Ethics Pom Ppt

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Case Study The Chinese tainted milk scandal Abstract:- The case discusses the tainted milk scandal that was unearthed in China in 2008. The milk scandal became public in August 2008, after it was disclosed that the baby formula produced by the Chinese dairy products company, Sanlu Group was contaminated with melamine, which caused kidney failure of many children, resulting in death in some cases.

Transcript of Ethics Pom Ppt

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Case StudyThe Chinese tainted milk scandalAbstract:-The case discusses the tainted milk scandal that was unearthed in China in 2008. The milk scandal became public in August 2008, after it was disclosed that the baby formula produced by the Chinese dairy products company, Sanlu Group was contaminated with melamine, which caused kidney failure of many children, resulting in death in some cases.

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Later, the investigation by the government revealed that the products of 21 other Chinese dairy firms were also contaminated with melamine. As soon the crisis became public, the Chinese Health Ministry ordered the dairy firms to recall the contaminated products and to destroy the unsold and recalled products. The Chinese Health Ministry started testing dairy products across the country.

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Role playThe chairperson of the Sanlu company calls for a meeting to address on the issues of low sales of the milk formula that was a product especially for babies.(The scene is that the chairperson in the board meeting with other top management executives)

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-continued After the meeting management decided to change the overall packaging, product cover design, new ads ………..

“New improved baby powder instant make suitable with hot and cold milk…………”

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-continuedAfter 3 months complaints started pouring in and the complain was that the babies developed kidney stone consuming the baby formula.(The customer care executive attending the calls.)

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Day 1

20 complains

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Day 2

35 complains

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Day 3

37 complains

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Day 7

Till now 205 complains

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-continuedOn the 7th day the customer care executive makes a report to submit it to the head of the customer care department.(Customer care executive enters the cabin of the head of the customer care department where the head of the marketing department was also present.)

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-continuedAfter another 3 monthsA food inspector from government food and drugs department comes for a surprise checking and finds out that melamine was mixed with the baby instant make and goes to chairman of the company without any warning.

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-continuedThe food inspector also got involved hand in gloves and submitted a clean report to the government and ministry.After a month the situation still prevailed; many more complains and cases of kidney stone and even deaths were registered now and the media took notice but no one could do anything as the reports with government showed no signs of damages by the company .

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-continuedNumber of cases kept increasing and the media created an alarm and now WHO- World Health Organisation came into the picture and sent their officers to take control of the situation and further the inquiry after the scandal became public.

(Customer care executive knew about the malfunction and now could no longer keep quiet and so called one of the WHO officer and met him at the bus stop and handed over to him the copy of the reports that was once thrown by the head of the department when it was submitted)

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-continuedNow when the WHO came into the picture inquiry was done on a nation wide scale and was found that not only Sanyal baby formula but 21 other dairy products were mixing melamine and if not that but some other toxic substance in their dairy products.

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-continuedTop executives of Sanlu were arrested. Government offficials who were found guilty were also sackedThe company was ordered to destroy the recalled products and the products that remained unsold. Sanlu was also asked to stop production and some of the top executives of the company were arrested and taken to court.

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Aftermath

Two persons accused in the tainted milk scandal were sentenced to death. The court held them and others responsible for producing and selling dairy products contaminated with melamine. Death sentence was given in whose workshop melamine was manufactured and who sold contaminated milk to the dairy companies. Tian Wenhua (Wenhua), Chairperson and General Manager of Sanlu Group was given a life sentence. The melamine contamination in milk led to the death of six children and hospitalization of several newborns in China.

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AftermathChina's Dairy Industry Association announced that the affected children and their families would get compensation from the dairy firms responsible. To support the affected dairy farmers, the government announced that it would give them a subsidy.The incident raised concerns about food safety standards in China besides delivering a body blow to China's reputation as one of the leading food product exporting countriesA text message was also issued by the Chinese dairy firms that they had sold melamine contaminated milk was widely circulated in China. In that message, the firms apologized for their role in the milk scandal.

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