Ethical and unethical issues in nestle

BUSINESS ETHICS

INTRODUCTION:-

Business ethics is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. These ethics originate from individuals, organizational statements or from the legal system. These norms, values, ethical, and unethical practices are the principles that guide a business. They help those businesses maintain a better connection with their stakeholders.

                                      

 

ETHICAL AND UNETHICAL ISSUES OF MARKETING IN NESTLE ORGANISING:-

NESTLE under fire for marketing claims on baby milk formulas

2 years ago, the Swiss multinational Nestle had been accused of violating ethical marketing codes and manipulating customers with misleading nutritional claims about its baby milk formulas.

The reports of Changing Markets Foundation found that Nestle marketed its infant milk formulas as "closet to", "inspired by" and "following the example of" human breastmilk in several countries, despite a prohibition by the UN's World Health Organisation(WHO).

The study, which analysed over 70 Nestle's baby milk products in 40 countries, also found that Nestle often ignored its own nutritional advice in advertising. 

UNETHICAL ISSUES IN FINANCE OF NESTLE:-

2008 Chinese Milk Scandal

Background

• the world's largest producer of bottle water
• world water forum 2000(right to need)
• California drought
• working without permit since 1988

six infants were killed and 860 hospitalised with kidney problems after Nestle products were contaminated with melamine, a substance sometimes illegally added to food products to increase their apparent protein content.

a recent report by the UK Consumers Association claims that 7 out of the 15 breakfast cereals with the highest levels of sugar, fat and salt were Nestle products.

• Another article claimed that Nestle capitalizes on China's already polluted waters to make a good profit, while Corporate Watch highlights the fact that Nestle continues to extract water illegally from Brazil for their Perrier brand. 
• child labour and trafficking.

UNETHICAL ISSUES IN HR OF NESTLE:-

Nestle nestles down to HR analytics

The problem Nestle was looking at was rising attrition rates among the UK's 9000 employees and how to link that with its engagement strategy. Nestle is although one of the largest FMSG organization who operates its function all over the world. However, I have identified the HR problems within the Nestle UK.

• Conflicts among Department
• Communication Barrier
• Compensation Issue
• Conflict among Department

One of the major problems that arise due to role conflict is the disagreement among department which results in the imbalance of power in the organization. Employee become discriminate that Nestle UK favour mostly to Sales department in terms of benefits (salary, bonus and allowance) as compare with Manufacturing or Marketing. Allowances, such as, mobile and fuel allowance, increment in salaries, team leader is the form on the basis of promotions, and cash bonuses are the different kinds of rewards given to only Finance employees by Nestle UK. According to Stevens et.al, (2012) Role conflict becomes even severe if the conflicting parties are in contact with each other of working in the same department or for the same cause. For example, at Nestle UK, department only work for their own department (Finance) success and not focused on Nestle vision and mission. Therefore, the conflict will continue to exist if the organization does not remove these differences, because department .