Q. A Reputed food product company based in India developed a food product for international market and started exporting the same after getting necessary approvals.
The company announced this achievement and also indicated that soon the product will be made available for the domestic consumers with almost sane quality and health benefits. Accordingly, the company got its product approved by the domestic competent authority and launched the product in Indian market. The company could increase its market share over a period of time and earned substantial profit both domestically and internationally. However, the random sample test conducted by inspecting team found the product being sold domestically in variance with the approval obtained from the competent authority. On further investigation, it was also discovered that the food company was not only selling products which were not meeting the health standard of the country but also selling the rejected export products in the domestic market. This episode adversely affected the reputation and profitability of the food company.
o What action do you visualize should be taken by the competent authority against the food company for violating the laid down domestic food standard and selling rejected export products in domestic market?
o What course of action is available with the food company to resolve the crisis and bring back its lost reputation?
o Examine the ethical dilemma involved in the case.
Question from UPSC Mains 2021 GS4 Paper
Model Answer:
Action by Competent Authority:
- Revocation of Approval: The competent authority may revoke the approval granted to the food company for selling the product domestically. This will prevent the company from continuing to sell the product that does not meet the health standard of the country.
- Imposition of Penalty: The competent authority may impose a penalty on the food company for violating the laid down domestic food standard and selling rejected export products in the domestic market. This will deter the company from repeating such unethical practices in the future.
- Legal Action: The competent authority may initiate legal action against the food company for violating the domestic food standard and compromising the health and safety of consumers. This will hold the company accountable for its actions and ensure justice for affected consumers.
Course of Action for the Food Company:
- Recall and Withdrawal of Product: The food company should recall and withdraw the product from the domestic market to prevent further harm to consumers. This will demonstrate the company’s commitment to consumer safety and ethical business practices.
- Compliance with Standard: The food company should take necessary steps to ensure compliance with the domestic food standard and rectify any deviations from the standard. This will help to regain consumer trust and rebuild the company’s reputation.
- Quality Control Measures: The food company should implement strict quality control measures to prevent the sale of rejected export products in the domestic market. This will ensure that only safe and healthy products are sold to consumers.
Ethical Dilemma Involved:
The ethical dilemma involved in this case is the conflict between profit and consumer safety. The food company prioritized profit over ethical business practices and compromised the health and safety of consumers by selling products that did not meet the domestic food standard and rejected export products. This highlights the need for businesses to prioritize ethical values, such as consumer safety and social responsibility, over profit-making motives.