Case study can be used for Ethics

1. Nestle Boycott:
Infant Formula- It was ironically that the biggest controversy in Nestle’s history involved the product on
which the company was built. Critics said that Nestle had promoted the use of infant milk formula, in
developing countries, in an unethical manner.
Will talk on the basis 4p’s of the marketing-
Product- Infant Formula
Problems of the Product-
The formula is not really as healthy as mother’s milk
It’s not a substitute for mother’s milk
Mother’s milk provide protective antibodies to the baby-
Breast milk has many natural benefits lacking in formula. Nutrients and antibodies are
passed to the baby while hormones are released into the mother's body.
Breastfed babies are protected, in varying degrees, from a number of illnesses, including
diarrhea, bacterial meningitis, gastroenteritis, ear infection, and respiratory infection but
not in the case of Infant Formula.
Formula must normally be mixed with water, which is often contaminated in poor
countries, leading to disease in vulnerable infants. Because of the low literacy rates in
developing nations, many mothers are not aware of the sanitation methods needed in the
preparation of bottles. Even mothers able to read in their native tongue may be unable to
read the language in which sterilization directions are written.
Price-
Initially they distributed formula as a free sample through hospitals and doctors, once baby get
adjusted with taste, then they stopped free samples.
The infant formula is too costly, it’s difficult for the poor women of the developing country to
afford or to buy it.
Place- Where they are distributing
Less economically developed countries.
Promotion (Advertising): The Company was severely condemned by health agencies around the
world for its marketing of infant formula in developing countries, by conveying the message that the
formula was better for babies than mothers' milk.

2. To promote the product- The Company also seen to distribute free samples only where it had a
competitor in the infant foods market.
Consequences of unethical Marketing practices:
The Nestlé boycott is a boycott launched on July 7, 1977, in the United States against the Swiss-
based Nestlé corporation. It spread quickly throughout the United States, and expanded into
Europe in the early 1980s. In Canada, the controversy lasted from 1978 to 1984.
It was prompted by concern about the Nestle's promotion of breast milk substitutes (infant
formula), particularly in less economically developed countries (LEDCs), which campaigners
claim contributes to the unnecessary suffering and even deaths of babies, largely among the poor.
Among the campaigners, Professor Derek Jelliffe and his wife Patrice, who contributed to
establish the World Alliance for Breastfeeding Action (WABA), were particularly instrumental
in helping to coordinate the boycott and giving it ample visibility worldwide.
Current status of the boycott
The Nestlé boycott is currently coordinated by the International Nestlé Boycott Committee, the
secretariat for which is the UK group Baby Milk Action. Company practices are monitored by the
International Baby Food Action Network (IBFAN), which consists of more than 200 groups in
over 100 countries