Sanlu
Assignment 2
Name: Lin Mei
Student Number: 213015672
Review of the Main Features of the Case
In late summer of 2008, a tainted milk scandal unfolded in China and shocked the world. Sanlu Group Inc. (Sunlu), was a state-owned Chinese dairy products company in China which offered milk powder, including baby formulas and nutritional supplements. In September 2008, Sanlu came to international attention due to product concerns regarding its infant milk formula, which was discovered to have been contaminated with melamine that was 5125 times higher than the European Union safety limits. Melamine is a chemical often used to manufacture a type of flame-retardant plastic, which is commonly used in the manufacture of countertops and dry-erase boards. Melamine is nitrogen-rich and is sometimes illegally added to food products to increase their protein level. Melamine is known to cause renal and urinary problems when it reacts with cyanotic acid in the body. If taken in a large quantity or over a prolonged period, melamine can damage urinary and reproductive systems. The common symptoms of melamine poisoning are kidney stone and kidney failure. The use of melamine in food production is universally banned. By November 2008, China reported an estimated 300,000 victims, with six infants dying from kidney stones and other kidney damage, and an estimated 54,000 babies being hospitalized. As a result of the scandal, Sanlu was ordered to halt production, and to destroy all unsold and recalled products. As of December 24, 2008, Sanlu filed for bankruptcy.
Stakeholder Analysis The first primary social stakeholder in this case would be the company itself, Sanlu. It is a definitive stakeholder because it has high power, legitimacy, urgency and close proximity. Sanlu has a great deal of legitimacy and power as they play an essential role in decision making and have the ability to guarantee the quality product which are safe for consumption.
Name: Lin Mei
Student Number: 213015672
Review of the Main Features of the Case
In late summer of 2008, a tainted milk scandal unfolded in China and shocked the world. Sanlu Group Inc. (Sunlu), was a state-owned Chinese dairy products company in China which offered milk powder, including baby formulas and nutritional supplements. In September 2008, Sanlu came to international attention due to product concerns regarding its infant milk formula, which was discovered to have been contaminated with melamine that was 5125 times higher than the European Union safety limits. Melamine is a chemical often used to manufacture a type of flame-retardant plastic, which is commonly used in the manufacture of countertops and dry-erase boards. Melamine is nitrogen-rich and is sometimes illegally added to food products to increase their protein level. Melamine is known to cause renal and urinary problems when it reacts with cyanotic acid in the body. If taken in a large quantity or over a prolonged period, melamine can damage urinary and reproductive systems. The common symptoms of melamine poisoning are kidney stone and kidney failure. The use of melamine in food production is universally banned. By November 2008, China reported an estimated 300,000 victims, with six infants dying from kidney stones and other kidney damage, and an estimated 54,000 babies being hospitalized. As a result of the scandal, Sanlu was ordered to halt production, and to destroy all unsold and recalled products. As of December 24, 2008, Sanlu filed for bankruptcy.
Stakeholder Analysis The first primary social stakeholder in this case would be the company itself, Sanlu. It is a definitive stakeholder because it has high power, legitimacy, urgency and close proximity. Sanlu has a great deal of legitimacy and power as they play an essential role in decision making and have the ability to guarantee the quality product which are safe for consumption.