SANLU’ S MELAMINE-TAINTED MILK CRISIS Case Facts: • Incidence of finding high up levels of melamine in milk and milk products for infants produced by a famous dairy processing company of China cognize as Sanlu. • Death of 3 babies and 6200 diagnosed with kidney problems and cases of kidney failure due to intake of tainted milk. • The news of discovery of tainted milk was cabalistic from the central government by the local offices and the gild itself. • tattle blowers/critiques were silenced with bribes (monetary and other incentives) and efforts were made to bribe media, but media didn’t give in. • Fonterra pulled out of the Chinese market and withdrew its products which were sourced from china from the market. • Surprisingly, the do of melamine in dairy products was an open secret in China and was also encouraged. • The sourcing of milk was done over a geographical disunited area which made it difficult to wangle the operations. • The sourcing of milk was done over a geographical scattered area which made it difficult to supervise the operations. • Whenever any constitution measure/cost measure was announced, the farmers were the only one who had to present a setback in terms of revenue.
Case Issues: • The degradation of infant milk with melanine - a prejudicious content which bear on the children • The attempt to prevent the news from breaking out in public to avoid public defamation. • The resort to malpractices in sheath of competition and a need to reduce prices • Prior and house role of Government in handling the case Stand of the Company: The company though apologized publically and declared withdrawal of the tainted products from the market but still it continued selling products with 10mg/kg of melamine and replaced the high level products with lower ones which were still harmful for the public. The company blamed raw...
Case Issues: • The degradation of infant milk with melanine - a prejudicious content which bear on the children • The attempt to prevent the news from breaking out in public to avoid public defamation. • The resort to malpractices in sheath of competition and a need to reduce prices • Prior and house role of Government in handling the case Stand of the Company: The company though apologized publically and declared withdrawal of the tainted products from the market but still it continued selling products with 10mg/kg of melamine and replaced the high level products with lower ones which were still harmful for the public. The company blamed raw...
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