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NEW YORK - 01/02/05 - Overseas factories owned and operated by Mattel along with suppliers have made progress but still need to improve working conditions, according to an independent auditor.
 
According to CBS Marketwatch, the International Center for Corporate Accountability (ICCA) released its audit results of the toymaker's manufacturing facilities and suppliers in China and Mexico, saying that although the Southern California-based company has "made significant progress" there's still "has room for improvement in a few key areas."

The ICCA added that although Mattel's facilities are much better in addressing workplace issues around wages, safety and access to management, lingering problems remain with paying employees overtime and minimum wages.

"It's important to note that Mattel's efforts to provide transparency in its supplier base ultimately are providing much-needed transparency throughout the toy industry, because many other companies work with these same factories," said Dr. S. Prakash Sethi, the organization's chairman.

But overall, the center gave Mattel good grades.

"[The company] has exceeded our expectations in providing employees with extensive facilities for extracurricular activities, including sports, education, health and entertainment," added Sethi. "They are setting a good example in the manufacturing industry."

The ICCA is a nonprofit organization that monitors global labor and workplace issues and is associated with the Zicklin School of Business of Baruch College at the City University of New York.

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