the nestle boycott

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The Nestle Boycott Whitney Shing | Daniel Wijaya | Tatiana Demidov Daphne Wood | Justin Wang | Mel Heida

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Page 1: The Nestle Boycott

The Nestle Boycott Whitney Shing | Daniel Wijaya | Tatiana Demidov Daphne Wood | Justin Wang | Mel Heida

Page 2: The Nestle Boycott

Agenda The Case | Stakeholders | Ethical IssuesChange | Alternatives | Recommendations

Page 3: The Nestle Boycott

What Happened?Why | Then | Now

Page 4: The Nestle Boycott

Why? To sell more infant formula | in third world countries

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Then:1977: world-wide boycott was launched against the Nestle Corporation

Consumers all over the world stopped purchasing Nestle products

The World Health Organization drafted the International Code on the Marketing of Breast Milk Substitutes

Page 6: The Nestle Boycott

Now: The International boycott of Nestle products covers 18 countries:

Australia | Canada | Finland | France | Germany | IrelandLuxembourg | Mauritius | Italy | Mexico | Norway | Philippines Spain | Sweden | Switzerland | Turkey | UK | USA

Page 7: The Nestle Boycott

Stakeholders

Page 8: The Nestle Boycott

Stakeholders Ethical Issues Change Alternatives Recommendations

Poor MothersBreastfeeding in Developing Countries

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NestleShareholdersEmployees&

Stakeholders Ethical Issues Change Alternatives Recommendations

Page 10: The Nestle Boycott

NestleCompetitors

Stakeholders Ethical Issues Change Alternatives Recommendations

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Health Care System

Stakeholders Ethical Issues Change Alternatives Recommendations

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Ethical Issues

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Gave Nestle Formula Samples so Mothers’ Breast Milk Would Dry Up

Stakeholders Ethical Issues Change Alternatives Recommendations

Page 14: The Nestle Boycott

Nestle Misled Customers by Dressing Women With No Specialized Training as Nurses

Stakeholders Ethical Issues Change Alternatives Recommendations

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Nestle Exploited Poor Customers for Its Own Profit

Stakeholders Ethical Issues Change Alternatives Recommendations

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Nestle Did Not Provide Enough Information on Their Products SoldThese babies are twins | One is breastfed, The Other is Fed with Nestle Formula

Stakeholders Ethical Issues Change Alternatives Recommendations

Page 17: The Nestle Boycott

Nestle Ignored the WHO CodeInternational Code on the Marketing of Breast Milk Substitutes

Stakeholders Ethical Issues Change Alternatives Recommendations

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WHO Code BackgroundThe World Health Organization adopted the code in 1981

They recognized that inappropriate feeding practices lead to infant malnutrition, morbidity & mortality in all countries

The code applies to the marketing of breast milk substitutes and related products as it can contribute to these major public health problems.

Stakeholders Ethical Issues Change Alternatives Recommendations

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WHO Code States:Formula companies are NOT allowed to give samples of formula in hospitals and promote formula over breast milk

Stakeholders Ethical Issues Change Alternatives Recommendations

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Ignored the WHO Code

WHO Code States:Manufacturers and distributors of infant formula should ensure that each container has a non-removable, clear, and understandable message including:

a. the words "Important Notice" or their equivalent

b. a statement of the superiority of breastfeeding

c. a statement that the product should be used only on the advice of a health worker

d. instructions for appropriate preparation, and a warning against the health hazards of inappropriate preparation

Stakeholders Ethical Issues Change Alternatives Recommendations

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WHO Code States: Manufacturers and distributors should not provide samples of products, directly or indirectly, to pregnant women, mothers or members of their families.

Stakeholders Ethical Issues Change Alternatives Recommendations

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Change

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The BeginningAlternative to natural process of breastfeeding

Formula was distributed in poor countries

Misleading marketing of the product

Mother’s had little knowledge on proper use and the effects of the product

Stakeholders Ethical Issues Change Alternatives Recommendations

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What TranspiredLearned that their choice of market segment was unethical

Free samples given caused mothers’ breast milk to dry up

Babies got seriously ill and even died

Stakeholders Ethical Issues Change Alternatives Recommendations

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PresentUnethical actions resulted in world-wide boycott launched against Nestle Corporation in 1977

Presently covers 18 countries including Canada

Forced to correct their positioning

Changed messaging to say “Breastmilk is best for your baby”

Stakeholders Ethical Issues Change Alternatives Recommendations

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Alternatives

Page 27: The Nestle Boycott

Send Real Nurses

Stakeholders Ethical Issues Change Alternatives Recommendations

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Include Warnings & Instruction on Baby Formula Powders

Stakeholders Ethical Issues Change Alternatives Recommendations

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Stop Selling Baby Formula Powders

Stakeholders Ethical Issues Change Alternatives Recommendations

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Lower the Formula Price so That Their Target Market Can Afford It

Stakeholders Ethical Issues Change Alternatives Recommendations

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Follow the WHO Code

Stakeholders Ethical Issues Change Alternatives Recommendations

Page 32: The Nestle Boycott

Recommendations

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Continue to SellNestle Baby Form

ula

Stakeholders Ethical Issues Change Alternatives Recommendations

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Send Real Nurses to Inform & Educate the Public About Their Milk Formula & Sanitation

Stakeholders Ethical Issues Change Alternatives Recommendations

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Include Warnings & Instruction on the Baby Formula Powders

Stakeholders Ethical Issues Change Alternatives Recommendations

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Consider & Apply the WHO Law

Stakeholders Ethical Issues Change Alternatives Recommendations

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Summary of Recommendations:

Send Real Nurses

Sell the Product

Include Warnings Labels

Apply the WHO Law

Stakeholders Ethical Issues Change Alternatives Recommendations

Page 38: The Nestle Boycott

QuestionsComments?