The Call for Corporate Action: NYU Stern Student Voices: Vol. 5 / Spring 2018

Page 39

ESSAY BY

SIENNA CHEN

Substituting gutter oil for edible cooking oil is one of China’s largest and most concerning food safety issues today. In her essay, Sienna Chen explores how a new business venture that focuses on collecting and recycling used cooking oil can transform this corrupt industry.

A

STICKY SITUATION The widespread use of gutter oil as edible oil in China has become one ...of the country’s biggest food safety concerns, and the capital city, Beijing, has been most scrutinized for the practice. Incidents surrounding gutter oil have triggered widespread social anxiety, especially after research has shown how gutter oil directly threatens consumer health. This oil contains chemicals that cause digestion problems, food poisoning, and even liver cancer under long-term consumption, which has led many

organizations to call this issue a growing public health crisis. The government, NGOs, and various corporations in Beijing have all attempted to address the issue, yet none of them has achieved sustainable progress. One possible solution that can effectively address the problem involves a social venture that utilizes home delivery service as its business model. It would recycle used oil and turn it into a renewable biofuel energy, benefitting society while still generating profits. While there are a few risks and complex dynamics within the gutter oil business

that we cannot underestimate, such a proposal is our best hope in solving the gutter oil issue. LOOKING AT A LUCRATIVE TRADE The fundamental dynamics of the gutter oil industry are intricate and, thus, not easily resolved. Most notably, an integrated, profit-driven production chain drives the constant stream of supply and demand. Restaurants in Beijing profit from providing discarded cooking oil to underground oil recyclers, with compensation ranging from $4,500


Turn static files into dynamic content formats.

Create a flipbook
Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.
The Call for Corporate Action: NYU Stern Student Voices: Vol. 5 / Spring 2018 by NYU Stern School of Business - Issuu