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Ethical issues in nestle
Ethical issues in nestle
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Ethiopian Debt In 2002, at a time when Ethiopia was undergoing an extreme famine, Nestlé demanded Ethiopia to pay them back a debt dated from the 70’s of US$6 million. In this case, we can argue that a debt is a debt and there is nothing wrong with asking for one’s money back. However, for a company making one billion dollars a year, it is quite outrageous to ask for a famine-stricken country to pay back 6 million dollars that were dated from 1970 (when a repressive regime at the time seized foreign companies’ assets). Actually, the public reaction was tremendous with the company receiving hundreds of thousands of letters from outraged people. This was one of the most booming cases of corporate greed. Nestlé, following these heavy reactions, …show more content…
As far as we are all aware of, having access to water is not an extreme solution but more of a basic need that every living organism on this planet needs in order to survive. The CEO of Nestle conceded that the company directly disposes about 30% of the 700 million gallons of water a year it takes from the soil in the state of California. Pollution: Just like any colossal multinational company, nestle has been ramified in multiple scenarios in regards to pollution. In an article constructed in 1997, water contamination maximum was offended 2,152 times in 830 locations by Nestle and other large multinational companies. The situation deteriorated in China unfortunately. The USA and Europe as continents have become increasingly more environmentally friendly since there have been tremendous boost in pollution levels. Companies both in EU and US have been nominating for more green sources of water and other natural resources. Nestle however started addressing another market which was Asia and managed to crack multiple environmental abuses. Nestle was caught sourcing a plant in Shanghai for bottled water. Nevertheless, the plants wastewater treatment facilities did not cut an environmental impact assessment. Media found out that apparently Nestle takes advantage of China’s waters that are already contaminated in order to generate more …show more content…
Nestle is connected with palm oil destruction that menaces rainforests, endangered animals and exploiting its workers. Nestle was one of the first business tycoons that got into palm oil. Because of a partnership with local Indonesian company called “Indofood”, Nestle has been accused of bad practices when it comes to palm oil. Indofood cannot bear to lose the partnership with one of the biggest multinational corporations in the world. A petition started trending online to put an end to deforestation and exploitation of human rights by forcing Nestle to cut ties with Indofood. Indofood has also been breaking sustainability promises by abusing palm oil production, child labor and destruction of natural habitat. In the plantations in Indonesia controlled by Nestle, kids were found working on those plantations calling it one of the “worst forms of child labor”. If Nestle were to break its partnership with Indofood, deforestation, child labor and abuse of palm oil plantation would significantly reduce in
Zhang, J. (2009, July 13). More Scrutiny Urged for Bottled Water . Retrieved April 19, 2014, from http://online.wsj.com/news/articles/SB10001424052970203577304574276473594279310?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052970203577304574276473594279310.html
There have been many famines that have greatly impacted Ethiopia. One of the famine that is very famous in Ethiopian history and World history is known as the Great Famine. Due to the lack of the support of the government and other organizations, about one million people died of starvation. The conditions of Ethiopia in the beginning of 1984 were not well. “The Ethiopian government predicted that the agricultural yield of the nation was going to be considerably lower in at the beginning of 1984 because there had been less rainfall than expected. However, preventive measures were not taken by either the government or the rest of the world to prevent the mass starva...
After much research, there is no doubt that trend is a consistent factor that drives Voss water ahead. Due to this, the essay will focus on the social and environmentally part of Pestle analysis and how legal factors are interfering with the quality and credibility of the brand.
In the movie “Tapped” how the water company Nestle was stealing from a city’s water supply. They didn’t like it so they protested for not paying a cent for it. Taking large amounts of water it made the city go on a drought. I think it’s wrong because even the fire department had to bring a lot of bottled water to a nursing home for people because of nestle overtaking their water. At one point the city had to cut back on using their water because of nestle. It would make me furious for not being able to drink my own water and worry about shortage of water.
NAN, a product made by Nestle is infant food formula that was marketed in third world developing countries where it is proven the water to be unsafe. Nestle, without being affected, aggressively marketed the dry baby formula to new mothers for the sole purposes of making a profit, without any regard to humanity. Companies earn profits on high priced products or services and then sell it at a higher cost than what it took to make. In order to use the infant formula, because it is a dry based product, water must be added. Continuing issues that developing countries encounter involves contaminated and unsafe drinking water. The baby formula was given to the labor and delivery wards of the hospitals where the babies were born. The babies were fed via bottles using the product from Nestle, versus being breast fed. Naturally, the babies grew to enjoy the flavor and mother’s enjoyed the new way of feeding, providing a new found freedom. Unfortunately, upon leaving the hospital, the mothers were not able to feed their babies for much longer due to not being able to afford to purchase the product. The product was sold at nearly half the cost of what a family could actually afford. In addition, to the high cost of the product, the water being used (outside the hospital) wasn’t safe. Babies were not gaining weight; they were losing weight, and becoming extremely
Water has become a very controversial issue in the United States and around the world. As populations increase and resources decrease, the way we use our resources and keep populations safe become more and more important. Throughout the world there are nearly 1.1 billion people who do not have access the clean drinking water. 5 Most of these 1.1 billion people are located in poor areas and do not have the financial means to build the infrastructures needed to provide water to the citizens of their country. 5 Drinking water is an essential part of our everyday life. People must have water to survive, but it must be clean and safe to consume.
Rather than being sticklers for following GAAP accounting principles and internal controls, this company took unethical behavior to a whole new level. They lied when the truth would have been easier to tell. It is almost as if they had no comprehension that the meaning of the word ethics is “the principles of conduct governing an individual or a group (professional ethics); the discipline dealing with what is good and bad and with moral duty and obligation”, (Mirriam-Webster, 2011). To be ethical all one has to do is follow laws, rules, regulations and your own internal moral compass, all things this company seemed to know nothing about.
For every water bottle made, non-renewable resources are wasted to produce an unnecessary luxury. For the bottled water that Americans enjoy, seventeen million barrels of oil are used (excluding transportation), which could fuel more than 1.3 million cars for a year. Most water is imported and exported from places that are thousands of miles away, such as Fiji. Although oil is controversial in nature, for every one liter of water produced, three liters are used. The excess water wasted can supply clean water to the world’s poorest countries.
They attempt to implement responsible sourcing within their supply chains, raise awareness of both water conservation and help to preserve natural capital. To do this they promote global transparency, and voice their engagement in climate policy. Nestlé’s labor practices consistently address human rights impacts in their operations and supply chains. Additionally, Nestle works towards enhancing the gender equality in the developed global offices. One example of Nestlé’s influence on their sourcing practices can be seen in Nigeria where infrastructure was few and far between and traditional delivery methods could not be achieved due to safety reasons to compensate nestle set their purchasing prices high as well as creating a multitude of small ware houses rather than the typical individual large ware house. They also adjusted their marketing scheme rather than posting to various forms of media as they would do in a developed country, they instead hired local singers and dancers to travel to different villages advertising the Nestle products in a way that would appeal to the different
Nestle is a Swiss food and beverage Multi-national corporation headquartered in Vevey, Switzerland. It is the largest food company in the world measured by revenues with about 500 factories in more than 80 countries. The company consists of a powerful portfolio of brands that is driven by unrivalled research and innovation, an aim to contribute to improving the quality of consumers’ lives and a clear commitment to consistence excellence. The company succeeded in accomplishing its mission of “Good Food, Good Life” by making the use of globalization in the areas that are as follows-
Freshwater in the world makes up only a small portion of the water on the planet. While the percentage of water in the world is nearly 70%, only 2.5% is consumable. Even further, only 1% is easily accessible to basic human needs. According to National Geographic, “by 2025, an estimated 1.8 billion people will live in areas plagued by water scarcity, with two-thirds of the world's population living in water-stressed regions as a result of use, growth, and climate change.” With this current trend, water will become more immersed in environmental, economic, political, and social changes.
There is a global shortage of drinking water. A person might wonder how this can be if seventy percent of the earth’s surface is covered by water. Most of the Earth’s water is unsuitable for human consumption. Ocean water is salt water, which makes up 97.5% of all water on the planet. Freshwater is only 3.5% of all the water on Earth.
Water scarcity is harmful to human life because when water is poorly managed throughout the world, those who need water are deprived of nutrients they truly need, causing them to die. This eventually affects the global population. Therefore, many experts have proposed several solutions such as the LifeSaver Bottle, TrojanUVPhox treatment system, and Waste Water Recycling. The problem of water scarcity has increasingly spread throughout the world as of yet, The UN reports that within the next half- century up to 7 billion people in 60 countries which is more than the whole present population will face water scarcity (Sawin “Water Scarcity could Overwhelm the Next Generation”). As well, the demand for freshwater has tripled over the past 50 years, and is continuing to rise as a result of population growth and economic development.