Chinese Toy Quality – An Opportunity for Global Leadership

The alarm and reaction to the discovery of lead-based paint in toys manufactured in China and sold in the United States illustrates in stark terms why new standards of leadership are needed as the economy becomes increasingly globalized and interdependent.

The majority of the response has been narrowly focused and largely concerned with fixing blame or claiming innocence. Politicians attack the US Consumer Product Safety Commission, toy makers blame Chinese contract manufacturers, Chinese government officials complain that US officials are not aligning with efforts in China to certify suppliers, and everyone claims to be doing their best to safeguard children.

Almost all the attention is being placed on “inspection”—that is, on catching bad products before they reach store shelves. Probably the most extreme example of this “cows have left the barn” approach has been the Walt Disney Company’s announcement that it would pay independent firms to test products bought at US stores for lead paint and other hazards.

Challenging situations like these are complex and defy identifying one sole party as the villain—or the hero. What no participant seems to be concerned with, however, are the causes of lead-based paint being used in toy production. Doing so would take courage, and would demand an examination of the entire “cycle” of toy design, production, distribution and sale. Every player in the supply chain—including consumers—might have to make “sacrifices.” But there are plenty of opportunities for “win-win” outcomes.

As an example: Many of the decisions that drive toy production are undoubtedly made to squeeze profits out of the supply chain and still offer toys at a competitive price. Yet to avoid dangerous products getting to the shelves, millions of dollars and renminbi are being spent to weed out the bad stuff. Since that has not worked thus far, the preferred answer—more inspection—will just add more costs.

One small example of a “shared benefit” approach came from the US Toy Industry Association, which has included ensuring safety of toys sold in China as one of its key objectives. Finding ways to engage various players though mutual wins is a key to getting past enforcement-only solutions to toy safety problems.

The “toy crisis” serves as a focal point for many similar challenges in a global economy where the costs are allocated very unevenly and where the totality of benefits and consequences is ignored. The sustained health and stability of the world economy may rest on finding more holistic approaches that have short-term costs but longer-term benefits to many many people and businesses.

In future posts, we’ll look at specific ideas on how Change Leadership principles can support a broader view toward solutions. In the meantime, we welcome and encourage comments and ideas on this critical issue.