http://www.bbc.com/news/business-29137640

Because of this scandal, it will be hard for the food industry of Taiwan to recover for a long time. Nowadays, the consumers are scared to purchase any food from anywhere, as they fear that more there might be more undiscovered elements in the food. This incident have ruined Taiwan’s overall image as a “safe food heaven”. Since tourism and the food industry account for Taiwan’s main source of income, the decrease of purchasing power may reduce the earnings of both households and the firms, which in overall will harm the economy of Taiwan in general.

Milton Freedman said that business has only one social responsibility, which is “to use it resources and engage in activities designed to increase its profits without deception or fraud.” However, Chang Guann Co. has failed to do so. 

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