THE PINEAPPLE COMPANY

You are the General Manager of XYZ Co., a manufacturing

company that produces pineapple juice for the Philippine market
and for export. For the year 2018 your company had revenues of
P700 Million. XYZ Co., has been in the business for more than
40 years and is owned by the Carale family.

This morning your Quality Assurance Manager came to see

you and told you that the whole pineapple juice production
yesterday consisting of 28,000 cases with a market value of
approximately P16,000.000.00 did not pass the standards for the
GGG enzyme. According to accepted international quality
standards, as well as XYZ Co.’s own standards, any product with
an GGG enzyme level of 3.5% or more should be destroyed.
Yesterday’s production had GGG enzyme level of 3.51%.
Products with GGG enzyme levels from 3.5% up to 4.7% are still
fit for human consumption.

Your Sales Manager wants to sell the whole 28,000 cases to

the market as is, arguing that the deviation from the standard is
miniscule. Your QA Manager wants all 28,000 cases destroyed.
Your Logistics Manager thinks the products should be sold
unbranded and without label in Divisoria or Arranque. He
estimates that the 28,000 cases can be sold for at most
P3,500,000.00. In this way you would be able to recover majority
of your production costs. Your HR Manager suggests you just
donate the juice to public schools and orphanages and get media
mileage out of it. The President of the Union wants you to just
give the 28,000 cases to your workers arguing that “Charity
begins at home.”

What will you do?