Question 3 The excerpt below refers to the recent case of contaminated infant mi

Question

Question 3 The excerpt below refers to the recent case of contaminated infant milk powder found in some stores in Johor. Merchant association: Low-quality milk powder passed off as branded infant formula Posted on 12 December 2017 www.thesundaily.com The Federation of Sundry Goods Merchants Association of Malaysia president Hong Chee Meng believes the culprits behind the counterfeit version of Enfalac A+ Step 1 infant formula milk powder sold in Johor have mixed powdered milk for baking with the genuine product to reap profits. He urged federation members not to compromise good business ethics when sourcing their infant formulas, China Press reported today. Meanwhile, Mead Johnson Malaysia said it is conducting a sweep of retail stores in Johor to trace and confiscate counterfeit versions of its infant formula Enfalac A+ Step 1 (1.8kg boxes) (a) With reference to the excerpt above, discuss why sometimes such unethical practices take place (10 marks)

Explanation / Answer

Part 1) 'All the riches in the world cannot satisfy a greedy man' is a considerable saying. The central reason why some people indulge in such unethical practices is because of their greed. To make sure that they make large amount of money in a short term leads people to take shortcuts in life and thus makes them to take steps that are hardly justifiable. Another reason is that such people are not able to visualize the impacts on the society and they feel that they are always safe and whatever actions they take won't harm them in any way.

Now if we combine these 2 points then neuropsychology gives the answer to this question. Reward incentive is there at the same time threat perception is low , So people feel motivated to go down this unethical path.

Part 2) The first and foremost step is to first define Company Values and have them instill in all employees. The central value of ethical business practices need to be told to every manager over and over again and deviants need to be dealt with strictly to show company's seriousness.

2. education and learning of managers regarding business ethics needs to be there. For this formal training courses needs to be carried out pretty much as a fire safety training is given that is through some kind of role plays , workshops etc

3. Employees that have shown exemplary ethics in making decisions need to be rewarded and their stories shared within the organization

4. All of this should be aimed at building a culture of ethical corporate work system

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