You don't identify a connection between corporate pressure to reduce production costs and the accidental release of defected and dangerous products?
Interesting comment. Yet, Mattel (as an example) isn't the only company that supplies their products. Maybe the suppliers and retailers should of have had a more active role however when business is usually based on trust after good reputations, businesses shouldn't have to expect such things to happen. But don't think that risk management teams aren't all over this. They are going to make sure that something like this isn't going to happen again. The cardinal rule is admitting mistake, and that has happened.
Evil? No, just complicated. As a single organization it is only a product of economic circumstance. The owners of Wal-Mart are forced to engage in harmful practices due to the competitive market.
Forced? I don't think so. Complicated? Maybe. Mattel at first tried to blame China's producers only later to blame themselves. The business world is much complicated but I don't think we should be so quick to blame retailers even if they have had an indirect effect on production. If certain production standards can't be met, truthful companies should be open about it. That's it. If not, government needs to step in. And china did. Supposedly.