Professional Documents
Culture Documents
Presentation On Nestle
Presentation On Nestle
Presentation On Nestle
GROUP-1
AJATSATRU ROUT(02)
BINAYAK MAHAPATRA(11)
BUSHRA AZIMA(13)
KAMAL KIRAN BEHERA(21)
PRANAB SARDAR(33)
SAILAZA PARAHARAJ(40)
SHOVAN DASH(47)
SUDHAL KUMAR SETHY(54)
1
OBJECTIVE
2
ANALYSIS OF THE
ORGANISATION
3
Operations point of
view
Due to the allegations Nestlé's had to follow the
code of conduct introduced by WHO which
governs the marketing of the infant formula.
In 2002 it had introduce an ‘Ombudsman system’
to manage the baby milk issue by encouraging
their employees to confidentially report violations
of the code without fear of retribution
It released dedicated reports on its economic and
social impact in Africa and Latin America
cautiously welcomed by the reporting industry
Resource point of view
As per the Financial Times survey 2004 the
company was rated world’s 11th most
respected company
It is now a part owner of body shop through
its stake in L’Oreal
It also started its own range of fair trade
coffee
Nestle’sshare price has increased by1592
percent out performing the Morgan
Stanley’s Europien stock index by 166
percent
BACK GROUND &
HISTORY
6
Nestle – a multinational packaged food
company
Founded in the year 1867 by Henri Nestle
Headquarter in Vevey, Switzerland
Products – baby food, coffee, diary products,
breakfast cereals, ice-creams, chocolate.
Global brand – Nescafe, Kit-Kat, Maggi, Milo
Nestlé is the largest baby food manufacturer
in the world. For decades, as industry
leader, it has led the way in aggressively
marketing its products.
Aggressive marketing by Nestlé and its
competitors undermined breastfeeding,
contributing to a dramatic drop in rates in
many countries.
contd…
9
Beginning in the late 1970s Nestlé began to attract
global criticism for its infant-formula marketing
policies, especially those conducted in developing
countries. Public outcry peaked with the Nestlé
boycott of 1977 which (though suspended for several
years in the mid-1980s) remains in effect today. Nestlé
is the most boycotted company in the world as a
result.
Entitled with “Baby Killer’’ in 1970 in developing
countries
Nestlé advertised and still advertises its formula as a
risk-free substitute (or even a preferable alternative)
to breast milk, resulting in increased use and often
replacing available breast milk .
Nestle advertised widely infant product was valuable in
its nutrients which have complete benefits for baby
from birth to one year
Formula was contaminated in poor countries, leading to
disease in vulnerable infants. Because of the high
illiteracy rates in developing nations many mothers
are not aware of the sanitation methods needed in
the preparation of bottles
UNICEF estimates that a non-breastfed child living in
disease-ridden and unhygienic conditions is between
six and 25 times more likely to die of diarrhoea and
four times more likely to die of pneumonia than a
breastfed child
Many poor mothers try to save money by economizing
on the formula by using less than the recommended
dose or substituting it with other inferior alternatives
such as cow’s milk,rice water or corn starch with
ETHICAL ISSUES
INVOLVED
12
The company not abiding the rules of
WHO code
The company not taking the moral
responsibility for infant mortality
Promotion agressively ignoring the
benefits of breast feeding
Lying to the fact that they were
advertising in the public ignoring the
value of breastfeeding
13
14
Systemic Issues
Political
WHO,IBFAN
Economical
Operating in Developed & under-developed
countries
Commercial
Free samples to mothers
Free supplies to hospitals & clinics
Tempting Advertisement
Posters & pamphlets in hospitals
Promotional booklets ignoring breastfeeding
Incentives to milk nurses & health workers
•
15
•
Individual Issues
Psychological
Creation of mis-leading information
Sociological
Illiteracy
Low income
16
Corporate Issues
Non-compliance of WHO code
Lobbying to prevent govt. translating
the code into legislation
Largest single source of violations of
the WHO code by IBFAN report
Undermining implementation of
measures by Government
17
Nestle breaks the rules of The Code
Monitoring results
from 69 countries
Nestlé is responsible
for more rule breaks
than any other
company!!
Nestlé inappropriately
promotes
baby milk in poor countries!
Nestlé breaks the rules in its marketing. In areas that
have a poor water supply and mothers do not have
funds to buy the products, this can be very harmful.
Company taking full advantage of illiterate mothers
Baby Milk Action won the case! What was said was found to be
truthful!
Nestle on the other hand lost the case when their anti-boycott
21
RECOMMENDATIONS AND
ALTERNATIVES
22
Concerned about their sales and
profit maximization ignoring the
socio-economic factors.
Due Care theory implementation
Deontological theory
implementation
Nestle considered Breastfeeding
as its competitor with its
product
23
The company should segment the market
on the basic of socio-economic factors
Necessary instructions to be required to
be written in local languages
Should encourage Breastfeeding at the
time of giving free samples
Give stress on communication
24
Contd..
It should be clearly mentioned in
packages that “Breastfeeding is an
ultimate best
2% Sodium Hypochlorite can be
distributed freely with each Nestle
milk packet
25
IMPLEMENTATION
PROCESS
26
Contd…
They should follow the international code
of conduct for advertisement and
promotion
The instruction should be in the regional
language for the benefit of illiterate
mother
It should not be made free to the
hospitals and clinics
A product should be promoted according
to the people but which should not be
harmful to them
27
CONCLUSION
28
It is clear from the case presented that the
reputation of a company is decided not in
terms of its sales or profits maximization
but in terms of the good will it earns by
adopting morals and values in its
production ,marketing and pricing .
The product and marketing should not violate
the societal standards
Should not promote or undermine breast
feeding
The organization is responsible for any
happenings or consequences in the society
29