The International Center for Corporate Accountability (ICCA) recently released audit results of Mattel, Inc.'s owned-and-operated manufacturing facilities and suppliers in China and Mexico. The reports were ordered by Mattel as part of the company's effort to enforce its Global Manufacturing Principles (GMP) code of conduct.

Auditors found Mattel owned-and-operated facilities meet or exceed its GMP standards, but its suppliers still need to improve conditions in contract manufacturing plants.

Improvements in owned-and-operated plants and supplier facilities include resolving workplace issues around employee communications and management training, increasing access to management, updating systems for accounting of wages and overtime, and making significant inroads into enforcement of manufacturing standards with suppliers.

In China, Mattel has met or exceeded standards in worker health and safety, individual rights and human resources, particularly regarding communications, openness and fairness and transparency in recordkeeping systems. Dormitory and living conditions continue to meet and sometimes significantly exceed standards. Also, the report notes that Mattel has done a commendable job in managing food and canteen facilities.

As with its suppliers, Mattel continues to face challenges with overtime and minimum wage, particularly with divergence of local and national laws.

In Mexico, plant employees report having a good understanding of Mattel's GMP. Mattel increased training focusing on maintaining a respectful workplace environment. General managers of both plants in Mexico have increased sensitivity training programs for supervisory personnel, and have held open forum meetings with employees to underscore the importance of respect for fellow employees. Mattel is taking strong measures to enforce a "zero-tolerance" policy in this area.