 /PRNewswire/ -- The International Center for
Corporate Accountability (ICCA) today released results of the audit
completed in 2007 for seven manufacturing facilities operated by Mattel,
Inc. vendors. The reports 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. While voluntary audit
reports of Mattel-owned manufacturing facilities have been published since
1999, this continues ICCA's review of Mattel's major vendors, an effort
begun in 2002. This is the first audit report for two facilities and the
second audit report for one facility. For three facilities it is the third
report.
Dr. S. Prakash Sethi, president of ICCA and university distinguished
professor, Zicklin School of Business, Baruch College, said, "These audits
show that treatment of workers, training and protection from harassment are
good. However, there are a number of significant areas that demand
improvement, including working hours and prompt payment of wages;
maintenance; and environmental, health and safety requirements."
"I commend Mattel for remaining 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. "And while I'm heartened that
the newly audited facilities would be in significant compliance with some
improvements, I'm disappointed that the previously audited plants didn't
perform better."
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.
-- Virtually all plants provided access to adequate medical care, either
through an on-site clinic or at a nearby medical facility.
-- All plants were found to be in compliance for payment of legally
mandated minimum and overtime wages, social insurance and related
benefits.
-- Although not required by Mattel's GMP, six of the seven plants provide
recreation and non-job-related training opportunities for employees,
such as English-language classes and computer courses.
Improvement Challenges:
-- ICCA identified instances where working hours or the number of peak
workweeks exceeded Mattel's GMP standards.
-- Issues were found in the granting of annual leave to workers,
specifically about when annual leave can be taken.
-- ICCA identified that one vendor didn't communicate leave benefits to
its employees in the handbook or via other usual means
-- Several plants had issues with time-keeping and/or a delay in prompt
payment of wages.
-- At several facilities, workers were dissatisfied with limitations
related to restroom and drinking water access.
-- Audits showed inadequacies pertaining to environmental issues,
including disposal of wastewater, noise levels, temperature, storage of
materials and air emissions.
-- Improvements are also needed with regard to facility maintenance,
employee safety training, as well as availability and proper use of
personal protective equipment.
Concerns related to certain hiring practices, employee fees for
pre-employment medical exams and full payment of maternity leave benefits
are already being addressed, with compliance to be confirmed by June 30,
2008. Mattel has also agreed to review GMP standards and include
information about payment of maternity benefits in GMP capacity building
programs.
It should also be noted that two vendors reviewed in this audit are
planning to move to new facilities relatively soon, so it is expected that
improvements at those plants would focus on areas requiring short-term
attention.
Mattel has already begun working with the vendors to implement action
plans to correct deficiencies. "While these facilities didn't show the
improvement we would like to have seen, we will diligently work with our
vendors to ensure that they make the appropriate improvements in order to
comply with our GMP standards," said Geoff Massingberd, senior vice
president of Corporate Responsibility at Mattel. "We have made it clear
that compliance is not an option, but rather a requirement for continued
business from Mattel."
"Our newly created corporate responsibility organization is
coordinating with the operations team to ensure clear direction and
consistency in implementing GMP," Massingberd added. "The corporate
responsibility audit and policy department also will monitor progress of
the corrective action plans to ensure improvement."
The full text of the 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 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 2008's 100 Best Companies to Work For by
FORTUNE Magazine, among the 100 Most Trustworthy U.S. Companies by Forbes
Magazine and is ranked among the 100 Best Corporate Citizens by CRO
Magazine. Committed to ethical manufacturing sustainable business
practices, Mattel marks a 10-year milestone in 2007 for its Global
Manufacturing Principles. 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 International Center for Corporate Accountability
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Related links: http://www.ICCA-corporateaccountability.org http://www.mattel.com/CSR
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
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