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

Snow Brand’s Unethical Practices at Japan

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

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.           

Issues

1.The case is structured to achieve the following teaching objectives:

2. Impact of negligent practices on consumers’ trust in a company’s products

3. 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

 

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