China swept in a food scandal once again

Late in July it was revealed that Shanghai Husi Food supplied outdated meat to fast food chains such as McDonalds, KFC and FamilyMart in China and Japan. Why would Husi supply expired meat to begin with? By selling them, it lowers their cost of production which in return, increases profit. A firm’s ultimate goal generally is to maximize profit and Husi is no exception. However, by supplying expired meat, they are not maintaining their social responsibilities to their community, consumers and shareholders. Although it is to the best interest of the company, the action of selling
such products is unethical. It may cause severe health issues in the future as a result of the consumption of this meat. Aside from the effects to its own company and its reputation, it affects the buyers’ reputation as well. Customer loyalty of the food chains affected drops, decreasing a company’s willingness to purchase from the same supplier once again. In return, this creates an incredible negative impact on Husi.

Husi may not have violated a law in hopes of producing more revenue but it has definitely crossed the lines of the ethical customs in our society. Not only will it be more difficult for customers and consumers to trust Husi again but it also influences the reputation of the fast food chains that were once supplied by Husi.

 

Sources: (1) (2) (3) (4)
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