Question

In: Accounting

Nestlé's reputation was damaged when the company was accused of which of the following? Group of...

Nestlé's reputation was damaged when the company was accused of which of the following? Group of answer choices forcing mothers to buy baby formula within days of delivering their babies providing cheap formula to mothers in developing countries, but more expensive to mothers in developed countries selling poor quality bottled water to developing countries promoting inadequate nutrition in developing countries

Solutions

Expert Solution

Nestle during 1990's was involved in the famous controversy for promoting baby formula food. The Company had pushed their baby formula food in less developed countries and targeted the poor section of the peoples. They promoted that their infant formula was equal to the mother's milk which was against the WHO's guidelines.

Now lets see each option in the question-:

option (a) Incorrect, as the Company was not forcing to purchase their infant formula within weeks.

option (b) Correct, as explained above the company was promoting inadequate nutrition in developing countries. Due to their unethical marketing campaign, babies were prone to more diseases such as diarrhea.

option (c) Incorrect, as this product was divided on the basis of quality.

option (d) Incorrect. Nestle was not into selling of bottled water to developing countries.

So option (b) is the correct answer.

(B). promoting inadequate nutrition in developing countries


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