The paper "Corporate Communications and Corporate Branding " Is a great example of a Management Case Study. The provision of products and services that affect the lives of the consumers are considered as a vital process to the wellbeing of a company. Trust is, therefore, a major component of the values of any company considering that it is a strategic asset that directly affects the bottom line (Burke et al, 2011). In addition, trust is also considered necessary since it underlies all the relationships within a company including the definition of organizational culture.
For Mattel Company and the British Broadcasting Corporation (BBC), for instance, trust is largely an emotional aspect that binds the clients to these organizations. Trust forms part of the cumulative behavior that facilitates the creation of confidence and a mutual relationship between consumers and the organization (Castaldo, 2007). The responsibility of maintaining and improving the levels of trust is that of the organizations. This is through the products and services that are produced. Organizations have to ensure that there is the maintenance of confidentiality; consumer integrity and safety in the process of preparing their products and services that are to be delivered to the (Hong et al, 2008).
Mattel company, for instance, has the responsibility of ensuring the tall its toys are produced in accordance with the safety standards. It is also the responsibility of the BBC to ensure that its news items are reliable, genuine, and developmental to the consumers. Loss of trust will not only lead to high instances of suspicion but will also lead to loss of the integrity of a company’ s reputation to its consumers hence affecting its profit levels (Hong et al, 2008). Case study 2: Mattel Company The root causes leading to lack of trust In July 2007 Mattel Company was informed of the potential threat arising from the company’ s toy giant supplier in China.
This was following the discovery of relatively high levels of lead in its paints which are used in the decoration of its toys. This was considered a breach of contract since the levels were illegal and the consumption or ingestion of lead from these toys could lead to serious health problems to the children who are the major customers of the company.
It is important to note that the problem was exacerbated by the realization that most of the products of the company that were sourced from China also had high levels of lead in the paint used in toys. In august of 2007 Mattel was faced with an additional problem that required the company to recall about 18 million toys considering that they were made of small but powerful magnets that could bond together in the digestion system if swallowed. The issue of trust levels of the company was resulting from the two problems whose main causes were relatively dangerous methods of producing toys, especially in China.
The design of the company’ s toys was there hazardous to the wellbeing of the children. In addition, the company was also faced with the probability of child fatality considering that most of the target customers were children and for a long time the company had been considered as an honest manufacturer of toys.
Burke, R. J., Martin, G., & Cooper, C. L. (2011). Corporate reputation: Managing opportunities
and threats. Farnham, Surrey: Gower.
Castaldo, S. (2007). Trust in market relationships. Cheltenham, UK: Edward Elgar.
Hong, S. Y., & Syracuse University. (2008). The effects of relational satisfaction, organizational
reputation, and identification with company on customers' communication behaviors.