Nestle Case Essay

1161 WordsNov 16, 20105 Pages
Public emotions are a key component in the discussion and debate over what strategic approach Nestlé should take with respect to infant formula marketing. Over the past few decades, Nestlé has employed a defensive approach to the issues brought forward from grass roots organizations and the World Health Organization (WHO). Nestlé continues to be tainted by the infant formula boycott. After reviewing the historical information, the Corporate Social Responsibility (CSR) team has developed a proactive strategic plan with respect to Nestlé’s corporate responsibility moving into the future. As a multinational corporation, it is necessary for Nestlé to be conscious of environmental issues with in the various world wide locations. In third world nations, there are significant social-economic issues that go far beyond the control of Nestlé. However, as we have experienced with the infant formula boycott, these issues such as access to fresh water, proper refrigeration and education become a concern for our products. Third world countries are a significant portion of our market share, as such, it is imperative that we continue to have a presence in these locations. Exiting the third world market, would be detrimental to infant formula products in all markets as it could result in the perception that the formula is unsafe. Nestlé has overall accountability to the shareholders of the Corporation to create an acceptable return in the infant formula market and to do this in a legally responsible manner. The reality is that responsibility goes beyond the direct shareholders and is influenced by all types of stakeholders which affect the way we manage our business. Balancing the shareholders’ expectations with the stakeholders’ expectations is essential in a proactive approach. Nestlé must take responsibility toward all the stakeholders, the communities and

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