1. What are the responsibilities of companies in this or similar situations?

 It is the duty of the companies to provide accurate information of the product to its
consumer, followed ICC Codes core principal of legality, decency, honesty and truthfulness in
marketing communication
 Ensured to comply with all the regulation Act, according to International Chamber of
Commerce (IIC) code of advertising ethics, where by infant formula companies:
o Shouldn’t target to sell their infant product to pregnant women
o Avoid direct contact to families to buy or providing donation of its formula
o Sell to families that needs to use as support and understand its effect and now how
to properly use

2. What could Nestlé have done to have avoided the accusations of “killing Third World babies”
and still market its product?
 Be honest about the product as support milks only and advise to the consumer to use the
mother’s milk as the first choice
 Do not consume with greed which could lead into corrupt and unethical marketing practice
 Launch education program to teach mothers or women in third world countries in how to
use their product properly
 Stop giving out free samples of its formula to mothers as their marketing strategy
 Stop giving wrong accusation about breast feeding

3. After Nestlé’s experience, how do you suggest it, or any other company, can protect itself in the
future?
 Invest more time to do proper research into the country market such as culture, tradition,
economic status and health care condition before venturing/releasing its product to the
consumer
 Study the medical and psychological effect of the product before its release to the
consumer, the study should be conducted with doctors and provide physical evidence that
showing the product safety and shouldn’t have any intention of pushing for market selling.
 Providing clear information to its consumer, advise the formula feeding is to assist on breast-
feeding only, promote natural breast feeding
 Can distribute the product into proper location such as hospital or pharmacies, and follow
strict rule of prescript from baby doctor to avoid misuse of the product
 Respect and obey the law from regulatory bodies such as WHO

4. Assume you are the one who had to make the final decision on whether or not to promote and
market Nestlé’s baby formula in Third World countries. Read the section titled “Ethical and
Socially Responsible Decisions” in Chapter 5 as a guide to examine the social responsibility and
ethical issues regarding the marketing approach and the promotion used. Were the decisions
socially responsible? Were they ethical?

 Nestle’s did not respect the marketing ethics and social responsibility in the third world
country whereby:
o Provide free sampling to baby, mothers and famalies
o Use psychophysiology effect to the consumer to buy its product
o Promote the formula milk as beneficial and equal substitute to breast milk to target
Mothers, woman and families
 o Neglected the possibilities of using polluted water from poor countries
o Provide misinformation of the product as natural source to provide antibodies for
the baby

5. What advice would you give to Nestlé now in light of the new problem of HIV infection being
spread via mothers’ milk?
 Support the regulatory and provide solution by selling the product with lower price
 Provide education and aim to save lives instead of focusing on generating profit, Do not
advertise and promote their product
 Focus the product into mothers that effect with HIV infection only
 Product should contain proper instruction on preparing using native langue to provide clear
understanding to its user