report on organizational cultrure of nestle.doc

8/21/2019 report on organizational cultrure of nestle.doc

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EXECUTIVE SUMMARY

Nestle is a multinational corporation , headquarted in Switzerland, is one of the largest food

company in the world measured by revenues. Though various controversies revolves around

this multinational company, one of the most confusing and prolonged one is the “Breast

mil substitute infant formula!. This controversy has turned up the heads of millions of

people all around the world, as several infants died in developing countries after using

Nestle"s breast subsitute mil for infants. Babies died because their mothers were not literate

enough to use the prodcut. They didn"t even have the proper means of maing that infant

formula because of shortage of various basic necessties in developing countries such as clean

water, electricity, fuel and etc.

#eading organizations all around the world too part in the boycott of Nestle"s products

during the late $%&'"s. Nestle admitted its mistae of doing aggressive mareting in

developing countries and obeyed to follow the code of conducts in its mareting practices,

recommended by (orld )ealth organization. The boycott was first initiated by *S+, which

gain its momentum worldwide. +lso in aistan this controversy gained ground when one of the employee of Nestle , accused the company that it uses malpractices to promote its infant

formula. Several pamplets named as “Baby -illers! were distrubuted in *- and Nestle sued

the publisher of erman/language translation and after two year trials court advocated in

favor of Nestle because

they could not be held responsible for the infant deaths in terms of

criminal law.

The controversy did e0ist even after the company accepted the codes of ()1. Some

organizations condemned Nestle, that it has been selling free samples to the mothers of new

born children while they are in hospital, and the family has to purchase new pacets from the

maret because the intial dose of it has made their children addictive to it. )owever Nestle

denied such allegations.

The 2nternational Nestl3 Boycott 4ommittee, the secretariat for which is the *- 51*

Baby 6il +ction, currently coordinates the Nestl3 boycott. 4ompany practices are

monitored by the 2nternational Baby 7ood +ction Networ 82B7+N9,

which consists of morethan :'' groups in over $'' countries.

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Though this controversy had badly impacted the image of Nestle, but still Nestle is one of the

leading multi national corporation and has its huge maret share all over the world.

INTRODUCTION OF NESTLE:

Nestle is the world;s leading nutrition, health and wellness company. evey, Switzerland. 2t is the largest food company in the world measured by

revenues.

2n $?@@, the first Auropean condensed mil factory was opened in 4ham, Switzerland, by the

+nglo/Swiss 4ondensed 6il 4ompany.

2n >evey, Switzerland, our founder )enri Nestl3, a erman pharmacist, launched his Farine

lactée, a combination of cow"s mil, wheat flour and sugar, saving the life of a neighbour"s

child. Nutrition has been the cornerstone of our company ever since.

“)enri Nestl3, himself an immigrant from ermany, was instrumental in turning his

4ompany towards international e0pansion from the very start. (e owe more than our name,

our logo and our first infant/food product to our founder. )enri Nestl3 embodied many of the

ey attitudes and values that form part and parcel of our corporate culture pragmatism,

fle0ibility, the willingness to learn an open mind and respect for other people and cultures.!

Peter Brabeck-Letmathe, Nestlé Chairman

Nestle was formed in $%'C by the merger of the +nglo/Swiss 6il 4ompany, established in

$?@@ by brothers eorge age and 4harles age, and 7arine #actee )enri Nestle, founded in

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$?@@ by )enri Nestl3. The company grew significantly during the 7irst (orld (ar and again

following the Second (orld (ar, e0panding its offerings beyond its early condensed mil

and infant formula products. The company has made a number of corporate acquisitions,

including Crosse & Blackwell in 1950, Findus in 1963, Libbys in 19!1,

"own#ree $ackin#os% in 19 and 'erber in (00!)

Nestl3 has a primary listing on the S2D Swiss A0change and is a constituent of the Swiss

6aret 2nde0. 2t has a secondary listing on Auro ne0t.

Nestl3;s products include baby food, bottled water, breafast cereals, coffee, confectionery,

dairy products, ice cream, pet foods and snacs. :% of Nestl3;s brands have annual sales of

over $ billion Swiss francs 8about E $.$ billion9,

Nestl3 has around FC' factories, operates in ?@ countries, and employs around G:?,'''

people. 2t is one of the main shareholders of #"1real, the world;s largest cosmetics company.

Strategic Purpose:

Missio State!et:

"Nestlé is the largest food company in the world. But, more important to them is to be the

world's leading food company”.

+t Nestl3, we believe that research can help us mae better food so that people live a better

life.

ood 7ood is the primary source of ood )ealth throughout life. (e strive to bring

consumers foods that are safe, of high quality and provide optimal nutrition to meet

physiological needs. 2n addition to Nutrition, )ealth and (ellness, Nestl3 products bring

consumers the vital ingredients of taste and pleasure.

Visio state!et:

* Nestlé aim is to meet the various needs of the consumer every day by marketing and selling

food of a consistently high quality !he confidences that consumers have in our brands is a

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http://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/Crosse_%26_Blackwellhttp://en.wikipedia.org/wiki/Findushttp://en.wikipedia.org/wiki/Libby'shttp://en.wikipedia.org/wiki/Rowntree'shttp://en.wikipedia.org/wiki/Gerber_Products_Companyhttp://en.wikipedia.org/wiki/SIX_Swiss_Exchangehttp://en.wikipedia.org/wiki/Swiss_Market_Indexhttp://en.wikipedia.org/wiki/Swiss_Market_Indexhttp://en.wikipedia.org/wiki/Euronexthttp://en.wikipedia.org/wiki/Baby_foodhttp://en.wikipedia.org/wiki/Bottled_waterhttp://en.wikipedia.org/wiki/Breakfast_cerealshttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Pet_foodshttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Cosmeticshttp://en.wikipedia.org/wiki/Henri_Nestl%C3%A9http://en.wikipedia.org/wiki/Crosse_%26_Blackwellhttp://en.wikipedia.org/wiki/Findushttp://en.wikipedia.org/wiki/Libby'shttp://en.wikipedia.org/wiki/Rowntree'shttp://en.wikipedia.org/wiki/Gerber_Products_Companyhttp://en.wikipedia.org/wiki/SIX_Swiss_Exchangehttp://en.wikipedia.org/wiki/Swiss_Market_Indexhttp://en.wikipedia.org/wiki/Swiss_Market_Indexhttp://en.wikipedia.org/wiki/Euronexthttp://en.wikipedia.org/wiki/Baby_foodhttp://en.wikipedia.org/wiki/Bottled_waterhttp://en.wikipedia.org/wiki/Breakfast_cerealshttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Ice_creamhttp://en.wikipedia.org/wiki/Pet_foodshttp://en.wikipedia.org/wiki/L'Or%C3%A9alhttp://en.wikipedia.org/wiki/Cosmetics


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result of

our com"any#s many years of kno$ledge in marketing, research and develo"ment, as $ell as

continuity % consumers relate to this and feel they can trust our "roducts&

I particu"ar# $e e%isio to&

H #ead a dynamic, motivated and professional worforce = proud of our heritage and positive

about the future.

H 6eet the nutrition needs of consumers of all ages = from infancy to old age, from nutrition

to pleasure, through an innovative portfolio of branded food and beverage products of the

highest quality.

H Ieliver shareholder value through profitable long term growth, while continuing to play a

significant and responsible role in the social, economic, and environmental sectors of

aistan.

'oa"s o( Nest"e:

The main goals as described by Nestle are as follows

*'oodFood, 'ood Life, #%e key #o %eal#%, nu#ri#ion and wellness) +i#% oer 1-0

years of e./erience and e./er#ise, we #ake grea# /ride in bringing you #%e bes#

/roduc#s because %a//y, %eal#%y consuers are i/or#an# #o us) +e deelo/ our

/roduc#s kee/ing your /references, #as#es and needs in ind) +e unders#and

#%a# you, along wi#% illions of o#%er consuers, know #%a# you can #rus# our

/roduc#s #o delier /uri#y, uali#y, conenience and nu#ri#ion) 2ur /roduc#s

are carefully aligned #o Pakis#ani #as#es and needs) +ere always #rying %ard #o

deelo/ new /roduc#s and i/roe e.is#ing ones, and sere our consuers

be##er) %a#s w%y #%roug% cons#an# renoa#ion and innoa#ion were always

#es#ing or launc%ing alue added /roduc#s and aking #%e aailable in si4es

#%a# will sui# eery reuireen#) o e./lore #%e world of %eal#% wi#% es#l7

/roduc#s, and 8nd ou# w%a# sui#s your failys needs

O)*ecti%es o( Nest"e:'(arketing ob)ectives are com"atible $ith the overall cor"orate ob)ectives of nestle

Com"any#s ob)ective is to be the $orld#s largest and best branded food manufacturer $hile

insuring that nestle name is synonymous $ith the "roducts of the highest quality&

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Orgai+atio C,art

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E%iro!et:

2n line with Nestl3;s global commitment, Nestl3 aistan is dedicated to playing its role in

helping to protect the environment.

(e comply with the Anvironmental +ct 8$%%&9, and try to ensure that at every stage of our

operations, the environmental impact is minimal.

#earn more about our 5esponsibility to the Anvironment proJects

Our E%iro!eta" Co!!it!et i Actio:

1ur environmental commitment e0tends to every part of our value chain.

Thus, at the raw materials stage, we support sustainable agricultural and dairy farming

practices, including environmental protection.

(hen it comes to production, all our factories try to ma0imize eco/efficiency, i.e. increase

production while minimizing resource consumption, waste and emissions.

1ur factories are equipped with complete testing and monitoring facilities for waste and air

emissions.

To eliminate air pollution, we have stopped using heavy fuel oil in our factories, which are

now run on clean natural gas. This has reduced our emissions into the atmosphere to well

below the legal limits.

1ur Sheihupura K -abirwala factories have elaborate water treatment systems to prevent

wastewater from polluting the environment.

2n :''C, we upgraded our wastewater treatment plants in both factories. That;s not allL we are

continually reducing our consumption of raw water per ton of production.

2rresponsible pacaging can have a heavy impact on the environment. To reduce the amount

of material used without Jeopardizing the safety and quality of our products, we are always

woring on new pacaging solutions that have minimal weight and volume and can be easily

recycled.

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(e even operate a collection system for used pacaging. Solid waste is collected at source

and then reused, recycled or disposed in an environmentally friendly way.

Natural gas incinerators at our Sheihupura K -abirwala factories are used to safely dispose

of material that cannot be recycled K dumped.

1ur factories have environment committees to manage routine environment issues and

review performance. Anvironmental impact assessment is done in advance for every new

proJect and measures are adopted to minimize adverse impacts on the environment.

1ur employees regularly undergo training to inculcate awareness about environment/friendly

practices.

Maageria" I!p"icatios:

The problems faced by Nestle in today"s world are the claims faced by it as being charged

with the responsibility of violating the “2nternational 6areting 4odes!. Nestle claims that 2

is doing nothing wrong and unethical in the way it marets is baby foods around the world.

Baby mil action has raised the case of “Syed +amar 5aza! who has publicizes evidence of

Nestle malpractice in aistan as well. 2t has been claimed that company mareting is

causing unnecessary deaths and suffering of babies, largely among poor because they do not

use the proper amount of powder in order to save some volume for future use which causes

great danger to baby life.

Corporate Socia" Resposi)i"it-:

Nestle believes that every single company, no matter where in the world it operates, ought to

be fully integrated into the local social, cultural K economic life. 4ompany must be good

corporate citizens, and give bac to the societies to which it belongs.

There are two ways of fulfilling the responsibility and practicing corporate Social

5esponsibility

$/ Through social investments giving to charities, leading and supporting cultural or

welfare initiatives.

:/ Through the realization that businesses create social and environmental impacts, both

positive K negative, through the daily operations of their value chain.

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The operations of Nestle throughout the world are committed to maing full use of the above

tools. Thus Nestl3 people everywhere are involved in the many programs and proJects we

have designed to strengthen local communities and nations.

Nestle is heavily involved in proJects relating to its areas of e0pertise, such as nutrition,

education K research, health proJects, and agricultural assistance. 2n times of crisis Nestle is

amongst the first on the scene to help with humanitarian relief aid and food donations.

To help culture K society flourish, Nestle does its best to encourage a host of other activities

they support charities, education and training initiatives, art and cultural events, sport events

and )2>M+2IS prevention. 7ollowing are the maJor contributions of Nestle in being social

responsible

E.ucatio

Nestl3 aistan is involved in a wide range of programs and proJects intended to improve the

lives of underprivileged aistanis.

1ur efforts are focused on

/0 Socia" Re,a)i"itatio a. e.ucatio a.%ace!et:

To help improve education in rural areas, they undertoo the rehabilitation of several primary

and middle schools, focusing especially on schools for girls.

2n :''F, in partnership with an N1, they adopted a school in indi Ihallon, Sheihupura,

and achieved such an improvement of educational facilities, including teaching aids and

teacher training, that school attendance doubled.

Three schools were rehabilitated in :''F/'C, and also donated over $'' computers to schools

in poor rural and urban community. 8$9

10 Researc, a. De%e"op!et Iitiati%es:

2n the :$st century, no country can hope to progress without a strong commitment to

scientific training and research.

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Iemonstrating our investment in aistan;s long/term future, they have committed to help set

up a School of Science and Angineering at the world/renowned #ahore *niversity of

6anagement Sciences 8#*6S9.

Earthquae !elief

/0 T,e S,oc2s:

2n 1ctober :''C, the biggest natural calamity in our history struc aistan. Thousands died

and millions were left homeless after a massive earthquae hit mountainous northern areas.

2n step with the rest of the nation, Nestl3 aistan responded immediately, putting its

infrastructure and resources to wor in the affected areas.

A3 First Resposes:

(hen the earthquae struc, Nestl3 aistan responded instantly, even before the magnitude

of the disaster had dawned upon the nation. They immediately donated food and beverageitems.

(ithin two days, they had established a crisis committee under the supervision of 6anaging

Iirector. The same day, the management team left to visit the affected areas, and by $$

1ctober, the first si0 Nestl3 trucs left factories, bearing bottled water, powdered and *)T

mil and ready/to/coo (*++ noodles. 8:9

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2nstead of burdening the government and relief agencies, they aggressively

reactivated their own shattered distribution channels to bring supplies to the people who

needed them most and established si0 camps to distribute relief goods.

Iespite bloced roads, grave logistical challenges K an atmosphere of fear

and suffering, nestle teams, consisting of about forty Nestl3 employees and distributors, went

out and distributed Nestl3 products to the affectees.

(ithin two days Nestle teams reached the worst/hit areas around 6uzaffarabad, Bagh and

6ansehra. They wored in collaboration with the aistan +ir 7orce and arranged for

supplies to be airdropped to the most inaccessible areas.

1ther teams of Nestl3 volunteers supported relief wor undertaen by other agencies around

the affected areas.

They also distributed ?' trucs of goods, worth 5s :' million. Two $'/ton trucs of drining

water were dispatched to 6uzaffarabad )ospital, and volunteer teams ensured that goods

were distributed fairly and efficiently to those who needed them most.

43 A(ter!at,s:

+fter the crisis came a time for rebuilding shattered lives. +mong the reconstruction efforts

some are the following initiatives

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• They have allocated an amount of 5s :' million, raised through employee

contributions, matching grants and contributions from other Nestl3 marets. This

amount is to be used to adopt and reconstruct a model village in +zad -ashmir.

• They also intend to build an orphanage in the affected areas for the hundreds of

children who lost their parents in this disaster.

• Nestle is initiating a livestoc health improvement program to help the locals rebuild

their shattered lives.

• The parent company, Nestl3 S+ has donated an additional 5s $@ million for

reconstruction and rehabilitation wor.

C3 Pitc,ig:

Nestl3 employees wored tirelessly to bring aid to earthquae victims.

• Nestl3 employees donated 5s G.G million from their own salaries.

• Nestl3 employees in other countries also stepped forward and donated to the Nestl3

relief fund.

• 7ive teams of staff volunteers wored day and night in the affected areas to ensure

that relief goods got where they were needed.

• + medical detailing team wored with the students of -ing Adward 6edical

*niversity, #ahore, to collect medicines worth 5s $&C,'''.

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Societ-:

Taing the Nestl3 concept of corporate Social 5esponsibility to heart, they are deeply

involved in social investment and humanitarian aid.

• They are committed to aistan;s long/term betterment, and strictly follow the code of

corporate governance.

• They deal fairly with staeholders.

• They serve their consumers through safe, high quality products K communicate with

them responsibly.

• They benefit consumers by spreading awareness about healthy nutrition and lifestyles

as well as constantly developing or improving e0isting products for health, nutrition

and wellness.

Nestle is actively involved in several social action programs 8S+s9 to improve the lives of

our country;s under/privileged people. Nestle offer generous financial support to hospitalsand organizations that are dedicated to providing services to the poor. 1nly recently, they

donated a mobile dispensary to +(+ for its medical outreach program in a remote

community near )ub, Sindh. They have always responded generously with assistance to

victims of natural disasters, such as floods, earthquaes and droughts.

#artnership for success

2n efforts to provide pure, high quality mil to consumers in distant towns, Nestl3 entered

into an unprecedented partnership with local farmers. + comple0 networ of collection

centers ensures that no farmer has to go far to deliver his daily produce. )is payment is

prompt and transparent. +dvanced chilling systems are in place so as mil travels to factories

in Sheihupura and -abirwala, its quality is not degraded.

To improve the quality of mil and the lives of suppliers, Nestle have established a unique

technical assistance team that trains farmers in modern techniques. The mil collection

system has an economic and social impact far beyond the farmers themselves. Through this

Nestle has created hundreds of Jobs, instituted a communications and transport networ.

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6ore than %'',''' farmers and their dependants have been directly affected by mil

purchases.

Today, $F years after Nestl3 first entered the mil district in force, the hard wor and

determination of Nestl3"s mil collection K technical assistance teams and their dedication to

4orporate Social 5esponsibility have raised the bar for dairy concerns in aistan

Sa(et-# 5ea"t, a. E%iro!et Po"ic-

Nestl3 aistan #td. is one of the leading 7ood and Beverage 4ompanies and aims to provide

consumers with the best quality food products by incorporating safe and environmentally

sound practices into its daily business activities. Their commitment to sustainable

development will be accomplished by integrating occupational safety, health and ris

management programs at all worplaces to provide a healthy and safe wor environment for

employees, contractors and Corporate Itera" au.it >isitors, A0ercising this commitment

and reflecting its benefit to the community remains central to business strategy for today and

tomorrow.

2n the process of transforming raw material into finished products, Nestle aims to

mae the best possible use of them by minimizing wastage, adopting safe woring methods,

efficient use of natural resources and minimizing the impact on the environment. Nestl3

aistan #td. is also committed to communicate Safety, )ealth and Anvironmental

erformance to its staeholders.

8@9

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Lega" Resposi)i"it-:

$orporate %o&ernance #rinciples

(e are dedicated to following the best practices laid down by our parent company, Nestl3

S+. (e have implemented the 4orporate overnance rinciples established by Nestl3 S+,

covering four core areas

6 5ights and responsibilities of shareholders

6 Aquitable treatment of shareholders

6 Iuties and responsibilities of the board of directors

6 Iisclosure and transparency

5ecognizing the need to maintain transparency and verify the application of corporate

standards, Nestl3 aistan has established an internal audit department that monitors

administrative and operational functions throughout the company. Thans to its operations,we can be assured that adequate internal controls are in place, management information is

reliable, resources are used effectively, and company assets are safeguarded.

A 7uiet re%o"utio:

2n :''C Nestle restructured agricultural services so that they now consist of over thirty full/

time agronomists, vets and agricultural engineers to help the farmers of the unJab with their

mil production. et there is another crucial staeholder in every mil/producing farm the

farmers $ife

Nestle has created seven teams of three women each, all trained vets, sociologists and

specialists in animal husbandry.

Their tas is to meet farmers; wives and empower then through training in mil production,

animal husbandry, and hygiene, and to give them an understanding of Nestl3;s mil collection

system. 2n effect, there;s a quiet revolution going on in aistan;s mil district. 8%9

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5e"pig t,e (ar!er

I!pro%ig Fee.:

Aven before calling Nestl3 in, 6ilpa #td. had tried to ensure that mil cows were given

fresh fodder during the summer. Nestle teams are always prepared to offer practical advice.

They have planted a variety of fodder crops, which they demonstrated to farmers on field

days. Nestle gives stress on the importance of giving cattle enough water, and train farmers in

hygiene and miling.

4etter E8uip!et:

+gricultural services staff have drawn up technical plans for cowsheds, which are provided

free of charge. Nestle mechanics have also developed prototypes of machines to cut fodder

quicly and ine0pensively.

Starting :''F, Nestle went a step further and proposed a system of small loans for farmers

who wanted to mae improvements to their farms, such as building cowsheds. They drew up

the sample specifications for a model farm to be presented to the bans disbursing the loans.

The Service even helps farmers fill out applications for loans.

5UMAN RESOURCE

)5 is dedicated to their employees, and ensures that they have all the right people with the

right sills, in the right places at the right time. *nderstanding that their people are the

bedroc of all their business strategies, it is their mandate to enhance their sills with cutting

edge training and provide them with world/standard facilities. They select fle0ible, innovative

people who are ready to confront new challenges and mae a difference. Their

groundbreaing 6anagement Trainee rogrammed aims to develop talented young men and

women and help them achieve their potential in a dynamic and enabling environment.

1ver a hundred people travel out of the country every year to tae advantage of their

international training and development events.

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95AT T5EY 4ELIEVE IN:

They are a people company. Their people are their greatest strength, and nothing can be

achieved without their commitment and energy. +t Nestl3 aistan their opinion counts.

)ere you;ll fit into a corporate culture that;s based on a set of fundamental principles and

values. These are

• )igh commitment to quality products and brands

• 5espect of other cultures and traditions

• 4ommitment to strong wor ethic

• ersonal relations based on trust and mutual respect

• roactive cooperation

• Being pragmatic rather than dogmatic

• 7avoring decentralization and networing

• Being committed to wor and quality

• referring the long/term perspective to short/term thining

• They;re proud of their traditions and heritage, and as times change, these core values

eep evolving.

RECRUITMENT:

95AT T5EY LOO FOR:

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2t taes a special sort of person to come and wor at Nestl3 aistan. That;s why, when

selecting candidates, they loo for a set of interrelated characteristics encompassing three ey

areas nowledge, personality and motivation.

Pro(essioa" o$"e.ge:

They loo for good academic results at university or equivalent qualifications. )owever, the

class of the degree you have obtained, though very important, is not the only criterion for

selection.

1ther e0periences during their studies, previous Jobs, assignments, language theses and any

other significant e0tracurricular activities and achievements, are also given the right.

They loo for candidates who can identify a problem, analyze it, loo at different options,

and come to reasoned conclusions. They want people with drive and tenacity, energy and

enthusiasm, who can initiate a proJect and follow through

to the end. +ll these sills are vital during a career at Nestl3 aistan.

Persoa"it-:

To succeed at Nestl3 aistan, you need more than professional nowledge. ou need a flair

for the field of activity of their choice, an open mind, and a willingness to dig in and learn

new sills and ideas. They;re looing for applicants who are dynamic and communicative.

eople, who can listen, understand and integrate the opinion of others, people who can

e0press their ideas clearly, both verbally and on paper.

They want people who lie to negotiate, even with very different partners, and to solve

problems in comple0 situations .They lie candidates who show leadership, inspire others,

and are self/confident, yet realistic. eople who have a positive attitude to wor and willing

to wor hard, even under pressure. They see people who can be obJective in their assessment

of themselves and of others.

Moti%atio:

(hile they e0pect loyalty to their company, they e0pect their people to be critical and suggest

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improvements wherever necessary. They lie people who are motivated themselves K can

motivate others.

+ Nestl3 employee is characterized by creativity and dynamism. They don;t only loo for

specialists, but people who have nowledge and sills in more than one field, with broad

interests. To sum up, they want people with purpose and ambition, though not at the e0pense

of others.

They want people who tae responsibility for their actions, who consider Nestl3 their own

business, and who show an entrepreneurial spirit.

P,i"osop,- o( Nest"e:

Nestl3Os philosophy is summed up in four words

'oo. Foo.# 'oo. Li(e;

2n their quest to become the world;s leading health, nutrition and wellness company, theydo everything they can to help people live more fulfilling lives.

'oo. Foo.# 'oo. Li(e

)enri Nestl3 chose his own coat of arms to represent the company;s philosophy

a bird;s nest, with a mother feeding her young.

The image represents Nestl3 core values care, family values, nutrition, healthy growth, safety

and comfort. 2t is a guarantee of quality and a commitment to responsibilities as a food

company and e0perts in nutrition.1ver the years Nestl3 has reaffirmed its commitment to wellness, helping consumers to live

longer, healthier, and more productive lives, no matter their age, gender or socioeconomic

status.

'oo. Igre.iets

Three vital ingredients lie at the heart of Nestl3 and come together in their brands

Their people# their research and development, and their commitment to quality;

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The :C',''' dedicated people who mae up the Nestl3 family are their source of strength and

energy. 5ealizing this, Nestl3 offer them constant professional development, and feel their

cultural diversity is one of greatest assets.

Pro.ucts:

4usiess Lies i Pa2ista:

Mi"2e. .air- a. c,i""e. .air-:

62#-+- NAS>2T+ N2I1 NAS#+4A>A5I+

NAST#A Iahi NAST#A 7ruit ogurt NAST#A 5aita

62#-+- 4ream

4e%erages:

NAS4+7A

NAP*24- 62#1

NAST#A 7ruita >itals

4ott"e. 9ater:

NAST#A ure #ife

4a)- Foo.:

4A5A#+4

Foo.:

6+2/: 6inute Noodles

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4rea2 Fast Cerea"s:

4orn 7laes)oney old 7laes-1-1 4runch

C,oco"ate < Co(ectioar-:

-2T-+T-2T-+T 4hunyPolo

Target !ar2et o( Nest"e:

• 6il, dairy and 4hilled dairy wide variety of dairy products is available to cater

almost every segment of customer. #iquid 6il especially Nesvita is produced

especially for the females as it contains high content of iron, beneficial for them.

• Beverages it includes Nescafe, 6ilo, Nesqui, and Nestle 7riuta >itals. Their main

target maret includes people of all ages.

• Bottled water businesses, students, for the people who do not have access to clean

drining water.

• Baby food target maret of baby food is all the parents

• 7ood it includes 6aggie noodles which mostly caters children and teenagers.

• Breafast cereals children, teens and adults benefits from it

• 4hocolates and confectionary people of all ages.

• Sports nutrition it specifically targets sports persons for a nutritive protein diet.

Si+e o( t,e orgai+atio:

1=/=: Nestl3"s first quarter revenues in :'$', increased by @.CQ compared to the previous

year. The company;s food and drins segment revenues increased by C.$Q in Aurope and

more than $'Q in emerging marets.

2n the first half of :'$', Nestl3"s revenues increased @.$Q compared to the first half of :''%L

net profits increased &.CQ

1==>: Nestle is the world;s largest food and beverage company, with :''% sales of over $'&

billion 4)7 8E$'$ billion *SI9.

1==?: (ith sales of 4)7 $'%.% billion 8Swiss currency9 in :''?, Nestl3 is the world;s leadingnutrition, health and wellness company. The company employs more than :?',''' people and

Page 2 of 37


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has FC@ factories in ?F countries. Nestl3 products are sold in almost every country in the

world.

1nly about $.C percent of its sales are generated in its home country, and all but $: of its

factories are situated abroad. Nestl3 is a truly public company with over :C',''' shareholders

of which around one third are Swiss. No single shareholder owns more than GQ of the stoc.

*S investors, who, together, hold over G'Q of the capital.

Co!petitors:

Egro Foo.s Pa2ista

6aJor product lines 1lpers mil, 1lwell, 1lper 4ream, Tarang Tea whitener, Tara hee

5a"ee) Foo.s

6aJor product lines Bread, snacs, desserts and meals.

S,e+a Foo.s Pa2ista

$aDor /roduc# lines Food Produc#s, Eas Eellies & $aralades, oa#o

e#c%u/, auces & Pickles, Frui# Euices yru/s & uas%es

S9OT ANALYSIS OF NESTLE

ST5ANT)S //////// T1 B*2#I

1N (A+-NASASS ////////// T1 41>A5 1N115T*N2T2AS ///////////// T1 4+T*5A

T)5A+TS ///////////////////////////// T1 IA7ANI 1N

STREN'5TS

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The greatest strength of nestle is that it includes a culture that is team focused and an open door policy.

Nestle focus on collectivism and performance orientation attitude, which encourages employees to wor

harder. +nother thing is high level of maret share and that people all over the world trust and recognizes

Nestle as a big brand name. Strength is that people trust on Nestle. 2t loos at achieving higher

volumes by renovating e0isting products and innovating new products. Strength is that they are low

cost operators which allow them to not only beat competition but also edging ahead operating

e0cellence, innovation, renovation, product availability and communication are maJor

strengths. 2T is an important aspect that people all around the world are becoming more conscious about

health, that"s why they prefer Nestle.

9EANESESS

1ne maJor weaness of Nestle is that it is entering into marets that are already mature and can give a tough

competition to new entrants. Nestle lain ogurt has proved to be a Nestle weaness because it has been

unable to mae its maret place in *S+. But Nestle by analyzing the sensitive areas can overcome its

weanesses.

OPPORTUNITIES

Nestle in aistan has a great opportunity for e0panding its marets because in aistan there is a large ready

maret of food and beverages due to trends of eating and the increasing .2 t also has opportunities

largely in 4hina and 2ndia as well. Through proper mareting research Nestle can cash on to these

opportunities.

T,reats

Nestle is facing the threats by worldwide community due to its violation of international mareting standards.

6any conferences and campaigns have been held against Nestle in this regard which can damage the name

and trust of its customers. +nother threat is due to the increasing popularity of its competitor 1#A5S

in local and international marets.

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PRO4LEM STATEMENT

@ 9or".$i.e )o-cott o( est"e pro.ucts a(ter t,e

co!pa- (ai"e. to proper"- co!!uicate a. !ar2et

its )reast !i"2 su)stitute i(at (or!u"a3 pro.uct#

$,ic, ,as resu"te. i t,e .eat,s o( !i""ios o( i(ats; B

PRO4LEMS FACED 4Y NESTLE

The problems for Nestle in today"s world are the claims

faced by it as being charged with the responsibility of violating the

“2nternational 6areting 4odes!. Nestle claims that 2 is doing nothing

wrong and unethical in the way it marets is baby foods around the

world. Baby mil action has raised the case of “SAI ++6+5

5+R+! who has publicizes evidence of Nestl3"s malpractice in aistan also as well. 2t has been claimed that

company mareting is causing unnecessary deaths and sufferings of babies, largely among poor because they

do not use the proper amount of powder in order to save some volume for future use which

causes great danger to baby life.

4AC'ROUND OF T5E PRO4LEM:

Beginning in the late $%&'s Nestl3 began to attract global criticism for its infant/formula

mareting policies, especially those conducted in developing countries. ublic outcry peaed

with the Nestle boycott of $%&& which 8though suspended for several years in the mid/$%?'s9

remains in effect today. Nestle is the most boycotted company in the world as a result

• Antitled with “Baby -iller"" in $%&' in developing countries

• Nestl3 advertised and still advertises its formula as a ris/free substitute 8or even a preferable

alternative9 to breast mil, resulting in increased use and often replacing available breast mil.

• Nestle advertised widely infant product was valuable in its nutrients which have complete

benefits for baby from birth to one year

• 7ormula was contaminated in poor countries, leading to disease in vulnerable infants.

Because of the high illiteracy rates in developing nations many mothers are not aware of the

sanitation methods needed in the preparation of bottles

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• *N24A7 estimates that a non/breastfed child living in disease/ridden and unhygienic

conditions is between si0 and :C times more liely to die of diarrhea and four times more liely to die

of pneumonia than a breastfed child

• 6any poor mothers try to save money by economizing on the formula by using less than the

recommended dose or substituting it with other inferior alternatives such as cow"s mil, rice

water or corn starch with

Nestle, among other companies that maret infant

formulas, has been the focus of attac from different

groups. The source of this controversy sprang from the

number of deaths of babies from Third (orld countries that

are alleged to have been the result of aggressive advertising

of the Nestle infant formula. Nestle stands by its position

that it has been responsible in its product mareting

stressing, among other things, that 8$9 it has never

advocated bottle feeding instead of breast feeding and 8:9

that the infant formula has a vital role in proper infant

nutrition as a supplement. Nevertheless, Nestle adopted measures to address the concerns of

different groups, lie ()1, by discontinuing its mass media advertising of infant formula,

carrying out comprehensive health education programs, and supported the ()1 code. By

late $%%'s, Nestle was again accused of continuously violating the ()1 code and concerned

groups have called for the boycott of Nestle products. By :''$, the )2> crisis in certain parts

of the world, lie South +frica, has caused a shift in preference from breast/feeding to infant

formula. 4onsequently, Nestle faces the challenge of addressing such high demand. 7inally, Nestle, as an 6N4, carries new responsibilities that come along with mareting its products

lie participating in the fight against )2> and +2IS especially in developing countries.

NESTLE CONTROVERSIES:0

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There are many criticism on the nestle company such as

Athiopian debt, 6elamine in 4hinese mil, reen washing,

Rimbabwe farms, 4hild labor but one of the most prominent

controversies involving Nestle concerns the promotion of

the use of infant formula to mothers across the world,

including developing countries an issue that attracted

significant attention in $%&& as a result of the Nestle boycott,

which is still ongoing.

NESTLE 4OYCOTT:0

The Nestle boycott is a boycott launched on uly &, $%&&, in the *nited States against the

Swiss/ based Nestle 4orporation. 2t spread in the *nited States, and e0panded into Aurope in

the early $%?'s. 2t was prompted by concern about Nestl3"s


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conference to discuss the issue and come up with an international recommendation for

mareting infant formula in developing countries.

2n $%&%, Nestl3 developed internal guidelines limiting advertising and sales promotions,

curbing free samples and supplies, spelling out the content of informational materials and

ending all financial incentives for health professionals to sell formula. 2n the same year,

()1 and *N24A7 held a meeting on 2nfant and oung 4hild 7eeding.

I4FAN CRITICISM ON NESTLE:0

roups such as the 2nternational Baby 7ood +ction

Networ 82B7+N9 and Save the 4hildren, advocacy

groups and charities claim nestle unethical methods of

promoting infant formula over breastfeeding that has led

to health problems and deaths among infants in less

economically developed countries. They claim that Nestl3distributes free formula samples to hospitals and maternity wardsL after leaving the hospital,

the formula is no longer free, but because the supplementation has interfered with lactation,

the family must continue to buy the formula. 2B7+N also allege that Nestl3 uses


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• +lthough some mothers can understand the sanitation standards required, they often do not

have the means to perform them fuel to boil water, electric 8or other reliable9 light to enable

sterilization at night. *N24A7 estimates that a formula/fed child living in disease/ridden and

unhygienic conditions is between si0 and :C times more liely to die of diarrhea and four

times more liely to die of pneumonia than a breastfed child.

• 6any poor mothers use less formula powder than is necessary, in order to mae a container

of formula last longer. +s a result, some infants receive inadequate nutrition from wea

solutions of formula.

• Breast mil has many natural benefits lacing in formula. Nutrients and antibodies are passed

to the baby while hormones are released into the mother;s body. Breastfed babies are

protected, in varying degrees, from a number of illnesses, including diarrhea, bacterial

meningitis, gastroenteritis, ear infection, and respiratory infection. Breast mil contains the

right amount of the nutrients essential for neuronal 8brain and nerve9 development. The bond

between baby and mother can be strengthened during breastfeeding. 7requent and e0clusive

breastfeeding can also delay the return of fertility, which can help women in developing

countries to space their births. The (orld )ealth 1rganization recommends that, in the

maJority of cases, babies should be e0clusively breast fed for the first si0 months.

Arti(icia" )a)- !i"2 cotro%ers-: 1==

+s the world;s largest artificial baby mil producer, Nestl3 has been pinpointed as a leading cause of the

increasing worldwide infant mortality rates. The (orld

)ealth 1rganization 8()19 estimates that $.C million

infants die each year because of inappropriate feeding, given the fact that children vulnerable

to disease are being fed with artificial breast mil substitutes rather than naturally breastfed.

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http://en.wikipedia.org/wiki/UNICEFhttp://en.wikipedia.org/wiki/Diarrheahttp://en.wikipedia.org/wiki/Pneumoniahttp://en.wikipedia.org/wiki/Pneumoniahttp://en.wikipedia.org/wiki/Nutritionhttp://en.wikipedia.org/wiki/Nutrientshttp://en.wikipedia.org/wiki/Antibodieshttp://en.wikipedia.org/wiki/Antibodieshttp://en.wikipedia.org/wiki/Hormoneshttp://en.wikipedia.org/wiki/Hormoneshttp://en.wikipedia.org/wiki/Bacterial_meningitishttp://en.wikipedia.org/wiki/Bacterial_meningitishttp://en.wikipedia.org/wiki/Gastroenteritishttp://en.wikipedia.org/wiki/Otitis_mediahttp://en.wikipedia.org/wiki/Otitis_mediahttp://en.wikipedia.org/wiki/Otitis_mediahttp://en.wikipedia.org/wiki/Respiratory_infectionhttp://en.wikipedia.org/wiki/Neuronalhttp://en.wikipedia.org/wiki/Lactational_amenorrheahttp://en.wikipedia.org/wiki/World_Health_Organizationhttp://en.wikipedia.org/wiki/UNICEFhttp://en.wikipedia.org/wiki/Diarrheahttp://en.wikipedia.org/wiki/Pneumoniahttp://en.wikipedia.org/wiki/Nutritionhttp://en.wikipedia.org/wiki/Nutrientshttp://en.wikipedia.org/wiki/Antibodieshttp://en.wikipedia.org/wiki/Hormoneshttp://en.wikipedia.org/wiki/Bacterial_meningitishttp://en.wikipedia.org/wiki/Bacterial_meningitishttp://en.wikipedia.org/wiki/Gastroenteritishttp://en.wikipedia.org/wiki/Otitis_mediahttp://en.wikipedia.org/wiki/Respiratory_infectionhttp://en.wikipedia.org/wiki/Neuronalhttp://en.wikipedia.org/wiki/Lactational_amenorrheahttp://en.wikipedia.org/wiki/World_Health_Organization


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LITERATURE REVIE9:

Nestled in controversy

2ssue FG@

2nternational Nestl3/7ree (ee taes place from :C to

G$ 1ctober. 2an 7itzpatric loos bac at the boycott

and e0plains why challenging the aggressive mareting

of babymil formula is still so important.

ohn BirdsallMress +ssociation 2mages

2n +ugust $%&G, New 2nternationalist published an interview with leading child nutrition

e0perts who taled of a Oworrying swing away from breastfeeding" in favour of commercial

breast/mil substitutes. The OBaby 7ood Tragedy" article, along with a $%&F (ar on (ant

report called OThe Baby -iller" and the $%&C documentary film Bottle Babies, drew

widespread attention to the issue and led to an international campaign that continues today.

)enri Nestl3"s O6il 7ood" was invented around $?@& and was soon being e0ported to

Auropean colonies. 2n the $%G's Ir 4ecily (illiams described the alarming rise in illness and

death amongst babies whose mothers had been persuaded not to breastfeed and by the $%@'s

Ir Ierric elliffe, an e0pert in infant nutrition, had coined the term

Ocommerciogenic malnutrition".

#aunched on F uly $%&&, the *S Nestl3 Boycott demanded that Nestl3 stop promoting infant

formulas in developing countries. 2n $%&%, the campaign went global.

That same year, the (orld )ealth 1rganization hosted a meeting to develop a code regulating

the mareting of infant formula, and in $%?$, $$? countries voted in favour of the

2nternational 4ode = with only the *S voting against it. The 4ode"s aim was Oto contribute to

the provision of safe and adequate nutrition for infants, by the protection and promotion of

breastfeeding, and by ensuring the proper use of breast/mil substitutes". Today, it is nationallaw in over @' countries. 2n $%?F Nestl3 agreed to abide by the 4ode and the boycott was

Page 20 of 37

http://www.newint.org/issues/2010/10/01/http://www.newint.org/issues/2010/10/01/


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called off, but it was relaunched in $%?? with boycott co/ordinators saying the agreement had

not been honoured.

Nestl3 is the maret leader in sales of breast/mil substitutes and controls nearly G' per cent

of the babyfood maret. The *-/based campaign Baby 6il +ction is currently asing the

public to email Nestl3 over its latest global mareting strategy the company has added logos

to its pacaging claiming its formula Oprotects" babies and is promoting it to health worers,

with claims that it reduces diarrhoea and is Othe new old StandardU in infant nutrition". et

the (orld )ealth +ssembly reiterated in 6ay :'$' that improved breastfeeding practices

could save $.C million babies every year.

ONestl3 is an aggressive company in all areas of its business," says 6ie Brady from Baby

6il +ction. O2t promises shareholders five to si0 per cent growth per year and evaluates the

profit from pushing its babymil = in violation of the 4ode = against how this fuels the

boycott, harms its image and loses it sales of other products. Boycotters have forced changes

in Nestl3 policies and practices = for e0ample, compelling it to add warnings to labels in the

appropriate language about the importance of breastfeeding = but more pressure is needed.

2nternational Nestl3/7ree (ee is an opportunity to spread the word. 1ur aim this year is to

have Nestl3 remove the claims that its formula protectsU babies, which undermine the

message that breastfeeding protects."

Nest"e Po"ic-

• 4reast(ee.ig is 4est

(e believe that breastfeeding is the best start a baby can have in life. (e support the (orld

)ealth 1rganization"s recommendation calling for e0clusive breastfeeding for the first si0

months of life, followed by continued breastfeeding along with the introduction of

complementary foods as advised by a healthcare professional or health authority.

(e manufacture high/quality infant formula for babies who are not breastfed, and it is our

commitment to mae these products available in a responsible manner. 2nfant formula is a

vital product for infants who are not breastfed. 2t is in fact the only product recognized to be asuitable breast/mil substitute by the (orld )ealth 1rganization 8()19.

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• T,e Nest" Po"ic- a. Istructios o i!p"e!etig t,e 95O Co.e

(e learned a great deal from our e0perience concerning breast/mil substitutes mareting in

lower and middle/income countries, recognizing our responsibility to go beyond what were

accepted mareting standards at the time.

7ollowing the adoption of the 2nternational 4ode for the 6areting of Breast/mil Substitutes

/ Anglish 8pdf, $:? -b9 8O()1 4ode"9 by the (orld )ealth +ssembly in $%?$, Nestl3 was

the first company to develop policies based on the ()1 4ode and apply them across our

entire operations in developing countries.

$C: higher/ris countries The designation of a country as Ohigher/ris" is based on *N24A7;s

data on levels of mortality and rates of acute malnutrition of children less than C years of age.

2t is our strong commitment to apply the ()1 4ode as implemented by national

governments everywhere in the world. 2n addition, we follow the ()1 4ode as a minimum

requirement in $C: Ohigher/ris" countries. 7or this purpose we have voluntarily issued the

Nestl3 olicy and 2nstructions on implementing the ()1 4ode / Anglish 8pdf, : 6b9, which provide implementing instructions for aligning our mareting practices with the ()1 4ode.

(e have put in place rigorous internal procedures to ensure compliance with our policy,

including internal and e0ternal audits, whistle/blowing procedures and reporting.

• A..ressig 2e- c,a""eges: Mar2etig o( )reast0!i"2 su)stitutes a. t,e 95O

Co.e

Nestl3 supports the (orld )ealth 1rganization recommendation of e0clusive breastfeeding

followed by continued breastfeeding for the first si0 months of life along with the

introduction of complementary foods as advised by a health professional. (e see to promote

safe, adequate nutrition for infants by encouraging breastfeeding as the best start in life, and

by manufacturing high/quality breast/mil substitutes 8B6S9 when a safe alternative is

needed.

Page 31 of 37

http://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/Compliance/International_Code_for_the_Marketing%20of_Breast-milk_Substitutes.pdfhttp://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/Compliance/International_Code_for_the_Marketing%20of_Breast-milk_Substitutes.pdfhttp://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/Compliance/International_Code_for_the_Marketing%20of_Breast-milk_Substitutes.pdfhttp://www.nestle.com/Common/NestleDocuments/Documents/Creating%20Shared%20Value/Nutrition/Nestle_Policy_WHO_Code_EN_2011.pdfhttp://www.nestle.com/csv/Compliance/baby-milk/Implementation/Pages/Implementation.aspxhttp://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/Compliance/International_Code_for_the_Marketing%20of_Breast-milk_Substitutes.pdfhttp://www.nestle.com/Common/NestleDocuments/Documents/R_and_D/Compliance/International_Code_for_the_Marketing%20of_Breast-milk_Substitutes.pdfhttp://www.nestle.com/Common/NestleDocuments/Documents/Creating%20Shared%20Value/Nutrition/Nestle_Policy_WHO_Code_EN_2011.pdfhttp://www.nestle.com/csv/Compliance/baby-milk/Implementation/Pages/Implementation.aspx


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(e have developed a strong policy articulating our commitment to and implementation of the

(orld )ealth 1rganization"s 2nternational 4ode of 6areting of Breast/mil Substitutes

8()1 4ode9, and applies a detailed global 6anagement System, comprising e0plicit

procedure manuals, an internal 1mbudsman System, internal and e0ternal audits, training of

staff and reporting on breast/mil substitute mareting and compliance. 4orporate internal

auditors audited some :: countries in :'$$, and Bureau >eritas conducted independent 4ode

compliance audits in #aos, 4ameroon and amaica.

• +dditional materials have been developed to facilitate guidance to mareting staff, including

a web/based training and testing tool.

• :: internal audits were carried out in :'$$, and Bureau >eritas conducted independent 4ode

compliance audits in #aos, 4ameroon and amaica.

• $% concerns about non/compliance with the ()1 4ode, attributable to Nestl3 and requiring

remediation, were raised in :'$$L corrective action was taen in all instances.

• (e will continually wor to improve our

practices and encourage all staeholders to

communicate their concerns to us.

ALTERNATIVE SOLUTIONS:

2f we are in place of NAST#A we would reply to the boycott by the following

• (e must support ()1;s global public health recommendation calling for e0clusive

breastfeeding for si0 months and introduction of safe and appropriate complementary foodsthere after

• (e support efforts by governments to implement the 2nternational 4ode through legislation,

regulation, or other appropriate measures

• (e must respond to all allegations of non/compliance

• (e would encourage Breastfeeding at the time of giving free samples

• ive stress on communication

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• ive #ive demonstration in public through media

• (e would clearly mentioned in pacages that “Breastfeeding is an ultimate best

• (e would follow the international code of conduct for advertisement and promotion

• (e would give the necessary instruction to be required in the regional language for the

benefit of illiterate mother

• Not labeling, promoting or selling of complementary foods or drins for infants under si0

months of age unless otherwise mandatory required by local code or measuresL

• 2ssuing detailed rocedure manuals containing internal 2nstructions for the implementation

of ()1 recommendations both at the corporate level and at the regional and country levelL

• +ligning its mareting practices in detail on the recommendations of the ()1 4ode and

relevant subsequent ()+ 5esolutions, and providing systematic training towards 4ode

compliance to its mareting personnelL

• +uditing on a regular basis its subsidiaries" 2N7+NT 7156*#+ mareting practices bycorporate as well as local auditors, and submitting summary reports of those audits to

review by the +udit 4ommittee of the Nestl3 Board of IirectorsL

• utting in place an 2nternal ()1 4ode 1mbudsman System allowing Nestl3 employees to

alert the 4ompany on potential non/compliance with the ()1 4ode in a confidential way,

outside line management

• 4ommissioning regular audits by an independent e0ternal auditor and maing a summary

of the audit findings publicly availableL

• 2mplementing a system for investigating all allegations of non/compliance, e0ternally or

internally reported, when sufficient information has been received, as well as taing

corrective action on all substantiated non/compliance casesL

• 4ommissioning independent e0ternal audits in case of allegations of multiple andMor serious

non/compliance with the ()1 4ode by Nestl3L

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• *sing results of information from Staeholder input, as well as

the recommendations deriving from internal and e0ternal audits

to identify opportunities to improve our 4ode managementsystem.

IMPLICATION FOR FUTURE USE:

2N7+NT 7156*#+S must not be advertised or promoted

directly to mothers or the general public either through public

media or by personal contact between company representatives

and the public. This restriction also applies to Nestl3 websites.

eneral information on infant feeding and baby care, which includes information on the

proper use of 2N7+NT 7156*#+ 8such as mother boos and posters9 may only be

distributed to mothers by health worers or displayed by them in health care facilities subJect

to the provisions of +rt. F.:, F.G, @.: and &.:.Such information may not feature

2N7+NT7156*#+ brands and may not be used as advertising or promotion aimed at the

general public.

• No samples of 2N7+NT 7156*#+S should be given to the general public. Such samples

may only be given to health worers,

• (e must investigate all of our product before launching the product

• (e must warn mother of the consequences of incorrect or inappropriate use of infant formula

• + product should be promoted according to the people but which should not be harmful to

them

• NESTLE DOES NOT advertise or promote infant formula and follow/on formula for infants

up to $: months to the public

• NESTLE DOES NOT maret complementary foods and drins for infants younger than @

months

• NESTLE DOES NOT permit staff whose responsibilities include the mareting of infant

formula to mae direct contact with mothers, e0cept in response to consumer complaints

• NESTLE DOES NOT use pictures of babies on its infant formula pacs

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• NESTLE DOES NOT distribute free infant formula samples to mothers

• NESTLE DOES NOT allow educational material relating to the use of infant formula to be

displayed publicly in hospitals and clinics

• NESTLE DOES NOT give financial or material incentives to health professionals for the

purpose of promoting infant formula

• NESTLE DOES NOT donates free infant formula to health care facilities for use by healthy

newborn babies. 7ree infant formula may e0ceptionally be given to bona fide social welfare

institutions upon their request to serve social or humanitarian purposes 8e.g. where the

government policy allows manufacturers to respond to a specific social request, for e0ampleif the mother dies in child birth9

• NESTLE DOES NOT give incentives to its staff based on infant formula sales

CONCLUSION :

2t is clear from the case presented that the reputation of a company is decided not in terms of

its sales or profits ma0imization but in terms of the good will it earns by adopting morals and

values in its production, mareting and pricing.

• The product and mareting should not violate the societal standards

• Should not promote or undermine breastfeeding

• The organization is responsible for any happenings or consequences in the society

The issue of mi0ed feeding before si0 8@9 months should be investigated and discouragedthrough sensitization programs at the community level not only at the facility level. The

breastfeeding advocacy should adequately reflect the need for continuous breastfeeding after

the si0 months period as well as the timely and appropriate introduction of complementary

foods. 5egulatory bodies must begin to e0tend enforcement to cover feeding bottles teats and

condensed mils. To be effective the 5egulations must be adequately disseminated. Besides,

there is the need for health worers particularly nurses who manage health facilities in the

rural areas to understand the circumstances under which infant formula could be used sinceunder some conditions it becomes very relevant to offer artificial formula to save a life.

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A0pression of breast mil should also be made part of antenatal grooming rather than the

case/to/case basis.

2n response to the controversies mentioned above Nestle has affirmed that, “2n order to

continually improve our practices, we call on our staeholders and the general public to

directly communicate to us in detail any concern or allegation of non/compliance with our

commitments. (e commit to investigate and respond to all concerns raised by e0ternal

staeholders directly with us, provided that we receive enough information to carry out an

investigation.

This interaction with our e0ternal staeholders helps us improve our monitoring of our ()1

4ode compliance, and through this e0ternal report we aim at providing to those staeholders

a feedbac on their concerns, as well as giving to the general public better insights into our

4ode compliance record!.

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