Corporate Response Update

 

It is a matter of fact that the opinion about the Nestlé management and the company’s ways of doing business in accordance with ethical conduct and issues of morality, which has been formed in the heads of the developed nations, was a very negative one.

Former CEO of Nestlé Helmut Maucher wrote a book, called “Leadership in Action: Tough Minded Strategies from the Global Giant”, where he masterfully presented what he has witnessed on his own while being in charge of managing the company and also advantages and disadvantages of the management style Nestlé has chosen to operate within. He made the statement that “ethical decisions which injure a company’s ability to compete are actually immoral” (Helmut Maucher).

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In an interview  Peter Brabeck-Letmathé, an official Maucher’s successor, the Chairman and former CEO of the Nestlé Group, was asked to express his opinion in accordance with the statement of Helmut Maucher. He commented the following on this statement taking into consideration how the baby formula has been marketed worldwide.

“I decided to eliminate the word ethical from Nestlé because it’s a word which divides people as opposed to uniting them.  Ethics, if you look into dictionaries, are a set of moral standards within a very specific unit of society, and ethical standards in Britain, Switzerland, Chile and China vary to a large extent.  And because this word is more likely to divide than to unite we don’t talk about ethics at Nestlé.  We talk about responsibility.  Our responsibility to our shareholders, our employees, and all other stakeholders.  It’s true that we do have a social responsibility that corresponds to a global company as opposed to the group interests of one community or another community” (Peter Brabeck-Letmathe). 

Cited Work:

“Nestlé Dumps Ethics at its AGM.”  Baby Milk Action. 27 July 2001.<http://www.babymilkaction.org/boycott/boyct29.html#3>

About Alona Chystyakova

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3 Responses to Corporate Response Update

  1. Very Interesting finding Alona

    So this of course raises the question –Why are Nestle and other baby formula manufacturing countries so adamant about selling its baby formula product? The question can be answered with one word-money. The worldwide market for baby formula was estimated to be $750 million, where Nestle at the time (at least up until 1980) had a stake of one third of that market. With an opportunity to make that much revenue, it’s not difficult to see why Nestle was so intransigent on selling baby formula.

  2. Yes exactly!!! Crazy! Money Money Money!

  3. It tracks back to the root cause of the problem which seems to be bilaterally divided between ethical reasoning of the folks sitting up there,and the execution of their mission statement ” Good food, good life”.

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