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Nestlé: The Infant Formula Controversy Case Solution & Answer

Nestlé: The Infant Formula Controversy Case Solution

Case Overview

Nestle is considered as one of the largest food processing companies in the world, which is based in Switzerland. The company has sales of $100 billion worldwide. Recently the company has been subjected to an international boycott. The company has been accused of the death of Third World infants directly % indirectly, over a period of 20 years. The company has been facing the charges of selling an infant feeding solution, which is considered as a cause of deaths in babies of the Third world countries.

Moreover, a report prepared by a British Journalist stated that the feeding solution manufacturers have caused death of the babies in the Third world countries, through hard-selling and aggressive marketing of the powdered solution to people, with insufficient knowledge and capabilities regarding the product usage. The report also claimed that the industry has motivated the mothers to use the powdered solutions rather than breast feeding. The pamphlet of the report was given a title of “Nestle kills Babies”. The company responded to these accusation by claiming that the deaths are not resulted bythe powdered feeding solution but were rather caused by the contaminated water and materials, which are harmful for the infants’ health.

To cater these charges; Nestle reviewed its marketing strategies in 1974 on a region-to-region basis, keeping its core consideration over the increased usage of Television and radio and the changed social patterns. But in 1977, the Third World Institute initiated a boycott of Nestlé’s products, in response to a case filed by the interfaith Center on Corporate Responsibility. In 1982, NIFAC –“Nestle Infant Formula Audit Commission” was formed by Nestle to overcome these challenges. The commission recommended several code instructions to be followed by Nestle and Nestle accepted these codes. The WHO also set codes for marketing and advertisement of infant formulas, which were implemented by Nestle.

Question 1

The organizations should remain proactive if-faced with such challenges in the industry.The companies should give donations to Baby friendly hospitals or work along with children-helping organizations to overcome the possible consequences. Moreover, the company should invest in its research and development, in order to determine the healthy and effective infant food solutions.

In addition, Nestle and other powdered feeding manufacturers should maintain commissions to develop and implement the product codes, in order to avoid potential problems. The codes should be updated and communicated throughout the company, so that it could remain proactive to such litigation’s from the external environment.

The company should also fund research on infant feeding and benefits of breast feeding, by sponsoring different events and conferences related to medical health and nutrition for the infants.

In Third World Countries, where people don’t have sufficient income to purchase these feeding solutions; the companies like Nestle, should keep their prices relatively lower and affordable as a mean of their corporate social responsibility. It is because the one unit of feeding solution, which is supposed to be finished in a week, was used by the people for two infants over a period of two weeks as they didn’t make enough earnings to buy in large quantities. Lastly, the companies should also provide exact knowledge about the usage of feeding solution and should take the social responsibility if the consumers are getting harmed after consuming their products…………………….

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