Reference no: EM133189515

Kiddo Toys was a well-known brand for toys worldwide. The company produced dolls, toy cars, radio-controlled cars, boats and aircraft. The headquarters was in Surrey, United Kingdom. The company engaged subcontractors in China and Cambodia to manufacture the toys due to cheaper production cost. The company recorded billions of annual revenues and its subcontracting businesses provided employment and spurred economic activities in the local economies. Kiddo Toys was in 'hot soup' due to the issues of product safety and treatment of employees in China and Cambodia respectively. Some parents were upset and threatened to sue the company because their children fell ill after playing with toy cars bought from the company. Investigation revealed that subcontractors in China had used paint that contained hazardous material on the toy cars. Kiddo Toys claimed that they did not have full control over the overseas supply chain and production operations. Nevertheless, the company had to recall millions of toys worldwide. This scandal tainted the company's reputation and affected its revenues. In Cambodia, local subcontractors hired children in their production plants and subjected their employees to deplorable working conditions. They worked in a stuffy and hot environment. Employees worked for 10 hours at a stretch, and they were not allowed to sit down whilst performing their tasks. When the demand for toys was high, especially in the few months before festive seasons, employees were asked to work overtime often without extra pay. This appalling employment practice was uncovered during the raid by a local authority following a lead by a foreign journalist. 

Q1. Explain with examples the relationship between the case study with Carroll's Pyramid of Corporate Social Responsibility.