Analysis of Ethical Violations in Maggi Case Study - Accounting 621

This case study examines the ethical issues arising from the Maggi noodle crisis, focusing on Nestle's violation of ethical duties. The assignment highlights the presence of excessive lead and monosodium glutamate (MSG) in Maggi products, contradicting food safety regulations and posing health risks to consumers, particularly children and pregnant women. The analysis explores the company's response to the crisis, including its denial of claims and attempts to maintain its brand image through social media. The study references various academic sources to support its arguments, addressing the impact of unethical practices on corporate management, social responsibility, and public trust. It also delves into the harmful effects of lead and MSG, emphasizing the importance of ethical conduct in business operations and the preservation of social welfare. The case study underscores the significance of ethical values in guiding business decisions and the potential consequences of neglecting these principles.

Running head: ACCOUNTING 621
ETHICAL ISSUES IN CASE STUDY OF MAGGIE
Name of the Student
Name of the University
Authors Note

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Business Ethics is an analysis of the policies of a company on corporate management and
corporate social responsibility. It is the ethical duty of a company to provide the public,
stakeholders, clients and public authorities with the true value of money. Each business operates
the function of the organization with ethical values and behavior of business conduct. The
fundamental moral values that direct and guide companies through all their operations are moral
values. Corporate ethics are the professional ethics that specify the moral ideologies and
practices that are to be practiced in business and if problems arise (Caza, Barker & Cameron,
2004).
Every organization in the world is regulated and driven by profits and is generally thinking about
business ethics to check the greed of businessmen. A businessman must do business to preserve
social welfare and must also obey other ethical or moral principles (Savin-Baden & Howell-
Major, 2013).
Maggi is very famous among several noodle companies. Few unethical executives have created
small distortions that far have negative implications. Nestle manufactures immediate noodles,
soups, sauces, and seasonings by a well-known brand Maggi. The problem faced by Nestle when
it has been observed by the local regulators of the food safety that the instant noodles produced
by the company contained risky levels of lead and bits of monosodium glutamate (MSG) in
contradiction with the labeling of the food. The permissible quantity provided by the food
council of the MSG has been ignored by Maggi. In the lab test, it has been observed that MSG is
used seven times than the permissible quantity of Lead Presence of MSG. Excessive Lead is very
harmful to both children and adults. In the case of children, Lead affects the intelligence, nervous

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system, and speech and language problem, growth of muscle, bone, and kidney. Lead is very
harmful to pregnant women and it may harm the fetus. MSG is also responsible for memory loss,
severe headache, chest pain, sweating, and allergy. In this way, the ethical duties have been
violated by Maggi (Valentini et al., 2014). Unfortunately, this kind of serious matter has not been
handled by Nestle carefully.
If the possible and actual rigorousness of the crisis and the impairment has been observed
it can be seen that the brand name of the noodles is very famous for the last thirty years. The
market estimates show that more than 20% of the annual sales in India have been contributed by
Maggi. Besides, as per the survey report of the famous Indian business newspaper Economic
Times, Maggi ranked in the top five most reliable brands.
However, Maggi denied the claim of the food safety regulator regarding MSG. Maggi
tries to maintain its image and for this purpose different social media channels have been used by
Maggi. Maggi claimed that they maintain the quality of food by taking all safety measures. Thus,
MSG has not been used by them and it may present due to natural sources (Restani, et al. 2016).
Many researchers are of the view that this statement has been given by Maggi to revoke the ban
of the noodles.

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Reference
Caza, A., Barker, B. A., & Cameron, K. S. (2004). Ethics and ethos: The buffering and
amplifying effects of ethical behavior and virtuousness. Journal of Business
Ethics, 52(2), 169-178.
Restani, P., Di Lorenzo, C., Garcia-Alvarez, A., Badea, M., Ceschi, A., Egan, B., & Milà-
Villarroel, R. (2016). Adverse effects of plant food supplements self-reported by
consumers in the PlantLIBRA survey involving six European countries. PLoS One, 11(2).
Savin-Baden, M., & Howell-Major, C. (2013). QUALITITATIVE RESEARCH: THE
ESSENTIAL GUIDE TO THEORY AND PRACTICE. Qualitative Research: The
Essential Guide to Theory and Practice. Routledge.
Valentini, E., Giantin, V., Voci, A., Iasevoli, M., Zurlo, A., Pengo, V., & Storti, M. (2014).
Artificial nutrition and hydration in terminally ill patients with advanced dementia:
opinions and correlates among Italian physicians and nurses. Journal of palliative
medicine, 17(10), 1143-1149.