NESTLE
Formula must be mixed with water -> in smaller countries that have unreliable sources of water that aren’t safe, then the water can be unsafe for the baby and cause illness
It is using Canadian water during drought conditions to bottle and sell off – there is something immensely wrong with this and this shows the domination of Nestle as no one is strong enough to stop them and are scared of the repercussions if steps are taken to stop their drastic actions
The surrounding community has restricted access to this H20 during dry conditions.
- Fined over 19million euros
- Nestle buys water for about 1/1000 a penny per gallon and sells it back for ten dollars. This is just an example of the overpricing of products and the profit that is gained for the corporation.
- Originated in Switzerland
- Multinational food and beverage company
- TNC originating from Switzerland
- Has over $233 billion profit
- Produces food products, machines (coffee and Nescafe)
- 1974 boycottt in USA and certain part of Europe to stop the aggressive marketing of baby formula over breast milk
- Power of Nestle enables them to exploit people and manipulate them into using the product because they are influential in the food industry
Formula must be mixed with water -> in smaller countries that have unreliable sources of water that aren’t safe, then the water can be unsafe for the baby and cause illness
- Many people use less baby formula than needed to meet sufficient nutritional needs which results in poor baby health
- Formula lacks the nutrients of breast milk like nutrients and antibodies that protect a developing and vulnerable baby from bacterial meningitis, gastro, ear infections and respiratory infections
- Exploitation of workers and smaller countries
- Companies wanted a freer market economy and neo-liberalist movements move a country or region to economic globalization.
- Due to the elimination of trade barriers, Nestle is now able to access lesser developed countries and induce a system of cheap and unfair labour in low working conditions
- 47% of the population lives under 1$ a day (US)
40% of the population lives between 1$ and 2$ a day (US) - Small producers are also being taken advantage of and are being forced into debt and poverty.
- Cultural Loss
- contributed to the loss of cultural identity in India and the Ivory Coast since it is a Swiss Company (and the United States dominates the market.
- unclear who’s laws apply when Nestle is a huge corporation with plants in smaller countries. Child labour and environmental laws are not enforced and in result, taken advantage of
- Nestle benefits mostly the USA and Switzerland, not countries such as Columbia and India who’s resources are being used and employees are producing the goods.
- AS Nestle is a foreign company, the benefits that come with the company generally reply to USA and Switzerland instead of Columbia and India whose resources and workers are being used to produce the goods
- By hiring workers from a certain country it is also taking away people’s focus on working in local industries and helping the country’s economy boost and prosper
- Nestle has been accused of failing to carry out checks on child labour and other abuses in part of its cocoa supply chain.
- Exploitation of water resources even during drought
It is using Canadian water during drought conditions to bottle and sell off – there is something immensely wrong with this and this shows the domination of Nestle as no one is strong enough to stop them and are scared of the repercussions if steps are taken to stop their drastic actions
The surrounding community has restricted access to this H20 during dry conditions.
- Overpricing of products
- Fined over 19million euros
- Nestle buys water for about 1/1000 a penny per gallon and sells it back for ten dollars. This is just an example of the overpricing of products and the profit that is gained for the corporation.
Stakeholder
TNC Workers TNC Company The public Small companies |
Effect on Stakeholder
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Positive/Negative Impact
Negative Positive Negative Postivie Negative |