ABSTRACT
Sanlu Group Co., one of China’s former dairy giants, was at the center of a poisonous infant formula crisis that shocked the nation and the world in 2008. That crisis resulted in the company’s collapse early in 2009. This case focuses on Sanlu’s unethical conduct: neglecting humanism, preventing free flow of information, and shifting its responsibility for the crisis. This case offers three major lessons: the necessity of improving the organization’s ethics, the importance of increasing the organization’ crisis prevention and preparation awareness, and the necessity of acting effectively during a crisis response.
