Greenpeace, Nestlé and the Palm Oil Controversy: Social Media Driving Change?Case Study|Case Studies
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Case Details

Case Code: ITSY065
Case Length: 23 Pages 
Period: 1996 to 2011  
Pub Date: 2011
Teaching Note: Not Available
Price:Rs.500
Organization :Nestlé SA/Greenpeace International
Industry : Consumer Packaged Goods 
Countries : Europe, US, Global
Themes: Change Management/Information Technology/Organizational Behavior  
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Greenpeace, Nestlé and the Palm Oil Controversy: Social Media Driving Change?

 
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Introduction

 
One of the world’s largest food processing companies, Nestlé SA (Nestlé), found itself mired in a public relations nightmare in 2010 when the environmental protection group Greenpeace International (Greenpeace) held that the company’s chocolate confectionery brand Kit Kat contained palm oil, whose production was leading to the destruction of rainforests. Palm oil has a range of uses and is principally grown in Indonesia where it makes a substantial contribution to the economy. , However, the expansion of palm oil cultivation came at the cost of destruction of rainforests, which were a home to the orangutans.

 

 
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Besides, the clearing of rainforests contributed to greenhouse gas emissions, leading to global warming4. Greenpeace had generated increased awareness about palm oil and firms like Unilever NV (Unilever)5 had stopped purchasing palm oil from controversial suppliers such as the Sinar Mas Group6 (Sinar Mas)7 Subsequently, Greenpeace targeted Nestlé as it was one the largest food and drink companies in the world and a major consumer of palm oil. According to some critics, the Nestlé management seemed to be violating its code of ethics which stated that Nestlé employees should act legally and honestly while avoiding any conduct which could damage the

 
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