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Shame On Nestle
Recently the Nestle company had to recall a huge amount of cookie dough because of E Coli contamination. This recall probably cost them millions and it now seems they may have arrived at this point by trying to cut corners on food safety issues.
As reported by the Wall Street Journal, Nestle has repeatedly refused to cooperate with FDA requests to provide information during inspections. While they complied with the minimum standards under the law they certainly could have cooperated in more depth.
While I am not often a big fan of government regulations that go too far, it seems that here the food safety rules do not go far enough. Since the companies seem unwilling to take the proper steps, Congress needs to address the issue by requiring them to supply all required information.
For their part, if Nestle is smart they will announce they will do so voluntarily. I am not sure that anyone will be able to trust the company unless they do so.
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4 Responses to “Shame On Nestle”
ROTFLMA…
If Nestle kills a few dozen people due to negligence, they'll go to court fight it out and at worst lose a few millions, the CEO's compensation will be totally unaffected by such an occurrence, if on the other hand Nestle is seen as cooperating with Uncle Sam or treating it's employees to well by Wall Street, the stock price will fall and the CEO's compensation might take a beating.
I find this WSJ article strange since food processing plants have Department of Agriculture food inspectors in plant with their own offices. If an inspector sees a violation, that inspector has the power to shut down the plant immediately. Not to say that hanky panky don’t go on in food processing plants and questionable food don’t get by, but if food safety records could not be found then the plant could be easily closed by an inspector, not to mention by regional Dept of Ag oversight. It is as simple as that.
I have personally and regrettably experienced shady journalism from the WSJ. So initially I would tend to blow off the article and see what information time provides in other media sources.
Maybe the WSJ is attacking Nestle because it is a foreign company at the behest of an American competitor?? Who knows?
FT Those same inspectors missed the bad peanuts.
http://www.nytimes.com/2009/01/28/us/29Peanut.html
http://en.wikipedia.org/wiki/Peanut_Corporation…
I doubt anybody from PCA will go to jail…
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