Danone subsidiary Dumex accused of corruption in China
Chinese state television aired a story last week in which Dumex, a Danone subsidiary, is accused of corruption. An anonymous former sales manager of Dumex was cited by CCTV, saying the company is paying medical staff at local hospitals in China, to promote its milk powder products (Jourdan & Laurent, 2013). Danone’s reaction in a statement, issued last week, was that it is “shocked” and that an internal investigation will follow (Jourdan & Laurent #2, 2013).
Foreign brands hold high market shares in this industry, because Chinese parents often do not trust local brands due to a scandal in 2008, when tainted local brand milk ...view middle of the document...
From a deontological perspective one could argue that Dumex does not fulfill its moral obligations (Velasquez, 2002).
According to the deontological moral philosophy of Immanuel Kant, the actions of Dumex are morally wrong, regardless of the consequences of using Dumex’ milk powder instead of another product. In a selfish manner, Dumex takes advantage of the weak position of hospital staff in china and indirectly robs the customer from its right to freely and rationally choose a product.
Furthermore it is indisputable that Dumex would not want its competitors to be allowed to follow the same behavior. This contradicts the central concept of Kant’s moral philosophy, the categorical imperative (Velasquez, 2002). By and large, the reputational damage caused by this scandal could have much bigger consequences for Dumex than the legal actions taken by the Chinese government.
Astley, M. (2013, July 18) Danone Dumex cuts Chinese infant formula prices by up to 20%. DairyReporter.com. Retrieved at September 19, 2013 from...