A Corporate Ethical Test
What’s Your Decision?
Professor Andrew B.C. H
P f A d B C Huang,
Doctor Max Chin
National Taiwan University of Science and Technology,
M tS h l
firstname.lastname@example.org 2008 Winter
2008 Sanlu Milk Powder Recalls
• In September 2008 Sanlu recalled all powdered milk in the north-west
China's Gansu province where melamine was reported to have been used
in 22 brands of infant formula, making more than 53,000 infants ill and
hospitalizing almost 12,900.Melamine has also been found in products
produced by Yili Industrial Group Co, and Mengniu Dairy Co. As of 18
September 2008 there had been four confirmed infant deaths from the
contamination of powdered milk with melamine with a number of survivors
diagnosed with acute kidney failure.
• Melamine may have been added to fool government quality tests after water
was added to fraudulently increase the milk's volume. The adulterant
melamine was added to the milk to allow the company to dilute the milk with
water and circumvent government regulations, since melamine will cause a
false increase in the measurement of protein by increasing the nitrogen
levels in the milk.
• Officials ti t th t b t
Offi i l estimate that about 20 percent of the dairy companies t t d i
t f th d i i tested in
China sell products tainted with melamine.
Further information: 2008 baby milk scandal
Incidents of Contaminated Milk
What Does These Recalls Mean to Government?
2007 Pet Food Recalls
• In 2007 a pet food recall was initiated by Menu Foods and other pet food
manufacturers who had found their products had been contaminated and caused
serious illnesses or deaths in some of the animals that had eaten them.
• On 30 March 2007, the US Food and Drug Administration reported finding white
granular melamine in the pet food, in samples of white granular wheat gluten
imported from a single source in China Xuzhou Anying Biologic Technology as well
as in crystalline form in the kidneys and in urine of affected animals. Further
vegetable protein imported from China was later implicated. See Chinese protein
• The practice of adding quot;melamine scrap to animal feed is reported to be widespread
in China in order to give the appearance of increased protein content in animal feed.
2007 Ohio Recalls
• Melamine has also been purposely added as a binder to fish and livestock feed
manufactured in the United States and traced to suppliers in Ohio and Colorado.
Regulation & Health
What Do These Regulations Mean to Government
• The Food S f t
Th F d Safety and Inspection Service (FSIS) of the U it d St t
dI ti S i f th United States
Department of Agriculture (USDA) provides a test method for analyzing
cyromazine and melamine in animal tissues in its Chemistry Laboratory
Guidebook which quot;contains test methods used by FSIS Laboratories to
support the Agency's inspection program, ensuring that meat, poultry, dairy
and egg products are safe, wholesome and accurately labeled.quot;
• In 1999, in a proposed rule published in the Federal Register regarding
cyromazine residue, the United States Environmental Protection Agency
(EPA) proposed quot;removing melamine, a metabolite of cyromazine from the
tolerance expression since it is no longer considered a residue(殘留)of
• Melamine, classified a controlled substance in China, has been illegally
used in the high profile 2008 baby milk scandal case which led to the
death of at least 4 infants.
• Melamine by itself is nontoxic(無毒)in low doses, but when combined with
cyanuric acid it can cause fatal kidney stones. Source: Google
Why Go e
y Government Always
The Last One To Know
Melamine Food Supply Chain
Who is loser and Who is Winner?
Economic Daily 2008/09/25
How About Law and Ethics?
• Not allow to sale, not the same mean of allowing manufacturers to adding some of
ingredients by pretend ignorance in production.
• If there were pretending innocence/or ignorance, the producers should take the
premeditated crime” (預謀 事先計劃)
responsibility of “substantial fault” in “premeditated crime (預謀、事先計劃)
食品安全標準在均衡供應廠商與消費大眾的利 確保食品廠商不致負有 絕對的
Digest: 2008-10-02 中國時報 【許繼隆／北市（研究生)
2008 10 02
The Key Issues Are
There is a law, and ethics too
The Questions to you:
1. Premier Wen of China said that one of the key issues of contaminated milk is the
business ethics. We should to enforce our corporate ethics, professional ethics, and
contraction of social ethics as well, to eliminate this kinds of events happen again.
Do you agree his viewpoint?
2. If you have other opinions, what’s the real problems you see in this milk scandal?
How could you hit this series of unethical actions from personal, professional, to
3. It seems that the melamine and its contaminated problem had happened years ago
and the U.S. government had also released the relevant information publicly in 2007.
Do you believe that most of the companies did not know this information yet?
4. According to the reports, the reason why most of the milk being intently added
melamine is for false increase in the measurement of protein in the milk. Why most
of the company would rather do that false regardless the law and ethics?
Your Report & Brief:
1. Each group (6-7 members) are required to have a group discussion, propose a 12-15 minutes brief with power
points, and deliver it on next Monday (20th October) in class. You need not to answer question by one by, you
have full capacity to be your own innovation.
2. Each of you have a freedom to choose your own members, with one condition that you should have at least one
foreign fellows in your group.