ABSTRACT

This chapter focuses on the problems that the global companies can face as they attempt to manufacture consumer products in developing countries. It shows how problems often arise due to a lack of consumer protection oversight mechanisms by foreign governments and by an inability to monitor every facet of the supply chain. The chapter presents a case that discusses Mattel, Inc.'s corporate social responsibility initiatives, especially its Global Manufacturing Principles. Thomas Debrowski came to Mattel with a wealth of operations experience in a wide range of corporate cultures. The Chinese experience of the inability of laws to regulate fully business behavior illustrates the need for corporate social responsibility policies. The result of China's economic strategies is that global companies have had strong incentives to relocate to China. A supply chain is considered global when multiple partners located in different continents are involved in coordinated activities.