A company has two food product lines. It has received much f
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A company has two food product lines. It has received much favorable press for its sustainable products line. The products uses ingredients produced with fair-trade labour and natural ingredients. The second product line uses questionable ingredients like perservatives, economy fillers, and sulpher dioxide, all of which could be produced under questionable labor practices. The company sends a percentage of the profits from both product lines to childrens' charities.
What are the ethical and financial problems this firm might face when customers realize their products offer quite different (but legal) quality ingredients yet all go under the brand (and respected) name of the company L & L's Homemade? As a business consultant, with an MBA, what advice would you give L & L on their two product lines and company image?
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Solution Summary
A company has two food product lines. It has received much favorable press for its sustainable products line. The products uses ingredients produced with fair-trade labour and natural ingredients. The second product line uses questionable ingredients like perservatives, economy fillers, and sulpher dioxide, all of which could be produced under questionable labor practices. The company sends a percentage of the profits from both product lines to childrens' charities.
What are the ethical and financial problems this firm might face when customers realize their products offer quite different (but legal) quality ingredients yet all go under the brand (and respected) name of the company L & L's Homemade? As a business consultant, with an MBA, what advice would you give L & L on their two product lines and company image?
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I would sit down with management, and discuss the issues with the second product line. The first product line is living up to the company's image, and is in-line with their efforts. I would explain in a professional, reasonable manner that the second product line is misleading, in the way that it is being handled. The company basically has a few options. The most ethical, sustainable option would be to take the second product line, and to transform the products to also ...
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