...international boycott for allegedly causing mass deaths of babies in the third world all because of their irresponsible advertising approach and marketing activities. To appreciate better the problem here are some of the significant events of the controversy. * 1974- British journalist published a report that suggested that powdered formula manufacturers contributed to the death of third world infants by hard-selling their products to people incapable of using them properly. * Nestle immediately banned its infant formula advertisement in some markets. * 1977- Interfaith Center on Corporate Responsibility in New York compiled a case against formula feeding in developing nations, and the Third World Institute launched a boycott against many Nestle products. * 1978- Nestle implements total advertisement ban worldwide. * 1981- World Health Organization drafts a CODE to regulate advertising and marketing of infant formula. * May 1981- Nestle announces it would support the Code. * February 1982- Nestle issued to Marketing personnel to follow the Code to their best understanding. * May 1982- Nestle formed Nestle Infant Formula Audit Commission (NIFAC) to review the company’s instruction to field personnel to determine if they could be improved to better implement the Code. * October 1982- Nestle accepted NIFAC recommendation and issued revised instruction to field personnel. * January 25, 1984- International Nestle Boycott Committee (INBC) announced...
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...Case 1 Nestle: The Infant Formula Controversy Background Nestle, among other companies that market infant formulas, has been the focus of attack from different groups. The source of this controversy sprang from the number of deaths of babies from Third World countries that are alleged to have been the result of aggressive advertising of the Nestle infant formula. Nestle stands by its position that it has been responsible in its product marketing stressing, among other things, that (1) it has never advocated bottle feeding instead of breast feeding and (2) that the infant formula has a vital role in proper infant nutrition as a supplement. Nevertheless, Nestle adopted measures to address the concerns of different groups, like WHO, by discontinuing its mass media advertising of infant formula, carrying out comprehensive health education programs, and supported the WHO code. By late 1990s, Nestle was again accused of continuously violating the WHO code and concerned groups have called for the boycott of Nestle products. By 2001, the HIV crisis in certain parts of the world, like South Africa, has caused a shift in preference from breast feeding to infant formula. Consequently, Nestle faces the challenge of addressing such high demand. Finally, Nestle, as an MNC, carries new responsibilities that comes along with marketing its products like participating in the fight against HIV and AIDS especially in developing countries. Problem Statement Taking into account the social...
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...Nestle was severely under attack by the world, many of the charges brought against Nestle were against the issues of their advertising and marketing campaigns. The charges raised against Nestle dealt with the alleged discouragement of breast feeding, particularly among third world mothers. The allegations claimed that the advertising and marketing strategies of Nestle are responsible for mothers of third world countries misuse of their products, which directly resulted in infant malnutrition and death. The major problem facing Nestle was that many people believed they were intentionally misrepresenting their products to the public. This however was very untrue. Nestle has never advocated bottle feeding instead of breast feeding. Also, it clearly states on Nestles products that breast feeding is the most effective way to properly deliver the essential nutrients and vitamins to growing babies. As evidence for their support of breast feeding, Nestle took a page from their oldest educational booklets on “Infant Feeding and Hygiene” dating from 1913 which encourages breast feeding (Murray). Nestles major problem was how they were going to show the world that they were in the support of third world mothers and organizations rather then against them. Nestles solution was to go along with the resulting World Health Organization (WHO) code. They began to tone down and almost immediately eliminate all mass media advertising. In 1978 all advertising in third world countries had been...
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...Suddenly, infants are exposed to bright lights, new sounds, new sights, many doctors and nurses touching them, cleaning them, and doing everything they can to make sure they remain safe and sound. They are also exposed to many new germs and bacteria that could be harmful to little babies and their weak immune systems. Health care is extremely important for infants because they are these new small beings on earth and they need to grow big and strong. They need different shots, check ups, and most importantly, a proper diet and nutrition to help them grow. This paper...
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...of Third World Infants as a result of their unethical advertising, marketing and sale of infant feeding formula to incapable mothers. In this case, Nestle was accused of hard-selling their products to mothers in Third World countries who were incapable of the proper use of the products, and encouraging them to use powdered milk formulas as a substitute for breastfeeding. As a result, the increased use of the product caused malnutrition and mass deaths of babies in developing countries. The controversy began to arise in the 1960’s when breastfeeding rates rapidly declined as infant food companies began to expand their markets into developed countries. Nestle was first charged with the allegations by the Pan American Health Organization, beginning the start of this ongoing, international boycott. Then in 1974, a 28-page report published by the Third World Working Group called “Nestle Kills Babies,” suggested that because of their unethical and immoral selling practices, Nestle was a major contributor to the death of Third World infants. Because of these allegations, the Infant Formula Coalition charged Nestle on multiple allegations. Many of the charges that Nestle faced revolved around the fact that their advertising and promotion tactics for infant formula discouraged breast feeding and encouraged Third World mothers that bottle feeding was “the fashionable thing to do.” Because these mothers were not properly educated on how to use these products, infants in these countries...
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...of Third World Infants as a result of their unethical advertising, marketing and sale of infant feeding formula to incapable mothers. In this case, Nestle was accused of hard-selling their products to mothers in Third World countries who were incapable of the proper use of the products, and encouraging them to use powdered milk formulas as a substitute for breastfeeding. As a result, the increased use of the product caused malnutrition and mass deaths of babies in developing countries. The controversy began to arise in the 1960’s when breastfeeding rates rapidly declined as infant food companies began to expand their markets into developed countries. Nestle was first charged with the allegations by the Pan American Health Organization, beginning the start of this ongoing, international boycott. Then in 1974, a 28-page report published by the Third World Working Group called “Nestle Kills Babies,” suggested that because of their unethical and immoral selling practices, Nestle was a major contributor to the death of Third World infants. Because of these allegations, the Infant Formula Coalition charged Nestle on multiple allegations. Many of the charges that Nestle faced revolved around the fact that their advertising and promotion tactics for infant formula discouraged breast feeding and encouraged Third World mothers that bottle feeding was “the fashionable thing to do.” Because these mothers were not properly educated on how to use these products, infants in these countries...
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...NESTLE-THE INFANT FORMULA CONTROVERSY CASE BRIEF For over 20 years, Nestlé has been directly and indirectly charged with involvement in the death of Third World infants Most of the charges alleged due to discouraging breast feeding among Third World mothers Misuse of the products, thus contributing to infant malnutrition and death Nestle sought clarifications from UNICEF and WHO so as to identify the immaculate measures THE RESPONSIBILITIES Be involved in baby friendly campaigns Create breast feeding awareness Create awareness pertaining to usage instructions for the formula Continue their efforts on social responsibility Reposition themselves in the market Reduce pushing sales through channels like hospitals Have a cut on giving free samples ACCUSATION AVOIDANCE Understand the country’s culture Support breastfeeding and its benefits Encourage using formula for special situations only Analyse health hazards and implications of the formula A STEP FOR THE FUTURE Understand tradition, life style, economic status, natural conditions of the host country Conduct studies about the possible medical implications Involve in morality rather than bottom line increase DECISION TO MARKET THE RD FORMULA IN 3 WORLD COUNTRIES Marketing techniques used: Free samples given Mass marketing to general public Nearly all of these advertisements depicted healthy white babies being fed by the formula. Pushing sales through hospitals and maternity wards by dumping the formula Marketed...
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...unable to feed their children with all the needed nutrients that a normal child must have, this is basically why the infant formula was created. The infant formula was created by companies in the pharmaceutical industry and Nestlé. Nestlé easily got a high market share in the industry. The general health problems in the aftermath cause a great impact on babies. The number of sick babies increased all the time after the Second World War, because there weren’t the needed minimum required measures of neatness for babies, like sterilized nipples, clean water, clean environments, etc. So breastfeeding wasn’t enough to keep a baby healthy over those years. The infant formula seemed to be a good solution providing the enough amounts of nutrients for a baby. The problems started after the meeting of infant-feeding practices in 1970 and 1972, Bogota and Paris, where a resolution was made: “The report concluded that breast milk was the best food for infants and, if in sufficient supply, would satisfy the need of a child up to 4-6 months. In cases where breastfeeding was insufficient or impossible, the use of nutritional substitutes was encouraged”. The debate created some years before these meetings and the years after seemed to be an ethical issue, of whether if babies must be fed with the infant formula or with the breast milk. The objective of infant formula was misunderstood as a way of replacing the breast milk, most companies including Nestlé, published some policies about...
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...only two choices for how to feed their infants: they could breastfeed their infants themselves, or they could seek out a “wet nurse.” In the 1920s, a third option was introduced in developed nations—infant formula, a manufactured alternative to breast milk. Depending on its audience, this alternative was seen as a lifesaving option, a modern way to feed a child or a shameful health risk. Many people who have heard about the International Code of Marketing of Breast-milk Substitutes have expressed interest in knowing more about it. Baby food for the infants is the most sensitive one. Doctors suggest exclusive breast feeding for the infants. But for some cases like sickness, temporary disablement or for any other reasons mothers cannot breast feed to their babies. And for that they have to choose infant formula for their infants. Like any other products, parents of infant go through a selection process to choose a baby food. The purpose of this document is to provide concepts and terms of business ethics regarding marketing infant formula or baby food in the developed and low developing countries. Some of the scenarios of Bangladeshi baby food industries have also been analyzed. What is the International Code of Marketing of Breast Milk Substitute The Code is a set of recommendations to regulate the marketing of breast-milk substitutes, feeding bottles and teats. The Code was formulated in response to the realization that poor infant feeding practices were negatively affecting...
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...1. Drawing on the notions of moral, amoral, and immoral management introduced in Chapter 7, categorize your impressions of: Nestlé, in the infant formula controversy After reading the text, I feel Nestle executives acted amorally in this controversy. Reasons being, when the company made the decision to market infant formula in Third World Countries, the organization did not take into consideration any harmful and long-term effects on the mothers and babies of impoverished nations where inhabitants are exposed to impure water, and face difficulty understanding the marketing concepts. I feel Nestle acted amorally because they actually meant well in their intention to provide formula for infants of needy, but selfish in the sense that impact...
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...org/10.1108/eb039126 Downloaded on: 10 January 2015, At: 02:12 (PT) References: this document contains references to 0 other documents. To copy this document: permissions@emeraldinsight.com The fulltext of this document has been downloaded 1761 times since 2006* Users who downloaded this article also downloaded: Downloaded by UNIVERSITY OF HUDDERSFIELD At 02:12 10 January 2015 (PT) N. Craig Smith, (1987),"Consumer Boycotts and Consumer Sovereignty", European Journal of Marketing, Vol. 21 Iss 5 pp. 7-19 http://dx.doi.org/10.1108/EUM0000000004694 N. Craig Smith, (1989),"Consumer Boycotts", Management Decision, Vol. 27 Iss 6 pp. - http://dx.doi.org/10.1108/ EUM0000000000050 Edmund S. Muskie, Daniel J. Greenwald, (1986),"THE NESTLE INFANT FORMULA AUDIT COMMISSION AS A MODEL", Journal of Business Strategy, Vol. 6 Iss 4 pp. 19-23 http://dx.doi.org/10.1108/eb039127 Access to this document was granted through an Emerald subscription provided by 422267 [] For Authors If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.com Emerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series...
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...Breast feeding Vs. Formula feeding University of Phoenix COM/170 December 22, 2014 Winifred Donnelly Breast feeding Vs. Formula feeding When becoming a parent, there are many decisions that have to be made before the baby is even born. The most important decision is whether a mother will breastfeed or formula feed her baby. Breastfeeding should be the only option in feeding a baby unless there is a medical reason for why a mother cannot. When deciding on how she will feed her baby, a mother should know why formula is used rather than breast milk. She should know why breast milk is so much healthier, and she should be aware that there are several solutions that can solve any issues that may come up with breastfeeding. Women should know why formula is used rather than Formula Comfort and Lifestyle A woman should know why so many women never even consider breast milk as being an option for feeding their child. Many mothers choose formula over breast milk for reasons that have nothing to do with their baby. According to Kids Health from Nemours (1995-2014), their article Breast or Bottle, states “for many women their decision to breastfeed or formula feed is based on their comfort level, lifestyle and specific medical considerations that they might have. Many women do not breastfeed due to their comfort level and what people may think of them.”(para. Three sentence 2). Most women decide that they do not want to breastfeed because out in public people may find it inappropriate...
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...Introduction………………………………...4 Nestle in the eye of Elkington’s TBL……...5 CSR review and analysis…………………..9 Stakeholder’s perspective and criticism….12 Conclusion………………………………….14 Recommendation…………………………..15 Executive summary Nestle is a well known multinational company, they operate all around the world and deliver some good quality FMCG, but at the ethical level they don’t really score very well, they have a long history in boycotting from their origin which is Switzerland going to the UK and USA. Their more significant problem comes from their baby milk formula that for many human rights activist was the reason for the death of many kids around world. Nestlé’s story don’t stop here, they are also accused of child labour in Brazil and manipulating farmers, where they were trying to look ethical through helping them when their real intention was actually to regulate the market prices. Aside of the human level, Nestle is also criticised for testing their products on animals like coffee carcinogenicity on mice. But with all this problems, the image is not completely bad for the company as they are trying to act ethical at some levels, such as water, where with the help of some international organisations, they are raising awareness about the important of water and how it can become a major problem...
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...most intriguing. In the late 1960s, Nestle´ was criticized by social activists for its marketing of powdered milk formula for infants in less developed countries. The case became a cause ce´le`bre as Nestle´ became the victim of a well-organized boycott campaign. The conflict has become a popular case study in the business school curriculum because it demonstrates the need that companies have to constantly preserve and enhance their legitimacy in the public eye. The discussion of legitimacy leads quite naturally into a discussion of issue management, and the consequences of mismanaging a public issue (Post 1985 p. 127). Although Nestle´ was the subject of the boycott, the infant formula controversy may have initially been seen more as a dispute over generic bad practices within the infant formula industry rather than as a focused attack on one particular firm, a perspective that Nestle´ itself may have wanted to engineer. The original publication that stimulated the boycott refers to an industry-wide pattern of marketing of infant formula. (Muller 1974) To begin with Nestle´ was illustrative of an overall malaise, and it is conceivable that if it had not been the industry market leader then social activists might have initially focused their attacks on an alternative firm in the industry. Nestle´ was ‘‘the unwilling representative of the entire formula industry’’ (Frederick et al. 1992, p. 563). C. Boyd (&) Department of Management and Marketing, Edwards...
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...beverage company in the world. Founded and headquartered in Vevey, Switzerland. It is also well on its way to becoming world leader in nutrition, health and wellness. Nestlé is more than just the largest food and Beverage Company in the world. Increasingly, Nestlé is becoming the world’s leader in nutrition, health and wellness. Nestlé was founded in 1866 by Henri Nestlé and is today the world's biggest food and beverage company. Nestlé employ around 250,000 people from more than 70 countries and have factories or operations in almost every country in the world. -BACKGROUND: Nestle company had started off from a single man's idea, and developed into a giant corporation. In 1866 Henri Nestle, a pharmacist, developed a milk food formula for infants who were unable to tolerate their mother milk. His product became a success, and it created a demand throughout Europe. As Nestlé's popularity grew more businesses wanted to merge and become partners with Henri Nestlé's business. From 1866 to 1947 the Nestle Company had gone through several name changes. In 1905, Angelo-Swiss Condensed Milk Co. and Farine Lactee Henri Nestle merged and the company's name became Nestle & Anglo-Swiss Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler Chocolate Suisse's S.A merged with the company. The name was then changed to Nestle &Angelo-Swiss Holding Co. Ltd, on November 27, 1936. In December 1947, Co acquired all shares capital of the Alimentana S.A Company in exchange for fifteen Nestle...
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