Snow Brand Milk Products Co. Ltd.

(Snow Brand) was the largest dairy products manufacturer in Japan while its su sidiary Snow Brand !ood Co. was one of the largest meat processing and food products manufacturers. "n the year #$$$% for the first time since its esta lishment% Snow rand Milk Products Co. Ltd. posted group losses and had to close some of its dairy factories due to a massi&e decline in sales of milk products following a food poisoning incident. 'he company(s pro lems started with food poisoning caused y its contaminated milk products. "n Japan% after a cow was found to e infected with Bo&ine Spongiform )ncephalopathy (BS)) in Septem er #$$*% people were scared of contracting the human form of BS) through contaminated meat. 'hus% eef sales declined and the eef industry faced hea&y losses. "n #$$#% Snow Brand Milk Products Co. Ltd. li+uidated its su sidiary% Snow Brand !ood Co. Ltd. due to irrepara le damage caused y the unethical practices at Snow Brand !ood Co. Ltd. 'he case

e,amines the e&ents that led to the decline of the company% and the conse+uences of unethical practices and lack of social responsi ility. 'he case also e,plores the restructuring-reha ilitation initiati&es taken up y Snow Brand after the scandals came to light. .n /o&em er ##% #$$#% the 0o e 1istrict Court ruled that fi&e former Snow Brand !ood e,ecuti&es% including 2atakeyama% were guilty of fraud. 'he court elie&ed that they conspired with 2iromi Sakurada (Sakurada)% former senior managing director and Masami "noue ("noue)% former managing director of Snow Brand !ood to commit the fraud. .n March #3% #$$4% the .saka 1istrict Court% ruled that .samu 0u ota (0u ota)% former head of Snow Brand(s 'aiki factory that had produced the contaminated powdered milk causing the food poisoning% and 0oichi "5umi ("5umi)% the factory(s production manager% were guilty of negligence.