Nestle! Hot potato? Or hot lead?

"Indians they have a lot of tolerance, they do not really bother about lead etc in food, given the pollution that we have. So, definitely a time to buy into Nestle because it is not going out off business yet," - A callous fund manager quoted in a newspaper report. . 


Shares in Nestle the company that makes Maggi noodles were sold off in India as Maggi noodles came up for scrutiny for excessive lead, mono-sodium glutamate or a taste enhancer. 

Nestle struggled today lower by more than 10 % consequent to an Indian provincial food and drug authority finding excessive lead content ('dangerously high') in its maggi noodles. 

Read more at:
http://economictimes.indiatimes.com/articleshow/47523217.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

Some ethics in management! Some corporate governance!

Without any risk or responsibility.

Lack of Ethics : Corporate Entities and politicians need to undertake serious soul searching

With reports from UK and Switzerland over misdeeds by HSBC (and even its CE!) , and from India over the detention of a Reliance Industry Ltd employee for reportedly stealing information of a sensitive nature from the Energy Ministry's files, one wonders over the trade-off between profitability and morality.
Is it that the management which indulges in illegality or bypasses / circumvents the law has to be respected by stakeholders?
Is that company which indulges in illegal activities or abets illegal activity with intent to profit and whose shares are bought and sold by shareholders deserving of such trades in the stock market?
Do the politicians who shield the unethical corporations  on pretext of national jingoism or on  unethical considerations to be let off?
Or is it that these companies are too big to fail and therefore to be excused on each occasion to follow a criminal path later in the line?
CSR and shared value statements on the one hand and misdeeds on the other?
Can companies disown the conducts of its employees if such conduct  is for the pecuniary gain of the company, under the doctrine of indoor management?

(Both of these large corporations  have previous histories of being suspect; yet both have grown so huge that a tumble in their shares might affect stock market indices quite a bit)

Views expressed here are without any risk or responsibility. 

Valueless Managements

Goldman Sachs , HSBC, Standard Chartered and BASF managements are being sued in the US  for trading in metals armed with insider client information. If true, it suggests that managements, in their yearning for profits are giving scant regard to values and ethics.