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Most Controversial Companies

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Takata Corp<br />

#5 Blue Bell Creameries LP<br />

Sector: Food and Beverage; Headquarters: USA; Peak RRI: 80<br />

NHTSA fined Takata USD 70 million in<br />

November 2015, the largest civil penalty in<br />

NHTSA’s history, for failing to disclose the<br />

defect in its airbags in a timely manner, and<br />

accused Takata of manipulating laboratory<br />

test results and producing selective, inaccurate,<br />

and incomplete test reports. At the<br />

time of writing, auto manufacturers are continuing<br />

to recall vehicles with Takata-manufactured<br />

airbags.<br />

The company had<br />

apparently defied<br />

an NHTSA order<br />

in December 2014<br />

calling for an<br />

expanded nationwide<br />

recall of driver’s side<br />

airbags.<br />

Top related companies:<br />

Takata Corp<br />

1. Honda Motor Co Ltd<br />

2. Toyota Group<br />

3. General Motors Co<br />

4. Nissan Motor Co Ltd<br />

5. Fiat Chrysler Automobiles NV<br />

5. Ford Motor Corp<br />

Blue Bell Creameries ranks fifth in our MCC<br />

2015 ranking due to a Listeria outbreak that<br />

killed three people in the United States and<br />

affected several others.<br />

The Listeria outbreak was confirmed by the<br />

US Food and Drug Administration (FDA) on<br />

March 14, 2015 and linked to a contaminated<br />

machine at Blue Bell Creameries’ plant<br />

in Brenham, Kansas, the company’s largest<br />

manufacturing plant. Three people died from<br />

the food poisoning, and a further two people<br />

were affected. Apparently, the victims had<br />

been patients at a Kansas hospital between<br />

January 2014 and January 2015 and had all<br />

consumed ice cream products. The Texas<br />

Department of State Health Services confirmed<br />

that the ice cream had been sourced<br />

from Blue Bell Creameries’ Brenham plant.<br />

Blue Bell immediately recalled the contaminated<br />

ice cream products and the US FDA<br />

warned consumers not to consume several<br />

Blue Bell frozen snacks.<br />

The US Center for Disease Control & Prevention<br />

(CDC) confirmed that Listeria caused<br />

fever, muscle aches, diarrhea, and other gastrointestinal<br />

symptoms, and that the bacteria<br />

could pose a high health risk for pregnant<br />

women, newborn babies, older adults, and<br />

people with weakened immune systems.<br />

In April, the CDC warned consumers against<br />

ice cream products manufactured by Blue<br />

Bell’s Broken Arrow plant in Oklahoma, due<br />

Top ESG Issues:<br />

Blue Bell Creameries LP<br />

1. Products (Health and environmental<br />

issues)<br />

2. Violation of national legislation<br />

to concerns about Listeria contamination. As<br />

a result of the warnings, Blue Bell temporarily<br />

closed the plant.<br />

H-E-B Grocery Company, one of the largest<br />

retailers of Blue Bell’s ice cream, decided to<br />

remove all Blue Bell products from its stores<br />

as a precautionary measure, and the retailers<br />

Sam’s Club and Kroger soon followed suit.<br />

The CDC then linked Blue Bell Creameries to<br />

three other Listeria-related illnesses suffered<br />

by individuals in Texas, who had consumed<br />

the company’s ice cream between 2011 and<br />

2014. Blue Bell responded by expanding the<br />

recall of products manufactured at its Brenham<br />

and Broken Arrow facilities. The CDC’s<br />

Division of Foodborne, Waterborne, and Environmental<br />

Diseases, estimated that the total<br />

number of Listeria-related cases linked to the<br />

company could reach 11.<br />

Blue Bell’s recall of all of its products in the US<br />

was reportedly one of the biggest food recalls<br />

18 Special Report: <strong>Most</strong> <strong>Controversial</strong> <strong>Companies</strong> 2015<br />

Special Report: <strong>Most</strong> <strong>Controversial</strong> <strong>Companies</strong> 2015<br />

19

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