Cim Full Essay

2574 words - 11 pages

Definition of Business Ethics……………………….2
Background of Fonterra’s Company………………..2
Issues of Fonterra’s company.....................................3
Solution to Issues……………………………………4

Fonterra’s Milk Scandal: The Issues surrounding it and how can Fonterra’s managed the issue?
Milk is a nutritional product very good for health and almost all age are using. The dairy industry is currently developing. Typically, the dairy market today has a millions of different brands of milk from around the world. Dairy industry development because the benefits of milk to provide for ...view middle of the document...

To easy understand, Business ethics including the principles, worth ​​and standards of a particular behavior in the field of business. Business ethics is a system of moral principles to be applied in business world, the instruction of behavior be accepted in strategy and daily operations of the organization. Modes of operation with business ethics are becoming more necessary to finding a success and building a positive image of business (Vietfin Monitor, 2005). The construction of standards behavior and business ethics is the foundation of business system for sustainable development, follow general progress of humanity.
Background of Fonterra
New Zealand is one of the best countries has developed dairy industry in the world. The company Fonterra has a huge influence on the economy of New Zealand. Fonterra has a thousand employees from New Zealand and oversea. Fonterra based on the material be ensured safety, high milk quality. Fonterra has four key planning objectives. First it’s to keep low produce and operating cost. Second is construct a network firmly supplier and build a faith with counterparts and customers. Third is keeping development with the foreign markets. Last is making Fonterra dairy is the selection priority of consumers. (Fonterra Company Website, 2011)
Issues of Fonterra
In September 2008, A scandal milk has toxic was occurred in China, when checking the ingredients in milk, the functional agencies was detected in Milk has melamine; a kind of toxic can make children have a kidney stone, kidney failure. That scandal affect to the health of more than 290000 people in the world, more than 50,000 hospitalizations, have 6 people died in China (Morehouse, Freienstein & Cardoso, 2010). When depth investigation into this matter, the investigation agencies found more than 20% dairy company has milk product infected melamine. The issues could happen when many firms reduce production costs and use cheap materials have toxic to increase profits. Fonterra's scandal has made a serious consequence to health of people and affect to food hygiene and secure (Li & Liu, 2010). Moreover, Fonterra; a large firm of dairy industry has violated a business ethics when related to the aforementioned scandal. We usually think European countries often carefully, rigorous in the production issues and quality inspection of food safety, but they still cannot get rid of the crisis (Ho, 2011).
On August 3 2013, Investigation Agency has recovered a lot of dairy products sold by Fonterra for suspected has toxins in milk. Products suspected have toxins appeared in three warehouse of Fonterra and weigh 38 tones were produced in May 2012 (Gerry Mullany, 2013). One problem was interested by the media's in March 2013 when milk product of Fonterra was testing in laboratory and has detected in milk has Clostridium; a kind of harmful bacteria. In July 2013, a further inspection to Fonterra products and has detected appearance of bacteria: Clostridium Botulism...

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