Question

IV. Briefly discuss one or two past or present ethical issues related to Nestlé. Then provide potential solutions on how management should resolve these problems. (A few good sources: item 3 – legal proceeding in your firm’s 10k, your firm’s website & news articles about your firm).

Answer 1

Nestle SA is a world famous Switzerland based Food Company. Nestle is a very good company and produces world class food and drinks item. In the category of Food items the famous product of the Nestle are Noodles (Maggie), Chocolates etc.

Coffee or Nestle coffee was one of the famous drink produced by Nestle and is consumed in almost every country.

Maggie is very famous in India. Every person either younger, elder, women, men, child everyone likes Maggie in India. In India it is also known as by the name Two-Minutes noodles. Everyone get shocked when news aired that Indian government has imposed ban on Maggie.

Why ban Impose on Maggie?

Two main reasons for imposing ban on Maggie by Indian government are as follows;

1) MSG

MSG sometimes Monosodium Glutamate. Nestle said that he is not mixing MSG in Maggie but after testing quantity of MSG found in Maggie. Although MSG is used to increase taste but it is dangerous for health. MSG was more than fixed by the food laws

2) Lead

Lead was also found much higher in Maggie by government officials.

The above two are the main reason for Nestle Maggie issue. Indian government food organization which maintains standard and safety in food FSSAI (Food Safety and Standard of India) imposed ban in 2015 and issued order to nestle to immediately remove their Maggie from the Indian market. This brings anger to the consumers and consumers protest against Nestle Maggie in many part of the country.

What management does in this situation?

Well they tried to convenes government as well as consumers that they are not mixing MSG and Lead on high amount but nothing happens then they came in the court for legal fight. In a test it is found that Maggie contain 17.2ppm (Parts per million) whereas FASSI fixed only 2.5ppm MSG in Maggie.

After fighting 8 months long legal fight finally Nestle got success and after 8 months ban has removed from the Maggie and they also got success to remove confusion among customer and again they launch their Maggie with new taste and packing. Many articles published in newspaper regarding Nestle controversy.