...The 2008 Chinese milk scandal was a food safety incident in the People's Republic of China, involving milk and infant formula, and other food materials and components, adulterated with melamine. By November 2008, China reported an estimated 300,000 victims,[1] with six infants dying from kidney stones and other kidney damage, and an estimated 54,000 babies being hospitalised.[2][3] The chemical appeared to have been added to milk to cause it to appear to have a higher protein content. In a separate incident four years before, watered-down milk had resulted in 13 infant deaths from malnutrition.[4] The scandal broke on 16 July, after sixteen infants in Gansu Province, who had been fed on milk powder produced by Shijiazhuang-based Sanlu Group, were diagnosed with kidney stones.[cm 1] After the initial focus on Sanlu—market leader in the budget segment—government inspections revealed the problem existed to a lesser degree in products from 21 other companies, including Mengniu, Yili, and Yashili.[5] The issue raised concerns about food safety and political corruption in China, and damaged the reputation of China's food exports, with at least 11 countries stopping all imports of Chinese dairy products. A number of criminal prosecutions occurred, with two people being executed, another given a suspended death penalty, three others receiving life imprisonment, two receiving 15-year jail terms,[6] and seven local government officials, as well as the Director of the Administration...
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...Introduction 2. China Food Scandal 3. Analysis of China’s case 3.1 3.2 3.3 3.4 Conflict: Business vs. Business Conflict: Business vs. Government Conflict: Society vs. Government Implementations and Critique 4. Taiwan Food Scandal 5. Analysis of Taiwan’s case 5.1 5.2 5.3 5.4 Business Government Consumers Implementations and Critique 6. Alternative Solutions 6.1 6.2 6.3 6.4 Changing the business culture by incentivizing ethical practices 2-Prong approach Improve information symmetry Develop a systematic approach for food scandals 7. Conclusion 8. Appendix 9. References 1. Introduction In recent years, the world has seen many cases of food safety issues, especially in Asia and the effects are global. Our group has chosen China and Taiwan as our two main countries for analysis: China is one of the world’s largest exporters of food products and food safety issue is pertinent; Taiwan’s food products are exported to 15 major countries such as U.S., China, Germany, Hong Kong, and Malaysia (Wang, 2011), thus food safety issue is serious as well. If these hazardous products were circulated to different countries, the consequences would be widespread. This report provides the background information, analysis of the problem and solutions in the respective countries. In addition, our group will identify the root cause of the problem, generate alternative solutions and decide the best-fit solution. 2. China Food Scandal The China melamine milk scandal was uncovered in 2008...
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...9B12C047 FOOD FOR THOUGHT: THE 2008 CHINA MILK SCANDAL1 Vivien K.G. Lim, Rashimah Rajah and Smrithi Prasad wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Richard Ivey School of Business Foundation prohibits any form of reproduction, storage or transmission without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Richard Ivey School of Business Foundation, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2012, National University of Singapore and Richard Ivey School of Business Foundation Version: 2012-11-14 In 2007, Sanlu, a Chinese milk manufacturing company based in Shijiazhuang, was recognized as a formidable force by its competitors as it had topped the list of local dairy producers for more than a decade. It was also the second biggest dairy producer in the world. Sanlu was the number one bestselling milk brand in China, responsible for 18.3 per cent of total national dairy sales in 2007.2 A year later, however, a scandal unfolded that brought not only Sanlu but...
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... | | | | | |Professor: | | | Background Information In the past few years, we have seen numerous food safety scandals in China and rest of the world. Recycled cooking oil scandals, 2011 DEHP scandal, 2008 milk scandal, 2011 E.coli outbreak in Europe, 2006 E.coli outbreak in North America, and illegal additives in Red Bull, these are just...
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...Worrying Food Safety in China: Melamine milk powder Every year before I go back to China, many relatives and friends ask me to bring some milk powders and infant foods. Why? Because people in China think the food safety is untrustworthy, a big amount of people were sickened and killed by food. Unlike the food safety issue in U.S, which is caused by biological reasons mostly, most of incidents of safety in China are man-made. The Food Safety Law has been enacted for two years, but the food safety issues emerge endlessly. It often said that food is the first necessity of the people; food is the most basic condition for survival. If the food is not safe then the life does not have safeguard. A major food safety incident in China was made public in September 2008. Kidney and urinary tract effects, including kidney stones, affected about 300,000 Chinese infants and young children, with six reported deaths. Melamine had been deliberately added at milk-collecting stations to diluted raw milk ostensibly to boost its protein content (Tritscher 1). Milk powder produced by Sanlu Group was found to contain 2563 mg of melamine per kg, while the allowable amount should be 15 mg(Yuan 22). It is not the first time that the scandal of milk powder came out. In April, 2004, more than 200 infants in Anhui Province were diagnosed to have a disease, which caused the infants' heads to grow much bigger than normal ones. It was found that the substandard milk powder produced by a factory in Fuyang...
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...Table of Content | | |Page | |Introduction | |2 | | | | | |Issues | |3 | | | | | |Methodology | |3 | | | | | |Finding |Responsible Party |4 | | |Leadership Role |5 | | |Image-Saving Tactics |7 | | ...
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..."contamination" is usually used for the inclusion of unwanted substances due to accident or negligence rather than intent. Adulterants added to reduce the amount of expensive product in illicit drugs are called cutting agents. Deliberate addition of toxic adulterants to food or other products for human consumption is poisoning. In food and beverages[edit] Past and present examples of adulteration, some dangerous, include: Roasted chicory roots used as an adulterant for coffee Diethylene glycol, used dangerously by some winemakers in sweet wines Apple jellies (jams), as substitutes for more expensive fruit jellies, with added colorant and sometimes even specks of wood that simulate raspberry or strawberry seeds Water, for diluting milk and alcoholic beverages Cutting agents used to adulterate (or "cut") illicit drugs—for example, shoe polish in hashish, amphetamines in ecstasy, lactose in cocaine Urea, melamine and other nonprotein nitrogen sources, added to protein products to inflate crude protein content measurements[1] High fructose corn syrup or cane sugar, used to adulterate honey Water or brine injected into chicken, pork, or other meats to increase their weight[2] History[edit] Historically, the use of adulterants has been common; sometimes dangerous substances have been used. In the United Kingdom during the Victorian era, adulterants were common; for example, cheeses were sometimes colored with lead....
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...Food Policy 36 (2011) 412–420 Contents lists available at ScienceDirect Food Policy journal homepage: www.elsevier.com/locate/foodpol The China melamine milk scandal and its implications for food safety regulation Xiaofang Pei a, Annuradha Tandon b, Anton Alldrick c, Liana Giorgi b,⇑, Wei Huang a, Ruijia Yang a a West China School of Public Health, Sichua University, Chengdu, China The Interdisciplinary Centre for Comparative Research in the Social Sciences, Austria c Camden BRI Food and Drink Research and Services, United Kingdom b a r t i c l e i n f o a b s t r a c t This article examines the development of the Chinese dairy sector since 2000 and investigates how this has affected food safety. The ongoing problems caused by melamine contamination are linked to the rapid and unregulated development of this sector. Currently, China is faced with demands – both from home and abroad – to improve its food safety record. This will necessitate it upgrades its regulatory framework to meet the standards of Codex Alimentarius and the EU. A serious restructuring of the dairy sector as well as of the public food safety control agencies is called for. The costs and benefits to be accrued by these reforms are the subject of this article. Ó 2011 Elsevier Ltd. All rights reserved. Article history: Received 16 February 2010 Received in revised form 20 January 2011 Accepted 3 March 2011 Available online 8 April 2011 Keywords: Safety Melamine Dairy China EU Regulations ...
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...China’s Tainted Baby Milk Powder: Rumored Control of Online News On July 16, 2008, it was announced that several Chinese producers of baby milk powder had been adding melamine, a chemical usually used in countertops, to increase the “richness” of their milk powder and to increase the protein count. Shockingly, the melamine-tainted milk powder was responsible for the deaths of four infants and the sickening of more than 6,200 more.1 Milk manufacturers had been using melamine as a low-cost way of “enriching” their product in both taste and protein count. Melamine, a toxic chemical that makes countertops very durable, damages kidneys. 2 This fact came to world attention on March 16, 2007, when Menu Foods of Streetsville, Ontario, Canada, recalled dog and cat foods that it had mixed in Canadafrom Chinese ingredients that were found to include melamine.3 Very quickly thereafter,pet owners claims and class action lawsuits threatened to put the company into bankruptcy until settlements were worked out.4 A subsequent investigation by the U.S. Food and Drug Administration (FDA) led to the recall of pet food by major manufacturers, including Del Monte, Nestle Purina, Menu Foods, and many others.5 On February 6,2008, “the FDA announced that that two Chinese nationals and the businesses they operate, along with a U.S. company and its president and chief executive offi cer, were indicted by a federal grand jury for their roles in a scheme to import products purported to be...
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...Case Study The 2008 Chinese Milk Scandal Contents * Introduction * The Hand of Management * The Hand of Government * Employees * Customers * International * Conclusion * The Hand of Management According to our group study and discussion, we think that this company is extremely unethical, for they think only profits and ignore social responsibility. For this case, we refer to all the levels of managers, for example, the top manager, the middle manager, and the first line manager of the company. They joint hands together, and make the decision about how to generate income with less time consuming. The theory of iron law of responsibility stated that “In the long run, those who do not use power in a manner that society considers responsible will tend to lose it” And they lose it! Since they are just pursuing economic goals, without considering the society. This is clearly reflected that the hand of management of this company is very low. They definitely do not have organizational social responsibility such as: economic, ethical, legal, and discretionary responsibility. Moreover, they are too greed to be rich as they knew that there is no shortcut to succeed. It is basically mean they need to think in long-term benefits especially for the society. According to the hand of management viewed that “Corporations and their managers must act to protect and improve society’s welfare whereas advancing corporate economic interest. We can say the development...
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...Assignment on Ethics In Organization S.R.Lutra Institute Of Management Submitted to Amruta Nag Submitted by Pratibha Chaudhari 08 Payal Khetani 17 Nikita Pereira 27 Dhara Suvagiya 31 Hetal Vaghora 32 (MBA 1st shift Academic Year 2010-11) Ethics in organization Introduction to ethics Ethics is not a recent discovery. Over the centuries philosophers their struggle with human behavior have developed different approaches ethics, each leading to different conclusions. The word “ethics” which are coined from the Latin word ‘ethics’ and greek word ‘ethikos’ pertains to character. Ethics is thus said to be the science of conduct and morals. Meaning Ethics is the branch of philosophy which is the systematic study of selective choice, of the standards of right and wrong and by which it may be ultimately be directed...
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...accused of corruption in China Chinese state television aired a story last week in which Dumex, a Danone subsidiary, is accused of corruption. An anonymous former sales manager of Dumex was cited by CCTV, saying the company is paying medical staff at local hospitals in China, to promote its milk powder products (Jourdan & Laurent, 2013). Danone’s reaction in a statement, issued last week, was that it is “shocked” and that an internal investigation will follow (Jourdan & Laurent #2, 2013). Foreign brands hold high market shares in this industry, because Chinese parents often do not trust local brands due to a scandal in 2008, when tainted local brand milk powder products killed numerous children and babies (Harrison, 2013). In the past few weeks the Chinese government has charged numerous probes against corruption, among them various drug companies have been investigated. The healthcare industry seems to be sensitive for corruption, fueled by low wages for doctors and other hospital staff (Jack, 2013). Dumex, and various of its competitors have recently been accused of price fixing, which is in violation with the Chinese anti-monopoly laws, these accusations eventually lead to price reductions of Dumex’ infant formula products (Astley, 2013). In the latest allegations, Dumex is accused of paying so called “sponsorship fees” to various ranks of hospital staff. According to the CCTV report hospital staff was demanded to advise Dumex milk powder to new born babies, which...
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...Heparin: Costs and Deadly Side Effects Heparin is a blood thinner, prescribed by physicians and surgeons for kidney-dialysis and post surgical patients to prevent blood clots. One of the key ingredients in Heparin is derived from the mucous membranes of pig intestines; pigs naturally produce proteins used in pharmaceutical products. Baxter International, a very large multinational health care company based in Deerfield, Illinois, whose sales totaled $11.26 billion in 2007, partnered with Scientific Protein Laboratories (SPL) to provide Baxter with the key ingredient for Heparin. SPL was started in 1976 by Oscar Meyer Company in Waunakee, Wisconsin. In 2007, a team of quality control specialists from Baxter International visited a facility in the Zhejiang Province, which is located in a remote area north of Shanghai, China. This facility is owned by its partner, SPL. The quality control team found nothing unusual and gave the facility a “clean bill of health.” Approximately a month and a half later, after using Heparin for two months while on dialysis, an American woman, Bonnie Hubley, died on December 19. She had been rushed to the hospital two days prior with various complications, such as diarrhea, vomiting, as well as substantial pains in her chest and abdominal areas. Within two days of admittance into intensive care, she slipped into unconsciousness and was placed on a breathing tube, deteriorating rapidly. The doctors at the Toledo, Ohio hospital were stunned...
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...Fonterra’s Company………………..2 Issues of Fonterra’s company.....................................3 Solution to Issues……………………………………4 Conclusion…………………………………………...5 Reference…………………………………………….6 Fonterra’s Milk Scandal: The Issues surrounding it and how can Fonterra’s managed the issue? Introduction Milk is a nutritional product very good for health and almost all age are using. The dairy industry is currently developing. Typically, the dairy market today has a millions of different brands of milk from around the world. Dairy industry development because the benefits of milk to provide for health people is extremely large. Targeting that benefit, so now has a lot of dairy company consecutive established for the purpose of competitive and to looking for profit from that industry but they don’t care about a business ethics. That led to some large companies do everything possible to get revenue as skipping the period in production to shorten the process and change or add some cheap has toxic component to decrease cost of production and increase profits. Such behavior has violated business ethics and caused a serious consequence to the health and the faith of consumers. Typical, Fonterra; the best dairy company in the world has violated of business ethics when related the scandal of the milk has toxic harmful to human health and loss of image of company. That issue must be considered and review to demonstrate that problems right or wrong. In addition, it is more important things to see...
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...product recalls. The long-term effect of these crises is damaged reputation to the affected brand and organization. The key challenge for organizations confronted with a product harm crisis is to restore consumer confidence. Examples of Product-Harm An example of this product harm crisis involved Kraft Foods Australia‘s peanut butter division. Kraft was notified of a possible link between its peanut butter and salmonella poison outbreak. This brand of peanut butter was recalled and removed from stores. Business Reviews Weekly in 1996 stated that Kraft’s Foods share sank from 67% to 0% in less than two weeks (Helsen, Zhao & Zhao, 2011). Another example of product harm is the China's 2008 milk scandal. Sanlu, the leading infant formula brand injected the chemical melamine into their milk to artificially improve its protein level. This resulted in at least six deaths and kidney damage to babies who were fed this...
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