Res351

In: Business and Management

Submitted By eloisamontoya
Words 876
Pages 4
RES/351
Business Research Ethics
Individual
Eloisa Montoya

Beech Nut was a wholly owned and operated company that was ran fully by Nestle, which is a manufacturer of infant formula. Beech Nut was their company that made juices for infants and children. In 1982 Beech Nut found an entity that would cut their costs by a lot, and offered them apple juice concentrate, which again, was at a very low price. After using this product for just a little while, an employee started wondering why and how this company was offering apple juice concentrate for such a low dollar amount, so he decided to investigate further. During this employees investigation of the apple juice concentrate, he came to find out that the concentrate actually had no apple juice concentrate at all in its contents, instead this was a concentrate that was entirely chemical based and man-made. This employee went to his bosses with this information, and in turn, Beech Nut as well as Nestle did absolutely nothing. After trying to get this stopped and having no luck, this employee finally just quit the company all together. Soon after this employee quit, the Food and Drug Administration (FDA) started their own investigation, and it was noted that Nestle and Beech Nut were not cooperative at all. Apparently Beech Nut had thousands of dollars worth of merchandise stored and they were scared that the Food and Drug Administration was going to confiscate it, so instead of turning it over to the Food and Drug Administration they shipped all of it to other states as well as to other countries and all over night. Because of this unethical behavior, many plants were shut down, and Beech Nut was inevitably shut down completely. There was one Beech Nut factory that was by New York, and this company was the towns main employer, which it employed over a thousand employees. After Beech Nut shut down all of its…...

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