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CASE STUDY:NESTLE THE INFANT FORMULA CONTROVERSY

SUMMARY:

In this case the issue which is discussed is related to Nestle, infant foodcontroversy .Nestle is a multinational company as we all know but due to its

negligence ,it did not fulfill its corporate social responsibility, so it was a cause of

international boycott of Nestle because the company did not educate the people in

a proper way about the method of using a formula product .So most of the mothers

were incapable of using that infant formula product which led to the death of

infants in third world countries .The charges focus on the advertisement and

marketing of such type of products which led to a misconception in the mind of

mothers and they thought formula products are better than breast milk andreplace mothers feed with bottle feeding ,it was the main cause of infants death

in third world countries because and marketing of formula products discouraged

breast feeding .For example: mothers in Peru , the water which they used for

bottle feeding was dangerous for infants because that water came from

contaminated river and it was full of diseases due to which babies suffered from

diarrhea and vomiting. Most of the mothers in Third World were incapable of the

proper method of using such products and they filled the feeding bottle with a

small amount of formula andlarge amount of water ,due to which babies suffered

extreme malnutrition due to such problems many infants were died in Third World

because their mothers misused formula because company did not give basic

education to the mothers of using formula and due to misconception of mothers

many infants died. Nestle gave some points for their defense and argued that

company never discouraged breast feeding and said that company believes that

there is no best food for babies other than breast feeding and encourages breast

feeding. Nestle gave its points that company made a substitute for breast milk and

said that infant formula is an addition to the infant nutrition and supplement ofbreast milk because most of the mothers have some dietary deficiency and when

they feed their babies could grow properly according to their age because their

mothers feed could not fulfill their body requirement and infants became deficient

of nutrients .So for such issues bottle feeding is a substitute of breast feeding.

Many women in Third World give bottle feeding to their infants because of their

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working schedules. The formula was considered better substitute of breast

feeding as compared to other feeding substitute such as rice water, corn water,

condensed milk because these substitutes contain contaminated water as well as

tradition native weaning food are made by mixing maize ,rice or flour with water

and cook the mixture ,so water ,cooking oil and cooking container all were

contaminated and their nutritional quality is also low thats why formula is a better

substitute of breast feeding than other products. Nestle continued marketing its

product in the developing countries but with a change in the advertisement and

marketing of product to strengthen the emphasis on a importance of breast

feeding but in 1978, the company was banned .In Resolution Nestle supports the

WHO (world health organization code) that Nestle will continue to promote breast

feeding and will not discourage breastfeeding . In 1977, a case was compiled

against formula feeding in developing nations and under developing nations as well

and they launched boycott against Nestle products and also lobbied many

organization of world and WHO In 1982 Nestle formed Nestle infant Formula

Audit Commission (NIFAC) and NIFAC recommend clarifications in instructions.

.UNICEF and WHO held a meeting on infant and young child feeding .In

1978,Nestle stopped consumer marketing and direct sampling to mothers and adopt

articles of the WHO code .After that Nestle made some policies: no free suppliers

to hospitals ,no sampling to mothers and no advertisement to general public.

Environmental change give rise to Nestle because breast milk is considered to be

the cause of HIV infection in newly born babies, so in those areas where mothers

are infected there bottle feeding is best option to feed their infants but in some

areas mothers do not carry virus and there breast feeding is best to feed their

babies instead of bottle feeding.

QUESTION & ANSWERS:

Q1: WHAT ARE THE RESPONSIBILITIES OF COMPANIES IN THIS OR

SIMILAR SITUATION?

ANS: The companies should study the social and medical effect of their product

and services. The companies should so such type of research before advertising

their products. The companies should educate the customer about the product

which they are marketing. Company should not discourage any other substitute of

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their product. The information of the product should be written in the language of

the places where the product is being distributed so that there should be no

misconception in a mind of customer .The companies should know their social

responsibility and when companies advertise their product in Third World, they

should give some basic educational detail for use.

Q2: WHAT COULD NESTLE HAVE DONE TO HV AVOIDED THE

ACCUSATIONS OF KILLING THIRD WORLD COUNTRIES AND STILL

MARKET ITS PRODUCT?

ANS: Nestle could change their advertising strategies. They could decide to

promote health program related brands and should educate women about formula

product and inform them about proper use of formula. Nestle should encourage

breast feeding and promote breast feeding as well by telling mothers that breast

feeding is a best nutrition for babies but bottle feeding is a supplement of breast

feeding to add more nutrients for a baby because there are many problems in

Third world countries due to which mothers could not feed their babies properly

like in working schedules and in Third World in poor families mostly mothers are

dietary deprived and they could not fulfill nutrients requirements by breast

feeding so they can use formula product for better growth of babies. In this way

Nestle can still advertise its product.

Q3: AFTER NESTLEs EXPERIENCE, HOW DO U SUGGEST IT, OR ANY

OTHER COMPANY, CAN PROTECT ITSELF IN FUTURE?

ANS: Any company which produce substitute food product for infant, there should

be nutrients available in such product and they should advertise and market their

product in such a way they can attract customers need and satisfy need of their

customer by fulfilling their needs rather than discouraging other substitute of

product because it gives bad impression of a company. Companies should know the

ethics of the countries where they are promoting and advertising their products

.Companies should also search the demographic of the areas where they are

marketing their products to avoid problems.

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Q4: WHAT ADVICE WOULD YOU GIVE TO NESTLE NOW IN LIGHT OF

THE NEW PROBLEM OF HIV INFECTION BEING SPREAD VIA MOTHERS

MILK?

ANS: In the light of the new problem of HIV infection being spread via mothersmilk, the advice which I would give is that now bottle feeding formula is needed

because breast feeding is the cause of HIV infection in new born babies. So Nestle

should advertise their formula product with proper usage because in some areas

where mother feeding is a cause of death of infants due to infection ,in such

places bottle feeding is the cause of survival for infants ,so Nestle should properly

market its formula product .

Q5:ASSUME YOU ARE THE ONE WHO HAD TO MAKE FINAL DECISION ON

WHETHER OR NOT TO PROMOTE AND MARKET NESTLES BABY FORMULA

IN THIRD WORLD COUNTRIES?

ANS: If i had to make final decision then according to my opinion, Nestle should

promote Nestle s baby formula in Third World countries but with proper

instructions and education should be given to mothers because Nestle was blamed

unjustly because mothers misused the formula product due to lack of education of

using formula and company argued that they never discourage breast feeding, they

just made a substitute product of breast feeding .Nestle s baby formula should bepromoted but company should keep promoting breast feeding but ensure that when

substitutes are needed they will be of best quality.