Mattel is a Multinational Company (MNC) and world leader in the toy manufacturing industry (Sethi et al, 2011). The company once led a global initiative to address unfair wages, hazardous working conditions, and environmental pollution, with an international code of ethics (Sethi et al, 2011). Mattel follows local regulations, but the regulatory standards in China where their largest foreign plant is located, are subpar when compared to US environmental, safety, and workers standards ( DiMaggio, and Powell, 1991 ). The quality contrast between countries created an ethical dilemma, and a regulatory nightmare for them. Cultural and Regulatory Challenges For more than twenty years, researchers highlighted Mattel in view of global ethics ( Sethi et al, 2011). The corporation doubled its outputs in China where alarming trends of mistreated workers allegations, contamination of the ground, air, and fresh water supply speculations are frequent (Sethi et al, 2011). Managers for Mattel...