Food for Thought: The 2008 China Milk Scandal

In 2008, a scandal in China involving milk products tainted with melamine (a chemical used in plastic production) brought regional and global attention to the country. More than 290,000 infants were affected and several died. At a time when international trade was important for China’s economic development, the tainted milk scandal raised concerns about the safety of products and food made in China. The case illustrates how the pressure of rapid economic development resulted in measures to cut costs at the expense of consumer safety and health, bringing into question the ethics underlying business practices in the country. The lack of quality control and corporate governance processes on the part of the company and government facilitated the ease with which the milk was tampered. The case also documents remedial efforts that followed the scandal, including recall of the tainted milk products, putting new government policies and regulations in place, arrest of top executives and the companies’ public apology in the unique form of a New Year text message.