Audits Confirm Continuing Overall Compliance with
Company's Global Manufacturing Principles
NEW YORK, Aug. 12 /PRNewswire/ -- The International Center for Corporate
Accountability (ICCA) today released results from audits of Mattel, Inc.
(NYSE: MAT) manufacturing facilities in Thailand, Malaysia and Indonesia. The
ICCA reports were commissioned by Mattel as part of Mattel's commitment to
upholding its Global Manufacturing Principles (GMP) code of conduct. The
reports provide an unbiased, third party analysis of working conditions in the
company's manufacturing facilities. They are part of an ongoing independent
audit program conducted every three years by ICCA. This is the third such
audit for each of these facilities, with previous audits in February/April
1999 and May 2002.
"Our audit showed that Mattel's facilities in Thailand, Malaysia and
Indonesia devote considerable attention to efficient operations, safe working
conditions and employee welfare," said Dr. S. Prakash Sethi, chairman of ICCA
and University Distinguished Professor, Zicklin School of Business, Baruch
College. "Mattel's high level of continued compliance provides a strong
signal that both Mattel and its managers in overseas factories take seriously
their commitments to uphold the operational standards mandated in the GMP."
Tom Debrowski, executive vice president of worldwide operations for Mattel
stated, "We're proud of the audit findings at our facilities in Thailand,
Malaysia and Indonesia and of Mattel's leadership on this important issue. We
look forward to continuing to achieve such positive results at all of our
facilities with the hopes that others in the toy industry will follow our
lead."
Summary of Report Findings
Mattel Bangkok Ltd. (Thailand)
ICCA commends Mattel Bangkok's (MBK) management for its efforts to meet
GMP standards, ensure a safe, healthy and fair work environment, and maintain
a well-run manufacturing facility. The facility received high overall
rankings by the employees in all areas of its operations, and the audit team
also found MBK to meet GMP standards in substantially all areas.
Mattel Malaysia Sdn. Bhd. (Malaysia)
ICCA's audit revealed that the plant has an excellent overall record of
compliance with national labor laws and GMP standards and that there are no
outstanding issues that require corrective action.
Mattel Development & Tooling Sdn. Bhd. (Malaysia)
ICCA found that MDT management operates an excellent facility, which is in
overall compliance with GMP, particularly with regard to plant maintenance and
a safe and healthy work environment. ICCA has made two recommendations to MDT
management. First, MDT management should review and re-evaluate its
procedures to address a perception of unfair treatment held by 40 percent of
workers. Second, MDT management may also wish to consider suggestions made by
employees about improving safety in the work areas around grinding machines.
PT Mattel Indonesia (PTMI)
Overall, ICCA found that PTMI is an excellent and well-managed facility,
with a safe working environment for its employees. ICCA, did however, make
recommendations regarding several minor issues and two key issues: that the
voluntary nature of overtime be clearly communicated, and residency
requirements for single female employees. PTMI management has already taken
steps to clearly communicate voluntary overtime policies and Mattel is working
closely to resolve ICCA's concerns regarding dormitory requirements.
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. 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 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. Reports can be accessed at
http://www.icca-corporateaccountability.org.
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, http://www.mattel.com) is the worldwide leader
in the design, manufacture and marketing of toys and family products,
including Barbie(R), the most popular fashion doll ever introduced. The
Mattel family is comprised of such best-selling brands as Hot Wheels(R),
Matchbox(R), American Girl(R) and Tyco(R) R/C, as well as Fisher-Price brands
(http://www.fisher-price.com), including Little People(R), Rescue Heroes(R),
Power Wheels(R) and a wide array of entertainment-inspired toy lines. With
worldwide headquarters in El Segundo, Calif., Mattel employs more than 25,000
people in 42 countries and sells products in more than 150 nations throughout
the world. The Mattel vision is to be the world's premier toy brands -- today
and tomorrow.
SOURCE The International Center for Corporate Accountability
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Related links:
http://www.mattel.com
http://www.fisher-price.com
http://www.icca-corporateaccountability.org
Company News On-Call:
http://www.prnewswire.com/comp/540363.html
CONTACT:
Media, 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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