Nestle's Social Irresponsibility in Developing Nations

It was ironical that the biggest controversy in Nestlé's history involved the product on which the company was built. Critics said that Nestlé had promoted the use of infant milk formula (which many experts believed, was harmful to the health of the mother as well as the child), in developing countries, in an unethical manner. The company was criticized particularly for its promotions which implied that women in westernized countries routinely used the formula as a substitute for mother's milk. It was also alleged that Nestlé subtly developed the belief that using the formula was more beneficial to the mother as well as the child. This type of promotion was in violation of the 'International Code of Marketing Breast-Milk Substitutes' of the WHO /UNICEF...

However, there were still several large companies which shrugged off their responsibilities towards the society, indulging in ethically questionable practices. If large companies behave unethically, it soon comes to the notice of the public and the company's image is tainted. Companies are often worse off for having behaved unethically in the interest of short term gains, as the bad publicity generated by unethical practices leads to far greater losses in the long run. Many companies have well laid out charters to govern their social responsibility and behavior, (Refer Exhibit-III for Nestlé's Corporate Business Principles), but more often than not, these are only on paper. Companies like Nestlé made a public show of their support to social causes, in order to divert attention from their irresponsible behavior elsewhere...