Critical Evaluation of Ethical Factors Influencing Nestle's Organizational Ethics and its Impact on Corporate Social Responsibility and Organizational Accountability

This report critically evaluates the ethical factors influencing Nestle's organizational ethics and its impact on corporate social responsibility and organizational accountability. It discusses legal requirements, stakeholder needs, and the impact of Nestle's ethics on CSR.

BUNNIES

Table of Contents
INTRODUCTION...........................................................................................................................3
1-Critical evaluation of ethical factors influencing organization-...............................................3
2-Considering the impact of Nestle ethics on corporate social responsibility and organizational
accountability within case study parameters................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
Organizational ethics refers to the practices through which organization enshrine what is
right and what is wrong for the organization (Nguyen, 2021.) In the report below such elements
or factors would be critically discussed which could affect the ethics of NESTLE plc.
Considering legal requirements and meeds of stakeholders. Impacts of organization's ethics on
corporate social responsibility and organizational accountability would also be taken into
consideration.
1-Critical evaluation of ethical factors influencing organization-
NESTLE is a multinational organization which is engaged in food items which are well
disseminated across a number of nations. Being a food producing organization there is intensive
requirement to pay attention to ethical practise of the organization, these are the factors which
can influence organizational ethics including both needs of stakeholders and legal requirements.
Code of ethics of the organization- Nestle is one of the biggest entity so having its own code of
ethics. The entity is abiding with all legal requirements such as CSR, which is now 2% of
average profits gained, Companies law 2013 and so on (Herrmann, 2020)
But is has been seen that the entity breached CSR laws, it can be cited as one of the
biggest issue which may influence the performance of company. If it does not comply with code
of ethics then will lose its moral face among various stakeholders.
Wage policy and social pressure- The entity is giving employment to numerous people so
aligning with wage laws of the nation. It is giving job to lacs of people so practising wage
policies too.
On the other hands as it has been experienced that the entity did discrimination through
unfair wages, and mass redundancies, illegal mass dismissals etc. It can affect it in negative
manner (van Timmeren, et al. 2019)
Environmental laws and practises- In the modern age of business there is strong need to work
on environmental laws, more than 50% operations of Nestle are being carried out in developing
nations who are struggling with environmental crisis. The entity is contributing to CSR, and
through CSR helping to manage it.

But it has been observed that its efforts are not sufficient as them should be which can
adversely affect organizational operations.
Legal requirements- Over the time the legal requirements are getting up, there are range of such
laws and legitimation are being laid down, which may affect organizational ethical practises. The
entity is getting operated in more than 83 nations with 33000 employees so having need to
comply with the laws. Companies law 2013, schedule 7 for CSR, factories act 1948 etc. are
applicable, and enforceable too (Hunter, 2018)
The organization is abiding with the legal requirements yet there has been some
controversial notions with its name. Discriminatory practises and not fulfilling legal
requirements, it has been under suspicious for its environmental moves, people and human
rights, nutrition etc. So this may influence ethical requirements and can affect its ethical
practices.
Needs of stakeholders- There are number of stakeholders who are being affected by the
performance of Nestle. Since the entity is engaged in food sector, so people are more conscious
about their health. Over the time as it has been seen that the social awarenesses is getting
intensive, people are more likely to accentuate their health.
On the other hands some other stakeholders, for instance- government, non government
organizations, customers, suppliers, employees are strongly connected to the entity and sharing
vast interests with it.
International laws- Nestle is getting operated in around 83 nations so having need to comply
with international laws. It is an ethical requirement of the organization to keep global laws in
mind (Fraustino and Kennedy, 2018)
But as it has been one of the severest offender of global laws, there are a range of
instances where the entity is found violating international conventions and guidelines. It may
affect its ethical practise and can take its nobility away. The best example is Maggi which not
only toppled its profitability but also harmed ethical practise of the organization.
So form the discussion above it can be concluded that the above discussed elements are
having potential to influence organizational ethics of Nestle, which is globally recognized
organization.

2-Considering the impact of Nestle ethics on corporate social responsibility and organizational
accountability within case study parameters.
Corporate social responsibility is wider term, as it include different types of concepts that
play vital role to make environment sustainable and free from hazards such as air, land and water
pollution. An organizational ethics may put direct impact on this term in different manner, either
positive or negative (Zhao and et al., 2021). In case of Nestle, management may conduct several
activities that cover under their business ethics such as honest, decent, & straight talking. Along
with this concept, zero water management is also included in category of ethics which may put
positive impact on CSR and chosen company accountability, that is essential for manager and
other stakeholders to fulfil in effective manner. In the recent time, zero waste is now in trend as it
is one of those corporate social responsibility that is important for companies, either small or
large to take into their consideration. It may aid to prevent land, from specific form of pollution
that affect negatively upon human health and well-being of wild life. It is fact that chosen
company achieve zero waste in order to landfill operations for the very first time. It may take
initiative to eliminate its operational carbon foot print up to 46%. Furthermore, firm may also
reuse & refurbished more than 8 million items, that may affect negatively upon environment,
land and water. It may achieve its strategic aims and objectives related to business ethics in term
of multi year investment in the context of energy efficiency measure. Along with above
initiatives, organization may also effort to remove older equipment in the workplace that may put
negative impact on health and well-being of individual candidate, that are working with Nestle.
The elimination of poor and ineffective equipment may prevent people from any kind of harm in
the workplace, which is important for management to take into their consideration with better
precautions.
In the world of business companies are accountable to conduct sustainable and ethical
practices as it is important for them to do that because of sustaining for longer in the market or
industry where they had established their brand image (Fatima and Elbanna, 2022). By following
business ethics and conducting ethical activities, Nestle, may put positive affect on its
responsibility and overall corporate social responsibility concept. In the chosen company, ethics
may set standard as to what is good or not in organizations and decision-making. It may drive the
attention of individual person toward taking initiative to eliminate factors that put adverse impact
on its accountability and CSR, in term of air, water and land elements. It is fact that set standards

or business success criteria, enable management to deal with some internal values that are
becoming the most important part of business or organizational culture and aid to shape
decisions. Under the term ethics, Nestle and its administration may assure all its employees may
cover by a certified health and safety management system that affect business accountability in
positive manner.
Nestle, ethics may affect negatively upon organizational accountability and corporate
social responsibility, especially when management may do not include employees in that
process, which affect in such manner. It is important for them to engage each candidate in the
context of decision-making procedure, when they may build trustworthy and long term
relationship with each employee, who are able to make achievable commitments. Another reason
behind negative impact of organizational ethics on similar two concepts is lack of planning. As it
may lead to decrease the effectiveness of business operations and management.
The Nestle ethics may put positive impact on corporate social responsibility and
organizational performance as well as responsibility as it may specify the five major areas of
support that company may do to society and these are categorized in term of rural development,
water, environmental sustainability, people; human right & compliances and nutrition.
According to first key area such as rural development, organization take accountability to follow
countryside progress concept to comprehend the need and requirement of farmers. It may also
execute responsible sourcing in supply chain management or operation that in turn provide desire
outcomes. Along with above initiatives, organization may focus on work to attain water
effectiveness and sustainability as well as advocate for efficiency of policy related to water and
stewardship. In case of corporate social responsibility, firm may conduct practice to provide
climate change leadership that aid to prevent society from any harmful impact of climate change.
CONCLUSION
From the report above it can be summarized that ethical practices are quint essential for
the organizations. For Nestle the factors which could have influenced its ethics were discussed
along with legal requirements and the needs of a range of such relevant stakeholders. The report
further discussed impacts of such ethics on corporate social responsibility of Nestle plc and other
organizational accountability towards the society.

REFERENCES
Books and journals-
Castellanos-Redondo, 2020. Ethics and happiness at work in the spanish financial
sector. Sustainability. 12(21). p.9268.
Fatima, T. and Elbanna, S., 2022. Corporate social responsibility (CSR) implementation: a
review and a research agenda towards an integrative framework. Journal of Business
Ethics. pp.1-17.
Fraustino, J. D. and Kennedy, A. K., 2018. Care in crisis: an applied model of care
considerations for ethical strategic communication. The Journal of Public Interest
Communications. 2(1). pp.18-18.
Herrmann, L., 2020. The Menace of Non‐Being: On Nestle Waters’ Plunder and Jürgen
Moltmann’s Sabbath Peace. Journal of Religious Ethics. 48(2). pp.201-221.
Hunter, E., 2018. Five Decades of CSR Research: Have We Really Learnt Anything about Value
Perceptions since Nestlé? (Doctoral dissertation, Auckland University of Technology).
Nguyen, N., 2021. Rethinking activist educational research: definitions, methodologies, and
ethics. Critical Studies in Education. 62(2). pp.258-273.
van Timmeren, J. E., et al. 2019. Challenges and caveats of a multi-center retrospective
radiomics study: an example of early treatment response assessment for NSCLC
patients using FDG-PET/CT radiomics. PloS one. 14(6). p.e0217536.
Zhao, R and et.al., 2021. Towards a Zero Waste city-an analysis from the perspective of energy
recovery and landfill reduction in Beijing. Energy. 223. p.120055.
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