The Ethical and Moral Business Practices of Nestle

The Ethical and Moral Business Practices of Nestle In recent years the issue of ethical and unethical business practices have received lots of attention around the world especially by media. Ethics in business can be defined as behaviours that a business tie to in its daily dealings with the world or in other words what society believes is right or wrong which involves or impact how a business is carried out. Ethical or unethical business practices concerns not only to how the business interacts with the world at large, but also to their one-on-one dealings with individuals. Many businesses are interested in making money, and that is the bottom line or in other words they just want to be in business; on the other hand there are many businesses that making money does not mean everything to them, but doing the right thing and having responsibility and commitment toward society have far more importance. In past years there have been numerous reports from global businesses, including most of the major brands that the public use for their poor business ethics, which have received a huge attention by people around the world. One of the most shocking reports came from a well-known company Nestlà ©. The main ethical issues concerning Nestlà © company was endorsing infant formula with ambiguous and unsafe strategies, using suppliers that violate human rights and promoting harmful food. On the other hand in recent years many companies gained a huge reputation mainly because of their ethical business practices, such as Xerox, Pepsi, Solae and many other well-known companies. Solae Company was positioned as one of the most Worlds Most Ethical Companies in Food Industry in 2010. Solae mostly gained its reputation through its core value which cornerstone of that they are and what they stand for, values such as public safety and health, high ethical behaviour and respect for people. 1.0 Nestlà © S.A 1.1 Nestlà © History Nestlà © S.A is the world largest fast moving customer goods company in the worldwide; Nestlà © was originated, founded and headquartered in Vevey, Switzerland in 1906 by merger of the Anglo-Swiss Milk Company and the Farine Lactà ©e Henri Nestlà © Company. Nestlà © start growing after the First World War following the Second World War by expanding its market from 13 to 86 countries around the world, the company currently has more than 283,000 employees. In 2000 Nestlà © joined the World Coca Foundation (WCF) in order to deal with issues associated by farmers, the WCF goal is to help farmer in earning more income, encouraging them for more efficient farming technique and environmental and social practices (Mcspotlight, 2002). The Nestle Business Principles form the companys culture which has been developed over the period of 140 years. Nestlà ©s Corporate Business Principles are handed out to its 282,000 worker along with training tool in order spread out the companys core values and mission. The Company management is allocated according to its demographic location, along with the exception of Nestle waters and nutrition which are managed by a global department (nestle, 2010). 2.0 Nestlà © Controversy and Criticism In past ten years Nestlà © Company was accused by many of experts and organisations around the world for unethical business practices in the way the company does its business, the company was involved in serious boycotts which ruined the company overall reputation in past years. In this essay we have discussed and analysis some of the most serious Nestlà © unethical business practices (Phdinparenting, 2010). 2.1 Unethical Marketing of Artificial Baby Milk One of the most critical issues that Nestlà © has been criticised for during past 15 years is the promotion of the use of infant formula to mothers across the world. Many believe that Nestlà © strategy for promoting its infant formula was misleading and harmful that violates both International Symbols of Marketing of Breast milk Substitutes and WHO Code amendable the marketing of breast milk substitutes (Mcspotlight, 2002). Nestlà ©s marketing campaign encouraged mothers across the world for bottle feeding instead of breast feeding, they used free sample to pursue this mission in addition Nestlà © implies that malnourished mothers and mothers with twins have not the ability to Breastfeed their child, despite many international health organisations claimed that there is no sufficient evidence to shore up this statement which could put both the mothers and babies life in danger (Corporatewatch, 2003). There have been numerous reports of direct advertisement targeting mothers across the world in countries such as Malaysia, South Africa and Ireland as a result advocacy groups and health organizations accused Nestlà © of unethical methods of promoting its milk and demand the company to immediately stop its marketing strategies (Mcspotlight, 2002). One of the Health organisations that criticised Nestlà © for its marketing strategy was IBFAN which believed Nestlà © is harming misleading mothers by offering them a free sample of milks as they are in hospitals, because as mothers are released from hospitals they have to continually buy Nestlà ©s formula since babies get adapted to the Nestlà ©s milk. IBFAN also maintained that Nestlà © exercise Humanitarian Aid to form markets by offering striking gifts and different sponsorships to influence health officials to market and promote its products by targeting young mothers who have given birth (Corporatewatch, 2003). 2.2 Using Suppliers That Violate Human Rights Another controversy issue faced by the company during past years was using suppliers that violate human rights, in 2009 BBC reported that Nestlà © buy its milk from a farm seized from its white owners which is now owned by the wife of Zimbabwes President Robert Mugabe, they supply between 10% to 15% of Nestlà ©s local milk supply (Corporatewatch, 2003). However the company denies the proclamation and claims that the only reason they purchase their milk supply from its African supplier is to help meet the food needs of Zimbabwean consumers (BBC, 2009). 2.3 Exploiting Farmers In 2001, Nestlà © faced huge criticism for purchasing cocoa from the Ivory Coast and Ghana suppliers, which may have been produced using child slaves. An investigation by BBC showed that hundreds of children who lived in Mali, Burkina and Togo were being purchased from their parents and sent to countries such as Ivory Coast and Ghana to be used in production of coca (BBC, 2001). Most of the children who work in coca farms are ranged between 12 to 14 years old, and are forced to work 80 to 100 hours each week while they are not paid fairly, barely fed and beaten regularly (Corporatewatch, 2003). After the widespread of these reports Nestlà © Company faced huge criticism from health and labour organisations around the world to put a stop to these anti-humanities act, as a result the company did not have any choice except to express its concern over the use of child labour in coca farms to, however the company never confirmed that non of its chocolate products derived from these anti-humanities resources (Mcspotlight, 2002). 2.4 Union Busting In late 2001, labour organisations accused Nestlà © for denying its worker right; one of the countries that most of the accusation came from was Columbia, in which eight worker of the company got assassinated because they were part of food and drink labour union called SINALTRAINAL; however there have been no evidence linked Nestlà © to these assassinations. In another example involving Nestlà © union busting, in 2001 the management of Nestlà © subsidiary Comestibles La Rosa threatened the company worker that they must either renounce their union membership or they should leave the company (Corporatewatch, 2003). 2.5 Promoting Unhealthy Food Nestle was recently criticized after a report by the UK consumers association claiming that 7 out of 13 of the Nestlà ©s breakfast cereals containing the highest level of fat, sugar and salt. In addition the company is accused for denying and ignoring the role of community responsibility in promoting its product to public, however the company has made so many changes in past few years in order to gain back its reputation as healthy food provider but still there are many who critics the company despite all the changes (Corporatewatch, 2003). 2.6 Illegal Extraction of Groundwater The company was also accused for abusing and ruining water resources in Brazil and United State. In the region of Serra da mantiqueira in Brazil which is known for its susceptible groundwater resources, Nestlà ©s over pumping action has resulted in exhaustion and long term damages to the region water resources (Corporatewatch, 2003). Nestlà ©s was accused because people of the Serra da mantiquira believe that the company action has changed the taste of their drinking water and also the over pumping has caused complete dry out on the main region water resources. Nestle used these water resources for producing mineral water called Pure Life (Phdinparenting, 2010). Unfortunately, after analyzing Nestlà ©s corporation act, clearly ethics has no place in the company long term strategy. This fact has greatly influenced companys reputation and has ruined its position in food industries around the world. After the widespread of these reports Nestlà © Company faced huge criticism from health and labour organisations around the world to put a stop to these anti-humanities act, as a result the company did not have any choice except to express its concern over the use of child labour in coca farms to, however the company never confirmed that non of its chocolate products derived from these anti-humanities resources (Mcspo tlight, 2002). 3.0 Solae Company 3.1 Solae History Solae LLC is an international soy supplier which is based in Louis, Missouri. This company is the world leader in developing and producing innovative soy technologies, meat and other nutritional products. The company was founded in 1958 by producing just industrial soy protein products; however Solae started producing other food product (such as baked goods, meats, beverages and nutrition bars) in 1973 after DuPont and Bunge created Solae Company as a joint venture (Solae, 2010). Solar use soybean resources around the world in order to create nutritious and great-tasting ingredients including baked goods, meats, beverages and nutrition bars which are consumed by thousands of customers and consumers in more than 120 countries worldwide. The company has approximately 2,400 employees in different parts of the world as well as North America, Asia, Latin America and Europe (Solae, 2010). Solaes commitment to innovation and development has resulted in production of new soy product tag along by more than 98 patent and 338 patents pending which is more than any other soy provider in the world (Solae, 2010). On 26 of March 2010, Solae Company was identified by the Ethisphere Institute as one of the worlds most ethical companies in food industry. Each year Ethisphere Institute gathers a list of 100 companies which it believes are the most ethical companies in the world. The institute recognise these companies on basis of attitude and future refinement (Ethisphere, 2010). The world most ethical companies are recognize not only making statements about doing business ethically but also translating those statements into action. Solae was ranked among on of the 100 most ethical companies in the world along with giant companies like Pepsi, Nike, Ford, Xerox, Henkel and LOreal in addition the company was positioned at top 5 most ethical companies in food and beverage industry joined by Campbell, Mills and PepsiCo (Ethisphere, 2010). Solaes commitment to environment is one of the core value developed by the company which has allowed the company continually improve and implement main manufacturing process and activities to reduce its impact on Mother Nature, It is believed that Solae track its activities across all manufacturing department in order to replicate successful improvement where it is needed. 4.0 Solae Ethical and Decent Practices Solae ethical and moral practices are inspired by the companys core value which mostly concentrate on what the company is and what it is stand for, Solae top executives believes the strength of the company begins with a deep commitment to ethics from the top to bottom in the company, ethical behaviour is one of the core values at Solae, which is important in both the companys professional and personal lives. According to Solae officials, at Solae ethic codes are designed to make sure that each of the companies personnel are constantly upholds the companys standards and objectives. Any act that deliberately violates the law or regulation to screen non-compliance with this Code of Conducts, or company overall policy is an ethical violates (Solae code of conduct, 2010). 4.1 Safety and Health Solae Company believes that in doing business all occupational illnesses, environmental incidents and injuries are preventable and can be controlled by implementing the right business practices along with providing the best and high quality foods to consumers. The companys overall goal is zero for incidents, meaning that safety and health are the most central aspects of Solae Company in different levels involved in manufacturing and promoting its products (Solae, 2010). Every employee at Solae is responsible for acting in reliance with safety and health law which was developed to prevent any incident involving employees and other Solae personnel. Managements in each department are responsible for training, educating and motivating employees to understand and act accordingly to applicable safety and health laws. 4.2 Sustainable Practices for Society Solae core value of environmental custodiantion is a significant example of the companys commitment for people in different societies. At Solae employees are expected to compete lawfully at all manners, they are also expected to protect the environment and to be a responsible keeper of the company operations, services and products in all levels of the company (Ethisphere, 2010). 4.3 Environmental Practices Since the company was founded, Solae mission has been to be the preferred universal partner in the expansion and delivery of nutritional and efficient solutions for its customers, the Company is constantly committed to promise to conduct business and operations with respect and care for the Mother Nature. Since Solae main business is product of soybean resources, the company pays a great respect and attention to environmental practices which helps to keep our nature green and un harmful. At Solae managers at each corporate level are held responsible for educating, training, motivating and instructing employees to understand the important of Solaes commitment to protect environment in addition each employee at Sola company has the responsibility to meet and fulfil the terms of Health and Environment which were developed to guide each employee in pursuing the companies mission and vision (Solae code of conduct, 2010). Solaes commitment to environment is one of the core value developed by the company which has allowed the company continually improve and implement main manufacturing process and activities to reduce its impact on Mother Nature, It is believed that Solae track its activities across all manufacturing department in order to replicate successful improvement where it is needed. The company has received several awards because of its environmentally friendly business practices around the world. For example: In 2009, the company headquarter in St.Lous was given a Leadership in Energy and Environmental Design Green Building Certificate for having the most energy efficient, greenest and high productive building in the region (Solae, 2010). In 2005, Solae received two awards from different non-profit organisations for reducing total energy consumed by the company by more than 10 percent and decreasing greenhouse emissions by 7.7 produce by the company (Solae, 2010). 4.4 Ethical Competition Law Practices It is believed that, Solae competes forcefully in the marketplace to best supply its customers needs and preferences. Solae Company has gain most of its reputation as a result of its Competition Laws which the company follow in most of the countries that operates, these laws are compound and can vary from country to country depending to its market place competition condition and pressure (Solae code of conduct, 2010). 4.5 Water and Energy Consumption Solae is well known around the world for its efficient water and energy consumption in compare with other companies involved in food industry. The company uses very low water resources in compare with other food manufacturing companies because soy uses less water than other kind of proteins such as meat, milk and eggs. In addition soy is known to be an efficient source of protein based on return amount of energy use in compare with other resources of proteins. C:UsersArmanDesktopvirtuawater.jpg C:UsersArmanDesktopenergyefficiency.jpg USDA; FAO/ UNICEF, USA Protein Advisory Group (2005) As it can be seen beef, pork and chicken consume 5 or 6 times more water than soy products and soy much more efficient source of protein based on return amount of energy use in compare with milk, chicken, eggs and beef. 4.6 Equal Opportunity Non Discrimination Solae Company is strictly against any discrimination regarding any companys personnel or new application who wishes to join the group because of race, sex, age, colour, national origin, marital status, expression or ancestry. According to Solaes core value employees are treated the same despite their position in the company (Solae, 2010). Conclusion To sum up, Core values are particularly critical in these days as we operate in markets around the world and aiming to serve customers with different needs and ideas. Obviously at Solae Company the central attention is to understand responsibilities and obligations toward individuals and environment. As experiment has shown us a companys success is pretty much dependent on ethics and moral which builds a long term reputation for both the company and industry. Unfortunately, after analyzing Nestlà ©s corporation act, clearly ethics has no place in the company long term strategy. This fact has greatly influenced companys reputation and has ruined its position in food industries around the world. As a result the concept of ethics has become one of the most important aspects of management duty. For companies as big and successful as Solae and Nestle training employees to follow ethical and social principles are key success factor and has to be observed and practice continually. Many businesses are interested in making money, and that is the bottom line or in other words they just want to be in business; on the other hand there are many businesses that making money does not mean everything to them, but doing the right thing and having responsibility and commitment toward society have far more importance. Solae has to continue its effort in practicing ethical principles in all company levels and Nestle has to change its long term strategy and pay attention to what is right and wrong.

Impact of the Government’s Spending Review on the Construction Industry

Impact of the Government’s Spending Review on the Construction Industry The impact of the Governments Review on the construction industry has had different reactions. Edwards (2010)[7] points out that â€Å" £20 bn of capital spending will be cut between now and 2014/15†. The impact will be severe on government departments and local authority budgets. But further details published by the HM Treasury (2010)[3] indicate that the government intends to increase net capital spending by  £2.3 bn up to 2014/15, relative to the June 2010 Budget predictions. Currently the Government spends approximately  £50 bn on capital projects. It appears that the Government is focussing on those projects with the ‘highest economic value’. Education along with health and infrastructure are areas that the government has chosen to focus on (Anon, 2010)[8]. This article also quotes Graham Watts, Chief Executive of Construction Industry Council who states that â€Å"social housing is the worry, but investment in schools, carbon reduction and transport infrastructure plus the Green Investment Bank are positive†. The Spending Review of 2010, has reduced the funding for Social Housing from  £8.4 bn to  £4.4 bn (HM Treasury, 2010)[3] This will be a severe blow to those construction companies who specialised in having contracts with social housing customers, such as, local councils and housing associations, according to Light (2010)[9]. Keynesian Theory and the UK Economy The UK economy has endured six consecutive quarters of negative growth, resulting in one of the most prolonged recessions in modern times (2008/09). Since the beginning of 2010 the economy has shown some positive signs of recovery. Two schools of thought have emerged from this rece... ...ble to the Miller Group will therefore be further restricted. The Group does recognise this constraint and as a result the company â€Å"continues to focus on cash generation and cost controls† (Miller Group Interim Report)[13]. The cost control factors according to Keynesian Theory will mean the company is responding to its own difficulties and will start hoarding money to, like the consumer and this will further impact the circular flow of money in the economy. Summary This paper has provided an overview of the UK’s Spending Review of 2010 and its potential impact on the macroeconomic picture of the UK. Particular emphasis has been given to the relevance of the Spending Review on the construction industry and its impact on a construction company. Furthermore the paper attempts to relate some aspects of the Keynesian Theory to the current UK economic situation.

Macroeconomics Case Assignment Essay

GDP: Questions: 1. Assume that consumer spending is $1,000, government expenditures are $300, investments by industry are $150, and the excess of exports over imports is $200. Compute the GDP. (Please show your work) The basic formula for calculating the GDP is: Y = C + I + E + G C=1000; I=150; E=200 and G=300 Y=1000+150+200+300=1650, Y=1650 2. If we are able to increase our domestic energy production, and that allows us to import less oil from foreign countries, briefly explain what will happen to the GDP. If Exports exceeds imports then it will add to the GDP but if imports are more than the exports it subtracts from the GDP. With this being said if we import less oil from foreign countries then it would positively impact the nation’s GDP. Inflation Questions: 1. If the CPI went from 100 to 104 during the past year, the rate of inflation, in percent, was? (Please show your work) Rate of inflation = (104 – 100)/100 x 100 = 4/100 x 100 = 4% 2. If the CPI went from 231 to 234 over the past year, the rate of inflation was? (Please show your work) Rate of inflation = (234 – 231)/231 x 100, = 3/231 x 100, = 1.30% Unemployment rate Questions: 1. Assume the entire civilian labor force is 20,000 people and the number of unemployed is 2,000 people. Compute the unemployment rate, in percent. (Please show your work) Unemployment Rate= 2000/20000 = 0.1 *100 = 10 Unemployment Rate=10% 2. Assume the entire civilian labor force is 20,000 people, the number of unemployed is 2,000 people but, 500 of the unemployed have now stopped looking for work. Compute the unemployment rate, in percent. (Please show your work) Unemployment Rate=1500/19500= 0.078 Unemployment Rate= 7.8% International Economic Trends 1. Compare the four countries in terms of Output and Growth (Real GDP). The analysis should only cover the period from the beginning of 2008 to the present, and make sure the most recent 2011 changes are addressed. The 2008 economic contraction affected the world economy. 2008 seen the housing market crash both here and in Japan. By 2009, Canada, Japan, the United Kingdom, and the United States all saw negative economic growth. Japan’s economy was hit the hardest with -10% growth in 2009 as demand for their products weakened. Canada was the last to fall into negative growth and experienced the least negative growth of the four countries. All experienced a partial recovery in 2010 as GDP came out of negative growth and each seen minimal growth. The global economic crisis, however, hit the country’s mainstay exports hard and brought on Japan’s worst recession since World War II, in late 2008. Since mid-2009, Japan has limped back into recovery, helped by exports and stronger capital investment. 2011 was looking up for the Japanese economy, relatively speaking, but the earthquake and tsunami in early March 2011 has put the economy in a tailspin with a large portion of the country affected not only by the devastation but the effects of the nuclear power plan leakage. Canada, the UK, and the U.S. appear to be going into the double dip recession as the economies in 2010 were making slow recovery, 2011 has seen more contraction. The monetary policies of all four countries have slowed the pace of the recession, but are going to be unable to fix the problems, because the national debt are so high, deficit are rising, and projections are not good. Monetary policy, keeping interest rates low and printing more money can only do so much; fiscal policies implementing stimulus packages have foreseeable failed and only added to national debts. 2. Compare the four countries with respect to Inflation and Prices (CPI). The analysis should only cover the period from the beginning of 2008 to the present, and make sure the most recent 2011 changes are addressed. As the economies of Japan, Canada, the UK, and the U.S. were entering the recession in 2008, prices and inflation had hit a high, but began to fall as the GDP fell. GDP and CPI are nearly identical images when looking at the graphs of each. Prices fell as the economy tanked because consumers clearly did not have the purchase power. As the economies of each country experienced positive growth rates, CPI began to rise. Inflation rate refers to a general rise in prices measured against a standard level of purchasing power. When comparing the four countries, Canada, UK and U.S. have experienced very similar changes in CPI, where Japan has remained relatively unchanged for 2011, but mimicked the others in 2008 and 2009. Inflation for 2011 in Canada, the UK and the U.S. is increasing. Some reports say peanut butter will see a 40% price increase in the next week, which may be due to a poor peanut growing season. According to the United States Department of Agriculture’s Consumer Price Index, all food increased 0.8 percent between 2009 and 2010 and is forecast to increase 3.5 to 4.5 percent in 2011. The increases in food prices affect the overall purchasing power of consumers, combined with inflation, consumers are not going to be able to purchase our way out of recession. 3. Compare the four countries regarding the Labor Market (Unemployment Rate). The analysis should only cover the period from the beginning of 2008 to the present, and make sure the most recent 2011 changes are addressed. Regarding the labor market, United States posted the most consistent rates of unemployment ranging from 1.9% to just about 3%. In stark contrast, Japan posted the most unpredictable figures in terms of unemployment percentages; 0.8% in 2008 to -9.8% in 2009.In 2011, Japan recorded a percentage change of about 2.0%. As is the case with the USA, UK’s rates never went below 1% during this period. The future of the labor market is therefore quite promising in the USA as compared to the other countries in this particular category. Questions: 1. Assume interest rates on Treasury bonds, with the indicated time to maturities as follows: 15 years = 7.72% 20 years = 8.72% 25 years = 9.64% 30 years = 10.18% The differences in rates among these bonds is caused by: (please briefly explain your choice) a. Tax effects b. Default risk premiums. (Default risk premium will cause the interest rates among the T bond with different time period with different rates) c. Maturity risk premiums d. A down sloping yield curve e. Liquidity risk premiums 2. Which statement is False? (Please briefly explain your choice) a. The default risk premium is applied to all bonds including U.S. Government ones. b. The liquidity premium requires that an asset can be sold both quickly and for fair market value. c. The inflation premium is added on to the required return to protect the purchasing power of an investors earnings. d. The market risk premium is added to all bonds, even U.S. Government ones. (Market risk premium will be the same for all investors since the value is based on what actually happened). 3. Over the next 3 years inflation is expected to be: Year one 2.5%, year two 3.5%, year three 4%. What should investors require for an inflation premium on a Treasury bond with a three-year maturity? (Please show your work) Inflation premium on year 3 = (2.5+3.5+4)/3 Inflation premium on year 3 = (10)/3 Inflation premium on year 3 = 3.33% 4 If the rate of inflation is expected to be 0% for the next 4 years will the yield curve have an upward slope? (Please briefly explain your answer) Yield to maturity = = Rf + DRP + LP + MRP + Inflation Premium Everything consistent Inflation premium = (2.5+3.5+4+0)/4 = 2.5 it reduces the 3.33 to 2.50 No it wont be upward it will be downward sloping if the rate is 0 in year four Reference: http://www.investopedia.com/terms/m/marketriskpremium.asp#axzz1uEeDH1nd http://www.cliffsnotes.com/study_guide/Unemployment-Rate.topicArticleId-9789,articleId-9735.html http://inflationdata.com/inflation/inflation_articles/calculateinflation.asp http://www.investopedia.com/terms/i/inflation.asp#axzz1lAEXt7uC http://research.stlouisfed

The Main Stakeholders Of Childhood Vaccination - 1543 Words

SECTION 3: MAJOR STAKEHOLDERS In this area of study related to Childhood Vaccination, we will discuss about the major and key stakeholders. These major stakeholders, those influencing and shaping the debate are; Government and Legislators (Policy Makers), Parents, NGO’s and Lobby Groups. We can also find some least influential stakeholders which do not have as such influence on this issue but they are the one who are most â€Å"affected by† group in term of the issue is concerned. These are New-Parents/Future Parents and Children. In this part, we will try to find out the perspective of major stakeholders, their agreement and disagreement as far as issue is concerned, and also, is there any interaction between those stakeholder exist or not? PARENTS: Parents are the most influential stakeholder as far as Childhood Immunisation is concerned, as both Government and Lobby Groups are dependent on their support and actions to make an impact on this topic and that is the reason why all NGO’s and Lobby Groups try to persuade public opinion in general and parents opinion specifically. However, we may see that the Parents opinion in this area of Childhood Vaccination/Immunisation are immensely divided. That’s why, we may find both most vaccinated areas as well as least vaccinated areas in our society. Majority of Parents are in favour of childhood vaccination (Scienceinpublic.com.au, 2013). According to 2009 National Immunization Survey conducted in United States of America,Show MoreRelatedVaccinations Persuasive Essay1587 Words   |  7 PagesVaccination has been brought up again in recent years even when vaccines have been around for about one thousand years. 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