Third World and Nestle Infant Formula
1. What are the responsibilities of the companies in these or similar situations?
When expanding into a new country, especially if it’s a third world country, the multinationals should be aware of the impact their products could have on that specific society which might not be prepared to use their products. Thus, before marketing and distributing the product, the company must first be sure that the population knows how to use it. For example Nestle could have done some training to the new mothers in hospitals regarding the health of their child and also regarding their product. This could happen before the proper distribution of the product and might prevent also the malnutrition of the children.
Furthermore, the company should be aware about any single fact of that society which can interact positively or negatively with their product. For example, if Nestle can help the spread of HIV virus through trainings and free blood tests for mothers to be, it can be said that it is a responsible company in the same time with being profitable. Multinationals must understand when entering such a country, the numerous differences that exist between the population from the new market and the population from the home country. Moreover, on each label of the baby powder should be written the fact that the natural milk is the healthy one, and also be specified the circumstances in which the supplementary milk should be used. If there are many illiterate women, these facts should be told to the customer in any point of sale or with any free sampling action.
2. What could Nestle have done to have avoided the accusations of “killing Third World babies” and still market its product?
Prove that the charges it was accused did not occurred because of the product but because of the inadequate use of it. For example Nestle cannot be accused that its product caused diarrhea and vomiting because the water used to make the formula was contaminated.