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Nestlé's global issues

Focus on two topics, health and environmental issues, which Nestlé had to face in the late 20th century

Théo Aiolfi

on 28 March 2013

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Transcript of Nestlé's global issues

Nestlé’s infant formula
controversy (Health Issue) Response from civil society The boycott ended in 1984 after talks with Nestlé, WHO, UNICEF and Muskie Commission Activist groups, by a vote of 114 to 1, 118 member nations of WHO endorsed a voluntary code:

Urged a worldwide ban on promotion and advertising of baby formula and called for a halt to distribution of free product samples or gifts to physicians who promoted the use of the formula as a substitute for breast milk. Nestle's countermeasures and resolution "Give the Orang-Utan a break!"
(Environmental issue) Responses from civil society Much public attention is given to the social and environmental impact of palm oil and the role of multinationals such as Nestlé. Impact & Controversy 'NESTLE EXPOSED!' Background Free samples given to maternity units from agents dressed as doctors Let us look deeper... During its long history, Nestlé has faced a wide array of scandals and controversies in many areas What is the hidden side of Nestlé's activities? World's largest food company Is that really that simple? However we will only cover two of them: Impact & controversy Henceforth, deforestation causes large amounts of carbon dioxide to be released into the atmosphere. Nestlé's countermeasures Nestlé claims that Greenpeace report is overstating the actual facts Background Conclusion Nestlé's countermeasures are half hearted and ineffective Impact on Nestlé Long-term consequences Nestlé's chocolate products (such as Kit Kat) require a significant quantity of palm oil Thus, vast areas of forests in developing countries (e.g. Borneo) have been cleared for Nestlé's palm oil plantations The Interfaith Center on Corporate Responsibility in New York compiled a case against formula feeding in developing nations, and the Third World Institute launched a boycott against many Nestlé products led by Infant Formula Action Coalition (INFACT) Their products were boycotted in the U.S. to end the promotion of infant formula. The Nestlé boycott became one of the most successful consumer boycotts in history lasting 7 years

It was the largest nonunion boycott in history with over 100 organizations in 65 countries. It cost Nestlé as much as $5.8 million in lost revenue. The habitat for many threatened species of animals, notably the orangutan, gets destroyed. Protest campaign started by Greenpeace International in 2010 May 1981: Nestlé announced it would support the code and waited for individual countries to pass national codes that would then be put into effect. Nestlé consulted extensively with WHO before issuing its label warning statement in October 1983, but there was still not a universal agreement with it. Widespread discontentment deteriorates Nestlé's public image Online backlash on Nestlé's official Facebook page Nestlé engages NGOs to scrutinize and audit their supply chain in order to restore their reputation
MNCs tend to prioritize profits over other concerns such as environmental and health issues CHILDREN BRAIN DAMAGED The malnutrition causes what many believe to be irreparable damage physically and mentally.

Recent evidence has been growing points to irreversible mental effects of malnutrition in children under two years old - 80% of human brain growth occurs before birth and the first 18-24 months after.With malnutrition, this results in a markedly smaller brain sizes. NESTLÉ'S REPUTATION DAMAGED... This discouraged women from breastfeeding as it was implied to the less educated that formula was better for the baby causing women’s breast feeding abilities and milk supply to cease thereby locking in customers for the infant formula Nestlé acting on WHO recommendations, consulting expert firms to ensure their products met the code.
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