A reputed food product company based in India developed a food product for the international market and started exporting the same after getting necessary approvals. The company announced this achievement and also indicated that soon the product will be made available for the domestic consumers with almost same quality and health benefits. Accordingly, the company got its product approved by the domestic competent authority and launched the product in Indian market. The company could increase its market share over a period of time and earned substantial profit both domestically and internationally. However, the random sample test conducted by inspecting team found the product being sold domestically in variance with the approval obtained from the competent authority. On further investigation, it was also discovered that the food company was not only selling products which were not meeting the health standard of the country but also selling the rejected export products in the domestic market. This episode adversely affected the reputation and profitability of the food company.
a. What action do you visualize should be taken by the competent authority against the food company for violating the laid down domestic food standard and selling rejected export products in domestic market?
b. What course of action is available with the food company to resolve the crisis and bring back its lost reputation?
c. Examine the ethical dilemma involved in the case. (250 words) [UPSC 2021]
a. Action by Competent Authority
Regulatory Action: The competent authority should undertake the following actions:
Recent Example: In 2021, the Food Safety and Standards Authority of India (FSSAI) took similar actions against Nestlé India for issues with the quality of certain products, enforcing recalls and fines.
b. Course of Action for the Food Company
Crisis Resolution: The company should adopt the following measures:
Recent Example: In 2020, Coca-Cola India faced a similar crisis involving product safety issues. They responded with a recall, increased quality checks, and public communication to regain consumer confidence.
c. Ethical Dilemma Involved
Ethical Dilemma: The core ethical dilemma involves balancing profitability with consumer safety and honesty. The company prioritized financial gain by selling substandard and rejected export products domestically, jeopardizing public health for increased profits. This raises questions about:
In essence, this situation underscores the need for companies to uphold ethical standards rigorously, ensuring that financial motivations do not compromise public health and safety.
Model Answer
Introduction
The food company’s violation of domestic food standards and the sale of rejected export products in the domestic market has led to significant damage to its reputation and profitability. This situation raises serious concerns about consumer safety and ethical business practices.
A. Actions by the Competent Authority
B. Actions by the Food Company to Resolve the Crisis
C. Ethical Dilemma
The ethical dilemma in this case revolves around the company’s decision to compromise consumer safety and health by selling non-compliant and rejected products. This decision reflects a lack of transparency and honesty in product labeling and marketing practices. The company faces the challenge of balancing profit motives with its responsibility towards public health. Upholding integrity is vital, as the company’s actions have significant implications for consumer well-being. The company must demonstrate accountability to regain its reputation and restore consumer trust. This situation underscores the critical need for ethical business practices in the food industry, prioritizing consumer safety above all else.
Conclusion
Immediate action is required to recall non-compliant products and strengthen quality control processes. Open and transparent communication with consumers is essential for rebuilding reputation and addressing concerns effectively.