Classic LEGO plastic bricks have been fixtures in homes around the world for more than 70 years. Just 15 years ago, The LEGO Group (TLG) was near bankruptcy, spiraling downward and losing money at a rate of $1 million a day. But after a massive restructuring and implementation of a new strategic plan, TLG has been on the rise ever since. In fact, TLG is now the world’s largest toy company, besting powerhouses Mattel and Hasbro. Last year, The LEGO Group (TLG) produced 3,700 different types of LEGO bricks and a record 75 billion total bricks, enough to construct a continuous line stretching around the world more than 27 times. All those bricks went into more than 100 million LEGO sets that found their way into the eager hands of customers in 140 countries, putting over $5.6 billion into TLG’s coffers.

Perhaps more notable than becoming the global toy market leader is the fact that TLG has achieved this feat while also establishing an unsurpassed commitment to social responsibility. In fact, in an annual study published by Forbes, based on ratings of social responsibility from consumers in 15 countries, LEGO came out on top last year, moving up from its fifth-place showing the year before. In the study conducted by the Reputation Institute, LEGO topped all other companies in perceptions that it behaves ethically, operates transparently, conducts business fairly, protects the environment, and supports worthy causes. These consumer perceptions reflect TLG’s actions. According to Stephen Hahn-Griffiths, Chief Research Officer for the Reputation Institute, TLG “has embraced corporate social responsibility from top to bottom.”

When TLG developed its plan to bounce back from the brink of bankruptcy, it also took the opportunity to reevaluate its company values. As a result, a social responsibility strategy became a key component of TLC’s turnaround plan, driven by a desire to have a more positive impact on the world. To demonstrate its commitment, TLG became the first toy company to join the United Nations Global Compact—

the world’s largest social responsibility initiative—

and committed to support the 17 United Nations Sustainable Development Goals............................

Questions 1. Give as many examples as you can for how TLG defies the common social criticisms of marketing.
2. Of the five sustainable marketing principles discussed in the text, which one best describes TLG’s approach?
3. Analyze TLG’s business using the Societal Classification of Products (Figure 16.4).
4. Would TLG be more financially successful if it were not so focused on social responsibility? Explain.