Nestle

Ethical Infant Issue Continued

• Worldwide boycott of Nestle and formula
• WHO Code of Marketing of Breastmilk Substitutes
• Boycotting groups engage Nestle in talks to stop unethical marketing in third world nations

Infant Formula Ethical Issue

• 1.3 millions infant deaths per year

• Result of negligent marketing practices by infant formula companies

• Poor sanitation, lack of refrigeration, unclean water, widespread illiteracy

• Samples distributed at hospitals and clinics by doctors and "nurses"

• High cost of formula

• Dilution of formula

Infant Formula Ethical Issue

Nestle Cocoa

Nestlé Global

Financials

• The food and beverage industry
• "Highest quality, lowest cost, and best customer service."
• Expanding to emerging markets

Discussion Questions

The situation

Baby Formula

1. Do they have a moral obligation to the mothers and their infants?

2. If you were Nestle’s CEO how would you respond to the allegations?

• Cote d’Ivoire makes it a perfect climate for bonded labor.
• One-third of the country’s economy is dependent on cocoa exports.
• Domino Effect

• American’s spend thirteen billion dollars a year on chocolate
• Ivory Coast supplies 40% of the world’s cocoa

Child Slavery - Cocoa

1. Do they have a moral obligation to the child laborers?

2. If you were Nestle’s CEO how would you respond to the allegations?

Ethical Issue

The History of Nestle

• Founded 1860s by Henri Nestle
• Created substitute to natural breast milk called Farine Lactee Henri Nestle
• Quickly diversifies and expands overseas

by early 1900s

• Expands into pharmaceutical industry
• Merged with Dreyers
• Purchased Kraft Foods' frozen foods business

• Farm Owners in west Africa use indentured serviture
• Children
• Age 11-17
• Treated poorly
• Approximately 15,000 child slaves in Ivory Coast Alone

Presentation by: Kevin Franklin, Garrett Jensen, Kiely Kreitzberg, and Spandana Lakkamraju