Business Ethics

Dairy giant Fonterra acknowledged that their products had been contaminated in early August. Fonterra, the world’s largest dairy exporter, said that this caused by unsanitary pipe at one of the company’s processing plants.After this incident, the CEO of Fonterra made apology instantly to the consumers.This issue caused a serious effect.China announced temporarily suspension to some of Fonterra’s products.
Fonterra discovered that some whey protein concentrate produced and sold to customers in May 2012 was contaminated, but the test results did not reveal until the end of July.This kind of behavior can make customers do not trust the company anymore and have bad effect on the brand’s reputation.The milk powder is designed for infants or kids, so the quality of milk powder is essential for the company as well as the kids and parents.The company have responsibilities for the kids, so the milk powder need to be safe.However, the CEO’s sincere apology can make up the influence of the incident.But what Fonterra need is not only apology but also actions.The process need to be controlled and to test some samples before put the products into market to ensure this kind of issue will not happen again.

Bacteria found in Fonterra dairy products

http://www.theglobeandmail.com/news/news-video/video-bacteria-found-in-fonterra-dairy-products/article13588449/

Fonterra CEO apologizes to Chinese consumers for tainted dairy

http://english.sina.com/business/p/2013/0805/615645.html

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