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It set up the first processing factory at Beijing, China in 1991 (OSLO. Com, 2011). Shanghai Hush Food Corporation is the branch office of OSLO Group. “Food safety and quality assurance are guiding principles in delivering products that go above and beyond our customers’ requirements. ” is what OSLO Group claimed on their official website. But on 20 July, 2014, it was reported by Shanghai Television that Shanghai Hush Food Co. Provided McDonald and KEF with expired meet. This incident seriously damaged the customers’ benefits and went against the ethical norms and values which is put forward by The American Marketing Association (AMA).
These unethical activities violated three ethical values including honesty, responsibility, and citizenship. Honesty The Shanghai Hush did not comply with the Honesty values which requires the corporation to be forthright when facing customers and stakeholders in dealings. As one of the biggest food provider around the world, OSLO Group failed to recognize its promises that they will provide the reliable products and quality assurance to customers. Instead, the 18 tons raw material of chicken Nugget was found exceeding the sell-date for nearly half month.
With the further investigation, the production of mini beefsteak was proven using the raw materials that has expired for over 7 months. These unqualified products would be provided to McDonald’s, KEF and other fast food restaurants which have a large population of consumers. Eating the hamburgers and chicken made by expired materials certainly has the bad influence to their health but customers did not get access of the truth. The OSLO Group were supposed to be truthful in these situations and commit their own remises by providing the customers with the reliable quality and the safe food.
Responsibility The value of responsibility is violated in this incident that the Shanghai Fuss failed to well answer for the consequences of their marketing decision and strategies. Their reaction after the exposure is not satisfied. One of the factory workers said that using the expired raw materials was instructed by senior executives and those chicken meet are arranged to use first in China. Transparency Creating an atmosphere of openness marketing operations is asked by the value of transparency.
Clear communication about important data like production day and shelf life is required. But it is found that Shanghai Fuss falsified the production data of raw material, some of which have even expired for over 7 months. To cope with the inspection, the defectives were specially put in blue plastic bags. When there will be clients come to visit and check the food quality, the factory will be informed in advance and all the blue plastic bags will be disappeared at that time. The unclear and fraudulent communication with all constituencies violated the value of transparency. Citizenship
For citizenship, The Shanghai Fuss failed to recognize its responsibilities towards stakeholders legally and societal. According to the Food Safety Law of China, Article 85, food producer trading food exceeding the shelf life is considered illegal and shall be confiscated or revoked its business license. Shanghai Hush in violation of Food Safety Law is unable to fulfill its responsibility legally and went against the value of citizenship. Conclusion To conclude, the OSLO Group lose the corporation reputation. As a worldwide food provider, the food safety is the most emphasized.