01What are the responsibilities of companies in this or similar situation?

Nestle.
The world's leading Nutrition, Health and Wellness Company. Its mission of "Good
Food, Good Life" is to provide consumers with the best tasting, most nutritious choices in
a wide range of food and beverage categories and eating occasions, from morning to
night.

The Company was founded in 1866 by Henri Nestlé in Vevey, Switzerland, where its
headquarters are still located today. Nestle employ around 280 000 people and have
factories or operations in almost every country in the world. Nestlé sales for 2010 were
almost CHF 110 bn.

Current controversy
In this particular case, the issue was that Nestle Alimentana, one of the world’s largest
food-processing companies had been the subject of an international boycott as a result of
the accusations that the company was directly or indirectly responsible for the death of
Third World infants. The charges were based on the sale of infant feeding formula, which
supposedly caused the mass deaths of babies in the Third World.

Corporate social responsibility of the company

Corporate Social Responsibility refers to operating a business in a manner that
accounts for the social and environmental impact created by the business. It signifies a
commitment to developing policies that integrate responsible practices into daily business
operations, and to reporting on progress made toward implementing these practices.

Responsibilities are as follows

01) Every multinational company like Nestle has a prudent Business policy which
comes after deep scrutiny about the environmental, cultural impact of their activities. For
example nestles principles are no advertisement to general public, no sampling to
mothers , no use of commission or bonus for sales ,no point of sale advertisement , no
financial and material inducement to promote products etc. So, every company should
stick on their policy.

02)Around the world every country countries has own law to protect its people from
illegal or illogical operation of companies. In this case every company should respect
country’s law and they also should play their production and marketing activities with
considering these laws.
03) Company should deliver proper knowledge about the formula or process to use its
product. That is why proper indication on product package in native language is
necessary. For example, infant formula has less nutrition than breast milk but it does not
mean it is the only cause of death of children rather improper making process cause harm
for children. Making formula with dirty water, or serving it in a bottle or cup that isn't totally
clean, can expose the baby to dangerous bacteria. According to the World Health Organization
(WHO), babies in developing countries who are fed on formula are up to six times more likely
to die from diseases like diarrhea and respiratory infections than breast-fed babies are.

Question 05)
What advice would you give to now in light of the new problem of HIV infection is
being spread via mother’s milk?

Now with the HIV epidemic in third world countries becoming an issue, bottled formula
is now needed since breast feeding has caused HIV in new born babies. Prolonged breast-
feeding increases the risk of a woman giving HIV to her baby by about 14 percent. Here
are what two studies of babies born to HIV-positive women show:

Nairobi, Kenya -- At 24 months, 20 percent of formula-fed babies became infected with

HIV, compared to 36 percent of breast fed babies. South Africa -- HIV transmission was
12 percent higher in breast-fed babies than in formula-fed ones at 15 months.

Nestle infant formula was once blamed for death and now needed for survival. In this
situation we would like to advice nestle to follow following strategy.
From its corporate social responsibilities part nestle can lunch an educational
advertisement to teach women about the transmission of HIV through Brest milk and they
should be aware about the substitute product like nestle infant formula which can help to
save children lives.

http://www.thebody.com/content/art13590.html
www.nestle.com
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