Pr Ethics & Csr

In: Business and Management

Submitted By virge9898
Words 3128
Pages 13
Module Title: Business Ethics and Social Responsibility

Question 1: Set out the main criticisms that have been levelled at the above three MNC's

In the case of Nestle, it became evident that no formal research into the emerging market was carried out. No approached to local authorities or government agencies was made; who may have had great knowledge/insight into feeding practice within the region or problems/issues that Nestle may be faced with. They simply tried to implement existing 'western' aspirational marketing practice into a region that they knew nothing about. Their communications with the target market were poor & unclear which led to the misconception that formula was a good way to replace breast milk and other forms of nutrition vital to child development. The company did not play its role in educating the public as to the proper methods of using the product and indeed the danger of it's misuse, and also did not consider the different living conditions as a factor in which could lead to such misuse. Their aggressive marketing approach ignored or de-emphasized breast feeding & much of their promotional efforts were misleading in encouraging poor & illiterate mothers to bottle-feed rather than breast feed their infants. Advertising portrayed breast-feeding as primitive and inconvenient. Free gifts & samples were supplied by sales reps dressed as quasi-medical staff known as 'milk nurses'; which were viewed as 'endorsements by association'. Quality control was also an issue for Nestle in other far-flung plants, which resulted in 134 deaths in Australia & 25 in Columbia. This served to fuel activists & campaigners even more. The way in which Nestle initially tried to handle the bad publicity was also criticised. Initially they did not react, and hoped it would go away. However, it failed to fulfill its duty as a socially responsible corporate…...

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