Pre-writing essay FINA302 Nestle, a Swiss owned company, is one of the biggest multinational company that her investment

is almost around the world. The growth sale in 2011 was 3 billion franc Swiss (around 6 billion NZD) with the net revenue 1 billion franc Swiss or 600 million NZD. Nestle has brought a lot of jobs to local people with proper remuneration. However, its globalization has created as well plenty of ethical issue. One of its most well-known ethical issues is the marketing of infant milk supplement to replace breastfeeding which has created The Nestle Boycott until now. Other issues are Cocoa production, which was believed to employ child labour, and indirect deforestation. Infant breast milk One of the most well-known ethical issues of Nestle Corporation is the Infant Breast Milk. It was happened firstly in 1970s when the marketing of baby nutrition milk occurred in the developing countries which affected baby health. In the United Kingdom, a charity called War on Want published in the article Baby Killer argued Nestle of producing baby milk nutrition powder that created the increase of baby death. The difference between the milkbased nutritional product and the benefit of breastfeeding has created the controversy in developed countries as well as in developing countries. Milk powder expert said that the formula to produce breast milk has critical chemical substance that makes the health of the baby worse. In the second half of 1970s, milk powder-opposed activist, named Dr.., supported by Non-Government Organisation was in conflict with Nestle baby nutrition milk which is used to substitute breastfeeding which is said to deteriorate baby health. This activist group later launched Nestle Boycott that wants all people in the world start not consuming all Nestle products. It happens until now. Chid Labour on Cocoa farm Another unfair-trade issue that Nestle was convicted is the numerous cases of child labour in the supply chain which has been observed by some international organisations like UNICEF. Nestle, one of the biggest chocolate producers in the world, has been found guilty of indirectly using child labour in the chocolate production chain through purchasing cocoa beans from the West African countries like Ivory Coast. There have been serious cases of child employment since 1990s in western African countries, the worlds biggest cocoa

plantation in which most people live under the poverty line that directly pushes the children to work in the farm. Deforestation One of the Nestls most well-known ethical issues in Asia is the deforestation. Nestle have bought millions ton of Palm oil from Sinar Mas, one of the biggest palm oil producer in Indonesia. The high demand of palm oil drives Sinar Mas and other producer to increase the production by extending palm tree plantation which directly lead to destroy the Boneo rainforest in Indonesia where is the only home for Orang-utan in the world. According to Green Peace International, rain forest destruction decreases the number of Oran Utan to 670,000 to be one of the most endangered species in the world. Environmentalist is worry if the on-going rain forest destruction would lead to extinct this species. Solution Businesses and industries increasingly find themselves facing external pressure to improve their ethical track record as the business ethical dilemma really affects the companys health. In the case of ethical conflict above, Nestle has adopted new policies to restore its reputation in the market. Nestle is working with World Health Organisation (WHO) to promote breastfeeding through funding the education of the communities about breastfeeding, offering a free testing for HIV and other contagious diseases and sponsoring events at international medical and nutrition conferences. Nestle promises to do faire-trade in its supply chain by eliminating child abuse and childrelated work in the third world countries especially in the West African countries where the child labour was being used and by promoting the education for Children. Furthermore, Nestle become a partner with the Faire Labour Association, sponsoring them to investigate child labour use in the supply chain in Western Africa as well as in the countries around the world. Nestle says. "Child labour has no place in our supply chain," said Nestl's Executive Vice President for Operations Jos Lopez. In the tropical deforestation case, Nestle is working very closely with Green Peace International by setting up a regular meeting to observe and resolve the deforestation which is Nestle said to be the cause of increasing carbon dioxide and global warming.