Ethical Dilemmas of Nestlé

Ethical Issues:

Baby Formula and Boycott

The controversy between breast feeding and formula feeding gained high attention over the past
30 years, especially when it comes down to Nestlé. In 1977, campaigners first called for a boycott
of Nestlé according to its aggressive and deceptive marketing of infant formula to Third World
countries. This boycott was launched in the United States and it spread into Europe in the early
1980s. The boycott has been canceled and renewed based upon scrutiny of the business practices
of Nestlé and other substitute manufacturers monitored by the International Baby Food Action
Network (IBFAN), which consists of more than 200 groups in over 100 countries. Organizers of
the boycott claimed that use of the infant formula substitutes represent a health risk for infants and
encourage the practice of newborn nutrition via natural breast milk.

Nestle and Water

Few people know it, but Nestle is actually the world’s largest producer of bottled water. In fact,
they’re so keen on their water business (which also involves many of their other products), that
they believe water isn’t a universal right.
At the second World Water Forum in 2000, Nestle pushed for making access to drinking water
from a “right” to a “need,” a defining change. Meanwhile, Nestle drains the aquifers it controls as
much as possible, without any regards to sustainable usage or environmental concerns. Nestle has
been working without a permit since 1988.

Child labor, abuse, and trafficking

The 2010 documentary The Dark Side of Chocolate brought attention to purchases of cocoa beans
from Ivorian plantations that use child slave labor. The children are usually 12 to 15 years old, and
some are trafficked from nearby countries – and Nestle is no stranger to this practice.
In 2005, the cocoa industry was, for the first time, under the spotlight. The International Labor
Rights Fund filed a lawsuit against Nestle (among others) on behalf of three Malian children. The
suit alleged the children were trafficked to Côte d’Ivoire, forced into slavery, and experienced
frequent beatings on a cocoa plantation.

Health Threats
In July 2009, the Food and Drug Administration (FDA) and the Centers for Disease Control and
Prevention (CDC) warned consumers to avoid eating any varieties of prepackaged Nestle Toll
House refrigerated cookie dough due to risk of contamination with E. coli O157:H7 (a foodborne
bacterium that causes illness). In the US, it caused sickness in more than 50 people in 30 states,
half of whom required hospitalization.

In October 2008, Taiwan Health ministry announced that six types of milk powders produced in
China by Nestlé contained low-level traces of melamine and were removed from the shelves.

The scandal quickly escalated, with China reporting over 300,000 victims, raising concerns about
the security of major food companies operating in China. Two people were executed and several
life prison sentences were issued, with the World Health Organization (WHO) referring to the
incident as one of the largest food safety events it has had to deal with in recent years.

• Nestle has some other ethical dilemmas like:

• Ethiopian Debt

• Price Fixing

• Promoting Unhealthy Food and Mislabeling

Why and How Nestle should deal with Ethical Dilemmas:

After a break of more than a year, Nestlé's Code 'Action' Report has appeared on the scene again
and been distributed to health campaigners and policy makers around the world. Nestlé
welcomes one aspect of Resolution 54.2 adopted by the World Health Assembly in May 2001.
This relates to the appropriate age for introducing complementary foods.

However, this is just one issue addressed by the Resolution. Nestlé ignores other aspects,
probably because it is already violating provisions enshrining a mother's right to information free
from commercial influence. For example, Nestlé recently launched an infant formula promotion
campaign in southern Africa which violates the sections relating to HIV and infant feeding.

The manager control is severely impeded by a variety of internal and external forces beyond
their. He had created Nestle Supplier Code to guide and maintain the relationship between
supplier and company.

The management should build multiple relationship with other raw materials suppliers. The
surplus products will be sell with promotion to clear the stock

• Build the Dealer Management Systems (DMS)

• DMS is a software for solutions that provide tools for managing sales, services, parts and
inventory management, business management, integration, and core architecture
• DMS was built to maintain the relationship between dealer and consumers
Every company have its own problem whether small or big company. This also including Nestle
company either internal or external problems.

“You can have slow and steady change, and that is nothing to be ashamed of”,