CASE STUDY

MAGGI
 Maggi was first introduced in 1872 in Switzerland by Julius Maggi
 owned by Nestle company in 1947
 Nestle India Ltd founded
 Entered India 1982 with its instant noodles formula
 UP –detected MSG (monosodium glutamate) and lead
 NCDRC – order to – USD 100 million damages for unfair trade practices, sale of
defective goods to public
 UNETHICAL PRACTICES
 Ignored the food council’s permissible quantity of ingredients
 7 time the permissible quantity of lead
 Presence of Mono Sodium Glutamate
 Excessive Lead : kidney damages, nervous system damages, fertility problem in
both men and women, digestive issues, nerve disorders
 MSG : chest pains, sweating, muscle weakness, shortness of breath etc…
 Test results from all 3 laboratories mandated by the Bombay High court show
maggi noodles to be sage, with lead content well within the permissible limits
 MC Donald’s Company

 Originally - served- hot dogs, hamburgers, cheeseburgers, milkshakes

 Corporation food is unhealthy for consumers
 Harmful products – acrylamide, azdicarbonamide, sodium acid pyrophosphate
and dimethylpolysiloxane – banned in many nations
 Controversial advise to its employees to not to eat fast food as it is dangerous to
health
 COCA-COLA
 American multinational beverage corporation
 John Pemberton – founder
 Unethical Practices
 Kala Dera case : Coca-Cola bottling plant continues extracts the most water water
shortages even worse
 Plachimada bottling plant Kerala
depleted underground water level, leading to water scarcity
bottle-washing operation involved the use of chemicals and generation of effluents
 SATYAM SCAM

 “India’s Enron”
 Satyam Computers was found in 1987
 Ramalinga Raju – founder
 Manipulating the financial statements of the company
 Raju confesses – the gap in the balancesheet reached unmanageable proportions
and could not be filled
 ETHICS - ECONOMIC DEVELOPMENT
ECONOMIC
DEVELOPMENT
BUSINESS ETHICS

MORE PROFIT
ATTRACTS INVESTMENTS

IMPROVES PUBLIC IMAGE OF THE

BENEFITS TO THE ORGANIZATION COMPANY
 DEVELOPMENT

 Increase wealth
 Create jobs
 Regional development
 GDP and Per capital Income
 Standard of living
 Exports
 Community Development