Rick Newman

Learning From Mattel's Chinese Apology

By Rick Newman

Posted: September 21, 2007

If this were happening in the United States, it would be unremarkable. But since the backdrop is China, the latest twist in the Great Mattel Toy Imbroglio is shrouded in suspicion, fear, and political grandstanding.

After several recalls this year involving millions of toys, Mattel is making headlines once again—this time, for the outrageous act of apologizing to its Chinese manufacturers. In a high-profile meeting with Chinese business and political officials, the head of Mattel's global operations, Thomas Debrowski, said that the company "apologizes personally to you, the Chinese people, and all of our customers who received the toys."

An American apologizing to the Chinese? He must have had a gun to his head, right? Or be part of some big conspiracy that will ultimately lead China to world domination? "It would not be beyond the realm of possibility," one blogger fretted, "to think that the Chinese pressured Mattel into its statement."

So now the Chinese have become so powerful that they call the shots at America's biggest companies....

Whoa. Look, I'll readily acknowledge that corporate execs often have ulterior motives and tend to say things that serve the company's bottom line. But if we Americans can swallow our national pride for a moment and get over the notion of an apology to "lesser people" from other countries, we can learn a few important things from Debrowski's remarks:

• First, he attributed a big part of Mattel's recent problems to a design flaw that came from America—not from shortfalls on assembly lines in China. For all of our import-bashing, it's worth keeping in mind that we are capable of screwing up here, too.

• Mattel, he said, had recalled more toys than necessary, which made it seem as if there were more problems among its Chinese suppliers than there actually were. Isn't that what we want a company to do when it discovers that its products pose a risk—go overboard to fix the problem?

• Finally—Debrowski accepted blame! "Mattel takes full responsibility," he told the Chinese officials. Sure, maybe heads should roll at Mattel, and he might be kowtowing a bit with a lavish public apology witnessed by a roomful of reporters invited by Mattel. But compare that to drawn-out disputes like the Ford-Firestone scandal over disintegrating tires on SUVs, which erupted in 2000 and went on for years as the two companies threw bombs at each other—while consumers wondered which side to believe. Which approach is better? Taking the blame now lets Mattel fix the problem, move on, and start cleaning up its reputation. Just as important, it helps consumers know what went wrong and who's responsible for fixing the problem. That's the only outcome that will allow them to feel comfortable, once again, buying Mattel products.

The Chinese toy recalls have highlighted many of the things that Americans find scary about the so-called global economy: It's hard to know where products come from or what's in them, and it turns out that government and industry both aren't paying enough attention to the safety of imports. But the recalls are also an opportunity to help explain and clarify how products get from far-flung factories into the homes of Americans. Mattel messed up, but now the company is bringing a welcome degree of transparency to an issue that seems complex and murky to most of us. So hurry up and pay attention, before the politicians and fearmongers muddle it up.

mattel apology

I just sat here writing an ethics paper about how great mattel was yada yada yada, then i read about the apology. now what? throw that in the crapper, along with my kids toys. this is why we should NOT be doing business with communist countries. YES there was a gun to mattel's head - but they should have said, go ahead---pull the trigger, there are PLENTY OF AMERICAN'S LOOKING FOR JOBS RIGHT NOW!!!! We can start making our toys there again.....oh wait, we'd have to actually pay them, wouldn't we???

There goes that Ethics paper........

Vanessa of MI @ Jul 21, 2008 00:27:22 AM

Mattel apology

Word here in China is that Mattel was pressured into a apology by the Chinese Gov't which threatened Mattels operations in China. Foolishly, the Mattel execs caved in. The apology was forced and unnecessary. I have no respect for Mattel anymore.

jay of MO @ Apr 19, 2008 11:30:40 AM

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Rick Newman

Rick Newman

The global economy is mysterious, even scary. Chief Business Correspondent Rick Newman connects the dots. In addition to his writing for U.S. News, Rick is the co-author of two books: Firefight: Inside the Battle to Save the Pentagon on 9/11, and Bury Us Upside Down: The Misty Pilots and the Secret Battle for the Ho Chi Minh Trail.

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