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College of Accountancy, Business, Economics, and International Hospitality Management

MAKING TOYS GLOBALLY

I. INTRODUCTION

The global production and distribution of children's toys span numerous

countries, necessitating stringent safety measures to protect young consumers. The
United States, through its Consumer Product Safety Commission (CPSC), implements
recalls of hazardous toys, especially those containing lead or other harmful heavy
metals. Despite regulatory efforts and international agreements, the persistent
presence of these toxins poses a grave threat to children's safety, impacting both the
manufacturing process and the ultimate use of toys.

Lead, a toxic substance causing severe health complications, was banned

from house paint, toys intended for children, and kitchenware in the United States in
1978. Collaborative efforts between the CPSC and China's General Administration of
Quality Supervision, Inspection, and Quarantine (AQSIQ) aimed to eliminate lead-
based paints from Chinese toys exported to the U.S. However, studies reveal that
heavy metals, including lead, arsenic, cadmium, and others, still contaminate
numerous toys, even from reputable brands. Despite increased awareness and
scrutiny, the prevalence of heavy metals in toys remains a substantial concern,
particularly as China, responsible for 80% of U.S. toy imports, grapples with
widespread contamination issues.

Reports by organizations like Greenpeace and IPEN have highlighted the

extent of heavy metal contamination in toys through testing in Chinese cities. Their
findings indicate that many toys exceeded safety standards, directly threatening
children's health. While efforts to address lead in paint have gained attention, the use
of lead in plastics, employed to enhance flexibility and stability in toys, persists. The
breakdown of lead-infused plastics creates dust particles that children quickly ingest
during play, exacerbating the risk.

Despite strides in establishing stricter safety standards since 2007, the

persisting violation of regulations by some manufacturers, as noted by the CPSC,
raises concerns about the effectiveness of current safety measures. The absence of
a universal ban on lead in plastics and ongoing concerns about the safety of older toys
underscore the challenges in ensuring children's safety within the toy industry.
Continuous monitoring, enforcement of regulations, and responsible disposal of older
toys containing lead remain imperative to safeguard children's well-being during
playtime.

II. BACKGROUND
The issue revolves around the global safety standards of toys for children, which
are manufactured and distributed worldwide. In 1978, the U.S. Consumer Product
Safety Commission (CPSC) prohibited the use of lead in paints, including the ones
used on toys marketed to children. In 2007, China's General Administration of Quality
Supervision, Inspection and Quarantine (AQSIQ) agreed to eliminate lead paint on
Chinese-manufactured toys exported to the United States.

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College of Accountancy, Business, Economics, and International Hospitality Management

Nevertheless, a significant portion of toys, estimated that one-third of Chinese

toys still contain heavy metals. A study conducted by Greenpeace and IPEN in five
Chinese cities found that 32.6% of the tested toys surpassed the acceptable levels of
heavy metals. Their frequent hand-to-mouth activities heighten the vulnerability of
children to lead exposure, a typical behavior in childhood. This not only directly poses
a danger to children but also introduces the risk of airborne contamination, considering
that leads are known to be neurotoxin.

Despite the global toy industry establishing a voluntary standard for lead in
toys, stricter standards have emerged since 2007. Regulatory bodies like the CPSC
in the United States, the European Union, and China's AQSIQ actively monitor and
enforce these standards. The study highlights the need for a comprehensive
reassessment of safety standards, particularly in plastics. It prompts critical questions
about the efficacy of existing measures in ensuring the safety of toys for children
globally and in addressing the longstanding issue of older toys still in circulation.

III. CASE EVALUATION

1. Question
How realistic do you think it is to create a world standard for toys with respect to
their safety and use by children?

Answer:
Regarding toy safety and kid use, we believe it is efficient to build a global
standard. Children are so naive that they have no idea what they are playing with
until they reach a certain age. Many children will be at risk from toys meant for
young children if they contain chemicals or have sharp edges that could cut them.
The purpose of standards is to protect children from harsh chemicals and products,
which is why they are crucial.

2. Question
Should we ban products from a country that does not follow standards similar to
what the U.S. Consumer Product Safety Commission suggests for the United
States? Is the CPSC overprotective? Should each country have its own
guidelines? Why or why not?

Answer:
We believe goods from nations that do not adhere to our norms must be
prohibited. Although we know this is probably not feasible, it might prompt them to
examine their procedures and determine whether there is any chance to win back
our business. In my opinion, the CPSC is not being overly careful in this case. As
a nation, we established this commission to ensure that safety standards are met
and laws are obeyed. We can see why every country would have its own set of
rules. As previously mentioned, every nation has a unique set of ethics. As such,
the values we hold dear will differ from those of another country, and if we hope to
maintain economic ties, we should all make every effort to respect that.

3. Question

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College of Accountancy, Business, Economics, and International Hospitality Management

If there are health risks associated with lead poisoning, what about related areas
such as lead in drinking water (e.g., the issue that came to the forefront in the U.S.
presidential campaign regarding water supply in Flint, Michigan)?

Answer:
Drinking water contaminated with lead indeed poses a significant health
risk. The Flint water crisis raised awareness of this problem and the risks
associated with drinking water contaminated with lead. Significant health concerns
can arise from lead pipes corroding or leaking lead into the water supply,
particularly for young children and expectant mothers.
Lead exposure in drinking water can result in several health issues, such
as kidney damage, nervous system damage, developmental delays in children,
and, in extreme situations, even death. Over time, even low exposure levels to
lead can have negative health impacts.
After Flint, Michigan's water supply was changed and lead from old pipes
swapped into the water, the city faced a dilemma. The inhabitants feared health
problems due to high lead levels from the poorly treated water. In addition to
drawing attention to the necessity of improved infrastructure and more regulatory
monitoring to stop similar disasters from happening elsewhere, this catastrophe
served as a reminder of how crucial it is to provide safe and clean drinking water
for all communities.

4. Question
Is lead in toys a financial or cost issue? Why have we not seen the toy industry
monitor and do something about the lead problem, even though we have known
about it for more than 30 years?

Answer:
The problem of lead in toys is complex and diverse. While there are
financial implications, other elements also contribute to the ongoing issue. It is not
only a financial concern to address lead in toys, even though it does come with
costs associated with changing manufacturing procedures and where materials
are sourced. Instead, it involves complicated regulations, difficulties with the global
supply chain, and striking a balance between the needs of consumers for
reasonably priced toys and the necessity of guaranteeing safety. Despite knowing
about the problem for thirty years, the industry has taken a long time to address it
for some reasons. Regional standards variances and regulatory gaps hamper
consistent compliance. Complex supply chains involving several nations make
oversight and monitoring challenging, encouraging non-compliant behavior.
Furthermore, economic constraints and competitive marketplaces have
occasionally eclipsed safety concerns. The lead issue in toys has persisted partly
because there are no globally enforceable rules. The toy lead issue takes longer
to resolve than expected, even though numerous stakeholders—including
governments, manufacturers, and consumers—must work together to bring a
comprehensive transformation.

IV. PROPOSED SOLUTIONS

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College of Accountancy, Business, Economics, and International Hospitality Management

With the grave concerns surrounding the global safety standards of toys for
children, urgent and comprehensive action is essential. Firstly, encouraging
compliance and innovation is important. Amidst the pressing concerns over children's
toy safety worldwide, it is alarming that despite regulations, approximately one-third of
toys from China still contain harmful heavy metals. By encouraging compliance and
innovation through creating rewards and support systems, we can inspire companies
to adhere to safety standards while fostering creativity and progress within the toy
manufacturing industry.

Secondly, continuous monitoring and evaluation is needed. It is an essential

strategy employed to tackle the persistent problem of heavy metals, specifically lead,
in children's toys. Regulatory agencies and other relevant authorities can effectively
track the presence of dangerous compounds like lead in toys by regularly monitoring
and assessing the safety precautions put in place throughout the production and
distribution of children's toys. This ongoing assessment involves systematic checks
and regular reviews to ensure the established safety standards function as intended.

Thirdly, there are many advantages for parents, caregivers, educators, and the
public when public awareness campaigns are carried out, and educational materials
regarding toy safety are provided. Raising awareness can aid in lowering the possibility
that kids will be exposed to dangerous toys, particularly those made of hazardous
materials like heavy metals. The overall safety environment for children's toys can be
significantly enhanced by fusing public awareness campaigns with educational
programs, encouraging a culture of responsibility and alertness among parents,
caregivers, and educators.

Collaboration also allows industry associations to work toward global safety

practice standardization. Because of this uniformity, manufacturers find it easier to
adopt and follow established safety standards, which helps to streamline compliance
efforts. This collaborative effort makes the market for children's toys safer and more
dependable, which benefits manufacturers, customers, and the industry.
Lastly, manufacturers who violate safety regulations regarding toys must take
prompt and appropriate action to address the issue, as many toy manufacturers
continue to ignore and violate the stricter standards that the CPSC is constantly
monitoring in the United States, the European Union, and China's AQSIQ. This could
be accomplished if manufacturers that violated safety standards were subject to
severe penalties, product recalls, and potential legal action against responsible staff
members. However, more time must be dedicated to monitoring and investigating
companies' manufacturing facilities with a history of safety violations to facilitate
compliance maintenance and prevent the recurrence of safety issues.

These solutions seek to foster a culture of compliance in the manufacturing

industry and establish a regulatory framework that prioritizes consumer safety,
particularly for children.

V. RECOMMENDATIONS

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 Pablo Borbon Campus

College of Accountancy, Business, Economics, and International Hospitality Management

The global safety regulations for children's toys are the main topic of this case
study. We would advise the second option, which is ongoing monitoring and
assessment, in light of the solutions that have been put out. The fact that it entails
routine inspections and evaluations to guarantee that safety regulations are being
adhered to throughout the manufacture and delivery of kid's toys is one of the reasons
we chose it. This advice is applicable for several reasons. Firstly, it explicitly targets
the ongoing problem of heavy metals, including lead, in children's toys through
continuous monitoring and evaluation. Regulatory bodies can detect and resolve
issues early on, preventing them from spreading or reoccurring, by routinely verifying
that safety requirements are followed.

Then, consistent monitoring guarantees that possible hazards are found early on,
enabling prompt remedial action. It also adjusts to changes in the business because
the toy manufacturing sector is ever-evolving and continually developing new
materials, technologies, and production techniques. Regulations are kept current and
applicable throughout time by use of a flexible structure for continuous monitoring and
evaluation, which also helps to adapt safety standards to these changes. Regulation
drift can also be avoided through monitoring and evaluation. Regulations may become
less relevant or effective as technology advances or business practices alter. By
routinely evaluating the efficacy of current standards and making the required
modifications to be up to speed with changing hazards, continuous monitoring helps
minimize regulatory drift.

Last but not least, consistent monitoring shows a dedication to consumer safety,
which can strengthen industry trust. It conveys the unambiguous message that the
government is making efforts to guarantee the security of children's toys, which may
have a favorable effect on customer faith in the industry.

Group 5
Leader: Michael M. Refundo
Members: Catherine G. Amante
Joan N. Barroga
Princess Dianne M. Lucero
Sweet Lannah Mae H. Moya
Jenny C. Orozco
Jelome U. Oruga
Sheryl Maye B. Villanueva

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