Nestle’s Social Irresponsibility in Developing Nations

Nestle’s Social Irresponsibility in Developing Nations

Examine unethical corporate practices and their impact on a company’s image and credibility

Nestlé was one of the most successful food-based companies in the world. Set up by Henri Nestlé in 1867, in Vevey, Switzerland, Nestlé grew over the decades by acquiring smaller companies to become the largest company in Switzerland by the 1960s. Nestlé’s product portfolio included soluble and roast coffee, other beverages like tea and health drinks, several mineral water brands, dairy products, chocolates and confectionery, ice cream, frozen food, culinary products, breakfast cereals, infant food, pet care, pharmaceutical products and cosmetics.By the end of 2002, the company employed more than 250,000 people in 508 factories around the world. Although it was one of the most successful companies in the world, Nestlé was frequently criticized for using unethical marketing practices to promote the sales of some of its products.The company was severely condemned by health agencies around the world for its marketing of infant formula in developing countries, by conveying the message that the formula was better for babies than mothers’ milk.         

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Issues

The case is structured to achieve the following teaching objectives:

  • Understand the importance and role of corporate social responsibility in a Business Ethics

  • Examine unethical corporate practices and their impact on a company’s image and credibility

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