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Res351

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RES/351
Business Research Ethics
Individual
Eloisa Montoya

Beech Nut was a wholly owned and operated company that was ran fully by Nestle, which is a manufacturer of infant formula. Beech Nut was their company that made juices for infants and children. In 1982 Beech Nut found an entity that would cut their costs by a lot, and offered them apple juice concentrate, which again, was at a very low price. After using this product for just a little while, an employee started wondering why and how this company was offering apple juice concentrate for such a low dollar amount, so he decided to investigate further. During this employees investigation of the apple juice concentrate, he came to find out that the concentrate actually had no apple juice concentrate at all in its contents, instead this was a concentrate that was entirely chemical based and man-made. This employee went to his bosses with this information, and in turn, Beech Nut as well as Nestle did absolutely nothing. After trying to get this stopped and having no luck, this employee finally just quit the company all together. Soon after this employee quit, the Food and Drug Administration (FDA) started their own investigation, and it was noted that Nestle and Beech Nut were not cooperative at all. Apparently Beech Nut had thousands of dollars worth of merchandise stored and they were scared that the Food and Drug Administration was going to confiscate it, so instead of turning it over to the Food and Drug Administration they shipped all of it to other states as well as to other countries and all over night. Because of this unethical behavior, many plants were shut down, and Beech Nut was inevitably shut down completely. There was one Beech Nut factory that was by New York, and this company was the towns main employer, which it employed over a thousand employees. After Beech Nut shut down all of its factories many many thousands of people were out of work, and the Company Nestle, was given a very bad name because of their unethical behavior, and to just save a little bit of money. After all of this happened they conducted a study and were unable to find anyone that actually suffered any type of injury from this happening, but because it went on for over a year, there will never really be a very good study that can guarantee this never caused any infants or children any issues from almost 30 years ago. So I would say that the actual injured party would be all of the thousands of people that lost their jobs, and not because they did anything wrong, but because the company they were working for was trying to save money by cutting corners (so to speak) and use a product that was not approved by the Food and Drug Administration. Even though the company did not knowingly buy this product as a non apple juice concentrate, they were still made aware of the scandal months into using and processing it, and instead of recalling their product and turning in the company they were purchasing this chemically made product from, they just completely ignored it and kept using it and sending it out to be bought by unknowing mothers to give to their children thinking they were giving them actual juice. Because of what this company did by ignoring the fact that their product they were sending out was not in fact what they were advertising, this has affected them and their reputation in a very big way. After this happened a lot of consumers no longer trusted this manufacturer and their sales actually dropped by about twenty percent. They were also fined millions of dollars because of what they were doing to consumers and knowingly putting people and their children at risk. As an individual it also affected very many people individually. Because so many people lost their jobs they were all out of work and lost their sense of work security. Individuals that would purchase the merchandise for their infants and/or children, those parents began to not be so trust worthy and I would imagine that they were worried about their children that were exposed to this juice. As a society I would say it has affected everyone by having such a huge company that is known so widely just by its name, own a company that sold something that could be so dangerous. This could have been avoided by the management actually doing something about it when the employee brought it to their attention. They could have very easily stopped production to run more tests themselves and issuing a recall of the product until they got to the bottom of what was going on with it. And then stopped producing that product since they knew that it was in fact not apple juice concentrate at all and turning in the company that they were getting it from to the Food and Drug Administration, as well as issuing a public apology for not testing the product at all before using it.

REFERENCES
Priest, J. T. (1999, Oct 22). The fallout from unethical conduct. Journal Record. Retrieved from http://search.proquest.com/docview/259408524?accountid=458

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