CORRECTED - UPDATE 1-Group finds China toy factory conditions "brutal"

(Corrects para 18, deleting words "like Mattel's", to show report did not mention Mattell specifically in this context)

HONG KONG, Aug 21 (Reuters) - A U.S.-based workers' rights group said it found "brutal conditions" and labour violations at eight Chinese plants that make toys for big multinationals, and called on the companies to take steps for better standards.

China Labor Watch said in a report issued on Tuesday after several months of investigation that the manufacturers -- which served a handful of global players, including Disney, Bandai and Hasbro -- paid "little heed to the most basic standards of the country."

"Wages are low, benefits are non-existent, work environments are dangerous and living conditions are humiliating," it said.

The report comes as Chinese exports are under growing scrutiny abroad over safety concerns a week after Mattel Inc MAT.N recalled millions of toys, including 436,000 die-cast toy cars from its "Cars" line, because they may contain excessive amounts of lead.

China has also been hauled over the coals for the safety of food, drugs and other exports ranging from tyres to toothpaste. Officials have been quick to say that the vast majority of the country's exports meet standards.

The report concluded that "short-sighted policies" drive major companies to "turn a blind eye to safety -- and to ignore the labour conditions in their supplier factories as well."

"Instead of concentrating on improving product safety and workers' lives, companies spend their energy creating beautiful pamphlets on social responsibility, disputing critical reports and shifting blame," it said.

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Walt Disney Company International (DIS.N) said that it and its affiliates take claims of unfair labour practices very seriously, investigate any such allegations thoroughly and take remedial action.

"We have a firm commitment to the safety and well-being of workers, and fair and just labour standards," spokeswoman Alannah Goss said in an e-mailed statement.

Hasbro (HAS.N) could not be reached for an immediate comment, while Japan's Bandai (7832.T) declined to comment.

China Labor Watch listed steps big international firms should take, including: pay supplier factories a reasonable price for their products, help the factories correct violations and take responsibility for suppliers' legal infractions.

They should also pay better wages and publicise the results of factory audits, it said.

Many foreign companies and experts in Chinese manufacturing say it can be hard to verify whether or not a supplier is living up to commitments to meet labour and environmental standards 100 percent of the time.

Suppliers, including some named in the China Labor Watch report, sometimes coach employees how to answer questions during inspections, and many keep two sets of books to fool auditors.