On June 13, 1999, Coca-Cola (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coke's drinks, which were suspected of making more than 100 school children ill in the pre
CS Professional · Ethics, Governance and Sustainability · PYQS · June 2021
On June 13, 1999, Coca-Cola (Coke) recalled over 15 million cans and bottles after the Belgian Health Ministry announced a ban on Coke's drinks, which were suspected of making more than 100 school children ill in the preceding six days. This recall was in addition to the 2.5 million bottles that had already been recalled in the previous week. The company's products namely Coke, Diet Coke and Fanta had been bottled in Antwerp, Ghent, Belgium while some batches of Coke, Diet Coke, Fanta and Sprite were also produced in Dunkirk, France. Children at six schools in Belgium had complained of headache, nausea, vomiting and shivering which ultimately led to hospitalization after drinking Coke's beverages. Most of them reported an 'unusual odor' and an 'off-taste' in the drink. In a statement to Reuters, Marc Pattin, a spokesman for the Belgian Health Ministry explained the seriousness of the issue: "Another 44 children had become ill with stomach pains, 42 of them at a school in Lochristi, near Ghent, northwest Belgium. We have had five or six cases of poisoning of youngsters who had stomach pain after drinking (the suspect beverages). In the same week, the governments of France, Spain and Belgium also banned Coke's products while Coke's Dutch arm recalled all products that had come from its Belgium plant. The entire episode left more than 200 Belgians and French, mostly school children, ill after drinking the Coke produced at Antwerp and Dunkirk. The company had to assure its British customers that the products made in its UK factories were safe. By June 15, 1999, Coke had recalled about 30 million cans and bottles, the largest ever product recall in its 113-year history. For the first time, the entire inventory of Coke's products from one country was banned from sale. As part of a damage control exercise, Coke sent a team of scientists to Europe. During its visit to Europe after a week of these incidents, Coke's Chairman and CEO Michael Douglas Ivester said, "We deeply regret any problems encountered by our European consumers in the past few days." Coke Belgium even announced that it would reimburse the medical expenses for people who had become ill after consuming its products. Keeping in the view facts of the case answer the following questions : (ii) What remedial actions should have been taken by the Coke factories ?
Answer & Explanation:
The Company should have taken the following remedial actions: The Company must have strengthened its quality control checks and measures as per the international standards so as to be safe for consumption by all segments of the consumers. The Company must have been proactive in its approach and should have recalled the entire lot of its product from the markets, and issued a warning not to use its products till the quality issue involved is resolved, as soon as the first case of child illness came to its notice. Adequate and elaborate arrangements for the treatment of children, who suffered from various illness after consuming coke must have been made by the company. Families of children who suffered illness after consuming coke must have been adequately compensated. Coke products must have been thoroughly investigated to know the reasons behind child illness and foreign element in coke which caused the illness. As soon as the company would have come to know about the reason of illness in children who consumed coke, prompt remedial actions should have been taken by the company to set right the deficiency and bring up the product on par with its expected quality.
Topics: Ethics in Business
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