OSCM6120 Sanlu Milk Crises #1 Background On 12 September 2008‚ Sanlu Group‚ the biggest producer of milk powder in China‚ rocked the country when it admitted that its infant formula had been contaminated with the toxic chemical melamine. China’s national inspection agency extended its investigation to other dairy manufacturers across the nation. Shockingly‚ products of 21 other dairies‚ including some famous Chinese brands‚ also tested positive for melamine. Due to consumption of melamine-laced
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Assignment Two Business Background Research Report -To be or Not to be Ethical in Business? Research Target: Sanlu Group Student Name: Lin Li Student Number: 3266036 Date: 18/4/2011 Executive Summary Sanlu Group was one of the oldest and most popular brands of dairy product company in China‚ August 2008‚ the outbreak of melamine contaminated infant milk powder‚ a sharp decline in corporate reputation occurred. December 2008‚ Sanlu Group declared bankrupt by the
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An Analysis of Sanlu Milk Powder Scandal in China in 2008 Written by: Lou Yuxi Supervised by: Chee Soo Lian PSB Academy June 2013 Abstract This research aimed at analyzing the causes and negative effects of Sanlu milk scandal in China in 2008.Many children suffered the diseases named urinary tract stone because of drinking the milk products which contain melamine. The main reason the companies do that is they want to increase the content of protein at less cost by adding melamine when
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213015672 Review of the Main Features of the Case In late summer of 2008‚ a tainted milk scandal unfolded in China and shocked the world. Sanlu Group Inc. (Sunlu)‚ was a state-owned Chinese dairy products company in China which offered milk powder‚ including baby formulas and nutritional supplements. In September 2008‚ Sanlu came to international attention due to product concerns regarding its infant milk formula‚ which was discovered to have been contaminated with melamine that was 5125 times
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Sanlu Group was created in 1996 after several acquisitions in prior years. It was one of the oldest and most popular brands of infant formula in China. Tian Wenhua‚ the CEO and Chairwoman of Sanlu led the Chinese powder market for 13 consecutive years in terms of sales. Tian was considered one of the most successful entrepreneurs in China for her role in building the company. In December 2005‚ a joint venture agreement was signed which involved New Zeeland dairy cooperative Fonterra taking a 43%
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SANLU’ S MELAMINE-TAINTED MILK CRISIS Case Facts: • Incidence of finding high levels of melamine in milk and milk products for infants produced by a famous dairy processing company of China known as Sanlu. • Death of 3 babies and 6200 diagnosed with kidney problems and cases of kidney failure due to consumption of tainted milk. • The news of discovery of tainted milk was hidden from the central government by the local offices and the Company itself. • Whistle blowers/critiques
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Question 3: What steps could Baidu.com take to restore its reputation‚ and what challenges will it have to overcome? Steps to restore the company reputation: 1. Know The Truth If the Company want to get rid of a bad reputation‚ the Company will first have to look at themselves and seek the reality. Is there any truth in what the people say about themselves? Baidu.com will have to look at the rumor of how they were said to have accepted payments to withholding a company’s information from online
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1.0 INTRODUCTION 1.1 Background of Sanlu Group Sanlu Group is one of the largest milk powder manufacturers in China. It was founded in 1956 and also named as Shijiazhuang Three Deers Limited. In December 2005‚ Sanlu Group had a joint venture agreement with Fonterra‚ which is a New Zealand famous dairy company. Fonterra had taken 43% equity stake in Sanlu Group and the majority 56% stake owned by the Shinjiazhuang Three Deers Limited. In 2009‚ Sanlu Group declared bankrupt by the court due to some
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PROBLEM ANALYSIS Starting with just 32 cows and 170 milk goats pooled by 18 farmers in Shijiazhuang‚ the Sanlu Group began its journey as a small dairy producer. The CEO of the company‚ Tian Wenhua steered the company through milk shortages and tough economic times. To meet rising demands for milk‚ she implemented a system that allowed villagers to supply Sanlu with the bulk of their raw milk supply. The demand grew at such a rapid pace that Sanlu could barely keep up and so began sacrificing quality
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foundation for a business. “Business ethics is the study of what constitutes right and wrong (or good and bad) human conduct in a business context.” (p25) From the lecture‚ we know that ethics matters because “how organizations behave have important implications for how they fulfill their social and economic roles” and “their success as well as the success of their employees‚ customers‚ etc.” Thus‚ running a business ethically is good for business. Applying Solomon’s three C’s of business ethics and the eight
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