Gutter oils were baked into mooncakes to reduce costs. Oil manufacturers in China, ignoring the health concerns of many consumers, replaced butter with sewer oil to lower material costs. As Milton Friedman stated, the social responsibility is to “make as much money as possible while conforming to the basic rules of the society, both embodied in law and those embodied in ethical custom.” By selling illegally recycled oil, the company gains short-term profits at the expense of the consumers’ health. The gutter oil has dangerous chemicals such as heavy metals and carcinogenic toxins that can cause gastrointestinal pain leading to severe health issues.

While the oil company profited in the short run, the company could face fines up to US $1.67 million and possibly be put of business. The Stakeholder theory states that in order for a business to succeed, all stakeholders must benefit. The stakeholders affected by this oil scandal include the owner of the Oil Company, the employees of the oil and Mooncake Companies, the Mooncake manufacturers, and the customers. All stakeholders suffered from the selfish actions of the Chang Guann Oil Company, which does not satisfy the social responsibilities of a business.