This website uses cookies to ensure you have the best experience. Learn more

Nestle Infant Formula Controversy Essay

1669 words - 7 pages

RUNNING HEAD: Nestlé: The Infant Formula Controversy

Nestlé: The Infant Formula Controversy

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 ...view middle of the document...

An excerpt from Diageo’s website reads “The Diageo Marketing Code governs every element of the research, development and marketing of our brands. It guides us as we gather insights on adults of legal purchase age, as we develop products that appeal to these adults and as we package and promote all of our brands.  The Diageo Marketing Code is firmly embedded within our research, innovation, sales and marketing functions in all markets in which we conduct business” (Diageo, 2013). The latter statement is the responsibility that any MNC in a similar situation to that of Nestle should abide by.

2. What could Nestlé have done to have avoided the accusations of “killing Third World babies” and still market its product?

One element that was missing in Nestlé’s case was the education of the cultural environments and the awareness of the implications of marketing powder formula to third world countries with inadequate water supply. From the beginning, extensive research should have been done on the product that they were going to introduce. Introducing a powdered milk product to a country that has contaminated streams of water was not a good strategic decision. The product should have been liquid based, where no water would have been needed. In addition, mothers should have been educated on the formula while in the hospital. Nestle could have taken the initiative to make certain that education was a requirement. Many of the mothers were unaware of how they were supposed to administer the formula to their babies. The education of infant formula would have need to been implemented in continuous marketing campaigns along with their existing campaigns. There are many things that Nestle could have done in order to avoid being accused of “killing third world babies”. However, during the time Nestle did not have an efficient corporate social responsibility. In fact, the terms social and corporate responsibility did not exist until the late 1960s and early 1970s (Wikipedia).

3. After Nestlé’s experience, how do you suggest it, or any other company, can protect itself in the future?

Corporate social responsibility (CSR) is key for all MNCs. 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...

Other Papers Like Nestle Infant Formula Controversy

Nestle Essay

3288 words - 14 pages year later, a trained pharmacist, Henri Nestle, introduced world’s first prepared cereals for infants in ‘Farine lactee’ in Switzerland. Both of these companies merged in 1905 to be a company known as Nestle with headquarters based in Swiss town of Vevey – where it started in the beginning. (Nestle, 2012). Nestlé’s first customer was a premature infant who was unable to tolerate his mother’s milk as well as any other conventional substitutes

Operatiom Management Essay

4151 words - 17 pages formulated mixture of cow’s milk, flour and sugar. Nestlé’s first product was called Farine Lactée (“cornflour gruel” in French) Henri Nestlé. The product was first used on a premature baby who could not tolerate his mother’s milk or other alternative products of that time. Doctors gave up on treating the infant. Miraculously the baby tolerated Henri’s new formula and it provided the nourishment that saved his life. Within a few years the first

P1 Ethics

1511 words - 7 pages higher energy intakes, which may contribute to chronic disease. It was Baby Milk Action who complained about the joint Nestle and Asda Email Promotions for SMA Toddler Milk. After Nestle were caught out for misleading parents, they didn’t apologise of what they did. Even after being caught out, they are still promoting similar products that make similar claims such as Promoting infant formula to health workers. Illegal and immoral advertising


2308 words - 10 pages Nestle Nestle is the largest nutrition and foods company in the world, founded and headquartered in Vevey, Switzerland. The journey of Nestle begins when Henri Nestlé developed the first milk food for infants in 1867, and saved the life of a neighbor’s child. He invented a food for the infant babies who are unable to take mothers feed can use it as an alternative food.Henri Nestle retired in 1875 but the company was going on a full swing. In the

Nestle Mature Markets Growth

1166 words - 5 pages 1.7 billion Swiss francs and a very solid base to tackle a worldwide market estimated at 10 billion dollars. With 82 percent market share in the US, Gerber occupies a significant part of the baby aisle in the retail trade and its dedicated sales force will help Nestlé infant products to benefit from that critical mass. Overall, the acquisition reinforces and extends the leadership Nestlé had in infant nutrition. While Nestle is already a clear

Busines Comunication

5200 words - 21 pages like PEST analysis, Portfolio analysis and Porter Five Force that can be helpful for improving their products. Nestle has been serving worldwide with its excellence in product safety, quality and value. It provides many goods which include Dairy products, Beverages, Bottled Water, Infant diets and confectionary. According to their point of view they provide the best food through out the world. For Nestle they adopted the societal and marketing

Multinational Companies

2073 words - 9 pages multinationals have access to.         These multinationals also resort to very desperate tactics to get what they want, as seen in the boycott of Nestle in the 1980's.         During the 1970's and early 1980's, Nestle began advertising infant formula to the people of the Third World through signs, and promoting formula throughout hospitals. The question is, What does the Third World want with baby formula when breast milk is free


2087 words - 9 pages with the money and resources to which multinationals have access to. These multinationals also resort to very desperate tactics to get what they want, as seen in the boycott of Nestle in the 1980?s. During the 1970?s and early 1980?s, Nestle began advertising infant formula to the people of the Third World through signs, and promoting formula throughout hospitals. The question is, What does the Third World want with baby formula when breast

Study Habits for Academic Archiviers

1192 words - 5 pages A STUDY ON THE FACTORS AFFECTING THE INFANT FEEDING PRACTICES OF MOTHERS IN LAS PIÑAS CITY A TERM PAPER SUBMITTED BY: MA. ANGEL V. SENOSON 8-MABINI SUBMITTED TO: MR. ANTONIO SAJONIA A Study on the Factors Affecting the Infant Feeding Practices Of Mothers in Las Piñas City   Introduction The melamine controversy that erupted during the last quarter of year 2008 brought people’s attention back to the debates between


3026 words - 13 pages INTRODUCTION OF NESTLE Nestle is the leading FMCG company of Switzerland established by Henri Nestle. Nestle is serving worldwide with its more than 500 factories in 86 countries comprising almost all continents. Nestlé’s product portfolio is more than 500 products all over the world serving best to their customers. Henri Nestlé endowed his company with the symbol derived from his name. His family coat of arms, the nest with a mother bird

Research Paper

1171 words - 5 pages breast milk substitutes like commercial infant formula. This wasn’t the first time that infant formula had caused illnesses and even deaths to infants worldwide - hence the continuous campaign of World Health Organization (WHO) and UNICEF along with other breastfeeding advocates, for mothers to breastfeed their children at least until 6 months of age. Infant feeding practices refer generally to meet the nutritional and immunological needs of the

Related Essays

Marketing And Ethics Essay

1992 words - 8 pages discussed in the following sections. Ethical Dilemmas of Nestle Infant Formula: Nestle got itself involved in a controversy surrounding an infant formula as it was criticised for following practices considered as unethical which endangered human life and health. Various agencies called for the boycott of the company until in the 80s, Nestle agreed to integrate the infant formula marketing code as designed by the World Health Organization

Neste Infant Formula Essay

1352 words - 6 pages , no use of commissions or bonus for sales, no use of infant pictures, no financial or material inducements for promotion, a statement of superiority of breast feeding on all labels and materials. Through their continued support of the “WHO” code Nestle was able to maintain its share of the third world formula market (Murray). The cause of the case against Nestle was the result of malnutrition and death among third world country babies. However

Nestlé: Sustaining Growth In Mature Markets

3631 words - 15 pages largest companies in the world. Nestlé’s primary products include beverages such as (coffee, chocolate drinks, mineral water, and soft drinks), dairy products, infant formula, culinary products (soups, seasoning, condiments), frozen foods and ice cream, yogurt and chilled desserts, and chocolate. Nestle seems not still happy with what it had obtained. Under leadership of current CEO Peter Brabeck, Nestle is now experiencing a more significant

Nesle Strategic Managment Essay

2335 words - 10 pages weakness to nestle which holds a major share of the baby formula market. In 2008, Nestle was impacted by the China milk scandal, involving infant formula’s and other milk products which contained melamine causing threat to lives. Over 53000 children fell ill from the tainted milk powder. However, Nestle had denied claims that the traces of melamine found in one product by the local government was far too small to be significant Opportunity