Beech-Nut Nutrition Corporation (A-1)

The CEO of Beech-Nut Nutrition Corp. must decide what to do when he receives information that the company's supply of apple juice concentrate may be adulterated. The concentrate is used in many of the company's juice products. It appears that others in the company may have had reason to doubt the authenticity of the concentrate for several years. The case illustrates the importance of accurate information and open channels of communication to ensure sound decision making by top management. Also illustrates how emphasis on financial objectives and designated goals may obscure important ethical and legal considerations. May be used to discuss organizational barriers to information flow, approaches to decision making, and the role of the FDA and other U.S. regulatory officials in ensuring food purity.