About social ethics

Actually in China “social responsibilities of business” is always one of the hottest topics among the Medias and in the recent years many substandard food and drinks like milk was exposure. Take Sanlu Group as an example, it is one of the biggest and most popular diary producer in China, but its milk powder caused the Kidney Stone of many infant. At last, about 39965 babies are suffered from the poisonous chemicals called Melamine and this event extremely destroyed the reputation of Sanlu Group and reflects that Chinese enterprises’ social ethics desperately need to raise the ethical standards. This event related to many other companies like Eire and Mengniu Dairy (this guy was advertising in IRON MAN), and many countries in the Europe prohibits the import of dairy products “made in China”.

Social ethics directly affect market value in many aspects, e.g after the milk scandal, consumers may dramatically decrease the quantity of consumption and some of them may consumer the  imported milk powder which may worse the terms of trade in one country. R.Edward Freeman said “each one of the group is important and their interests should go together” but obviously these diary producers did not figure out the interest going into the same direction. It is reflected that social ethics is not attached great importance in these Chinese enterprises, they just pay attention on how many profits they can earn but not consider the consumer benefit.