Business Beat
What began as a minor error in labelling has probably cost Mead Johnson Nutritionals its future in Viet Nam, at least the immediate future.Recently, a misprint on its milk can labels indicated folic acid inside to be 7,300mcg/100g, or nearly 10 times the normal level.
In a classic case of penny wise, pound foolish, instead of withdrawing the cans, it stuck a promotion sticker on top, hoping to conceal the error.
But things soured quickly for the milkfood maker, with a newspaper spilling the beans. Several days of dawdling later, the company dashed off a letter to the paper, explaining the fiasco; but by then, it was too late.
It is not clear if its competitors had a role, but the media went to town, supermarkets stopped selling the product, and its distributors were swamped by complaints from indignant consumers.
Most newspapers retained objectivity, though there seemed to be a joker in the pack. There is a whisper going around that the public relations firm that supplied documents to them was retained by Mead Johnson’s rivals.
only one newspaper raised a stink, presuming the company was up to something fishy.
The milkfood manufacturer publicly apologised to its consumers. The samples sent for analysis showed that folic acid levels were permissible, but the damage was long done.
Maybe Mead Johnson’s only fault was acting in haste but it is certain to repent at leisure.
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After the ISO 9002, the latest fad among manufacturers here, especially those eyeing the American market, is the SA 8000 certificate. This social accountability standard certifies that businesses are treating their workers well, assuaging consumer worries, for instance, about possible sweatshops.
While it is indeed beneficial to both employers and employees, the cost of obtaining it is considerable.
Consultancy services, sensing their main chance – they stand to make big bucks – have begun pillorying local companies, touting the certificate as the end-all for doing business in the US.
Labour experts and officials warn that unwary businesses could end up seeing tens of thousands of US dollars going down the drain for what could really be a superfluous piece of paper.
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one more insidious attempt to revive an unneces-sary licence has been nipped in the bud. The Government had abolished the need for a temporary licence for printing technical product guidebooks and brochures, among others. However, the Ministry of Culture and Information issued a letter, apparently to clarify the Government decision, in which it said only non-commercial publications could dispense with the licence.
But the Government would have none of it and issued a statement affirming its earlier decision; the ministry had to retract its letter.
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The HCM City authorities seem to be caught between a rock and a hard place. on the one hand, the Enterprise Law has fostered thousands of new businesses which have generated much-needed jobs and paid taxes to the exchequer, making up for the poor performance of the State sector.
on the other, it has caused a mushrooming of karaoke parlours, bars and discotheques that are the breeding grounds of crime and prostitution. While the authorities thus have the job of nurturing the Law to promote economic development, they also have to grapple with its less desirable fallouts.
As a halfway measure, they clamped a temporary ban on new karaoke parlours, dancing clubs and bars and instructed new restaurants and hotels to get initial approval from district authorities. This has however elicited howls of protest that it goes against the spirit of the Enterprise Law. Many think that as a large metro, HCM City has the right to act as it sees fit in matters affecting the common man. However, they want all specific requirements under the law to be clearly and unambiguously spelled out, leaving no scope for corruption or personal gains.
Besides, they say, issues that are obviously beyond the jurisdiction of the local authorities should be incorporated into the laws. — VNS
