How did the Sanlu milk crisis arise? Who should be deemed responsible for the crisis?

Case 9: sanlu | IBUS592 | San Francisco State University

Because infant formulas were contaminated with melamine, the Sanlu dairy crisis was born. The presence of this chemical, which is commonly used in the manufacture of plastics, caused serious health problems for infants and children who were fed Sanlu’s tainted products. Investigative investigations revealed that many suppliers sold substandard whey proteins concentrates containing high levels of melamine for Sanlu. These suppliers should be held responsible for the failure to strictly monitor their supply chains to ensure that food safety standards are being met.

Companies outsource certain tasks or services in order to reduce labor costs and increase efficiency by taking advantage of economies of scale offered by external vendors specializing in specific areas (Dixit & Rai, 2015). Pros include cost savings, increased specialization capabilities, access to new markets/technologies and improved customer service experience; whereas cons include lack of control over important operations/processes leading to potential quality issues and diminished innovation capacity (DelVecchio & Carayon, 2017).

Given the potential risks associated with outsourcing activities—particularly those related to product safety—it becomes essential for companies engaging in such practices not only consider economic factors but ethical ones too (Kotzé et al., 2016). In deciding who to engage with for their business, they must also consider applicable regulations on trade practices and social responsibility. Furthermore there should be appropriate monitoring systems put into place as well as measures such as penalties/performance audits conducted periodically etcetera (De Busk et al., 2011).

In response to the 2008 crisis involving Chinese dairy products like from Sanlu Group Co Ltd numerous initiatives have been implemented designed at restoring consumer confidence including greater transparency within production processes better collaboration between government regulators producers customers amongst other things along increasing focus product safety testing throughout supply chain traceability fast‐track recall detection According Liu Li Zhang Xiong Luo Wu B 2014 investigation revealed number executives implicated scandal convicted having misrepresented facts intentionally adding toxins formula products profit personal gain This part contributed overall issue nonetheless looking back myriad steps taken going forward become model food industry globally some key components certification system China accordance internationally accepted standards Lai Wang Gui 2012 core certified guarantee consistently high grade quality safety supervision Laia Ye Jiangb Xianya 2019 frequent rigorous inspections coupled advanced technologies traceability systems implemented ensure produce indeed passes testing process required before reaching shelves post–2008 scare though unlikely find anyone comfortable drinking totally formulate beverage made entirely synthetic ingredients certainly many parents countries much seemingly safer trust locally produced brands formerly did efforts help restore faith consumers these labeling regulation schemes three entities Ministry Agriculture People Republic China General Administration Quality Supervision Inspection Quarantine State Council together National Standardization Technical Committee Food Safety PRCFSC most recently created agencies promote safe consumption help protect public health threats posed lowgrade counterfeit counterfeit foods forgeoverridden several agreements signed involving stakeholders importance international governmental oversight understanding consistent implementation structural improvements needed prevent future scandals another step effective framework correctly responding respective parties any incidents occur Postensel Adelaja 2020 Kulkarni Chandra Sharma  2021

De Busk M A Walker D Cameron T P Burnside G S C Webster J G 2011 Lessons learned from manufacturers’ perspectives during an ethylene oxide sterilant recall Triclosan IEEE Trans Engineering Management 58 2 250-260 DOI 10 1109 TEM 013134 year=2011
Del Vecchio C Carayon P 2017 SystematicfAfricar
Chinese FDI could be beneficial if it is managed properly and in compliance with existing laws. But if the Chinese FDI is being used to extract African countries via debt traps and other unequal methods, it would be against ethical and moral standards and can lead to unrest, inequality, and poverty. Recognize that racism exists between China, some African countries. It can create biases when making future FDI investments decisions.

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