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Independent Monitor Releases Audit Report of Seven Mattel Vendor Facilities

    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