Nestle Infant Formula Controversy

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RUNNING HEAD: Nestlé: The Infant Formula Controversy Nestlé: The Infant Formula Controversy CASE 4 April VanRivers Adv. International Marketing March 24, 2013 1. What are the responsibilities of companies in this or similar situations? Domestic companies and multinational companies have responsibilities that portray their corporate and social stance as an organization. Many of these responsibilities are indicated in the vision or mission statement. Ethical and socially responsible conduct should be the cornerstone of any organization’s core values and strategic management process (Godiwalla & Damanpour, 2006). For an MNC, ethical and social responsibility charge becomes an imperative because it is globally conspicuous,…show more content…
Being that Nestlé’s incident happened during a time when corporate social responsibility was newly introduced and not fully segmented, if Nestle would have had a CSR initiative this occurrence could have been avoided to a certain degree. Many CSR initiatives include the responsibility of doing a part in assisting with the well being of a country. There are actually two types of CSR initiatives. One type is geared toward donating money or employee time to charities and the other type is putting together a real plan to produce products or provide services that are in the best interests of society (Truist, 2013). “The most successful corporate social responsibility programs integrate these two types of CSR together to show a true commitment to a cause. For example, a company that uses sustainable materials in their products, donates financial resources to environmental causes, and allows employees to take paid time off for volunteering at environmental charities would be showing a true commitment to the environment that goes beyond any single CSR initiative” (Truist, 2013). A company that has a CSR that stands out and shows a genuine concern for society are viewed more favorable and engages governments and consumers (Truist, 2013). Corporate Social Responsibility is only one part in fully protecting a company from public disgrace and accusations. Market research is a key element for a MNC to promote products and services to the
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