An Analysis of Nestle's Ethical Challenges and Change Management

This report analyzes the ethical challenges faced by Nestle, a major player in the food processing industry, highlighting issues such as the baby formula scandal, human rights violations, and labor concerns. It examines the impact of these ethical lapses on Nestle's sales, customer loyalty, and brand image. The report proposes solutions using Lewin's change management model, which includes unfreezing, changing, and refreezing stages, to address these issues. The implementation of modified marketing strategies and the crucial role of management in communicating and implementing changes are also discussed. References to relevant books and online resources are included to support the analysis.

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Nestle is part of food processing industry founded in 1866 and its founder is Henri
Nestle. Headquarters of same business is at Vevey, Vaud, Switzerland and they are serving at
worldwide level. Products offering are Coffee, diary products, baby food, cereals, bottled water,
ice cream, pat food and so on. While working in the competitive business environment several
ethical challenges is face by Nestle (Nestle - ethical problems, 2019). There are some ethical
challenges: Baby Formula scandal, Respective company is target of a boycott due to its
contribution towards unnecessary death as well as sufferings of infants across the world through
aggressively marketing of baby food in breach of global marketing standards. They specially
targeted Africa because population of that nation don't have clean water as well because of low
literacy rate most of the mother are not aware about boiling water. They directly mix powder into
water which result in high risk for children's. This is unethical because Nestle taken advantage of
low literacy rate. Apart from this another is Human rights violation, Nestle is the organisation
present in Global exchange list of top ten Corporate Criminals Alumni For unnecessarily
marketing infant formula for new mothers, pushing bottled water sales as well as failed to stop
child labour in cocoa field. Thus, their are several other ethical issues are also faced by Nestle
such as Slave labour in Brazil, Palm oil and so on.
Nestle gone through numerous ethical challenges which have wide impact on its working.
Along with this, these ethical challenges have wide impact on the organisational efficiency such
as: Most important thing, sale of Nestle will be decrease because customer face several health as
well as ethical issues from their products (Pedler and Burgoyne, 2017). Because buyers will not
satisfy and faced health issue then they will not going to purchase products and services of
Nestle. Apart from this, Customer's loyalty will decrease because of their unsatisfactory
offerings. Moreover, Negative impact on brand image of Nestle because if several ethical
scandals such as Palm oil, Slave labour in Brazil, Human right violation and so on.
There is requirement of implementing several changes in the organisation to over with
the challenges faced by Nestle. Thus, it can be possible by applying Lewin's change management
model which have three steps i.e., unfreezing, changing and refreezing (Lewin's 3-Stage Model
of Change: Unfreezing, Changing & Refreezing, 2019). Unfreezing – It is the first stage of
change management model in which manger of Nestle have to prepare themselves for accepting
modifications which is necessary. Unfreezing involves breaking down the current policies,

strategies, culture and so on before building up new. For instance, Nestle have to unfreeze their
marketing strategy because due to it they face several ethical issues. For this purpose marketing
manager have to prepare entire team for modification. Changing - After the uncertainty created
within unfreeze stage, the change stage is where manager of Nestle begin to resolve their
uncertainty and look for new ways of doing daily operations. Respective organisation start
believing and acting in the manner which support new direction. For instance, modification in
advertisement strategies such as it must be true and in the favour of people will be implemented
at this stage. Refreezing – Final stage of change management model is refreezing, In the new
way of doing things will be solidify and overall company will work on it. In the final step
modified strategies related to marketing shout be refreeze again.
For implementing changes within Nestle manager play crucial role because they are the
one who discussion new strategies, policies, direction of doing work to the customers (Carslake
and et.al., 2015). Along with this, there is requirement of resources for meeting day to day
activity of business also allocate by the leader as per the new implementation. In this situation,
leader of Nestle play important role in motivating employees which is necessary for doing daily
basis operations in effective manner. Apart from this, it is essential to communicate new
marketing strategies to each and every member so that, they can work on modifications in
effective manner.

REFRENCES
Books and Journal
Daniel, L., 2017. Importance of culture: The DNA of an organisation. In Practical Guide to
Safety Leadership (pp. 96-119). Routledge.
Pedler, M. and Burgoyne, J. G., 2017. Is the learning organisation still alive?. The Learning
Organization. 24(2) pp.119-126.
Carslake, J. and et.al., 2015. The National Road Safety Partnership Program providing a pathway
for any business/organisation to create a positive road safety culture. In Proceedings of
the 2015 Australasian Road Safety Conference.
Online
Nestle - ethical problems, 2019.[Online].Available
through<https://prezi.com/ijk1eyna3hsr/nestle-ethical-problems-and-soulutions/>
Lewin's 3-Stage Model of Change: Unfreezing, Changing & Refreezing, 2019.[Online].Available
through<https://study.com/academy/lesson/lewins-3-stage-model-of-change-unfreezing-
changing-refreezing.html>