Q3. c, Research the Internet and provide three examples where Nestle or its subsidiaries have demonstrated ethical practices (i.e., giving back to the community).
Nestlé is known to be one of the most hated companies in the world. Due to its several unethical activities (like child labor, mislabelling, price fixing, pollution, its marketing of baby formula in poor countries, etc.) that has received a lot of controversy and criticisms and even a long-standing boycott from consumers. However, if we look further into this company’s history, Nestle was not that evil. The proof is that we can still find out some ethical activities of Nestle recently.
Sustainable Agriculture Initiative (SAI)
Along with Unilever and Danone, Nestle company created the Sustainable Agriculture Initiative (SAI) platform. Because this is a non-profit organization so its main purpose is to satisfy needs and demands of the community. Also, this organization formed to “putting principles and practices together on sustainable agriculture for certain crops in order to address environmental, societal and economical topics around agriculture production systems” said Hans Joehr – Nestle corporate head of agriculture (Kruschwitz, 2013).
The SAI Platform, which involves many different stakeholders of the food chain, support the improvement and implementation of sustainable agriculture practices. Start with 14 members, now it grows to more than 90 members joined this organization. (SAI Platform website). All
One company that faces ethical challenges today is food processing company, Nestle.Nestle's mission statement is "Good Food, Good Life". Nestle is considered of the most hated companies in the world. Some of Nestle's most popular products include baby food, bottled water, dairy products, and snacks. The company has been scrutinized for modifying nutrients in its infant products. In 2005, Nestle was sued for allegedly false labeling of their bottled water products. They were also in the spotlight at one period of time for child labor abuse and human trafficking. It is said that the company uses children between the ages of 12-15 to help gather cocoa beans for the production of their products.
Nestle, an international recognized multinational corporation is the world’s leading nutrition, Health and Wellness Company. Nestlé’s mission of “Good Food, Good Life” aims at providing customers with the finest quality of nutritional choices within a wide range of food and beverage classifications (NESTLÉ - Vassos Eliades. (n.d.). Retrieved from http://www.vassoseliades.com/consumer-goods/nestle.html, para. 1). The merger in 1905 between Nestle and the Anglo-Swiss Milk Company created the Nestle we know today. Nestle is one of the world’s largest suppliers of food and nutritional products operating with 461 factories in 83 countries, with 328,000 employees worldwide (Fries, Lorin, Goldberg, Ray, 2012. Nestle: Agricultural Material
To help Monsanto improve on their social responsibility, recommendations would be made to get to know the customers and expand business relationships. Farmers and consumers are skeptical of change therefore the power of business to solve social and environmental problems require strategic planning. Improving marketing, employee satisfaction, legal treatment and customer loyalty along with affluent partnerships is to be expected. Furthermore, Monsanto business practice should continue to support charities and nonprofits with financial donations from the corporation. To achieve sustainability it is imperative for the business to apply its resources and expertise in areas that impact social good through day to day operations.
Monsanto has faced great challenges but that has not stopped them from using their resources to improve the economy. The Monsanto Company has been socially responsible economically by creating numerous jobs and increasing the food supply for farmer’s crops significantly by effectively producing genetically altered seed. The revenue earned from the return on the crops enables farmers to thrive financially and become more independent to sustain themselves and their families (Monsanto, 2011).
Sainsbury Plc is a public limited company whose securities and shared are included in the stock exchange of different countries. Companies linked with retail sector are registered under the company act 1980 in the UK and their shares are an offer to the public in regards of limited liability. Sainsbury contributes a huge part of its revenue in UK development. The Competition of Sainsbury includes Tesco, Wall-mart, Morrison, Asda and others (J Sainsbury plc, 2016). Sainsbury Plc works on a dominant position in the UK and international market by means of their diverse product line and customer friendly services all over the world. The company is involved in the CSR world from since its inception; in addition, the company has increased their CSR work range from education to environment issues and gender quality since the last decade. The total revenue of the company is about £23.949 billion and operating income of about £1,009 million as
It has been observed that augmented globalisation may perhaps provide both opportunities as well as challenges to the company. It is said that occasionally, challenge may comprise that Sainsbury perhaps need to contest in contradiction of unidentified forces as well as to discover the foundations of cost effective and worthy products. It is also noticed that the tax of the corporation, contrasting from previous years is now less which means that the company would be able to save a huge amount of money for the reason of this inferior rate of company’s tax (Fernie & Fernie,
Nestle was founded in 1866 by Henri Nestle and is today (2015) the world's biggest food and beverage company. The milk-based baby food was the main product for the Nestle, and later produced the milk chocolate with their innovation. The vision of Nestle in making food is always produces the best quality of food for consumers in the market. Nestle was named ‘Nestle Alimentana SA’ was taken the result as the acquisition of Fabrique de Produits Maggi SA (founded 1884) and the holding of the company, Alimentana SA, of Kempttal, Switzerland. The Nescafe (Nestle’s coffee) was became a staple drink of the US military when the war time.
Nestle is one of the largest food and beverage companies in the world. It has, over its long history, been able to construct a variety of different resources in which ultimately have led to strong competitive advantages and capabilities relative to its competitors. (See Appendix 1)
Nestlé’s marketing and false advertising in baby food has caused another corporate crime. According to the World Health Organization, “an estimated 1.5 million infants die each year because of inappropriate feeding, because children vulnerable to disease are being bottle-fed on breastmilk substitutes rather than breastfed whenever possible.” Nestlé has been a large contributor in
Likewise, consumers are also distraught over the perception that Nestle is selling water. Many consumers feel as though access to safe, sanitized water should be a human right and water should not be sold, but rather readily accessible to everyone. Moreover, these customers believe that Nestle’s participation in the sale of water is immoral and inhumane and these customers may be choosing to purchase from other companies who do not participate in the private sector vending of water.
There are some corporations that do choose to take responsibility for nutrition and some that do not. Nestle for instance uses micro distributions to get recruits to deliver their product door-to-door in the far-out parts of the world. Delivering Nestle cereals, yogurts, candies, infant formula, and chocolate milk using IOUs provided by the company for those who don’t have cash or don’t see a reason to purchase Nestlé’s product at first sight. Nestle also uses a program to have a large boat go up and down the Amazon river selling prepackaged food and ice cream and they’re even considering adding another boat to reach that many more people. Nestle has given global promises to make healthier product and advertise food responsibly as well
Devaux et al. (2009) noted that the involvement of stakeholders in agricultural innovation systems have enhanced rapid diffusion, adoption, development of knowledge and technological output. Consequently, the active involvement of stakeholders in agricultural innovation system has been integral in enhancing sustainable growth in agriculture (Ojijo et al., 2013). Correspondingly, the collaboration of diverse heterogeneous stakeholders bring about active interaction, strong linkages and effective communication. (Ojijo et al., 2013). Also, it facilitates knowledge development among actors by helping them in identifying their challenges and opportunities by building coherence through dialogues in setting priorities (Klerkx et al., 2012b).
The business stakeholders, such as customers, employees, investors and local communities, expect companies to play a greater role in society and contribute to solving social problems and environmental challenges, such as climate change, energy scarcity, and social diversity and health risks. These expectations lead to social responsibility for businesses, but also open up new opportunities for these companies to improve their performance.
Nestle is one of the major companies in the food processing industry. It was founded in by Henri Nestle in 1866 in Switzerland, and currently has up to 333,000 employees (Nestle, n.d.). Moreover, it appeared in several Forbes lists owing to its high profits, sales, assets, and market value, eventually being labeled as one of the World’s most
Nestle, another big company in our industry, has also assessed the societal interests from different ranges of stakeholders when making their decisions and create shared value across each stage of its value chain.