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.

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Toppers wrote this one in a test series: “A reputed Indian beauty & personal care company developed a herbal skin cream for the international market, claiming anti-ageing and skin-repair properties based on traditional Ayurvedic formulations. After obtaining the necessary approvals and export certifications, the company began exporting the product. The product received widespread positive feedback for its quality and natural formulation, and soon became a huge hit in international markets. Riding on this success, the company announced that the product would soon be made available to domestic consumers, with almost the same quality and health benefits. Subsequently, it secured approval from the domestic regulatory authority and launched the product in the Indian market. Over time, the brand gained a significant share of the domestic market and earned substantial revenues both nationally and internationally. However, during a random sample check, officials discovered that the cream sold in India differed from the version approved by the competent authority. The product failed to meet the claimed herbal composition and purity standards. Further investigation revealed that the company had often been distributing batches that had failed export quality checks. The incident triggered widespread public criticism and regulatory scrutiny, leading to a sharp decline in the company's reputation and financial performance. a) Discuss the ethical issues involved in the case. b) What actions should the competent regulatory authority take against the personal care company for violating domestic quality standards and distributing rejected export batches in the Indian market? c) What course of action is available to the company to manage the crisis and restore public trust and brand credibility?”

Toppers’ answers to other close questions

• A reputed Automobile company based in India developed an Electric Vehicle(EV) for the international market and started exporting the same after getting necessary approval. 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 safety features. Accordingly, the company got its product approved by the domestic competent authority and launched the product in the 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 automobile company was not only selling electric vehicles which were not meeting the stipulated safety standards of the country but also selling the rejected export vehicles in the domestic market. This episode adversely affected the reputation and profitability of the automobile company. (a) What action do you visualize should be taken by the competent authority against the automobile company for violating the laid down Domestic Vehicle Safety Norms and selling rejected export products in the domestic market? (b) What course of action is available with the automobile company to resolve the crisis and bring back its lost reputation? (c) Examine the ethical dilemma involved in the case.2 answers
• An international beverage company has a signature drink that it sells all over the world, with children being its major consumers. In India, the version of the drink complies with Indian food and health regulations, but is less healthy than the one sold in developed countries. Though the company is not in violation of any law in India, but it is selling an inferior, less healthy product in a developing country like India. There is however, a price differential with the drink sold in India being cheaper than the one sold in developed countries. Identify the various stakeholders and discuss the issues that arise in this situation.1 answer
• You completed your MBA three years ago and secured a job in a leading shoe company, excelling in the Inspection Section responsible for clearing the final product. The company decides to expand its market to Europe and Gulf countries, but a large consignment to Europe is rejected due to poor quality. The top management orders clearance for the domestic market despite glaring defects. The rest of the team complies, but you voice concerns about tarnishing the company's image. 1.Under the given conditions, what are the options available to you as a member of the Inspecting Team? 2.Critically evaluate each of the options listed by you. 3.What option would you adopt and why? 4.What are the ethical dilemmas being faced by you? 5.What can be the consequences of overlooking the observations raised by the Inspecting Team?1 answer