Snow Brand's Unethical Practices at Japan


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BECG039 For delivery in electronic format: Rs. 500 ;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Ethics in Business
Case Length : 18 Pages
Period : 2000 - 2004
Pub. Date : 2004
Teaching Note : Available
Organization : Snow Brand Milk Products Co. Ltd.
Industry : Food
Countries : Japan

Abstract:

Snow Brand Milk Products Co. Ltd. was the largest dairy products manufacturer in Japan while its subsidiary Snow Brand Food Co. was one of the largest meat processing and food products manufacturers. In the year 2000, for the first time since its establishment, Snow brand Milk Products Co. Ltd. posted group losses and had to close some of its dairy factories due to a massive decline in sales of milk products following a food poisoning incident. In 2002, Snow Brand Milk Products Co. Ltd. liquidated its subsidiary, Snow Brand Food Co. Ltd. due to irreparable damage caused by the unethical practices at Snow Brand Food Co. Ltd. The case examines the events that led to the decline of the company, and the consequences of unethical practices and lack of social responsibility.

The case also explores the restructuring/rehabilitation initiatives taken up by Snow Brand after the scandals came to light.

Issues:

Impact of negligent practices on consumers' trust in a company's products

How lack of crisis management program can affect a company's ability to deal with a crisis. Social impact of a company's unethical behavior

Contents:

  Page No.
Introduction 1
Background Note 1
Unethical Practices 2
From Frying Pan to Fire: The Beef Scam 8
Rehabilitation and Restructuring 10
The Judgement Day 12
Exhibits 14

Keywords:

Snow Brand Milk Products Co. Ltd, dairy products, Japan, largest, meat processing, food products manufacturers, 2000, losses, decline, sales, food poisoning, liquidated, social responsibility, restructuring, rehabilitation

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