Description
Complete: a minimum of 1,200 words (total assignment) and three scholarly sources. APA format
Ethics, Chaos Theory & Trends
Case Study: Mini- Case - The Melamine Milk Crisis in China
1. In a narrative format, summarize the key facts and issues of the case.
2. Update the information in the case by researching it on the Internet. Focus your response on the specific issues in the case.
3. What steps should Fonterra have taken to prevent the crisis? Why?
4. What is the responsibility of a company, such as Fonterra or BP, in controlled the actions of suppliers and sub-contractors?
5. Assume that you are the Chief Ethics Officer for Fonterra. How do you rebuild the trust and reputation of the company?
Explanation & Answer
Attached.
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Running head: CRISIS MANAGEMENT
Crisis management
Name
Institution
Date
CRISIS MANAGEMENT
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Introduction
The term crisis shares a similar meaning with a disaster, emergency, catastrophe, business
interruption or contingency. The occurrence of a crisis happens as a result of unpredicted events
or unforeseen outcome of an event which has not been considered as risky. Consequently, this
calls for a swift decision-making in order to prevent critical damages to the organization.
Therefore, crisis management refers to the application of measures set up by an organization in
order to counter the effects of sudden and unpredicted negative events.
The management of crisis requires prior planning for the identification of an individual to
act as a crisis manager in the organization. Management of crisis involves the following
practices: i) Plan in detail on the possible responses to every kind of crisis ii) Establish a
monitoring system and practice in order to sense warning signals of a crisis that have been
foreseen early enough iii) Establish and train a team to manage crisis or select a management
firm externally whose track record is well known in the business premises and iv) Involve almost
all the stakeholders in the planning and action stages. This report discusses the Mini-Case –The
Melamine milk crisis in China.
Key factors and issues in the case.
The Melamine milk crisis in China occurred when one company in China known as the
Sanlu Group used to purchase melanin-laced milk and used it in making baby formula. In the
initial stages, the management of the company was not aware that this product was present in the
milk. However, the company’s staff eventually made a discovery of the presence of the
melamine but regardless they went on producing and distributing the baby milk formula even
months later after the discovery. The effects of this were disastrous; one case was where an
CRISIS MANAGEMENT
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infant suffered from kidney stones and some months later more cases were reported in various
provinces. All the infants suffering from kidney stones had been feeding on the milk formula
produced by the Sanlu Company.
By the month of Septembe...
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