Nestle Corporation in Africa in the 1960’s and the misuse of babymilk powder to replace mother’s milk. Many (1000’s) of babys died. Nestle head office executives in Switzerland were appalled and shocked. They did not know that the baby milk formula was being sold to women in isolated villages and mixed with unsafe water supply. Senior executives will claim ignorance as a defense. The opposite argument is that executives should make it their job to know. Discuss both points of view and state the opinion. Support the claims/arguments with research findings

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Corporate structures are influenced by a different focus on product, function, client and geography. These different focuses help to determine structure. If the organization is an overseas global organization, there are positives and negatives. For example, when the company is operating through international subsidiaries in other countries with a full set of executives in that country it can be hard to know what is happening on the other side of the world in Uganda or Laos. An example was Nestle Corporation in Africa in the 1960’s and the misuse of babymilk powder to replace mother’s milk. Many (1000’s) of babys died. Nestle head office executives in Switzerland were appalled and shocked. They did not know that the baby milk formula was being sold to women in isolated villages and mixed with unsafe water supply. Senior executives will claim ignorance as a defense. The opposite argument is that executives should make it their job to know. Discuss both points of view and state the opinion. Support the claims/arguments with research findings. 

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