Failure of Ethical Behaviour in Nestle: Impact on Long-term Value

Ethics and Corporate Social Responsibility
9 / 2 7 / 2 0 1 8

Ethics and Corporate Social Responsibility 1
Executive summary
The report talks about the failure of the ethical behaviour of the selected company. Ethical
behaviour is mainly characterized by the honesty, fairness and equity in the interpersonal,
professional and ethical relationships related to the research and the activities. The ethical
behaviour of the company always respects the dignity, diversity and the rights of individuals and
the people who are in a group. The company that has been selected for conducting the analysis is
NESTLE. The findings of the report include the summary of the events due to which the
company is facing the criticism. In addition, it includes the ways through which the events faced
by Nestle can be resolved. Moreover, the impact on the failure of the ethical behaviour is on the
long-term value of the company. In the end, the suggested has been given to the company related
to their actions and future behaviour.

Ethics and Corporate Social Responsibility 2
Contents
Introduction......................................................................................................................................3
About Nestle................................................................................................................................4
Products...........................................................................................................................................4
Revenue of company.......................................................................................................................4
Information Analysis/Findings........................................................................................................5
Events of company......................................................................................................................5
Health threats...........................................................................................................................5
Nestle and water......................................................................................................................6
Promotion of mislabelling and unhealthy food.......................................................................7
Child labour, abuse, and trafficking........................................................................................7
Ethiopian debt..........................................................................................................................8
A deal with Mugabe.................................................................................................................8
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
References......................................................................................................................................11

Ethics and Corporate Social Responsibility 3
Introduction
In the current era, the companies are obliged to follow the ethical behaviour for the business
practice and the failure of the same can affect the business practice and brand value of the
company. The report is related to the failure of the ethical behaviour of the Nestle Company who
is one of the leading consumer food companies. In the current era, the large company are not
able to meet the ethical behaviour.
Background
The background includes the company on which this report is prepared which is Nestle. Nestle is
a multi-national company who is offering the wide range of products with the services in the
different areas of the world. This is the fact that with the operations at different areas it is hard
for the company to manage the ethical practices in every area across the world. This is the reason
the company faced numerous failure in the ethical behaviour.
Aim
The aim of the report is to through the light on the ethical behaviour failure of Nestle Company
and their impact on the economic performance as well as on the long-term value of the company.
Scope
The scope of the report is laminated to the events that the report talks about which are health
threats to the customers, Nestle and water, the deal of company with Mugabe, Ethiopian debt,
and promotion by the company for the unethical food and mislabelling and child labour, abuse
and trafficking.