Today, the name of Colgate cannot be found anywhere on the packaging of what is now called Darlie toothpaste. In a strategic move, Colgate has distanced itself completely away from the controversial...

Today, the name of Colgate cannot be found anywhere on the packaging of what is now called Darlie toothpaste. In a strategic move, Colgate has distanced itself completely away from the controversial product. In the Thailand and Indonesia health-products markets, Colgate even competes against Darlie toothpaste with its own brand.

1. Identify the major strategic and ethical issues faced by Colgate in its partnership with Hawley and Hazel.

2. What do you think Colgate should have done to handle the situation?

3. Is it possible for Colgate and Hawley and Hazel to change the toothpaste’s advertising without sacrificing consumer brand loyalty? Is that a possible reason for Colgate’s not responding quickly to domestic complaints?

4. In the end, was a “no management rights” clause good for Colgate? What could have happened during the negotiations process to get around this problem?