Food and beverage giant Nestle has started using a packaging for its yogurt product which shows a picture of a Greek church with the Christian cross airbrushed from the top of its domes, following in the footsteps of two other European companies.…
1. The public issue that the Coca-Cola Company was facing is this case was its impact on its water use in local communities. The company was depleting local water reserves and introducing dangerous levels of pesticides in its products in and around its global plants. I feel that the nonmarket stakeholders were the ones most concerned by this public issue in the beginning. The global leaders (government) understood that the depletion of the world’s water resources could have a profound effect on the world in the near future. The water shortage also had an effect on the rise in food prices, regional conflicts, and disease. This in turn caused concern in another nonmarket group the general public. The general public are on the front lines in these circumstances, especially in third world countries where there is little corporate regulation and law. Because Coca-Cola is a World Wide conglomerate the global leaders and the general public expect the company to lead the way in terms of corporate social responsibility. I feel that in the beginning of this issue that Coca-Cola was primarily interested in facilitating the needs of their market shareholders. However once the global leaders and general public began to take notice they soon began to sway their views in terms of more efficient and effective methods to resolve their water issues to satisfy both the market shareholders and the nonmarket shareholders.…
This assertion can be justified through the fact that within the political theories approach, CSR policies are based on the belief that “corporations are powerful organisations, and that with power comes responsibility” . More specifically, it pertains to the integrative social contract theory, which states that there is somewhat of an implicit social contract between society and the corporate world, which “implies some direct obligations of business towards society” . This can be directly linked to the Action Plan itself, where examples of relevant actions include creating “greater income opportunities or education opportunities for farmers, and making farms safer places to work” . These are only some of the mentioned actions that Nestlé is prepared to take in order to ensure responsible sourcing of cocoa from West Africa.…
During the Super Bowl of 2014, Coca-Cola took a shot in the dark and first aired a commercial coined ‘It’s Beautiful,’ an advertisement which was geared to celebrate America’s great diversity and uniqueness. ‘It’s Beautiful’ has been shown on television on many different American holidays, such as the Fourth of July and Memorial Day. Additionally, it has been seen on major moments in national and international sports and entertainment events, like the football playoffs, New Year’s Eve, and several Olympic Opening Ceremonies. Coca-Cola’s ‘It’s Beautiful’ ad expresses a theme of American patriotism and promotes diversity by using differing languages and a variety of scenes that appeal to all.…
This is a reaction to the Nestlé controversy which discusses how writers and journalist have blamed the company for the deaths of third world infants. The company is one of the largest food-processing and baby formula companies in the world. They have been allegedly charged for the deaths of infants because of the improper use of the baby formula by some parents. Many parents dilute the formula with water to stretch their supply thinking that the formula in the bottle itself has nutrient qualities. The result is extreme malnutrition. People are arguing that through the companies media and advertising that they are discouraging breast feeding. However, Nestlé denies this claim and made a statement saying that they believe breast feeding is the “best food for infants and encourages breast feeding”. The company goes on to say that while breast feeding is the best option, their infant formula has a vital role in proper infant nutrition as a supplement, and as a substitute for breast milk when a mother cannot or chooses not to breast feed. It seems that the reason children are often being malnourished is the unsanitary conditions and the water some parents are mixing with the baby formula is contaminated water. In defense of Nestlé, scientist found that the contamination of a local native gruel (liquid food boiled in milk or water) compared to an ordinary reconstituted milk baby formula prepared under primitive conditions were contaminated to similarly dangerous levels. The company is essentially saying that it is not their product that is gravely affecting babies, but what is being put in their product.…
Nestle is no stranger to boycott. Beginning in the 1970’s the corporation which brought consumers trusted brands such as Ovaltine and Nestle Tollhouse chips suffered backlash from their aggressive marketing of infant formula in underdeveloped countries, which was leading to sickness and death among infants. Consumers across the United States not only boycotted Nestle brands and products but petitioned and picketed to gain support against the corporation. Ethical business practices along with the exploiting of natural resources have taken their toll on Nestle, but not just the company’s bottom line has seen effects. Stakeholders such as small rural communities in the Great Lakes region, the East Coast, even in Western areas such as the Arkansas River in Utah, as well as third world countries including Nigeria, Ethiopia and Pakistan have dealt with the production and sale of Nestle bottled water.…
Nestle is a corporation engaged in home products processing and marketing worldwide. In the mid-1860s, it developed an infant-food formula as a supplement and/or substitute to breast-feeding. It then claimed humanitarian achievement after the formula was used by relief organizations such as the Red Cross to feed starving infants in refugee camps. In third world countries, the Nestle product has also been used as an alternative to less nutritious local infant feeding substitutes. And today, Nestle is the third largest home food company in the world with gross sales of nearly US$39 billion a year. But the Nestle success story is marred by controversy as the company has been charged for gross violations of a World Health Organization Code that affected both first world and third world countries.…
Marketing across culture is basically defined as product or service promulgation beyond the borders. Since beyond borders, culture, lifestyle and audience get changed, the attitude of the people also gets changed simultaneously. (Hutterer 2006) So, it can be regarded an ethical dilemma to market the products on international level and for dealing with such situation, company needs to scrutinize interests, traditions and culture of the indigenous people. However, different organizations have developed dissimilar strategies in order to cope with such ethical issues.…
Generally the case studies were well described and presented. The groups also experienced little difficulty in identifying 1) ethical issues and 2) stakeholders affected. The generation of options could, however, have been more creative. Utilisation of your moral imagination? In many assignments the options generated were listed as for of five options, were these were, however, merely components of a single options. Some groups’ action plans were too narrowly described. What, for example, could the organisations in question do to build ethical cultures and prevent similar issues from re-occurring? In the “Defending the moral framework” section, the ethical tests suggested by Carroll and Buchholtz (2006, pp 225-227) could have been utilised to justify the option that was chosen.…
On a scale from 1 to 10 (10 being ‘very difficult’), how difficult will it be for Chris Johnson to…
Healthy Foods, Inc. situation is a tough one. Profits, along with morale, are down. They have just recently broken off from their parent company and gotten a new president. Some of the policies and business practices they have in place aren't working for them anymore.…
As the world’s development continues the global market continues to thrive through trade and global business interactions. A major commodity traded globally is food. This has led to a persistent concern about food safety and regulating food quality throughout all stages of production in recent years (Iyengar, 2013). When this doesn’t occur it raises questions regarding government policies, corporate social responsibility (CSR) and multiple ethics issues. Recently this occurred in China with the adulteration of milk products. The company at the centre of this scandal was baby milk formula producer Sanlu, who were responsible for the death of six babies and the illnesses of a further 300,000 babies (China dairy products found tainted with melamine, 2010). As the new international marketing manager for Fonterra who had a 43% stake hold in Sanlu this report will analyse the ethical and CSR issues now facing Fonterra and provide insight into how Fonterra should approach rebuilding their image after this scandal.…
The purpose of this cases study was to analyse the main problem of L’Oreal which is moral issue, aiming to recommend suitable ways to mitigate the effect of the moral issue. A SWOT analysis was conducted to find the strengths, weakness, opportunities and threats of the performance of L’Oreal. Results indicated that L’Oreal has a strong brand with a strong capability of research and development, having a diversified geographic presence. Yet, the company performances badly in Western Europe which is also a cause of slow revenue growth. Moreover, its moral issue on animal testing is also a problem affecting the company’s profitability. It is recommended the company should differentiation its products compared not only with the competitors such as P&G and Estee Lauder but also the company’s own brands.…
Carroll’s four-part model of corporate social responsibility suggests that CSR includes the economic, legal, ethical, and philanthropic expectations placed on organizations by society at a given point of time. Under CSR pyramid, Nestle comes in the Ethical responsibility that is the third part of the pyramid. These responsibilities oblige the corporation to do what is right, just, and fair which Nestle perfectly abides with as the company never seemed to break any laws and was never involved in any unjust action. Regarding Nestle water plants, the company claims to be economically responsible by operating its plants in rural or remote areas, in the immediate vicinity of the water sources and in many cases, the company is an important economic base within the local…
Globalization is the process by which businesses or other organizations develop international influence or start operating on an international scale. The corporate social responsibility, on the other hand, is the company’s sense of responsibility towards the community and environment (both ecological and social) in which it operates. It encompasses not only what companies do with their profits, but also how they make them. As companies pursue growth through globalization, these firms bump into lots of challenges that limits their growth and potential profits such as government regulations, environmental restrictions, labor exploitations and other ethical issues which is seen to be a costly hindrance against international growth. Because of these challenges, global companies see a public relation tool that will work out these problems in order to convince consumers, to gain public support for the presence in global markets and to sustain a competitive advantage through social contributions for a subconscious level of advertising with the help of the CSR. Nowadays, as globalization progresses, emerging markets recognizes various benefits of providing CSR programs such as the generation of brand equity, increased employee loyalty, polished image and larger gains in CSR ratings. If multinational companies just do businesses for profit purposes, they cannot make society happy. But if these companies involve themselves in socially corporate responsible activities, it can reduce poverty and increase economic stability although poverty reduction has not been an explicit element of CSR. By emphasizing social dimensions of development, stimulating commerce and development at the bottom line of the pyramid, multinational companies could radically improve the life of billion people and help brining people a more stable, less dangerous world. Consequently, CSR…