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Nestle Company Analysis - Essay Example

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This essay "Nestle Company Analysis" presents Nestle sets into motion ethical standards in the company’s daily business activities. The research shows Nestle Company’s effective implementation of ethical standards. The research shows the importance of implementing all ethical concepts…
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Nestle Company Analysis
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? Nestle Company April 27, Introduction Nestle implements ethical standards in the day to day business operations. The research delves on ethical standards implemented by Nestle Company. The research delves on importance of compliance with all ethics benchmarks. Nestle successfully implements all ethical policies. Critical discussion of the importance of business ethics Nestle is very serious in the implementation of the communities’ prescribed business ethics standards (Stevens, 2009). Admittedly, all companies are set up to generate revenues. Without revenues, the companies, especially Nestle Company, will be forced to close shop. Closing up equates to filing a bankruptcy proceeding in the courts of law. The company complies with all health ethics and other community ethics standards. Likewise, Nestle Company does not reduce its current zeal to propagate the importance of implementing the ethical standard with the company’s territorial boundaries. The company sells products that will aid in the enhancement of the current and future customers’ health. The company also accepts and adheres to the current and future customers’ rights to receive valid and relevant information that will lead to the increased safety of all parties concerned. The parties include all stakeholders of the Nestle Company. The stakeholders include the customers of Nestle Company. The stakeholders include the managers of Nestle Company. The stakeholders include the company’s investors. The stakeholders include the Nestle Company’s creditors. The stakeholders should also include the current and future customers. Without the customers, the Nestle Company may not be able to generate as much sales as when there was an abundance of current and future customers (Stevens, 2009). In one situation, the customers were disheartened by the unfavourable side effects of patronising the Nestle products. Consequently, the company must not prioritise increasing revenues alone, at the expense of the customers’ sufferings. Nestle Company complies with the ethical standards of the community. The company’s milk and other food products contribute significantly to healthy individuals. The main goal of the company is to produce product that meet the current and future customers’ desire to become healthy (Stevens, 2009). By taking the Nestle products, the current and future customers will have better health conditions. With the Nestle products being distributed to the public, more people are able to buy the hard to find Nestle food products. Consequently, the Nestle Company’s 2008 financial reports indicate that the company was able to generate an estimated three percent growth rate. Further, the favourable growth rate occurred when the company sold products in the global health market segment. The same favourable growth rate arose when the company sold its popular branded products in the global wellness market segment. Likewise, the Nestle Company created an innovation of the marketing activities within the factory production process in order to maximize net profits. The company’s capacity to effectively respond to any external and internal factors of business threats can be easily rehabilitated. The Nestle Company’s marketing strategy includes the ethical selling of added value Nestle products (Stevens, 2009). Further, Nestle places primary importance on incorporation of business ethics. For example, Nestle was instrumental in the implementation of ethical standards. During the 1970s, Nestle introduced business ethics in the marketing and distribution of infant formula. The Nestle’s implementation of ethical standards was done during the selling of the infant milk formula in the third world market segments (Boyd, 2012). During the same time period, the Nestle Company spearheaded the boycott of milk food and other related products branded as established violating business ethics policies. During the Nestle boycott of ethically wanting food products, Nestle recommended the filing of charges against the erring officers of the unethical companies. The unethical standards issue precipitated to the filing of criminal cases during the 1980s. As expected, Nestle was instrumental in the penalizing of the erring company officers (Boyd, 2012). Additionally, business leaders of ethically compliant organizations like Nestle continue to instill love, forgiveness and trust among its line and staff employees. The three characteristics are needed to ensure the entire work force implements the community’s established ethical standards (Caldwell, 2010). The stakeholders of Nestle and other companies must help in the designing and implementation of the community’s ethical policies. One such ethical policy is the popular and compulsory Occupational Safety and Health (OSH) ethical policies. An estimated 30 companies had initially approved the implementation of the Occupational Safety and Health policies. The companies agreed that compliance with the ethical policies equates to compliance with the company’s established corporate social responsibilities (Tulder, 2009). Further, one such ethical policy applied by Nestle and other global companies is to comply with the Muslim faith’s policies of avoiding pork –based food products. Forcing the Muslim citizens to eat Pork may infuriate the current and future customers. When this happens, the repercussions of the unethical policies may include the filing of religious freedom-related charges against the ethically noncompliant companies. The research indicates that the Muslim target market is one portion of a total five portions of current and future global customers (Tulder, 2009). Furthermore, the Muslim religion is recognized as one of the fastest growing religions in the world. With the increasing Muslim population, the companies’ desire to penetrate the global Muslim market segment learns to adapt to Muslim marketing strategies. In terms of global marketing strategies, there are an estimated 58 countries listed as members of the Organisation of Islamic Conference or OIC. To sell to the global target market, the companies, including Nestle, sell Halal products. Halal products are the pork-free food products. The 2010 global Halal food market reached an estimated US $ 671 billion (Baker, 2010). Additionally, the impact of Nestle’s business ethics policies contributed to the increased demand for the Nestle products. Nestle’s with the communities’ ethical policies may lead to the implementation of the companies’ corporate social responsibility processes. Corporate social responsibility means that all companies are required to fulfill their responsibilities. The responsibilities include compliance with the communities’ social responsibilities. This means that the corporations are focusing on creating an average impression on the global citizens that the company eagerly implements all ethics policies. Some companies even go deeper. The companies hire publicity officers. The publicity officers’ main task is to create a healthy and ethically friendly impression of the company. The publicity officers create communications and other marketing strategie. The publicity officer’s moves are calculated to create and retain a favourable impression on the public officers (Benn, 2010). In terms of Halal marketing, there are different Halal product types. One brand is the Inbound type. One type is the True Islamic brand. Another type is the Traditional Islamic brand. A fourth type is the outbound islamic brand (Benn, 2010). To increase its global revenues, the company creates a good public relations activity. The public relations activities focus on creating and maintain a favourable image of the company. The companies, like Nestle, hire a public relations firm to enhance the companies’ current market value image. By complying with the companies’ public relationship marketing strategies, the companies, including Nestle, are complying with preset corporate socially responsibilities. (Benn, 2010) Further, corporate social responsibilities include focusing on the ethical needs of the current and future customers, less on what the company’s investors, managers, and board of directors prefer. The typical company’s corporate social responsibilities include economic responsibilities. Another corporate social responsibility is called the legal responsibilities. The third type of corporate social responsibility is the ethical responsibilities. A fourth type of corporate social responsibilities is called the philanthropic responsibilities (Dorfman, 2012). Furthermore, the companies’ customer-based corporate social responsibilities include caring for current and future customers’ health prerogatives. One of the ethics-based responsibilities is to include the ingredients on the package information. The information will indicate the presence and quantity of the ingredients. For the companies’ diabetic patients, information on the products’ sugar quantities will help the current and future customers decide whether to buy the sugar-based productions. For the hypertension-diagnosed current and future customers, the information on the salt content of the products will help the current and future customers determine whether to use the products. For the companies’ current and future asthmatic customers, information indicating the presence of certain asthma-inducing ingredients will warn the target customers to avoid the asthma-triggering products (Dorfman, 2012). Environmental Analysis The Nestle Company’s environmental analysis shows that the internal and external factors, especially the stakeholders, acknowledges, values, and manages established business ethics in a very effective fashion (Dorfman, 2012). In terms of the external factors, the community issues ethical standards. Companies like Nestle Company implements the community’s approved ethical standards. In terms of the internal factors, the company’s board of directors may issue ethical standards. Consequently, the company’s line and staff employees are required to comply with all sections of the company’s internally generated ethical standards. Consequently, the implementation of the business ethics policies significantly impacts the stakeholders. With the summary compliance with internally created ethical policies, the company’s current and future customers will increase their demands for the Nestle Company’s food products, especially the milk products. With the company’s adherence to the externally generated ethical policies, there will be an increase in the current and future customers’ Nestle product preferences (Jaffee, 2010). Additionally, Nestle Company’s global branding is pegged on the implementation of responsive corporate social responsibility requisites (Jevons, 2009). Nestle Company’s corporate social responsibility acts include focusing on adapting the corporate social responsibility strategies to the current and future complexity issues. Similarly, the Nestle Company’s corporate social responsibility acts include focusing on incorporating the global organizational ethics standards. Lastly, the same Nestle Company’s corporate social responsibility acts include focusing on adapting the corporate social responsibility strategies to enact communication-based ethical standards. A complete mastery of the three subsets of standards, complexty, communication, and organization, increases the current and future customers’ demands for the Nestle products. Further, the Nestle Company’s global marketing strategy effectively includes compliance with global ethical standards. The World Health Organisation issues its own sets of global ethical standards. The organization is very instrumental in the equal implementation of global health ethics policies. The ethics-based global marketing strategy creates a favourable global food quality image of the company (Stuckler, 2011). Furthermore, the Nestle Company’s corporate social responsibility includes focuses on restoration the companies’ image to one that complies with all ethical standards (Haigh, 2010). The research indicates that the companies’ reduction of marketing strategies that force customers to buy products that that are unethically fit for their diverse human consumption will enhance the public’s image of the companies, especially Nestle Company (Strucker, 2011). To succeed, the company must bolster the ethics-based marketing strategies. To be profitable, the company must minimize marketing strategies that reduce the public’s ethics image of the Nestle Company. The organization –public relationship must be managed well in order for the public to continue patronizing the company’s products, especially Nestle company’s products and after sales services. The Nestle Company transcends all barriers to impressing on the company’s current and future customers that the company is serious in implementing all community ethics requirements (Strucker, 2011). Moreover, Nestle Company must teach its line and staff employees to eagerly change their current work attitudes. The work attitudes include incorporating all ethical standards to the current work environment. To do so, the company conducts seminars to retrain the current and future Nestle Company employees. To do so, the company explains the many benefits of implementing the company’s prescribed ethical standards. The seminars will help answer the opposing employees’ questions on why ethics must be implemented (McDonald, 2010). Further, corporate social responsibility entails responsive research. Some companies use the title, Terms of Reference, to help the current and future customers understand the contents of the Nestle Products and services. The Nestle corporate social responsibility acts include compliance with all human rights policies. The Nestle corporate social responsibility entails adhering to the employment ethics requirements of the state. It is not enough just state that Nestle and other companies are complying with the ethics standards. The ethical standards include all ethical requirements in each supply chain transaction. The transactions must comply with the companies’ supply chain requirements (Altschuller, 2011). By complying with all ethical requirements, Nestle Company continues to retain a favourable public relations leadership image within all the global target markets. The institutional factors significantly contribute to Nestle Company’s the implementation of the company’s corporate social responsibilities. The communities’ institutions play an important role in persuading the Nestle Company officers to comply with the community’s ethical policies. With the voluntary adoption of the community’s ethical standards, the company’s employees are required to revise their current work procedures. The new corporate social responsibility tenets require that the Nestle and other companies should enthusiastically obey all ethical standards that had been approved by the community’s political leaders (Nikolaeva, 2011). Further, the corporate social responsibilities of Nestle Company include implementation of the global market place ethics. Setting up a branch in China entails compliance with China’s ethical standards established by the China government. Putting another strategic branch in Japan entails compliance with the Japanese government’s ethical standards established by the China government. Corporate social responsibility should be implemented in areas allowed by the state. If the state’s ethical standards are based on the unique demands for the company’s farm –based products. With an all natural ingredients, the current and future customers are assured that the company’s displayed products are safe for human consumption (Nikolaeva, 2011). Consequently, the line and staff employees of companies like Nestle are reassured that the company’s products are safe to grab and implement. The safety benefits of the products contribute to the company’s compliance with the established social awareness topics of ethics (Camplin, 2011). Safety means allocating budgets to improving the current safety conditions of the company. Nestle ensures that the employees are physically healthy. Additionally, the company takes up time and energy to keep the employees safe from work environment hazards. The workplace is filled with tools that help reduce accidents in the workplace. The employees are trained to implement safe working procedures. The employees are trained to work slowly but surely as they embark on combining the different ingredients to make a completed Nestle Company completed product. A safe Nestle work environment indicates that the company is seriously implementing is corporate social responsibility to protect one major scarce business resource, employees. The employees regularly attend safety at work seminars. The seminars convince the employees to do their best to reduce workplace accidents. During the regular safety seminars, the employees are cautioned to avoid rushing their current job production activities. Some employees rush their job activities in order to generate a high production output performance. Some employees generate high production output performances in order to give an impression on management that they are top performers (Duffy, 2013). As top performers, the employees hope to get benefits. One of the benefits is salary increases. Another benefit is receiving rewards for a splendid production output performance. A third reward is to receive citations for generating high production outputs in one operations period. Another possible benefit of generating high production performances is to receive cash incentives or bonuses. Lastly, the best benefit for above average factory production output performance is promotion. With promotion, the top producing employees receive automatic salary increases (Duffy, 2013). Likewise, other companies grant other bonuses and benefits to top performing employees. The additional benefits include a company car, a housing plan, travel allowances, and other fringe benefits. However, safety must form part of production performance benchmarks. With safe working environment the company creates a long term economic value. In the same manner, implementing safety policies in the workplace contributes to social value uplifting among the Nestle Company stakeholders (Leavy, 2012). However, with the implementation of the safety first company policy, the employees are cautioned to prioritized safety at work over increasing the quantity of items accomplished in one work day. The employees are cautioned to reduce their work speeds in order to be able to work for another day. The employees are persuaded to implement safety procedures in the work environment. The employees are warned of the unfavourable effects of rushing each job unnecessarily. When the employee’s accident results to a fractured finger, the employee may not be able to use one hand for several months (Leavy, 2012). When this happens, the employees’ future factory production output will suffer. Suffering includes factory production output reduction. Suffering includes the possibility of being retrenched from work because the injury may prevent the injured employees from continuing their current jobs. An employee who meets an accident may not have a foot amputated. When this happens, the employee may not be able to work for several months while recuperating from the food surgery. When the employees’ recovery is full, the employee returns to work (Leavy, 2012). However, the employees’ lack of one good foot may hinder the employee from generating the same quantity of production output. With lackluster quantity output production, the company may be forced to retrench the injured employee. The company is established to generate profits. Continuing to hire the services of an employee who does not meet the daily factory production quantity requirements may be forced to replace the injured employee with a new employee. The new employee will have complete body parts. With complete body parts, the new employee is expected to generate more factory production outputs compared to the employee whose leg is amputated because of a prior workplace accident (Leavy, 2012). Further, the Nestle Company’s need to be compliant with ethical standards is understandable. With the advent of information technology, stakeholders from any corner of the world can easily determine the ethical policies and procedures of the companies. Stakeholders who discover that the company continues to violate the ethical standards of the community may not look positively on the company, especially Nestle Company. When they discover the ethical violations exist and persist, most of the stakeholders may decide to withdraw their investments from the company. In terms of the employees, the employees who are disheartened by the ethical violations in the workplace may decide to resign from the company. The disheartened employee may be forced to apply for a similar job in the competitor’s human resource department (Polonsky, 2009). Critical evaluation of the Challenges of business ethics There are challenges posed by business ethics on the organization. Implementing ethics entails money. Compliance with the community’s ethics requirements requires redirecting fixed project funds to implementing the safety and other ethical standards. By refocusing the scarce money and other asset resource to implementing the required ethical requirements, the company’s net profits will decline. With the net profits decline, there is possible danger that the implementation of the ethical requirements may translate to avoidable net loss operating performance. When this happens, most of the stakeholders may shy away from the company. Accounting concepts reveal the stakeholders look negatively on companies that do not implement ethical standards. With a major and continuing violation of established ethical standards, the stakeholders may decide to withdraw their money and other interests from the company, including Nestle (Polonsky, 2009). When one group of the stakeholders, investors, is disillusioned by the company’s rampant violations of the communities’ ethics policies, the investors may withdraw their money from the company. The same disillusioned investors may redirect their investment in other companies. The investors may invest their withdrawn Nestle Company investments in the competitors’ stocks. When the investors withdraw their money from Nestle Company, the company will have lesser cash amounts. With lesser cash amounts, the company’s expansion to new countries/locations will decline. With lesser cash amounts, the company’s investment priorities may also decline to unfavourable levels (Polonsky, 2009) There are challenges posed by business ethics on the stakeholders. The stakeholders may not like their investment priorities to include postponing the implementation of ethical policies. For example, the customer’s feelings indicating the company violated certain established ethical standards may lead to the customer’s requiring the company to comply with the established ethics standards within the soonest possible time (Polonsky, 2009). Recommendations The company should continue to comply with all ethical standards. The company must prioritise compliance with ethical standards than generating profits. The company must continue to sell health drinks to the global market. With the health drinks, the sick person can easily bounce back the current and future customers’ former healthy self (Leavy, 2012). Further, the company must hold seminars to persuade the company’s current and future employees to eagerly comply with all company instructions. /The safety and ethics seminars with hone the line and staff employees to conserve energy. The seminars will train the employees to implement the prescribed work safety standards. Likewise, compliance with the standards will create a favourable image of the Nestle Company (Leavy, 2012). Additionally, the Nestle Company allocates a budget for the implementation of safe working conditions. A safe work condition reduces accidents in the workplace, with safe working conditions. The company’s net profit figure is lessened. However, continuing to generate high net profits may be at the expense of the company’s safety policies. Since there is a high probability that the Nestle work environment is safe, the chances of workplace accidents are favourably reduced (Leavy, 2012). Conclusion The Nestle Company effectively and efficiently implements the key theories and practices around business ethics. The company does not sell products that will be detrimental to the health of the current and future Nestle customers. The company continues to implement safe working conditions. With the safe working conditions, the probability of accidents cropping up unexpectedly is reduced to allowable levels. Similarly, the Nestle Company is able to implement the safety and health ethical requirements to the Nestle workplace. Further, the company’s food products comply with all health ethics requirements. The current and future customers’ eagerly buy the Nestle products. The current and future customers have learned to trust the food quality and taste of Nestle food products. The Nestle Company’s compliance with workplace safety and food safety requirements ensure the current and future customers will continue to buy the Nestle products. The best solution is to implement an ethics-based marketing and management strategy. Nestle sets into motion ethical standards in the company’s daily business activities. The research shows Nestle Company’s effective implementation of ethical standards. The research shows the importance of implementing all ethical concepts and benchmarks. Evidently, Nestle Company profitably implements all ethical policies, generating high approval ratings from current and future global stakeholders. References: Altschuller, S. 2011, Corporate Social Responsibility, The International Lawyer, 45(1), 179-189. Baker, A. 2010, On Islamic Branding: Brands as Good Deeds, Journal of Islamic Marketing, 1(2), 101-106. Benn, S. 2010, Public Relation Leadership in Corporate Social Responsibility, Journal of Business Ethics, 96(3), 403-423. Boyd, C. 2012, The Nestle Infant Formula Controversy and a Strange Web of Subsequent Business Scandals, Journal of Business Ethics, 106(3), 283-293. Caldwell, C. 2010, Love, Forgiveness, and Trust: Critical Values of the Modern Leader, Journal of Business Ethics, 93(1), 91-101. Camplin, J. 2011, Aligning Safety and Social Responsibility, Professional Safety, 56(5), 46-55. Dorfman, L. 2012, Soda and Tobacco Industry Corporate Social Responsibility Campaigns, PLos Medicine, 9(6), 1241. Duffy, M. 2013, Shifts in Corporate Accountability Reflected in Socially Responsible Reporting, Journal of Management, 19(1), 87-113. Haigh, M. 2010, Examining How Image Restoration Strategy Impacts Perceptions of Corporate Social Responsibility, Corporate Communications, 15(4), 453-468. Jaffee, D. 2010, Fair Trade Standards, Corporate Participation and Social Movement Responses, Journal of Business Ethics, 92(1), 267-285. Jevons, C. 2009, Global Branding and Strategic Corporate Social Responsbility, International Marketing Review, 26(3), 327-347. Leavy, B. 2012, Getting back to What Mattes- Creating Long Term Economic and Social Value, Strategy and Leadership, 40(4), 12-20. McDonald, P. 2010, Teaching the Concept of Management, Journal of Management and Organisation, 16(5), 626-640. Nikolaeva, R. 2011, The Role of Institutional and Reputational Factors in the Voluntary Adoption of Corporate Social Responsibility, Academy of Marketing, 136-157. Polonsky, M. 2009, Global Branding and Strategic CSR, International Marketing Review, 26(3), 327-347. Stevens, S. (2009). Nestle Milo. Australiasian Accounting Business & Finance Journal, 3(3), 8-11. Stuckler, D. (2011). Global Health Philanthropy and Institutional Relationships. PloS Medicine, 8(4), 1020. Tulder, R. (2009). From Chain Liability to Chain Responsibility. Journal of Business Ethics, 85(1), 399-412. Read More
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