Ethics and Governance on Sanlu

Are the actions of the people in a workplace a consequence of individual or organizational characteristics? What would promote ethical behavior at work?

1. INTRODUCTION

In this report, it will attempt to evaluate whether ethical behaviour of people in a workplace is a consequence of an individual or organizational characteristics. Is unethical behavior a matter of individual human ingenuity to do wrong; are these people inherently immoral? Or could the environment that an individual was nurtured and trained in, play a part and led him/her to such unethical conduct?

To prevent ethical complications in the workplace, suggestions of some effective instruments for influencing good moral behaviour among people will be listed at the end of this report. Organizations can adopt, and implement these to promote good professional practice.

For this purpose, the China tainted milk incident, which shocked the world in year 2008, has been shortlisted as a case to discuss the influence of individual and organizational characteristics on ethical behavior.

2. SANLU TAINTED MILK INCIDENT

Sanlu Group was a reputable organization in China, which has more than fifty years of experience in the production of dairy products. Due to its long history and brand presence, it has gained the Chinese’s favor and loyalty, hence it was widely recognized as “the national brand that had changed the Chinese’s people lives in the past 30 years.” In 2007, Sanlu was also awarded “Renowned brand in China” by the Ministry of Commerce and The State Council also bestowed the prestigious “2007 Science and Technology Progress Award” on Sanlu for its innovative infant formula and related techniques. Sanlu’s success was inseparable from one person, who is the CEO and Chairwoman Tian Wenhua. (Sun and Chen, 2009)

Whilst all these recognitions were presented to Sanlu Group, the prices of raw milk were soaring and they found it hard to cope with these raising prices. In order to continue...