Nutrional Foods Recall

TO: Board of Directors

FROM: Ali Murdoch

RE: Product Recall

DATE: 2/2/2014

INTRODUCTION: As you all know, Nutritional Foods has been linked to acute food poisoning in children. Last night, Nutritional Foods issued a statement addressing the issue and placing a recall on all batches associated with each incident. Because we are the leading brand for all natural, non-processed foods in the western portion of the United States we are faced with issue of what to do next.

FACTS SUMMARY: Nutritional Foods Inc is a $50 million dollar company that specializes in production of all natural and non-pasteurized foods. Due to the nature of fruits and vegetables both the handling and distribution are critical in order to avoid any contamination and to ensure freshness. Mr. Fred James, the company’s chief executive was informed by Mr. John Healy that two separate reports of food poisoning in two different counties may be due to one of the company’s products. Mr. Healy then conducted an in house investigation that brought to light, two more cases of food poisoning. However, due to only having batch numbers for two of the cases, both were confirmed to be from a singles day of production. After three more accusations of food poisoning were made, one against another company, which brings us to a total of six people. Later that night, Mr. James made a public announcement that the company would pull all batches associated with each alleged incident.

ETHICAL DILEMMA: The ethical dilemma we are faced with is that we can either continue production and only recall the six batches or recall the product completely.

ETHICAL ISSUE: The ethical issue at hand is whether or not the company should take full responsibility for the incidents.

ALTERNATIVES:

By only recalling the batches associated with the allegations, the company is not putting themselves at fault thus avoiding risk associated with legal matters.

By recalling the product as a whole, the company is...