Introduction about Nestle Company

Introduction about Nestle Company

Henri 1866 is the founder of Nestle company on a specific product that was manufactured to protect the life of the neighborhood child. Over the last years, the company aimed at producing interest and the value of the society by planning the products that promote value to the investors. Effectively, this strategy has provided the Nestle firm to develop businesses that are minor to the leading health, food, and wellness organizations in the Universe. Going successful beyond the benefit of the consumer is similar to creating communal values for shareholders as well as people. Construction of Shared Value implies about value transfer to the developers who are traders of Nestle, to other portions of civilization and to employees. More so, it investigates the many facts where the organization involved with the society and developing continuous reserve that usually provides the positivity to the community band the investor’s value of the firm if only the Nestle’s revenues are the top food company in the Universe. Nestle company explore various types of product, including mineral waters, cereals, ice creams, coffee, and many more food items. The goal of this company is to bump and produce everyday requirements of the clients by providing food with high quality, which is good for nutrition and health. The safety of the customers is considered in the production of food with high quality. Also, nestle company is responsible for the association of all distinct routine favorites and tastes.

The creation of the company was aimed at providing nutrition, the wellbeing of the customers, and the health of the client from every part of the world. Over the last 140 years, history organizations mainly focused on the development of the nutrients for the clients. The consumers are a key priority to the company. The company ensures the satisfaction of the customers from the quality of the products manufactured. External analysis of the organization involves Demographic segmentation. It urges that the Nestle company is for everyone in the world. This reason is applicable because every humanity drinks water and eats food. The Nestle company is advantaged to produce the products that are basic to humankind and are not luxurious.  The demographic segment implies that the products are not for a single region but the whole world. Also, the economic section is another chained category of Nestle company. Nestle is the leading food production company in the Universe, proficiency with small cooperation, and donates its information.

Being able to make the right choice, by distinguishing between the “right” and the “wrong” is an ethical issue.  The moral question that was experienced in the Nestle company was a false advertisement of the baby formulae milk. Therefore, Advertising is considered misleading when vital information is left out.  It is unethical to use false statements to gain more profit

The Scandal

Nestlé is a company that produces baby formula. Their marketing strategies were wrong because it included incorrect information. In the first place, they stated that baby formula was better for infants rather than breastmilk.  Thus, many children became ill and even died due to Nestlé’s false advertising. Mothers in third world countries would dilute the formula causing malnutrition to the infants. Often, water supplies would also be unclean, leading to an increased chance of contracting diarrhea. As a result of this scandal, Boycott was launched against the company and its baby formula product, which brought international attention. They failed to state that “infant food should not be the sole source of nourishment”. Also, they manipulated their wording: Instead of writing “Mothers milk is best for your baby” they wrote “breast milk is best for your baby”. In the end, Nestlé agreed to clearly state on their website that breastfeeding is healthier than formula. The Boycott and pressure from the public forced the company to change its marketing policies. Clear labeling:  use official languages of countries that they sold to increase font size. Also, Create a more nutritious product such as essential vitamins, nutrients, calories that a baby needs. Finally, state factual information rather than encouraging formula is healthier than breastfeeding; therefore, the company was required to indicate the full knowledge of the methods. Alternatively, the company was required to apologize and take full responsibility for their mistakes without any blame. In relation, directly admit to false advertising. Finally, compensate those affected.

Ethical management issue

Nestle company rarely considered the ethical question when it produced the infant formulae. The developing countries still experience developmental challenges and infrastructure. The Nestle company did not find the lack of sanitary conditions and the impure supply of water. The company assumed the ethical practice in infant milk production.    In conclusion, nestle company has been enrolled in various controversial effects on its products and activities. These controversies have a significant impact on the public’s health and image. The company was required to apologize and take full responsibility for their mistakes without any blame.

References

Boyd, C. (2012). The Nestlé infant formula controversy and a strange web of subsequent business scandals. Journal of business ethics, 106(3), 283-293.

https://link.springer.com/article/10.1007/s10551-011-0995-6

Garson, B. (1977). The bottle baby scandal. Mother Jones, 2(10), 33-60.

https://academic.oup.com/ahr/article-abstract/121/4/1196/2581604