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Nestlé: The Infant Formula Controversy

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Chuah Wen Xu

on 30 September 2013

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Transcript of Nestlé: The Infant Formula Controversy

The Infant Formula Controversy

Responsibilities of companies
Avoidance of Accusations
Suggestions to other companies
Ethical & Socially Responsible Decisions
HIV Infection vs Breastfeeding
What are the responsibilities of companies in this or similar situations?
Mothers are lacking of proper education regarding the use of infant formula milk and bottle feeding
The use of native weaning foods on babies
Most of the poor women in Third World often have dietary deficiency
Decline of breast feeding in Third World due to intensive advertising and promotion of infant formula
What could Nestlé have done
to have avoided the accusations of
“killing Third World babies”
and still market its product?
Access to radio and television, banned media advertising
Develop health education programs
Promote breast feeding
Support the WHO code
Distribute free formula in hospital and maternity wards
What advice would you give to Nestlé now in light of the new problem of HIV infection being spread via mothers’ milk?
Shorter duration of breastfeeding.
Exclusive breastfeeding in the early months.
Prevention and treatment of breast problems.
Prevention of HIV-infection during breastfeeding.
Early treatment of sores or thrush in the mouth of the infant.

Provides sufficient education towards Third World consumers
Continue Nestlé’s stand against giving up breast feeding
Suspend its consumer advertising and direct sampling for mothers
After Nestlé experience,
how do you suggest it,
or any other company,
can protect itself in the future?
Understand the local culture of the nation
Working local government and any national health organization
Market Products with different approaches in different societies
Educate the local with adequate information about their product to avoid misuse.
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?
There are difficulties arise in making decisions, establishing policies, and engaging in business operations in five broad areas:
Employment practices and policies
Consumer protection
Environmental protection
Political payments and involvement in political affairs of the country
Basic human rights and fundamental freedoms
In our opinion, the decisions made were not socially responsible.
The company distribute free samples to the public.
Nestle hiring unqualified sales girls in their promotion activities.
Nestle infant formula products were marketed to people who were incapable to fulfill the minimum requirements for giving formula safely to the baby.
The price for the baby milk powder was too high. It cost around 1/3 weekly income of their family in the third world countries.
The advertisements and posters used idealistic imagery, often showing white children rather than the ethnicity of that country, suggesting that bottle-feeding is the modern, western way, therefore the right way of doing things.
Chuah Wen Xu
Goh Chong Mun
Ma Xiao
Ong Shi Yun
Soo Kein Eng

Baby Killing Formula
The Baby Killer
Attention From Public
Nestlé’s Action
The Situation
The Cause
The Boycott
Full transcript