Nestlé Ethics and Communication Transparency As many people might or might not know, Nestlé is a Swiss multinational food and beverage company who are responsible of many acclaimed brands (Wikipedia, 2014). Many people must have seen, heard or at least bought few of the brands under this organisation, for example: KitKat, Nescafé, Nespresso, Cerelac and many others (Nestle.com, 2014). Unfortunately, as they are one big company with a big reputation, problems of any kind are unavoidable. Many ethical problems were raised from this establishment, some starting from a long time ago and some might have only been addressed for only a couple of years. In this essay we will be mentioning some of the more pressing moral queries of the group, such as the issue of child labour, the scandal in Ethiopia and their rather questionable marketing of artificial baby milk (corporatewatch.org.uk, 2014). The three worst breaches of ethics, which are supply chain issues/ethics of suppliers of materials used, health and safety related to manufacture or use of product and honest and fair dealings, and the possible best course of action, which is communication and transparency, will be discussed afterwards. First is the issue of child labour. According to the Cocoa Market Update from the Cocoa World Foundation (2012), Côte d’Ivoire or the Ivory Coast produces 40% of the global cocoa produce. There was a report in 2010 commissioned by Tulane University (Globalmarch.org, 2014) showing that 1.8
A significant portion of the Ivory Coast’s protected forests have been chopped down over the past few years to make room for illegal cocoa farms. (Doc D) [Ohio State University Professor W. Scott] McGraw and his fellow researchers surveyed 23 protected areas...All told, more than 74 percent of the supposedly protected forests the researchers surveyed had been taken over by cocoa farms. (Doc D) The Ivory Coast also underwent two civil wars between 2002 and 2011 which heavily affected the production of cocoa by about 247,000 metric tons. (Background Essay) The wars disrupted the planting of trees causing cocoa farmers to face less productivity to grow cocoa beans. Many of the cocoa trees are reaching the end of their productivity putting the productivity of cocoa beans at a slower rate. Even though the farmers are planting new trees, it takes three to five years for a cocoa tree to produce pods with the cocoa beans. (Background Essay) This deforestation along with hunting have heavily affected the Ivory Coast. Especially their agriculture and animals
Nestle was involved in the unethical marketing practices, endangering consumer health to promote its infant formula in developing nation. Nestle often used deception and doublespeak to justify its unethical business practices. Many NGOs and groups spread the word about Nestlé’s unethical practices making people to boycott its products. Later Nestle changed its policy and stops free sampling and aggressive marketing techniques. Nestle promoted the infant formula over breast milk which caused the illness and death of many infants in the developing countries. There are many reasons that contribute to it:
This paper will particularly focus on the food industry and will outline the ethical issue of food marketing towards children by reviewing the existing marketing ethics literature. The paper will evaluate the ethical responsibilities of marketing managers towards the issue of food marketing towards children and its impact. The paper will also explore and propose how managers of marketing can change their strategies to improve the ethical performance of the company by analyzing theories such as business ethics, social marketing and corporate social responsibility (CSR). It will discuss various theoretical approaches to marketing.
One of the biggest concerns when the Body Shop was taken over by L'Oreal was the issue of corporate culture. The cultures of the two organizations are very different. The Body Shop has positioned itself as an ethical firm, avoids animal testing and has made its ethics a core part of its marketing message. A recent situation in Colombia illustrates the ethical culture at Body Shop. A palm oil supplier there had attempted to evict farmers from a ranch where they had been living. This situation created a controversy specifically because of the Body Shop's ethical position the company would be held in the court of public opinion to high ethical standards (Syal, 2009). The company responded by severing ties with the supplier, as a means of upholding its ethical standards, even though that supplier had been their main supplier of palm oil, a key ingredient in soap (Glennie, 2010).
There is a high bargaining power of suppliers because of the need of the key ingredients required for chocolate manufacturing and limited number of suppliers for this industry. Since cocoa trees require tropical climate, it forces the main producers in the west to import them from countries in West Africa or other hot places
Nestle writes an article that is relevant to almost all of her readers because most people shop at supermarkets. Since almost everyone goes grocery shopping, we’re bound to be exposed to the supermarket’s many marketing schemes. Coming from a family that goes grocery shopping at least three times a week, I feel that this article will allow me to avoid some of the supermarket’s sneaky
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.
San lu was the milk company that suffered the milk crisis in 2008. This company used to be well known over the country, and made huge contributions to Chinas development. However, since 2000, the milk industry started getting more narrow for competition. For getting higher profits, San lu had used chemical materials to produce dairy products. In 2008, the whole story was discovered, San lu lost thousands of millions of dollars and reputation with the brand was broken. In the past, San lu is a large state-owned dairy producer and was the focus of the scandal since the issue came to light. Afterward, the U.S Food and Drug Administration warned consumers to avoid buying infant formula imported from China. This would taint China; also it alarmed all Chinese milk companies. In the early 2010, Shang Hai University published a survey with 300 pregnant women and mothers from different places in China. 85% thought they would rather order milk products from overseas; 38% are not positive with the nationwide milk industry. Since this happened, San lu paid a high price. The considerations of the public: What products could we trust? How we conduct with something might come up with like San lu’s story? How should we promote a fair and healthy market competition? Ethics is the key to a business firm. It is a fundamental sector to determine development and policy creations. According to San lu’s case, it reflects that importance of ethics in business. For future
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
4. Assume you are the one who had to make the final decision on whether or not to promote and market Nestle’s baby formula in Third World countries. Read the section titled “Ethical and Socially Responsible Decision” In chapter 5 as a guide to examine the social responsibility and ethical issues regarding the marketing approach and the promotion used. Were the decisions socially
The chocolate plantations, or the cacao farms as they are more commonly referred to, are primarily located in the tropical areas of Western Africa, Latin America, and Asia. (foodispower.org) Cacao farms are located in these areas because this is where the environment needed for the cacao beans to grow is located. Out of these different areas, the African countries Ghana and Côte d’Ivoire (or the Ivory Coast as it is sometimes referred to) produce over 70% of the world’s cacao beans. (foodispower.org) In Ghana and Côte d’Ivoire whole communities are devoted to just
Professor David Guest, claims that a worldwide shortage of cocoa should take effect in 2020. He says there are a number of reasons for this expected dearth. About 70 percent of cocoa beans come from West Africa which has had political and social upheaval in past couple of decades. In Indonesia there are pests and diseases, and farmers grow more profitable crops than cocoa beans. He says that intense labor is also a problem with growing cocoa to. A cocoa tree grows to harvest age in three years, and then you can harvest it regularly for 15 to 20 years if you take good care of it. In order to keep these trees alive you need laborers as well, this is a problem with the labor shortages. A lot of laborers are not healthy
The Ivorian government blames the farms and trafficking on war and politics. As said by the minister of agriculture "thirty years of political instability caused a lot of harm to our economy generally, and to the agriculture particularly. This being said, Rabola Kagohi the country director for the international cocoa initiative. Rabola says "I think the situation improved exponentially" the chocolate industry is finding a way to get through saying they do not want child labor and trafficking. Although less than 4%of cocoa growing communities had been helped. So overall the government and chocolate industry need to work and clarify what they are doing to
This is because of the severe economic strife that the region experiences. More than 40% of the people living in the Ivory Coast region are below the poverty line (Little Change). Years of civil war and the decrease in cocoa bean prices from 2,600 USD per ton to 900 USD per ton between 1980 to 2000 have forced cocoa bean plantation owners to resort to child labor in order to stay afloat in their drowning economy (Ending Child Trafficking). Furthermore, the chocolate titans that purchase their cocoa beans from Ivory Coast farmers further exacerbate the problem. By encouraging developing nations to grow more cocoa, big chocolate companies drive down the price of cocoa beans and force farmers to use child labor as a means of cheap labor in order to keep their plantations (Slave Free Chocolate). Social justice workers must look towards biblical passages and Catholic social teachings in order to combat the physical abuse and harsh conditions that the child laborers
According to me Nestle have only focus on the economic responsibilities and has been concern about the shareholders acceptations than the society. There is a wide space for improvement in the company’s policies towards society and environment.