Business Ethics Assignment on the Case of

Maggi
Submitted By
Rajdeep Pradhani (1776100)

1. What theories of Ethics can you relate here in this case? Name and
discuss at least two.
Ans:
In this caselet, three theories can be observed, i.e. Egoism Theory, Rights
Theory, and Stockholder Theory.
The view that the moral agents ought to act in their own self-interest is referred
to as egoism. In the case of Maggi, the company without thinking of the public
health added Lead (Pb) in excess of 2.5 parts per million and a flavour enhancer
(monosodium glutamate), which if consumed at high levels might lead to cases
like amnesia, kidney, and brain damage etc.
Since the consumer did not know about the lead and taste enhancer content in
the noodles and their harmful effects, this leads to violation of their rights, i.e.,
human and legal rights. Rights are legal, social, or ethical principles of freedom
or entitlement; that is, rights are the fundamental normative rules about what is
allowed of people or owed to people. The consumers have the full right to know
of what they are consuming and whether it is harmful for them or not.
Stakeholder Theory is a view of capitalism that stresses the interconnected
relationships between a business and its customers, suppliers, employees,
investors, communities and others who have a stake in the organization. Maggi
did not think of its consumers, its main stakeholders, did what they thought to
be the best for the company’s interest and profits, and later tarnished its huge
brand name after being exposed by the Food Safety and Standards Authority of
India (FSSAI).

2. What would you have done differently with respect to regaining the trust
of consumers if you were the Nestle India CEO?
Ans:
If I were the CEO of Nestle, then I would have managed the situation in a
proactive and transparent way. First, I would have looked into the matter
thoroughly and accepted all the allegations. Second, I would have assembled a
proper team of experts to investigate on the situation and come up with an
efficient solution. Third, I would have started social media and advertising
campaigns to gain public sympathy and to promote the existing products of my
company and prove them safe for consumption. Fourth, I would have helped
the local sellers by providing them with some compensation for the losses after
Maggi was pulled out of the market. Fifth and finally, I would have reassessed
the situation all over again and ask my employees for suggestions regarding
new and innovative branding strategies for Maggi so that it could win back its
lost faith from the consumers and be back at top of the market again.

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