Chang Guan Case Study

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As a human being, we should always be ethical toward anything with doing the right thing. According to the article, Chang Guan scandal themselves by selling gutter oil-the oil recycle from kitchen waste. Chang Guan company bought gutter oil from an unlicensed factory at lower market rate and resold it to more than 150 manufactories to produce food. In this incident had shown that Chang Guan company act in poor social responsibility to consumer and how poor business ethics for their acting. They only wanted to make profit instead of caring customer health. We can see that how worst the result is when the business without ethic.
In my opinion, an unethical business would not live in long run. Therefore, it is very important for a company to …show more content…

This is because there are more and more negative news about food safety has been occurred. Besides Chang Guan, similar scandals about food safety happened a lot before like the Sanlu milk powder contain harmful ingredient and McDonald’s uses spoiled meat to make burger. The unethical behavior and ethical behavior will bring significant effect. Normally, side effect mostly cause by the unethical behavior. According to the theory of utilitarianism, only the one that achieves the greatest total amount of happiness for everyone concerned is regarded as moral. In Chang Guan case, the total utility produced by using gutter oil to produce product isn’t the greatest one. Therefore, the action of Chang Guan is immoral. The pain and unhappiness experience by the victims are suffering from the gutter oil as well as the whole society are much greater than those beneficiaries’ happiness. When evaluating gutter oil scandal, not only customer suffers by it, but also chains effect on food industry. For example, product of relevant enterprises fall into poor market, corporate image is damaged seriously, the public health is threatened and the whole society falls in to …show more content…

The more faith of the company has in moral business and its positive will influence on their development. Company is bound to chase profit due to their nature. However ethics should also be emphasized due to the requests of the society. Therefore, it is necessary to hold both morality and profit at hand. In my opinion, Chang Guan’s behavior goes against business ethics and it fails to its basic social responsibilities for customers, so any excuse for that is nonsense. Chang Guan should make wisest decision before applying it and consider about the consequence. They should consider other people health and not only about

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