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Nestle Case

Nestle Case

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Published by Md Mahmud

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Published by: Md Mahmud on Apr 30, 2011
Copyright:Attribution Non-commercial


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01What are the responsibilities of companies in this or similar situation?

The world's leading Nutrition, Health and Wellness Company. Its mission of "Good Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions, from morning to night. The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland, where its headquarters are still located today. Nestle employ around 280 000 people and have factories or operations in almost every country in the world. Nestlé sales for 2010 were almost CHF 110 bn.

Current controversy
In this particular case, the issue was that Nestle Alimentana, one of the world’s largest food-processing companies had been the subject of an international boycott as a result of the accusations that the company was directly or indirectly responsible for the death of Third World infants. The charges were based on the sale of infant feeding formula, which supposedly caused the mass deaths of babies in the Third World.

Corporate social responsibility of the company
Corporate Social Responsibility refers to operating a business in a manner that accounts for the social and environmental impact created by the business. It signifies a commitment to developing policies that integrate responsible practices into daily business operations, and to reporting on progress made toward implementing these practices.

Responsibilities are as follows
01) Every multinational company like Nestle has a prudent Business policy which comes after deep scrutiny about the environmental, cultural impact of their activities. For example nestles principles are no advertisement to general public, no sampling to mothers , no use of commission or bonus for sales ,no point of sale advertisement , no financial and material inducement to promote products etc. So, every company should stick on their policy. 02)Around the world every country countries has own law to protect its people from illegal or illogical operation of companies. In this case every company should respect country’s law and they also should play their production and marketing activities with considering these laws.

or serving it in a bottle or cup that isn't totally clean. Making formula with dirty water. From its corporate social responsibilities part nestle can lunch an educational advertisement to teach women about the transmission of HIV through Brest milk and they should be aware about the substitute product like nestle infant formula which can help to save children lives.At 24 months. bottled formula is now needed since breast feeding has caused HIV in new born babies. That is why proper indication on product package in native language is necessary. infant formula has less nutrition than breast milk but it does not mean it is the only cause of death of children rather improper making process cause harm for children. For example. 20 percent of formula-fed babies became infected with HIV. South Africa -. Prolonged breastfeeding increases the risk of a woman giving HIV to her baby by about 14 percent.nestle. Question 05) What advice would you give to now in light of the new problem of HIV infection is being spread via mother’s milk? Now with the HIV epidemic in third world countries becoming an issue. Here are what two studies of babies born to HIV-positive women show: Nairobi. can expose the baby to dangerous bacteria.html www. Kenya -.HIV transmission was 12 percent higher in breast-fed babies than in formula-fed ones at 15 months. http://www. In this situation we would like to advice nestle to follow following strategy. Nestle infant formula was once blamed for death and now needed for survival.com/content/art13590.com wikepedia and free encyclpedia .thebody.03) Company should deliver proper knowledge about the formula or process to use its product. compared to 36 percent of breast fed babies. According to the World Health Organization (WHO). babies in developing countries who are fed on formula are up to six times more likely to die from diseases like diarrhea and respiratory infections than breast-fed babies are.

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