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2008 Chinese milk scandal - On company’s response, (pros & cons)

2008 Chinese milk scandal

The scandal involved Sanlu Group`s milk product being adulterated with melamine. This chemical was used to increase the nitrogen content of diluted milk, giving it the appearance of higher protein content in order to pass quality control testing. Of an estimated 294,000 victims, 6 babies died from kidney stones and other kidney damage and an estimated 54,000 were hospitalized.

Involving multi-stakeholders, including the company itself, consumers, Chinese state council, local government, dairy farmers, overseas: the whole Chinese dairy industry suffered since 25 countries stopped importing Chinese dairy products.

the company tried to buy off critics and cover up the contamination.  The agency reportedly had repeatedly contacted key account staff at Baidu and proposed a ¥3 million (US$440,000) budget to screen all negative news

On 15 September, the company issued a public apology for the contaminated powdered milk; Sanlu was ordered to halt production, and to destroy all unsold and recalled products. Authorities reportedly seized 2,176 tons of powdered milk in Sanlu`s warehouses. An estimated 9,000 tons of product had been recalled.

• Evaluation (500 words)
• On company’s response, (pros & cons)                        
• Recommendations (alternative approaches