New report highlights structural obstacles to toy manufacturer implementation of labor codes of conduct. Nongovernment organizations in Hong Kong released fresh research this week regarding labor issues in southern China's toy manufacturing industry. The research revealed structural flaws in the toy industry that prevent compliance with the voluntary codes of conduct that name brand companies are advocating. Toy manufacturers in China's southern provinces supply almost 70 percent of the world's toys, including products for major U.S. brand name companies such as Mattel, Hasbro, Disney, and fast-food giant McDonald's.