The Ethics of Marketing Nestles Infant Formula

Good Essays
The Ethics of Marketing Nestles Infant Formula Introduction:
• Issue in Question:
1. Nestlé’s marketing of infant formula
2. First world product in a third world country

• Marketing dilemmas
1. First world products in a third world market
2. Risk conditions are present
3. Can a product be marketed in an area that it cannot be guaranteed?

• Evolution of a public issue
1. In 1970 an organized campaign was established by the Protein Calorie Advisory Group ( PAG)
2. The claim was that: “Nestle pushed its products to mothers, many of whom lived in circumstances that made the use of such products a highly risky adventure”.
3. Corporate advertisers by the infant formula companies had promoted the idea that bottle feeding was better than breast feeding
• Circumstances:
1. The formula is sold in a powder form and must have a “clean” water supply
Ex. Developing Nations have poor water quality and subject the child to disease
2. “Since the product must be mixed, preparation instructions are important and mother must be able to read. Unfortunately, the rate of illiteracy is very high in developing nations”.
3. The price of the formula caused the mothers to over dilute the formula in an attempt to stretch the formula for a few extra days.
4. Over diluting caused the baby to be malnourished

• Peter Muller (journalist)
1. Travelled to Africa, in the early 1970’s to study allegations of market abuse
2. Sponsored by a British charity group called the “War on Want”
3. He published many article’s in 1974 titled “Baby Killers”
4. Nestlé’s the largest producer of formula was targeted as being unethical because of his articles
• “Nestle Baby Killers” Switzerland
• Phase 1 of the evolution of a public issue
1. Reprint of the articles in Switzerland by a Swiss public action group, lead to a change in the tile of the articles to “Nestle Baby Killers”
2. Nestle sued the Swiss public action group and the case came to trial in Switzerland in 1975
• Phase2

You May Also Find These Documents Helpful

  • Good Essays

    Business Research Ethics

    • 790 Words
    • 4 Pages

    The trouble for the Swiss conglomerate goes back to the 1960’s. Nestle was “criticized by social activists for marketing their powered milk formula to less developed countries”. (Boyd, C., 2011) The unethical research behavior that may have been involved with this is that people were under the perception that the company was misleading how the formula “better for their babies than breast milk.” (Boyd, C., 2011) to mothers in less developed countries. The critics against the company felt that by giving this information to the mothers, they could come and continue the mothers to stay only with the formula. Critics also felt that Nestle was also giving information about the death of infants that some felt was not correct. Nestle told the mothers that infant deaths with breast fed children happened in three ways: “babies were unprotected against illnesses because of the lack of antibodies not found in breast milk”; “mothers could not afford to boil water”; and “mothers could not afford the price of the product and dilute the amount of formula which would cause malnutrition”. (Boyd, C., 2011)…

    • 790 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Nestle Ethics

    • 1814 Words
    • 8 Pages

    * Business Insider, Article, ‘Every Parent should know the scandalous history of infant formula’, Jill Krasny, 25th June 2012 http://www.businessinsider.com/nestles-infant-formula-scandal-2012-6?op=1…

    • 1814 Words
    • 8 Pages
    Best Essays
  • Good Essays

    Nestle states that “this unsavory system puts retail food stores in firm control of the marketplace.” The store, not the consumer, is actually making the decisions about what products are being bought. Due to the unsavory nature of this consumer manipulation, congress investigated the issue in 1999 but the case made little progress because of the food industry’s refusal to corporate.…

    • 554 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Nestle Swot Analysis

    • 5622 Words
    • 23 Pages

    on the intensive advertising and promotion of infant formula. Clever radio jingles extol the wonders of the "white man's powder that will make baby grow and glow.""Milk nurses" visit nursing mothers in hospitals and their homes and provide samples of formula. These activities encourage mothers to give up breast feeding and resort to bottle feeding because it is "the fashionable thing to do or because people are putting it to them that this is the thing to do."…

    • 5622 Words
    • 23 Pages
    Powerful Essays
  • Good Essays

    Adwoa Addison

    • 1947 Words
    • 5 Pages

    The duties of motherhood vary by culture, family, and the needs of each individual child. However, most agree that mothers have some of the most fundamental jobs of humanity. They are to provide safety and nourishment for their children. This entails making seemingly important decisions to be sure their child is safe and well cared for. Choosing whether to breastfeed or formula feed is one of the first decisions a woman will make regarding her baby. The American Academy of Pediatrics (AAP) joins other organizations such as the American Medical Association (AMA), the American Dietetic Association (ADA), and the World Health Organization (WHO) in recommending breastfeeding as the best source of nourishment for babies because it helps defend against infections, prevents allergies, and protect against a number of chronic conditions. This leads us to question why the U.S. has one of the lowest rates of breastfeeding among industrialized countries and one of the highest rates of infant mortality in the world. Perhaps we can attribute these stigmas to the fact that companies such as Nestle, Mead Johnson Nutrition Company, and Abbott Laboratories have implemented a plethora of aggressive marketing strategies to appeal to new mothers in order to sell their products. These companies dwell on the overall shift from nature to science to promote their products despite…

    • 1947 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Government vs People

    • 898 Words
    • 4 Pages

    Brownell, Kelly PHD and Nestle, Marion PHD. “Not If Blaming the Victim Is Just an Excuse to Let Industry Off the Hook” Annette T Rottenberg A and Donna Haisty Winchell “ Eight Edition” New York, Bedford/ St. Martin 2006…

    • 898 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    [ 10 ]. Nestle Corportate. "About Us." Home. Nestle, 2012. Web. 01 June 2012. .…

    • 6778 Words
    • 28 Pages
    Powerful Essays
  • Good Essays

    Nestle And Alcon

    • 388 Words
    • 3 Pages

    The case talks about Nestle which is the world’s largest food company trying to assess whether a part of…

    • 388 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Nestle History

    • 7682 Words
    • 31 Pages

    Nestlé Company had started off from a single man 's idea, and developed into a giant corporation. In 1866 Henri Nestlé, a pharmacist, developed a milk food formula for infants who were unable to tolerate their mother milk (Nestle.com). His product became a success, and it created a demand throughout Europe. As Nestlé’s popularity grew more businesses wanted to merge and become partners with Henri Nestlé 's business. From 1866 to 1947 the Nestlé Company had gone through several name changes. In 1905, Anglo-Swiss Condensed Milk Co. and Farine Lactee Henri Nestlé merged, and the company’s name became Nestlé & Anglo-Swiss Condensed Milk Co. Then in 1929, Peter-Cailler-Kohler Chocolats Suisses S.A. merged with the company. The name was then changed to Nestlé & Anglo-Swiss Holding Co. Ltd, on November 27, 1936. In December 1947, Co. acquired all the shares capital of the Alimentana S.A. company in exchange for fifteen Nestlé shares and fifteen Unilac shares for each of Alimentana S.A. share, so this point the name was at Nestlé Alimentana S.A. And then finally, the last name change that the company would endure was in 1977, where it adopted the name Nestlé SA (Mergent Online). Along the way Nestlé’s company remain successful, which allowed them expand to new region and territories throughout the world, making them the world’s biggest food and beverage company. Nestlé’s headquarters are located in Vevey, Switzerland, but the Nestlé Company has factories or operation in almost ever country in the world. Since the Nestlé case was published in 1998, it stated that Nestlé had employed 230,000 people worldwide, with $71.7 billion in sales (Rodgers, 2000). Now moving forward to 2003, Nestlé has increased the amount of employees to 253,000 people, with $88 billion in sales (Nestle.com). Nestlé is increasing the size of their company year by year. In addition, to the increase in the size of the Nestlé Company; Nestlé also has increased the variety in the different…

    • 7682 Words
    • 31 Pages
    Better Essays
  • Good Essays

    Research Paper Sample

    • 1201 Words
    • 5 Pages

    The melamine controversy that erupted during the last quarter of year 2008 brought people’s attention back to the debates between breastfeeding and the use of breast milk substitutes like commercial infant formula. This wasn’t the first time that infant formula had caused illnesses and even deaths to infants worldwide - hence the continuous campaign of World Health Organization (WHO) and UNICEF along with other breastfeeding advocates, for mothers to breastfeed their children at least until 6 months of age.…

    • 1201 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Infant Formula

    • 5216 Words
    • 21 Pages

    Breast milk is widely accepted to be the ideal nutritional choice for babies during their first year. However, many parents, for any number of reasons, do not choose to breastfeed at birth. And of those who do choose to breastfeed initially, 78% stop doing so by the time their baby is six months of age.1 These families are faced with having to choose an infant formula. Any trip to a local grocery can prove how difficult a task this can be. The questions these parents most likely would ask would be: is one formula better than another? Does brand name matter? Does "new and improved" or "enhanced" formula mean better? Are infant formulas really a safe and nutritious choice for feeding babies?…

    • 5216 Words
    • 21 Pages
    Powerful Essays
  • Good Essays

    Nestle Case 1-3

    • 1186 Words
    • 5 Pages

    In his decision, the judge stated that the cause behind the injuries and deaths was not Nestlé’s products; rather, it was the unhygienic way they were prepared by end-users. Although Nestlé won its case, the firm’s victory was diluted by (1) having to pay one third of the court costs and (2) being told by the judge to change its marketing methods to prevent further misuse of its products. The defendants were ordered to pay $120 each in damages to Nestlé and two thirds of court costs.…

    • 1186 Words
    • 5 Pages
    Good Essays
  • Good Essays

    2. What could Nestle have done to have avoided the accusations of “killing Third World babies” and still market its product?…

    • 943 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    After Nestle's experience, how do you suggest it, or any other company can protect itself in the future?…

    • 329 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    The key factor which drove the early history of the enterprise that would become The Nestlé Company was Henri Nestlé's search for a healthy, economical alternative to breastfeeding for mothers who could not feed their infants at the breast.…

    • 12375 Words
    • 50 Pages
    Powerful Essays