Do you think Mattel regrets it's corporate flight to China?

Question

There is a huge recall of toys that have too much lead and were manufactured in Mattel's plant in China. I think they first moved to Mexico, but I don't know if that plant is still active. Or, is the recall just a drop in the bucket for this mega-business?

Mr Knowitall: I think you're wrong about the first part of your answer, but it is undoubtedly what Mattel wants us to believe. They probably weren't making the profit of, oh say 400%, so they moved to places with cheap labor and their 'bottom line' improved. As for the second part, what about Enron and Delay and Skilling? I'm not sure about the second part now.

Answer 1

They will face HUGE lawsuits if any kids that had these recalled toys gets sick. All they will have to so is claim that they had those toys and they can sue. This is one HUGE reason that American companies need to quit outsourcing jobs!

Answer 2

I don't really know how much of a problem it is, but probably not huge for an outfit the size of Mattel. And if you were on their board you'd know that if they -hadn't- outsourced all their manufacturing to China they'd be out of business by now. So even if this incident drives them out of business, they're better off than they would have been.

One of the problems with our system is that corporations are not responsible for their actions. I mean It's possible for a corporation to commit a really terrible crime, but no human being in that corporation can be held liable. The very worst that can happen (but actually seldom does) is that the corporation goes out of existence and then it's like the crime never happened!

Answer 3

In accounting , this is called an"occurrence."
it is something that COULD happen, top mgt knows it could, and it could be taken in stride, or kill a company,.depending on just how costly the occurence is and how profitable the company is.

Answer 4

they gets what they pays for, wait for the lawsuits of brain damaged children to start rolling in.