GS4 · 20 marks · 250 words
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?
Answered by 2 toppers · CSE 2017
Syllabus: Case Studies on above issues.
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