LOVELY PROFESSIONAL UNIVERSITY

Mittal School of Business

Faculty of Human Resource Management
Course Code: Q2201 Course Title: BUSINESS ETHICS
Academic Task No: 1 Academic Task Title: ETHIC PROBLEMS
Date of Allotment: SEP 10 2022 Date of Submission: 24/9/2022
Student Roll No: 29 Student Reg. No: 12214731
Term: 1 Section:
Max. Marks 30 Marks. Obtained:
Evaluation Parameters

Learning Outcomes: (Student to write briefly about learnings obtained from the
academic tasks)

Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other
students’ work or from any other source except where due acknowledgement is made explicitly
in the text, nor has any part been written for me by any other person.
Evaluation Criterion: Rubrics on different parameters

Student’ Signature:
Evaluator’s Comments (For Instructor’s use only)
General Observations Suggestions for Improvement Best part of assignment

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ANSWER FOR QUESTION NUMBER :1
Multinational company are company that operate more than one country. These companies
are often managed from central office headquarter in the home country, so some of the
examples of multinational companies are Coca-Cola, Pepsi, Starbucks, McDonalds, BMW,
Suzuki, Samsung, Apple and others, but also there are four types of multinational companies
we have decentralized multinational coperation, international companies, global centralized
coperation, and transnational enterprises. Multinational companies are growing very first the
following are some reasons for the growth of multinational companies: -market expansion,
the growth of per capita income in various countries led to increase in demand for good and
services we also have market superiorities, huge financial resources, and high level of
technology
Unethical business practices are anything that falls below minimum standards for business
code of conduct, the following are some of unethical business practices like false product
claims, the company can say the product is good but in other way it has got some bad
material, unethical accounting this is the behaviour of accountant where he or she may add
some zeros for example instead of writing 50crore he or she will write 500crors so the
amount that will be increased will be taken by that accountant, we also have poor working
conditions for example a worker should be paid 500 rupee for an hour but he or she will be
given that 500rupee for three hours but also they work on bad conditions,
The most unethical clothing companies are mainly popular multinational and e-commerce
brands like Victoria’s secret, Fashion nova, Adidas, Disney, Nike, H/M, and Zara that are
been exposed to multiple unethical practices include labour exploitation or forced labour
The following is the company involve in ethical issues related to the news which is NESTLE
company it is owned by Henri Nestle. Nestle company it is located in different places around
the world but the head office is located in Vevey Switzerland on the lake of Geneva.
Nestle company produces different brands of foods, the food that nestle produces are: -

Baby food

-Cerelac

- Garber

Water

- Acqua panna
- Cereals

Chocolate and confectionary

- Kit kat
- Milky bar
- Nestle less

Drinks
 - Milo
- Nestea

Ice cream

- Haagen-Dazs

Food services

- Maggi
- Minor’s
- Nescafe and others.

ANSWER FOR THE QUESTION: - 2

Nestle company was the subject to the world for irresponsible marketing of baby milk to
mothers in the developing world. The company has also been criticized for a number of other
business practices include the use of unsustainable oil and make ingredient in its food. The
following are ethical issues related to this company: -

Infant formula nestle pushes their breastfeeding formula in less economically targeting
developed countries, specifically targeting the poor places. They made it seen that their infant
formula was almost as good as a mother’s milk which is highly unethical for several reasons.
But also group such as the international Baby Food Action Network, the world Alliance for
Breastfeeding Action and the save children claim that the promotion of infant formula milk
over breastfeeding has led to health problems and deaths among infants in less economically
developed countries. Supporters of infant formula claim that Nestle glamorise bottle feeding
of babies, use inappropriate labelling and give health professionals excessive amounts of free
samples of baby milk, teats and bottles.

On the face of it these actions would not seem to be very serious but other factors compound
the issue. In many poor countries formula milk is costly in relation to incomes making it hard
to afford. It can often take up to a quarter of family incomes in some less developed
economies. Families can often note buy enough for their babies or go without other
essentials. I addition water quality in many countries is poor and when mixed with the
powder baby milk causes health problems for babies. The water itself is also hard or costly to
heat in countries where there is no energy infrastructure. Hence the aggressive marketing by
nestle is seen as at best unethical with the infant formula campaign still active like in 20
countries.

Health professions support breastfeeding in poor countries because it builds up babies’

immune system and prevents the spread of diseases through contaminated water.

With regard to breastfeeding, last year Nestle said: “We believe that exclusive breastfeeding
is the best way to feed a baby in the first six months of life.” But also Nestle say that they
support the World Health Organization (WHO) recommendation of six months breastfeeding
exclusive followed by the introduction of adequate nutritious complementary foods along
with sustained breastfeeding up to two years of age and beyond.

Nestle Maggi noodles banned in India at the end of May 2015, Indian’s Food safety
Administration (FDA) ordered Nestle India to call it popular 2-minutes Maggi noodles after
tests showed that the product contained high levels of lead and monosodium glutamate
(MSG). This case study looks at how Nestle reacted and managed the situation using multiple
digital channels.

India food inspector they ordered Nestle India to recall a batched of Maggi noodles from the
northern India state of Uttar Pradesh claiming that tests have found Maggi instant noodles
“unsafe and hazardous” and accused Nestle of failing to comply with food safety law. Nestle
continues keep its customers up to date on the investigation into the safety of Maggi noodles
India Facebook page, Twitter and website, nestle states that extensive testing reveals no
excess lead in Maggi noodles.

The initial response from the global FMCG company rejected the accusation that the noodles
were unsafe and said on their website and social media accounts that there had been no order
to recall any products. Nestle statement on the website said that “The quality and safety of
our product are the top priorities for our Company. We have in place strict food safety and
quality controls at out Maggi factories we do not add MSG to Maggi Noodles, and glutamate,
if present, may come from naturally occurring sources. We are surprised with the content
supposedly found in the sample as we monitor the lead content regularly as a part of the
regulatory requirements.”

Nestle uses twitter and Facebook to answer customers questions about the levels of MSG and
lead found in their noodles. The company continues to re-assure customers that noodles are
safe and that they are transparent company working closely with authorities in India to
resolve the issue. As well as Nestle explains the science behind the tests, what lead and MSG
are and gives an informative breakdown of the ingredients in their product. The following are
some of the examples on how the customers are asking question
Nestle package water nestle use packed bottles with single use plastic which lead to
pollute the environment and kill million of creatures in sea water, in several reports when
beach is cleaned most of the plastic bottles collected was from the nestle company, so these
proves that nestle is one of the major contributors of land pollution so plastic bottles harm the
environment.

Nestle company based in Switzerland is the largest food company in the world and makes 1.8
million USD per day just from selling bottled water, non-sparkling bottled water being its
most profitable commodity. Nestle has plants of bottled water across the United States and
around the world. Nestle controls one third of the us market and sells water under 70 different
brands across the world. Some popular ones are Deer Park, Nestle Pure Life, Ozarka, Ice
Mountain and Poland Spring.

Nestle have said on improved bottles where the bottles will be reusable hard protective case
for vittel Go bottles, capable of holding 50cl refills of vittel natural water. As soon as a
request to develop a new bottle is sent to Parametric Technology Coperation (PTC) water, the
project managers and CAD team meet with marketing and factory representatives to set up
the basis of the new development and define the main technical constraints. This information
is recorded in a” technical brief.” Then then structural designer produces freehand sketches
based on the ideas submitted during the meetings. These sketches allow everyone involved in
the process of discuss proposals and come up with ideas. The following are some of the
pictures shows how they have started creating new bottles
ANSWER FOR THE QUESTION: -3
In my opinion it was fault of the mothers who gave formula to their babies before turning six
months and nestle was also wrong by saying that this formula is as good as mothers milk. But
a mother’s milk is the best milk for child than anything for the first six months and babies
should always get mother’s milk more than using man made products because are not 100%
safe for any baby but if mother want to use formula it better to use after dix months of birth
and nestle company should be aware about this also. Nestle were bringing baby formula in
poor countries where poor countries but they don’t know if the baby must get fresh water, in
poor country water is not good and it actually hard water so hard water have many effects to
babies’ immune system so the company must inform them about this where they should use
water which will not cause any effect to baby like they should boil the water, boiling of water
helps to kill germs.

But also nestle were polluting the environment by making bad package of water where that
package cannot be recycled by any means. By definition pollution is any harmful substance
to the environment, there are also three major types of pollution we have water pollution,
land pollution and air pollution where water pollution is any harmful substance in water
sources, land pollution is any harmful substance to the land and air pollution is any harmful
substance to the atmosphere. Nestle was destroying the land by making a bottle that cannot be
recycled so nestle should make bottles that can be recycled this will help to reduce pollution
on the environment.

Land or water pollution occurs when trash and other toxins are dumped on the land or water.
Land and water pollution is caused by human activities such as littering, extraction of mining
and agriculture, dust, leaves, and the following are some effects of pollution to the
environment or water sources loss of soil nutrients, cause lung cancer, heart diseases, Sulphur
dioxide and nitrogen oxide particles from the air can create acid rain when it mixes with
water and oxygen in the atmosphere, water pollution death of plants, animal, human and
other living things.

We can reduce pollution by using public transportation instead of driving, use fireplaces and
wood stoves sparingly of completely. Leaves, trash and other materials should not be set on
fire. We should use only electric or battery-powered tools in the yard and garden.

But also, pollution can be reduced by doing recycling, re using, on recycling Nestle company
was making very thin bottled water so it is difficult for the bottle to recycled, re using instead
of throwing bottles away we can use them again. for example, we can use them by filling
water and put them in the fridge this method also helps in budget of consumer.

Maggi noodles is not very important food for our health so we should reduce the use of
Maggi noodles. Maggi noodles can cause obesity, Maggi noodles can cause blood pressure,
Maggi noodles cause heart problems and also Maggi noodles can cause heart problems.
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