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FIVE COMPANIES WITH

THEIR UNETHICAL
ACTIVITIES AND
PROGRAMS
Nestle Group
NESTLE GROUP PROFILE

Nestlé was formed in 1905 by the merger of the Anglo-Swiss Milk Company,
established in 1866 by brothers George and Charles Page, and Farine Lactée Henri
Nestlé, founded in 1866 by Henri Nestle. Nestlé S.A. is a Swiss multinational food and
drink processing conglomerate corporation headquartered Vevey, Vaud, Switzerland.
Nestlé's products include baby food, medical food bottled water, breakfast cereals,
coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and
snacks.

NESTLE: THE WORLD’S MOST CORRUPT CORPORATION


With unethical business practices such as taking clean drinking water in areas that
sorely need it, participating in human trafficking and child labor, and exploiting
uneducated mothers in third world countries, Nestle is quite possibly one of the world’s
most corrupt corporations. The company was established in 1886 when Henri Nestle
developed a groundbreaking baby food formula. It later merged with an Anglo-Swiss
condensed milk business and formed what is now known as the Nestle Group. They
began producing a wide variety of products and became a globally involved business.

Nestle is the world’s largest food and drink


corporation. As the company expanded, so
did their money-hungry stomachs. According
to the National Public Radio, Nestle has
been pumping out 200 gallons worth of
freshwater out of Michigan-water that the
people of Flint desperately need. The Flint
Michigan crisis has killed 12 people and hospitalized 87. Children are losing their hair,
developing skin lesions, and going blind just from bathing. The community has no
access to fresh water because Governor Rick Snyder switched the city’s water supply
from one of Michigan’s most pristine water sources to the noxious and harmful Flint
River in an attempt to save money. While the citizens of Flint live in a constant state of
disarray, worrying about how to survive, Nestle has been making a profit.

Not only does Nestle take water from a city in a full-blown water crisis, but they also sell
it to third world countries who don’t have access to clean drinking water, for
astronomical prices. According to Nestle Pure life, they sell their water for 2 dollars a
bottle. To Americans that may seem like no big deal, but in a third world country where
people only make a few cents a day, it’s everything. Nestle persuaded the World’s
Water Council to change drinking water to a need rather than a right. If water were a
right, then it would have to be supplied freely, but since it’s a need, water companies
can sell it for as much as they want and make an enormous profit.
One of Nestlé’s primary sources of income is their chocolate. The Cocoa industry
is known for its unethical practices in child labor and human tracking. Nestle is no
exception to the horrors of this industry. In 2005 the International Labor Rights Fund
filed a lawsuit against Nestle and other similar companies. Allegedly, three Malian
Children were trafficked to Côte d’Ivoire and forced to work on a cocoa plantation with
many other trafficked children. The case went on for many years; the courts argued
over whether or not corporations should be held liable for international law violations. In
2010, the US district court determined that corporations should not be held accountable,
which has since been appealed, and Nestle was not held responsible for the abuse and
suffering of these children. The Fair Labor Association reported that Nestle was fully
aware of the child labor and did little to stop it.

Along with water, Nestle sells baby formula. Buying up companies such as
Gerber and Pfizer makes the cooperation control nearly the entire world’s production of
baby formula. With aggressive marketing tactics to uneducated mothers and giving out
free samples of their product, Nestle has made families reliant on their baby formula.
The company heavily advertises its formula to be the nearest thing to breastfeeding.
They suggest that mothers start weaning their baby off of breast milk at six months,
claiming that it can make the baby anemic if not done. The World Health Organization
advises otherwise, recommending that the mother solely breastfeeds for six months and
then continue breastfeeding combined with solid foods for up to two years or however
long the baby desires. Most women in third world countries lack the education to know
that the information Nestle advertises is false, and they fall into this trap.
Not only does the cooperation
market false information to create
a dependency on their formula,
but according to a report by the
International Baby Food Action
Network (or IBFAN), Nestle
provides hospitals with free baby
formula for a week. Sounds charitable, right? However,
looking more in-depth into the implications of this, one can
see that it’s nothing but a malevolent marketing strategy.
When a mother stops breastfeeding, it takes a few days to a
week for her milk to dry up and the hormones to go back to
normal. So by the time the formula runs out, so does a
mother’s milk, and they have no choice but to buy more
formula.

As stated previously, Nestle dominates the water market and marks up their prices
immensely. This creates a massive issue for mothers in these third world countries. The
baby formula has to mix with water. Nestle
has two products that are reliant on one
another, which creates a horrendous
situation. Many families cannot afford both
the formal and clean drinking water because
most make only a few cents a day. Not
wanting their baby to die, people are left with
no other choice, but to mix the formula with
polluted water.

Furthermore, families try to make the formula last as long as possible and dilute it.
Babies are essentially drinking unsanitary water with a pinch of nutrition. As a result of
this, many of these countries’ infant and mortality rates have gone up.

Source:
REALIZATION
AND
REFLECTION
Coca-Cola
Company
COCA-COLA COMPANY PROFILE

The Coca-Cola Company is an American multinational beverage


corporation headquartered in Atlanta, Georgia. The Coca-Cola Company has interests
in the manufacturing, retailing, and marketing of nonalcoholic beverage concentrates
and syrups. The company produces Coca-Cola, invented in 1886 by pharmacist John
Stith Pemberton. In 1889, the formula and brand were sold for $2,300 to Asa Griggs
Candler, who incorporated The Coca-Cola Company in Atlanta in 1892.

The company headquartered in Atlanta, Georgia, but incorporated in Delaware—has


operated a franchised distribution system since 1889. The Company largely produces
syrup concentrate, which is then sold to various bottlers throughout the world who hold
exclusive territories. The company owns its anchor bottler in North America, Coca-Cola
Refreshments.

ETHICAL ISSUES CONCERNING COCA-COLA IN INDIA


In 2003, the community near the Coca-Cola
bottling plant in Kerala, India protested against
the water scarcity and polluted water that
resulted from its bottling operations. The
allegations caused the closure of the bottling
plant. Coca-Cola was banned in the state for
these unethical business practices. Soon after
the incident, the Center for Science and
Environment (CSE), a Delhi-based
environmental NGO, released a report indicating the presence of pesticides, greatly
exceeding European standards, in a dozen popular beverages sold under the brand
names of the Coca-Cola Company and PepsiCo. This report raised serious protests all
over India on the soft drink industries, especially Coca-Cola and PepsiCo. Together, the
companies have 90% of the India's soft drink market.

In response to the allegations, Coca-Cola


denies them by saying their products are safe
and questions the lab reports presented by
CSE. The University of Michigan placed the
Coca-Cola Company on probation in 2006, and
asked for an independent assessment of its
operations in India. The soft drinks were
examined by an independent lab, The Energy
and Resources Institute (TERI). According to
the reports the soft drinks were declared safe and pesticide free. However, the CSE
claimed that only the water was tested and not the other ingredients; ingredients such
as artificial flavors and sugar. After the reports from TERI were published the
government declared soft drinks as safe. However, the problems with some bottling
plants still remain, due to the depleting levels of ground water, day by day.

Critical Issues/Problems:

Solid waste and water issue: The communities near


the bottling plant in India complained about the
passage of sludge as fertilizer, causing health and
environmental damage. The most important issue
concerning these communities is the depletion of
water levels caused by the Coca-Cola bottling
operations which have drastically reduced availability
of water for irrigation purposes.

Pesticides in soft drinks: The other issue concerning human health caused by Coca-
Cola is that their bottled water and soft drinks contain pesticides which were tested by
the reputed NGO, CSE.

Dual product standards: Coca-Cola is accused of having dual standards in terms of their


products and safety measures concerning human health with respect to USA, Europe
and India.

Community issue: These allegations affected Coca-Cola largely with its sales and also
caused the closure of one of their bottling plants in Kerala, India. Additionally, Coca-
Cola’s products are banned in the state of Kerala, India.

Source:
REALIZATION
AND
REFLECTION
Jollibee Foods
Corporation

JOLLIBEE FOODS CORPORATION PROFILE


Jollibee Foods Corp. is engaged in developing, operating, and franchising fast food
stores under the trade name Jollibee. The company operates through the following
segments: Food Service, Franchising, and Leasing. The Food Service segment
operates quick service restaurants and the manufacture of food products to be sold to
Jollibee Group-owned and franchised QSR outlets. The Franchising segment franchises
the Jollibee Group's QSR store concepts. The Leasing segment leases store sites
mainly to the Jollibee Group's independent franchisees. Jollibee Foods was founded by
Tony Tan Caktiong in 1975 and is headquartered in Pasig City, Philippines.

PROBE SOUGHT ON JOLLIBEE LABOR PRACTICES

The Makabayan bloc on Monday, July 16, 2018


filed a resolution urging the House of
Representatives to investigate the alleged illegal
labor practices committed by Jollibee Foods
Corporation (JFC) and its service contractors.
In the resolution, members of the Makabayan bloc said there is a need for the House of
Representatives to revisit the labor code provision and the issuances on
contractualization and labor-only contracting.

This, after they have received reports that Jollibee has failed to regularize its employees
amid a Department of Labor and Employment order to regularize less than 7,000
Jollibee workers.

The group also said that the employees complain against the alleged illegal exactions
deducted from their wages by the said food chain.

"Its workers complain that Jollibee has no regard


for their security of tenure. They are contracted
out from service contractors even though their
tasks and responsibilities are integral to the
company's business operation," the resolution
states.

"The employees also complain that the JFC has burdened them with various exactions
which were deducted from their wages for company-initiated self-help schemes like
Kaagapay, Christmas Party Paluwagan, Employee Savings fund, Tulong
Pangkabuhayan...," the resolution added.

The resolution states that the company also has a loan program for its financially
distressed employees, the payment of which is deducted from the employees' wages.

According to the Makabayan bloc these deductions leave workers with a meager take
home pay.

According to the coalition, a Department of Labor and Employment assessment report


in July found that Jollibee violated the security of tenure of its employees by contracting
out to service contractors its personal requirements for tasks and responsibilities that
are vital and directly related to its business operation. The DOLE also said that the
exactions on the employees' wages were unauthorized and in violation of the Labor
Code provision and other issuances protecting the integrity of the employees’ wages.

Through these findings, DOLE has ordered


Jollibee and its service contractors to refund their
exactions on employees’ wages amounting to
P15.4 million for Jollibee, and for its service
contractors P4.1 million. The DOLE also ordered
Jollibee to regularize a total of 6,482 workers
under service contractors: Generation One and
Staff Search Asia. Jollibee has not regularized the
6,482 workers to date, said the lawmakers. The Makabayan bloc also lamented that
only 2 out of the 9 service contractors were found by the DOLE and were included in its
order. (SunStar Philippines)

Source:
REALIZATION
AND
REFLECTION
Philippine Long Distance
Telephone Company
(PLDT, Inc.)

PHLIPPINE LONG DISTANCE TELEPHONE


COMPANY PROFILE

PLDT, Inc., formerly known as the Philippine Long Distance Telephone


Company (Filipino: Kompanya ng Teleponong Pangmalayuan ng Pilipinas), is
a telecommunications, internet, and digital service holdings company in
the Philippines. It is one of the country's major telecommunications providers, along
with Globe Telecom. Founded in 1928, it is the oldest and largest telecom company in
the Philippines, in terms of assets and revenues. Its core businesses are fixed-
line telecommunications, mobile telephony services, broadband, and internet of
things services under various brands. It also has investments in broadcasting, print
media, utilities, and direct-to-home satellite services, among others. HEADQUARTERS:
Ramon Cojuangco Building, Makati Avenue, Makati City

PLDT CONTINUES TO VIOLATE LABOR LAWS

Employees of the Philippine Long Distance Telephone Co. (PLDT) claimed that the
company continues to violate the Department of Labor and Employment’s (DOLE)
guidelines on work contracting and sub-contracting despite its assurances that it will
comply with labor laws.

“While PLDT declares that it will continue to


fully cooperate with the DOLE, the resolution
has not been implemented yet it announced
the outsourcing of its IT (information
technology) services which is utterly illegal,”
the PLDT rank and file union, the Manggagawa
sa Komunikasyon ng Pilipinas (MKP), said.
“This is so, not only because IT services is necessary and desirable to PLDT’s business
but also because its IT services is manned by regular employees. It is downright illegal
to outsource jobs of regular employees,” said MKP president Arthur Castillo.

Labor Secretary Silvestre Bello 3rd earlier tagged PLDT as one of the top violators of
labor laws after the firm was subjected to a Special Assessment/Visit Establishment
(SAVE), DOLE’s mechanism to assess, validate and verify compliance with labor laws
and their contractors/sub-contractors. Bello said the violations were found among its
sub-contractors, majority of which are either not registered or with expired registration.

The Labor chief has ordered the PLDT to


regularize some 10,000 workers under contracting
and sub-contracting arrangements but are
performing jobs that are directly related to the
firm’s business. MKP said the DOLE audit team
found that there were sales personnel being paid
only P150 a day, way below the daily minimum
wage of P493 in Metro Manila.

Some workers were also denied their 13th month pay, service incentive leave, sick
leave and paternity leave.

Department Order (DO) 174 prohibits labor-only


contracting, farming of work through “cabo”,
contracting out of job or work through an in-
house agency or in-house cooperative that
supplies workers to the principal; contracting out
of a job by reason of a strike or lockout and
contracting out of a job or work being performed
by union members. It also prohibits contractors
and subcontractors from requiring their
employees to perform functions being performed by regular employees and the
repeated hiring of employees under an employment contract of short duration.

The PLDT, through its corporate secretary Ma. Lourdes Rausa-Chan, said that it has
not received any order from the DOLE other than document requests in relation to its
audit on the firm’s compliance with labor laws.

Source:

REALIZATION
AND
REFLECTION
Royal Dutch Shell
PLC
ROYAL DUTCH SHELL PLC
COMPANY PROFILE

Royal Dutch Shell Plc engages in the oil and natural gas production. It operates through
the following segments: Integrated Gas, Upstream, Downstream, and Corporate. The
Integrated Gas segment manages liquefied natural gas activities and the conversion of
natural gas into gas to liquids fuels and other products. The Upstream segment
manages the exploration for and extraction of crude oil, natural gas, and natural gas
liquids. The Downstream segment manages different oil products and chemical
activities as part of an integrated value chain, including trading activities, what turns
crude oil and other feedstock into a range of products which are moved and marketed
around the world for domestic, and industrial and transport use. The Corporate segment
comprises holdings and treasury, self-insurance activities, and headquarters and central
functions of the company. The company was founded in February 1907 and is
headquartered in The Hague, Netherlands.
SHELL IS TRANSFORMING THE NIGER DELTA INTO DISATER AREA

Shell has been extracting oil from the Niger


Delta for over half a century, which has
earned it billions of dollars. Meanwhile, the
majority of the people who inhabit the Delta
region never see any of these billions and are
forced to live in the midst of oil pollution,
which has left a number of villages
uninhabitable. Friends of the Earth
Netherlands, together with four Nigerian farmers, filed a lawsuit against Shell in 2008.
Ten years have now passed, and there has been no final decision. Two of the claimants
have since died and the villagers continue to live in a heavily polluted environment.

Shell turns a beautiful bay into an asphalt wasteland

Shell has had a refinery on Curaçao in the


Caribbean since 1915. The enormous demand
for aviation fuel - a light oil product - during World
War II meant that the demand for heavier fuel oil
dropped dramatically. This left Shell’s refineries
with a lot of asphalt, a liquid oil byproduct. Shell simply pumped this asphalt into the
swampy, mangrove-covered areas of Busca Bay in Willemstad. By 1953, some 1.5-2
million tonnes of waste had been dumped into this ‘lake’, which, to this day, is called
Asphalt Lake.

Shell is involved in bribing a former petroleum minister to achieve an offshore oil field

In 2011, Shell and Italian oil company


Eni paid over $1 billion for an oil field off
the coast of Nigeria. Most of this money
disappeared into the pockets of the
corrupt former petroleum minister and
convicted money launderer David Etete.
Leaked e-mails show that Shell was
aware of this. A number of Shell’s top executives have since been subpoenaed to
appear in an Italian court in connection with this affair. A Shell subsidiary has also been
charged with corruption in Nigeria and the case is being investigated in the Netherlands,
United Kingdom, United States and Switzerland.
Source: https://bit.ly/3kXNH4T

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